Paul Simao
14 September 2007
Nairobi — 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 has said.
Fifa President Sepp Blatter and South African President Thabo Mbeki hold the World Cup trophy at the official presentation of the Fifa World Cup 2010 logo in Berlin city centre, in this July 7, 2006 photo. At centre is Mr Kofi Annan, who was then Secretary-General of the United Nations.
Mr Danny Jordaan told journalists the government would absorb the 17.4 billion rand, $2.42 billion (Sh162 billion) 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," Mr 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.
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 9.8 billion rand in tourist revenue and a further 7.2 billion 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.
Meanwhile, the policy of affirmative action in South Africa will remain, despite calls from some labour unions to end it, the chief executive of Business Unity SA (Busa) has told parliament. Since the end of apartheid in 1994, the government has deliberately targeted blacks, women and the disabled for preferential treatment when it came to jobs which they previously had no access to.
Companies in South Africa are required to have a certain number of black people at the management and senior level, which is representative of the country's demographics. But some labour unions representing mainly white people have said the South African work force is already transformed and have called for a sunset clause on affirmative action. "We are hearing voices that are saying maybe we should talk about an end date for affirmative action," said Busa chief executive Jerry Vilakazi during a presentation to parliament's labour committee.
"This matter was deliberated at council level at Busa and a decision was taken that, that question doesn't arise at this stage at all," he said.
"We are at a stage where all of us should be focussing on ensuring that affirmative action is implemented across the board, and that is the position we have as Busa," Mr Vilakazi said. Busa represents a large number of employers associations and professional bodies, including chambers of commerce.
Mr Vilakazi said the number of black executives in top management jumped to 22.7 per cent in 2006, from 12.7 per cent in 2000, but it was not "satisfactory" that blacks made up 26.9 per cent of senior managers, from 18.5 per cent in 2000.
He said Busa would also seek ways of improving the number of women executives in the private sector. The private sector lags state-owned enterprises by 21 percent in its promotion of women into senior positions.
"Although women representatives on boards of JSE-listed companies increased by 1.1 percent to 10.3 per cent, enterprisess continue to outperform their private sector counterparts ... with 31.3 per cent of all director positions held by women," he said.
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