We’ll raise the money – LOC

2012-05-19 19:49

CAF makes it easier for Afcon organisers by allowing them to raise capital through sustainable projects

The Confederation of African Football’s (CAF) decision to relax some of the stringent rules over the hosting of next year’s African Cup of Nations has given the local organising committee (LOC) some hope.

LOC chief executive Mvuzo Mbebe told City Press on Friday that he was confident his team would be in a position to raise the required money.

About R400 million was estimated at the time of bidding.

Mbebe said: “CAF has already allowed us six categories where we can get value. These are car rentals, accommodation, hospitality, logistics, freight and transport, which we think will go a long way in helping us to raise the required money.”

He said the R400 million figure was reached before the signing of the Organisation Association Agreement with CAF and the finalisation of the Host Cities Agreement.

“We are still in discussion with the Treasury and the department of sport to finalise the cost,” he added.

“We are now in the process of finalising the costs before we can say how much we need from the government.”

Mbebe said the LOC was expecting about $7 million (R59 million) from the government and would also raise money from ticketing, hospitality and merchandise.

He admitted that not being able to approach corporates such as Vodacom and MTN and banking institutions

was a hindrance.

These companies are automatically ruled out by the fact that French cellular network Orange and banking giant Standard Bank are the main sponsors of the African Cup of Nations (Afcon).

Mbebe told Parliament this week that some of the added costs to the tournament include R20 million for CAF VIPs’ accommodation and R25 million for marketing.

The five host cities – Nelson Mandela Bay, Johannesburg, Mbombela, eThekwini and Rustenburg – will carry most of the costs, including accommodation and travel.

Mbebe said that at the time of bidding they had estimated cities would have to share a bill of about R85 million.

“But now the cities are working at the exact figure since their appointments.”

He said the LOC board was to meet as the government is still to give them the names of the six Cabinet ministers who will serve on the board.

“We will call a board meeting once government has given us the names,” he said.

» Meanwhile, the South Africa Football Association (Safa) and the SABC signed a three-year agreement worth “in the region of R215 million”.

The agreement gives the public broadcaster exclusive free-to-air rights to three national teams – Bafana Bafana, Banyana Banyana and the men’s Under-23 team.

The SABC will also produce a new Safa magazine programme and launch new initiatives through its regional radio stations.

» Vodacom this week extended their sponsorship with Kaizer Chiefs and Orlando Pirates by about R1 billion over five years. The Soweto clubs will each pocket about R100 million each year.

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