Thursday, October 1, 2020

World Cup spin offs may take time to arrive

Other southern African countries other than South Africa are not likely to realize any economic spin-offs from the just ended World Cup until after five years.

“Nobody really expects investments made during the World Cup to show a positive return in the same year. We may have to wait for between two and five years,”┬ásaid Tony Twine, a senior economist at South African company Econometrix.

Twine said it is unfortunate that the host, South Africa, is the only SADC country that had a team in the World Cup.

“Other SADC countries may have impressed visitors as they travelled around the region. If demand for goods increases, South African suppliers may source them from neighbouring countries. But tourism cannot be re-exported, so there is a potential┬áfor direct benefit in the future for all the SADC countries,” said Twine.

With the average economic growth for Africa currently forecast at around 5.5 percent for 2010, and given that the South African economy is likely to grow by around 3 percent, all other growth contributors could enjoy significantly large real growth rates of above 4% this year.
Twine said the SADC region is set to attract foreign investment.

“Increased familiarity by investor nations created by the tournament cannot do any harm,” he said.
He added that there is deep ignorance of what SADC is all about.

“The thought that lions run through the streets of Windhoek, Lusaka and Johannesburg really does flourish in some countries.┬á Images of South Africa and its neighbours may have helped to dispel some of these misconceptions. We need to build good news stories to be able to attract foreign investment,” said Twine.

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