What the World Cup means to the Investor

Today’s Business Day reported that Moody’s predicted a 2% growth in the South African economy next year.



The report also said the “SA’s economy was unlikely to show vigorous growth until the global recovery was more entrenched, which would probably happen in the second half of next year”. Next year sees the hosting of the Soccer World Cup.


The central question is, “What will the World cup mean to the Investor interested in developing a business in South Africa”. I am sure that many investors are pondering on where and when to invest and if South Africa offers the type of returns that are required?


The value of the World Cup lies not in the actual event but in the aftermath of the event. Thousands of people will be flocking to South Africa and to neighbouring countries. They will be dining in the local restaurants, shopping in the local malls, staying in the hotels and generally experiencing the life on offer to the tourist. There will be TV coverage and the world press will write volumes about the event.


It is when the dust has settled and the fans have gone home that the wise investor will have identified the potential in transport systems, retail, communication, tourism, business translocation, international trade, property and agriculture to mention but a few. It is the wise investor who will make it a priority to learn more of the investment potential of South Africa and act on this information with a view to profitable investment in Southern Africa.