Global Recession Won't Affect South Africa's World Cup

The current global financial turmoil will not affect South Africa's guarantees on hosting the 2010 Fifa World Cup, says Trade and Industry Minister Mandisi Mpahlwa.

"Financially speaking, South Africa is in good standing, and we will deliver on our promise of hosting the biggest soccer event," he said, adding that the current economy was stronger that what it was 10 years ago.   "Increasingly we are showing resilience to global economic dips. I have no doubt that we will register a decent gross domestic product [in 2008/09]."   According to the International Monetary Fund (IMF), world growth is expected to achieve little pickup in 2009, with a 25% chance that the global economy will record three percent or less growth in 2008 and 2009 - equivalent to a global recession.  Mpahlwa said the government's response to the tightening economic conditions was to speed up industrial development, to continue promoting small, medium and micro enterprises (SMMEs), and to further strengthen the state's capacity to unlock the country's economic potential.  "We remain confident that we have measures that can, to some extent, shield us from this global turmoil," he said.

The world is in a recession and South Africa is set to be hit hardest by it.  South Africa has to build numerous stadiums before 2010, currently there are five stadiums that are being constructed.  The other five stadiums are being uprgraded.  Fifa says that they trust South Africa to pull through so much for the World Cup, that they have no backup plans in case Sout Africa fails.  I don't think the recession should affect South Africa's economy or building plans if they speed up building the stadiums.  On top of that, according to the article, Sub-Saharan Africa is set to experience its best period of sustained economic growth since its independence.

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