Cabinet has given its go-ahead for SA to bid for the 2023 Rugby World Cup‚ Communications Minister‚ Ayanda Dlodlo‚ announced on Thursday in a post cabinet media briefing.
Cabinet will be asked to underwrite a R2‚8bn tournament hosting fee so SA can buy the rights to host the event should its bid succeed.
It will also be asked to underwrite the operational and capital budget.
The government will also be asked to underwrite the operational and capital expenditure for hosting the event‚ which has been estimated at 415m pounds‚ which the South African Rugby Union (Saru) hopes will be recovered from sponsorships‚ broadcasting‚ ticketing and merchandising.
SA will be bidding against France and Ireland and will be arguing that it can offer an event at a third of the price of its rivals.
An interministerial committee has been established to drive SA’s bid and to ensure that the country benefited economically from the event.
Dlodlo noted that SA already had the necessary infrastructure and would not have to spend more to host the tournament.
Cabinet was aware of the spinoffs of hosting the games especially to stimulate the economy and in particular the tourism and hospitality industry.
Sports Minister Thulas Nxesi‚ who was also present at the media briefing‚ said SA had a proven track record in hosting international sporting events and that the stadiums were ready.
Saru will be bound to transformation targets ahead of 2023.
Dlodlo said Cabinet had approved the overall proposed package for Rugby World Cup‚ which she said was an economic bid which would “minimise the demands on the fiscus as well as stimulate economic activity‚ employment and empowerment. The tournament will contribute to stimulating our economy by supporting government priorities‚ especially as it relates to preferential procurement and adherence to the sport transformation charter and the sharing of the profits derived.
“This will once again afford SA an opportunity to showcase the country to the international community‚” Dlodlo said.
“SA has previously hosted world-class events such as the All Africa Games‚ Cricket World Cut‚ 2010 Fifa World Cup and many international conferences. We have learnt from these past experiences particularly the costs overruns and collusion which accompanied 2010.
“As a result of this government refused to sign an open-ended blank cheque which led to SA withdrawing its bid to host the Commonwealth Games.”
Dlodlo said the programmes to be rolled out throughout the country leading to 2023 would leave a lasting legacy for the development of rugby in underprivileged communities.
by Linda Ensor -BusinessLIVE