News
Pictures
Interactive
Health
World Cup Guide

'2010 won't cut into SA budgets'
11/09/2007 20:30  - (SA)  
 
RELATED ARTICLES
- SA to vote for 2010 poster
- 2010: Countdown to 1 000 days
- Stofile: SA loses 2010 star

Johannesburg - South Africa will not cut social programmes to fund construction of stadiums and other facilities for the 2010 Soccer World Cup, the chief executive of its World Cup organising committee said on Tuesday.

Danny Jordaan told journalists the government would absorb the R17.4bn needed to build and refurbish 10 stadiums as well as other World Cup costs without raiding education and health budgets or other key sectors.

"This event does not come at the expense of social programmes," Jordaan said after he and other officials provided an update on South Africa's preparations to host what will be the first FIFA World Cup played in Africa.

"What this event has done is create jobs," he said, adding that the government expected significant economic and social gains from increased tourism and other spin-offs from the prestigious championship.

Growing pressure

The African National Congress (ANC), which has ruled since apartheid ended in 1994, is under growing pressure to improve delivery of water, electricity and other basic services to millions of poor residents, most of them black.

Thousands of people have taken to the streets of townships and shantytowns to voice anger over poor service delivery and the government's failure to dramatically improve their lives as promised when it took power.

In some cases crowds have attacked and even killed local ANC officials.

The country's World Cup organisers, however, said that the tournament would be a catalyst for economic development, helping to expand South Africa's tax base, build skills among workers and showcase its attractions to investors and tourists.

They expect R9.8bn rand in tourist revenue and a further R7.2bn rand in tax revenue to be generated by the event and an undetermined amount in economic benefits from improved infrastructure.

South Africa is also upgrading its poor transport system and building hotels to accommodate 450 000 overseas fans who are expected to visit for the month-long tournament, which begins on June 11 2010.