South Africa and the World Cup: the booster’s view

There are undoubtedly economic – and political benefits – for South Africa in hosting the World Cup.  It is also possible to exaggerate the benefits and there are some downsides.   For example, an admittedly beautiful and superbly located new stadium has been constructed in Cape Town at well over budget.  What will its legacy use be?   The local football team attracts average attendances of around 3,000.   The local rugby team attracts around 40,000 spectators, but they already have their own ground and are reluctant to change to renting.

There are undoubtedly economic – and political benefits – for South Africa in hosting the World Cup.  It is also possible to exaggerate the benefits and there are some downsides.   For example, an admittedly beautiful and superbly located new stadium has been constructed in Cape Town at well over budget.  What will its legacy use be?   The local football team attracts average attendances of around 3,000.   The local rugby team attracts around 40,000 spectators, but they already have their own ground and are reluctant to change to renting.


However, let’s look at the booster’s view before providing a more rounded analysis in later articles.  According to a press statement from Deloitte,  visitors to the World Cup are witnessing a South Africa that continues to emerge as a competitive 21st century economy. As outlined in Deloitte’s paper 2010 FIFA World Cup. A Turning Point for South Africa, South Africa is reaping the rewards of hosting the Cup, including infrastructure improvements, an economic boost, and an increase of national pride.

‘South Africa has been likened to a mix of the developed and developing world,”‘said Lwazi Bam, Public Sector Industry Leader, Deloitte Southern Africa. ‘On the one hand, a strong technological and economic base put it on a par with the well-developed nations of the world. On the other, infrastructure shortfalls have contributed to keeping it from realizing its full economic potential. This major global event is a catalyst for much-needed infrastructure improvements.’

The need to move tens of thousands of fans, teams, and accompanying support personnel rapidly from one place to another prioritized the strengthening of South Africa’s transportation system. The country completed much of the first section of its new high speed Gautrain passenger railway and added bus lines. Highways were upgraded and the city of Durban was able to finish the countrys first new green field airport in five decades. These infrastructure projects have increased employment opportunities and provided workers long-term skills and training.

‘South Africa has already realized many of the benefits hoped for by any national host of a major international sporting event,”‘said Greg Pellegrino, Global Public Sector Industry Leader, Deloitte Touche Tohmatsu. ‘The event has provided a boost to national infrastructure improvements, increased employment during the global financial crisis, and provided a unifying rallying point for a still-developing nation.’