Soccer World Cup – A catalyst for future economic growth – PwC

While every South African basks in the success of hosting one of the most successful Soccer World Cups, the country’s cities should start looking at future opportunities to leverage off the new urban infrastructure and knowledge we have gained from this phenomenal event.

Deputy Chief Executive Officer: PricewaterhouseCoopers (PwC) Stanley Subramoney says, “As economic growth slowly returns to many parts of the world after the financial crisis awareness has heightened and more sustainable approaches to transportation, building, energy, waste and water are needed to truly drive future economic success”.

The third annual edition of Cities of Opportunity, compiled by PricewaterhouseCoopers (PwC), presents a comprehensive view of city life at an important point in time. Major cities are home to most of the world’s population positioning cities at the forefront of progress.

Intellectual, environmental, social, IT, finance and leisure capital are the key ingredients to building world class cities. This includes policies and plans for the post-industrial, people centred transformation which cities are currently undergoing.

South Africa created approximately 130 000 jobs in infrastructure development during the preparations for the World Cup.
Subramoney continues, “The urbanisation of the world impacts all businesses, governments and everyday life. By the middle of the century, three out of four people will be city dwellers, yet the expanding city population only scrapes the surface of what is really happening in international urban areas.”

South African cities and local governments are facing multiple challenges, which were intensified by the impact of the global economic financial crises. While the Soccer World Cup contributed to alleviating some of these challenges, local governments must start implementing fresh new strategies which will allow them to compete for business investment, retain talent and attract visitors.

A recent PwC Public Sector Research Centre Publication, Seizing the Day, highlights the importance of governments and cities to act as intelligent investors. For growth to take off and to ensure long-term prosperity, local governments must invest strategically and sustainably.

“PwC recommends adopting a holistic approach to taking cities into the future. The starting point is to formulate a clear vision which captures its strategic ambition. City management then has to develop multiple internal capabilities towards accomplishing the vision through inspirational leadership, a resilient city brand and an ability to learn from other cities through social intelligence,” says Subramoney.

The World Cup provided cities with visions and goals. Step into any one of the new stadiums and the achievement is obvious – simply world class. The tournament has shown that South Africa made promises and delivered on them. The symbolic boost has been substantial and redefined the national self image on an unprecedented scale. Going forward it is vitally important to identify another source of inspiration for development. The South African bid for the 2020 Olympic Games might be what the country’s cities need to further grow and increase their status in the global economy. A strong focus must be placed on the positive attributes that our cities have to offer on the international stage.

Subramoney concludes, “Most importantly, cities and local governments must continue to re-build the confidence of the private sector, which is the source of future growth and revenue. The World Cup has proved that South Africa has world class cities committed citizens and the ability to stage the biggest show on earth. The organisation for Economic Co-operation and Development (OECD) in its latest report pays tribute to the success which South Africa has had so far with its macroeconomic policies. The documents suggest that South Africa consider a “Sovereign Wealth fund” (SWF)

Swf’s may be created to reduce the volatility of the government revenues, to counter the boom- bust cycles’ adverse effect on government spending or to build up savings for future generations. The Government of Singapore Investment Corporation, the Korean Investment Corporation, the Kuwait Investment authority and the Government Pension Fund or Norway are examples of Sovereign Wealth Fund created with interesting and unique characteristics.

Last week the South African cabinet Lekgotla considered a new action agenda. It is important to capitalise on the world cup dividend and to develop a long term strategy. It is time to seize the moment – KE NAKO