Will the stadiums in South Africa become white elephants?
Estimates: Of the five new stadiums, only the Mozes Mehmeda Stadium in Durban has the best chance of making money in the coming years.
South Africa stunned the world during the World Cup with its spectacular stadiums.
But the project was not cheap – the total cost of construction is estimated at more than 20 billion rand.
Now that the soccer tournament has come to an end, the country can expect a growing number of loud complaints that the stadiums turning into expensive white elephants.
Durban and Cape Town already had large rugby stadiums that could have been broadcast to match the World Cup. But new stadiums have been built there for this purpose in the cities, as well as the stadiums in Port Elizabeth, Nelspruit and Polokwyn.
The director of the local organizing committee, Danny Jordan, said in March that the two stadiums ‘right to exist depended on the Rugby teams’ consent to play in them – but so far they have shown little interest. The future remains ambiguous for the rest of the new stadiums, where there is no senior group.
Stan Do Plasys, an economist at Stellenbosch University, said in an interview in May that only five of the five new stadiums in the Dresden stadium had the best chance of making money in the coming years. But spending will not be empty if they help convince the world, as President Jacob Zuma said last week, that Africa is open to business, thereby transferring investments to the country and its neighbors.
There is no doubt that investments towards the World Cup were a safety net for the construction industry, which was hit by a sharp fall in private consumption following the crisis, in addition to a series of project cancellations in the Middle East. Few expect private-sector investments to recover before 2012.
The National Workers’ Union said at least 18,000 workers had been fired after World Cup-related projects ended.
But some companies have profited from the opportunity to build their reputation outside the country: Aveng is responsible for stadium construction projects in Brazil. And the sector will receive a boost from the government’s planned investment of Rs 846 billion in infrastructure over the next three years.
In addition to the upgraded roads and interchanges, South Africa will continue to enjoy integrated and fast public transport networks. The government promised that by 2020 more than 85% of urban residents would live up to a kilometer from a public transportation station.
SeatupAfrica is with you with any stadium project you have… big or small.