Issued by: Cabinet of the Republic of South Africa
The Cabinet is delighted to announce that, after a thorough analysis, it fully supports South Africa's bid for the 2004 Olympic Games. The Cabinet decision is based on submissions from the Cape Town 2004 Olympic Bid, the Department of Finance and a comprehensive analysis by the Development Bank of Southern Africa.
Holding the Olympics in South Africa will contribute to overall growth and development and the bid will continue to be carefully aligned with the basic approach to the RDP. The basic guidelines in formulating the bid were that it should be developmental, it should not result in an unmanageable debt burden for any level of government, and that it should be a national bid that benefits the whole of South Africa.
After a comprehensive and in-depth assessment, the Cabinet is confident that our bid will comply with these conditions. Cabinet also took the decision to put in place the necessary managerial and co-ordinating structures in the national government to ensure the success of the Bid. The Cabinet sub-committee will oversee the process of co-ordinating the departments, levels of government and the Bid company for the preparation and subsequent implementation of the bid.
The DBSA estimates that the overall boost to the national economy provided by the Games is likely to amount to over R30bn in the period 1997 to 2006, in 1996 prices. Over 90,000 permanent jobs are likely to be generated, with approximately 60% of the income gains and 50% of the employment gains benefiting regions other than the Western Cape. The additional State revenue from hosting the Games will exceed the necessary investments. The total capital cost of staging the Games is estimated to be approximately R7,5bn of which about half will be accounted for by private sector investment. The remainder will be shared by different tiers of national, provincial and local government.
The incremental public expenditure necessitated by the Games will be more than offset by the additional revenue created and will in fact generate a surplus. The estimated surplus after taking all costs into consideration will be used to further the aims of the RDP nationally.
Government sees the decision to fully support the bid as reinforcing South Africa's integration into the world community of nations. Moreover, key components such as tourism and foreign investment generated by the Games, accompanied by the world-wide attention to the Games itself, will showcase the economic and other opportunities offered by South Africa.
A key component to achieve these results is the developmental approach to investments which will encourage the growth of small and medium scale enterprises, enhancing employment and income opportunities. The immediate implementation of developmental policies in this and other projects will help ensure that the necessary capacity is created and sustained.
Te government is convinced that the effective management and hosting of the Games will continue to demonstrate South Africa's ability to successfully implement long-term project initiatives in keeping with its development strategies.
The Bid Book is in the final stages of preparation. This, with the necessary undertakings, will be signed by the President.
The Cabinet's decision marks a proud moment for our country, enabling us to contribute to the development of the Olympic ideals.
5 June, 1996 Cape Town