If South Africa wins the bid to host the 2010 Soccer World Cup, ”major economic spin-offs can be anticipated,” Absa said on Friday.
In a media statement Absa economist John Loos said: ”One can expect some immediate support for the rand with markets anticipating a flood of investment into South Africa.
”Winning the bid will be positive for the economy in investment in sporting infrastructure; investment in the country’s transport and accommodation infrastructure by both the private sector and government; and a certain degree of skills transfer to those local individuals and companies who will directly or indirectly be involved in the showpiece event of the world’s sport with arguably the biggest support.”
But, Loos said there would be a greater economic significance to winning the bid than merely the direct investment and job creation spin-offs.
”The event itself, in 2010, will come and go, and the direct employment and investment benefits that it creates will disappear thereafter. But it is a fact that economies greatly depend on confidence — confidence of people within and outside the country.
”Confidence drives business decision and therefore growth,” Loos said.
If South Africa lost the bid, it would not be a bad reflection on the country’s ability to host the event.
”Rather it will teach us that geographical isolation from major world centres can be a drawback in attracting interest in our economy, even when trying to host something as harmless as a sporting event.
”For the time being, though, let’s not ponder this possibility,” Loos said. – Sapa