Address to the Progressive Business Forum

14 November 2006

South Africa and the 2010 World Cup Gert Oosthuizen

When FIFA decided in 2001 that the 2010 World Cup should be held for the first time on African soil, the continent rejoiced, not only for the love of the game, but also knowing that it would help make this a century of African growth and development.

Our government saw in the opportunity to host the Football World cup a whole range of benefits for South Africa and the African continent. In anticipation of such positive spin offs our President dubbed the 2010 World Cup an African World Cup. The notion of an African World Cup captured the imagination of FIFA, the African countries and our fellow Africans in the diaspora. The notion of an African World Cup has been well received by most South Africans. Especially young people.

2010 also brings a unique opportunity to ensure that the world learns more about the strengths and opportunities of a country and continent undergoing far-reaching reconstructions and development.

We believe that by hosting the 2010 World Cup affords us the biggest opportunity to banish Afro-pessimism. By hosting the biggest event in the world; will go a long way in strengthening our bond as one nation. It will also boost our image among the nations of the world. Although we do not intend to replicate Germany 2006 or to compete with the Germans, we firmly believe that the same spirit of national pride we saw and experienced in Germany can be achieved in South Africa. This is, if we work together with a unity of purpose.

In 1996, President Mbeki captured Parliament and the World when he delivered the speech where he declared: " I am an African...". That speech, I am an African, is simply indelible on the mind. I am, an African, the African Renaissance, NEPAD and African World Cup 2010 seems to fit into one another. They give us as Africans a rare opportunity to look into the Presidents' logical, systematic and brilliant mindset.

This characteristic of being an African engenders caring, compassion and sharing. It gives birth to the moral order of empathy, helping others and having feelings for them.

The joys of others become the joys of the individual. The shame of the individual becomes the shame of others in that community. In a nutshell, this is UBUNTU, a philosophy of the collective; of the community as opposed to individualism.

The 2010 FIFA World Cup in South Africa, has been marketed to be intended as an African World Cup. So the preparations for this tournament, it's hosting and long thereafter must bequeath to our people and our nation a legacy we all can be proud of.

Hosting the 2010 World Cup; we believe; provides our government with a golden opportunity to boost our tourism and sports tourism industry. It will push our economic development to a higher notch. The tournament assists us to address the infrastructure backlogs we have in our roads, transport, sports facilities, telecommunication and broadcasting networks. Our electricity and water needs will be upgraded and receive a great boost. In a nutshell, hosting the 2010 World Cup will fast track the attainment of some elements of the 2014 Millennium Development Goals and of ASGISA.

In 2010, thirty one (31) countries will converge in South Africa. In terms of languages, followers of the national team will exceed the 32 competitors (South Africa being the 32nd nation). This affords an immense opportunity for our young people to learn foreign languages. This, together with the skills they must be trained in will improve the skills base of our young people. It will also expose them to other cultures and teach them to respect diversity even more. 2010 will help us fight xenophobia and to unite the African people.

Social services like disaster management, public health services, safety and security are already advanced in their plans for 2010. These services will be accessible to our people before and long after 2010.

I am articulating some of the issues that our government took into account when we supported SAFA's bid to host the World Cup. We were acutely aware of what the preparations would contribute to our broad plans for transformation and development. We are also alert to the contribution that this programme will make towards social cohesion and nation building.

The challenge for us as South Africans is to make the best of the opportunities offered by hosting 2010.

On Friday, 25 August 2006, the 2010 FIFA World Cup South Africa Special Measure's Bill's (75 & 76) were unanimously adopted by Parliament.

These Bills facilitate the hosting and staging of the 2010 FIFA World Cup in South Africa in accordance with the Organising Association Agreement between FIFA and SAFA and the guarantees issued by our Government to FIFA.

Since June 2004 both SAFA and our government have been involved in discussions on the List of requirements for hosting the World Cup.

A number of Departments have been involved in these discussions. As such, the Bill traverses a number of functions that belong to other Departments than Sport and Recreation South Africa. In fact, this Bill is one of the very keys to whether or not FIFA should continue entrusting us with their World Cup 2010. So far FIFA is very pleased with our preparations. They are pleased not as observers but as participants in all our local Organising Committee (LOC) meetings.

On 24 October President Mbeki opened the Kick-off Workshop for the 2010 World Cup in Cape Town. Addressing representatives from the South African Government, stadium operators, commercial partners, the South African Local Organizing Committee (SAOC) and FIFA, President Mbeki stated: "May the fairest Cape inspire all of us to bring hope in 2010 to millions across the world, utilizing the fairest game of them all, football, so that FIFA, Africa and the entire global football family do indeed 'Win in Africa with Africa'. 2010 provides South Africa with a golden opportunity. It is kick-off time for real, hard work to make the 2010 FIFA World Cup a success."

The plenary session included presentations by the Minister of Transport, Jeff Radebe, the Minister of Safety and Security, Charles Nqakula and the Deputy Minister of Finance, Jabu Moleketi, who combined to comprehensively demonstrate the South African Government's unflinching commitment to delivering a magnificent and memorable FIFA World Cup in 2010.

Nqakula reassured the delegation that: "We have the capacity and ability to protect the 2010 World Cup and to create the necessary conditions for safety and security of the entire FIFA family."

Speaking in representation of FIFA President Joseph Blatter, Dr Amos Adamu, member of the FIFA Executive Committee, is convinced that the Rainbow Nation will be up to the task: "Come 2010, the world will salute South Africa for having made the most important single-sport event a success."

The final day of the workshop was interrupted with the highly anticipated mid-term budget speech by Minister Trevor Manuel. He announced the government's amended budget, which includes R15 Billion towards the FIFA World Cup in Africa.

The money is earmarked for projects related to hosting the event, including 8.4 billion on stadium construction and upgrades. The remaining 6.6 billion will be spent on improving infrastructure.

So, to those prophets of doom who thought that we are dragging our feet, that we are not ready and that we may miss out on 2010 - sorry to disappoint you! WE ARE READY to deliver the best FIFA World Cup ever in 2010.

I want to turn to 2010 and the Prospects for Business in South Africa. Government, the LOC and FIFA are sensitive to the notion that 2010 must contribute to ASGISA.

What we do know at this early stage is that:

  1. The Event 2010 will have;
  2. The estimated economic impact of 2010 is;
  3. The contribution by FIFA is;

The LOC has agreed that one third of procurement for 2010 will be from SMME's. The host cities and the DTI are also committed to this agreement.

The obvious areas where activity is scaling up and where there are lots of opportunities are; Government commitment in infrastructure at all three spheres; let us name them;

  1. Match Venues - The Rand value of building and upgrading stadiums will total R8.4 billion.
  2. Training Venues - Final Rand value being worked out, but upward of R1 billion in upgrades.
  3. Transport Infrastructure - All modes in all 10 Host Cities. Roads, rail, air travel. +- R3.7 billion.
  4. Municipal Service upgrades - Water, sanitation, electricity reticulation, solid waste management. +- R3 billion.
  5. Beautification of the Cities' environment.
  6. Preparation of Public Viewing Areas.
  7. Telecommunications & Broadcast - Conversion from analogue to digital equipment, cell phones and international broadcast.

The LOC will also create opportunities when they procure for the 2010 tournament and related events; it is obvious that hospitality, catering, Human resources recruitment and training and security will be areas where they will use SMME's. This is agreed on!

The FIFA Global Partners will need South African Retailers and distributors for their merchandise. Before you say, but those are the Big Boys, let me remind you that there are three categories of FIFA Partners:

  1. The FIFA Partners we know, but even they may need a SMME to distribute e.g. Budweiser Beer.
  2. The second Category of FIFA World Cup Sponsors; will be coming forward soon. We know MTN is one of them;
  3. The third tier, the National Supporter; of which FNB is one, will also emerge. Although we don't know who all the second and third tier partners will be, my sense is that they will need local businesses and partners. This will be one of the issues we hope to further unpack with FIFA.

One of the measures undertaken by our Government in the last two years was to closely study international best practice on extending the benefits of hosting mega sports events. We had fact-finding missions and observer teams to share experiences with;

As recently as 15 August 2006, we had speakers from Germany and Spain sharing with a cross section of government, business, media and community stakeholders, how best to generate sustainable business benefits from hosting mega events. Germany for example undertook a country branding and promotion campaign called "Land of Ideas". From this basis they marketed their country's arts and culture, their industrial research and business opportunities.

They undertook the marketing well before the Tournament and today the Germans say that they are surprised at the success they achieved in their 15-month campaign.

South Africa has set up a similar initiative more than four years ahead of our own hosting opportunity. Our aim is to leverage all the milestones towards 2010. We want worldwide exposure in the preliminary 2010 draw, which takes place in 2007. The next event will be the 2008 inspection visits and the 2010-qualifying tournament. The 2009 Confederations Cup, which is the effective test run of 2010, is the next opportunity. 2010 itself sees the FIFA Congress, the Opening Ceremony, the Opening Game and the play-offs. All this, creates the atmosphere for us to market ourselves, to attract more investments, to network and to actively market our campaign: "South Africa, Alive with Possibility".

The 2010 FIFA World Cup must leave behind a South Africa and Africa that is better than what we have now. Both, the Millennium Development Goals and the National Development Plans must guide what we do, United in our Diversity.

Hosting the FIFA World Cup may never be afforded to South Africa in the lifetime of most of us. Let us, as partners shoulder together to unlock the true potential of "South Africa, Alive with Possibility." :

President Mbeki: "Win in Africa with Africa"

We cannot fail - AFRIKA KE NAKO - AFRICA'S TIME HAS COME!

Together, United in Our Diversity; we shall deliver the best FIFA World Cup in 2010.

GERT OOSTHUIZEN IS AN ANC MEMBER OF PARLIAMENT AND DEPUTY MINISTER OF SPORT AND RECREATION.