World Cup to inject R55bil into economy

Thursday, November 26, 2009
By: 
Nthambeleni Gabara

Johannesburg - The 2010 FIFA World Cup is expected to inject R55 billion into the domestic economy, according to the Deputy Minister of Water and Environmental Affairs, Rejoice Mabudafhasi.

The deputy minister said the Grant Thorn auditing firm, who had conducted the original economic impact assessment for South Africa hosting the World Cup, had found that not only would the event inject R55 billion into the domestic economy, but also create an estimated 415 000 new jobs.

"Moreover, the country's Gross Domestic Product (GDP) will be boosted by R33 billion in direct spending on stadiums and infrastructure, while soccer fanatics will spend some R8 billion and tickets sales will generate R6 billion," she said.

The auditing firm had also found that the government would rake in about R19 billion in tax revenue.

"Given the scenario ... it is an event of significant and far-reaching economic impact," said Mabudafhasi.

She was speaking during the launch of the Green Goal 2010 programme, as a demonstration and contribution to efforts to raise awareness, minimise waste, diversify and use energy efficiently, utilise water sparingly, minimise and compensate carbon footprint.

The programme will be implemented in all the ten host cities.

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