South Africans have dreamt of and worked towards the promise of the 2010 World Cup ever since hearing the announcement that it had been awarded to the country. Although some have been sceptical about the ability to ultimately deliver on the promises made to FIFA, few have been able to deny what the planned event promises to do for the economy.
"Whether 2010 happens or not, the legacy of this period of preparation will have to be the frenetic upgrading of everything from stadia through to airports, roads and electrical capacity, and of course, property," says Mike Bester, CEO of Realty1 International Property Group.
"Until very recently, it was considered clear that some of the most optimistic predictions about the event could well be achieved. All over SA, we have been seeing the upgrading of various infrastructure. With the slowing economy, the positivity of the marketplace might have been tempered somewhat but there's no doubt we are already feeling the benefits."
The construction sector is optimistic about the various projects needed for and by 2010, including the R24bn Gautrain project, the R3bn Green Point Stadium, the R21bn Coega aluminium smelter and the R6,8bn allocated to the construction of the new King Shaka International Airport at La Mercy in KwaZulu-Natal.
ACSA plans to spend almost R20bn on airport upgrades and expansions over the next few years to cope with the growth in air passengers, both domestic and international. Total infrastructure spend in SA over the next five years is expected to top R630bn, of which R410bn will come from a public sector scrambling to remedy the backlog in roads, ports, rail and other essential infrastructure.
In Johannesburg, the Ellis Park precinct has been earmarked for revitalisation. The Ellis Park Stadium, earmarked as a semi-final venue for the World Cup, began its R81m upgrade in September 2007 and is expected to be completed by July 2008. At the same time, R2bn has been allocated to upgrading the surrounding suburbs. Regeneration is taking the form of a multi-developmental project, with plans focusing on education, sports and manufacturing across Ellis Park and its neighbouring areas of Doornfontein, Bertrams, Bezuidenhout Valley, Troyeville, Judith's Paarl and Lorentzville. Even Hillbrow's historically dangerous Ponte building has been refurbished and the renovated apartments are selling rapidly.
An on-site specialist letting agent at Cape Town's Century City confirmed that demand for rental accommodation has picked up dramatically and is being fuelled in part by corporate lettings linked to 2010 infrastructure projects.
He said that they had literally been inundated with calls and requests from companies needing to house staff, including international consultants they had brought to Cape Town to work on major infrastructure and other projects linked to the 2010 Soccer World Cup. 30% of lettings done in recent months were furnished apartments for corporates who need to provide accommodation for workers brought in from England, Germany and America, due to the current skills shortage in the construction industry. He said these corporates were taking long leases, many with options to extend.
In Cape Town, reports are that the Sea Point/Green Point area, close to the fast-rising new stadium, is the preferred precinct for a multitude of property enquirers. Cape Town City Manager Achmat Ebrahim said recently that the stadium at Green Point and supporting infrastructure for 2010 are the biggest capital projects Cape Town has ever undertaken. Trafalgar Properties' Inner City Report for 2007 indicated that Cape Town's inner city property sales prices and rentals would be boosted by the R38bn package to build support structures for the 2010 World Cup.
The country's telecommunications structure has benefited already from the conceptualisation of a number of undersea cable projects aimed at providing cheaper international bandwidth, spurred on by the fast-approaching deadline.
"With various upmarket suburbs around South Africa considering 'Smart Village' options that enable security, CCTV, Voice Over IP telephone connections and ultra-fast internet connectivity - all dependent on access to broadband - this is an installation whose benefit will be felt long after the fans leave in 2010," says Bester.
The demand for B&Bs, guesthouses and properties suited to conversion for tourism is also increasing as the countdown to the 2010 Soccer World Cup continues. Promotions company Guest House Accommodation of South Africa (GHASA) said that huge opportunities have been presented by the World Cup for small, medium and micro enterprises in the hospitality industry.
In Durban, continued economic growth and the steady improvement of living and working conditions in the city are on track, eThekwini city manager Dr Michael Sutcliffe said last year.
"This will be accompanied, of course, by job creation and skills transfer – and place many more South Africans in a position to buy their own homes," said Sutcliffe.
Port Elizabeth in the Eastern Cape will be one of the host cities of the Soccer World Cup in 2010. Although the city's development agenda had been somewhat stagnant for several years, the Mandela Bay Development Agency (MBDA) recently unveiled dramatic plans to upgrade and develop 1 039 ha in and around the CBD. These plans include redeveloping the existing Port Elizabeth harbour for non-industrial activities and upgrading the central business district.
And progress is being made towards the various 2010 goals, says Bester, in spite of the current difficult environment. "The Department of Minerals and Energy and Eskom last week guaranteed an uninterrupted supply of electricity to key 2010 FIFA World Cup installations, according to a new state-of-readiness report just released."
On safety and security, the report detailed a Safety and Security Plan which was compiled by the South African Police Services (SAPS) and submitted to the 2010 Inter-Ministerial Committee. The plan entails working with international agencies to gather safety and security information with a focus on border security at ports of entry, including land, sea and air borders. About 31 000 police officers are being trained for deployment for the world cup.
A technical task team will be set up to provide quality medical and emergency services, with representatives drawn from host cities, provinces, private health care providers, professional organisations and the military medical services. The group will focus on areas such as emergency medical service, communicable diseases, environmental health, provision of primary health care and the establishment of command and control points as well as ensuring that accurate information is communicated on matters of health.
The long-term benefits of these initiatives for South Africans is at this stage unquantifiable," says Bester, "but it bodes well for the future of the country and the economy."
And what about the country's poor? FNB spokesperson Xolisa Vapi said on Wednesday that a legacy programme has been launched to construct artificial pitches in four non-hosting cities, aimed at the needy communities.
"The investment in non-host cities aims to ensure that the impact of one of the greatest shows on earth touches the lives of thousands of South Africans, regardless of their economic status and geographic location," said Vapi.
He said grounds had been identified in KwaZulu-Natal, the Eastern Cape and Northern Cape. A fourth one had not been decided on yet. The facilities would cost around R3,5m and discussions were in progress with corporate partners to roll out more facilities throughout the country in the future.
"All this seems very positive, in spite of the recent statement by Mark Mobius of Franklin Templeton Asset Management that South Africa is not getting enough out of the Fifa 2010 World Cup!" says Bester.
Related articles
Readers' Comments
Have a comment or question about this article? Email us now..
What's your home worth?
Want to know what the average home price is in your area? Visit Property Reports and get the latest report on transfers and price movements in your street, suburb or sectional title scheme.
Property News
Click here for more property news articles.
Need a blog?
Start your own blog with a free blog from 24.com.
Print
