SA business upbeat on 2010
1 February 2007
Seventy-five percent of South African companies believe that the 2010 Fifa World Cup will benefit them financially, and are taking steps to capitalise on the country's hosting of the event, according to the latest International Business Report by consultants Grant Thornton.
Releasing the 2007 International Business Report - previously known as the International Business Owners Survey - on Wednesday, Grant Thornton said in a statement that the build-up to the World Cup would boost business sentiment in South Africa.
Three-quarters of the medium to large privately held businesses surveyed in SA were looking forward to "some level of financial benefit" from the World Cup, Grant Thornton said.
"The majority of these respondents (47%) believe that the greatest benefit will be gained in the build-up to the event, while only 14% expect to benefit during the event itself."
According to the survey, 60% of SA companies are considering diversifying their product or service in order to maximise their returns from the tournament, 53% are increasing their workforce, and 46% are making additional capital investments in their businesses.
A third (33%) of the businesses surveyed said they were increasing their geographic spread in preparation for the event and its build-up, while a quarter (25%) said they would be importing more goods from abroad.
While overall optimism among South African businesses is lower than in previous years, Grant Thornton said, "expectations for growth in key areas such as turnover, profitability and employment are higher than ever before."
Grant Thornton attributed this "anomaly of lower than usual optimism during a business boom" to non-business factors such as increased crime and political uncertainty regarding the succession in South Africa's presidency.
Grant Thornton chairman Leonard Brehm commented: "If our country is to meet the growth targets that have been set, all those working in South African business must be able to operate in a safe environment.
"This can only be achieved through strong and sustained action by government security agencies at all levels, supported by a culture of community participation in assisting with the detection and control of crime."
Grant Thornton's 2007 International Business Report is based on research conducted among medium to large privately held businesses in 32 countries, covering more than 7 200 respondents. In South Africa, research was conducted by Research Surveys among 200 privately held businesses employing between 100 and 400 staff.
SouthAfrica.info reporter
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