One of the tough questions being asked at the IPD/SAPOA Property Investment Conference later this month is how much impact the 2010 World Cup will have on the South African commercial and industrial property market over the next four years?
“SA’s hosting of the World Cup has created an economic tractor beam,” says Alastair Collins, London-based international managing partner of Davis Langdon, the world's largest consrtuction consultancy. “But are there soft spots in the field of dreams? And if there are, how can they be filled?”
Collins, one of the international speakers at the conference, is uniquely placed to consider the realities of the 2010 World Cup from a foreign investment perspective. He believes that the 2010 World Cup is a “big brick in the wall in building South Africa’s international profile as a credible part of the global market." There are three crucial goals that Collins believes South Africa needs to line up and score in the run-up to 2010.
The first is to adopt a longer-term view for domestic and international risk assessment, “during a window of opportunity, larger than any which South Africa has previously enjoyed”. The second is delivery.
“There have already been murmurings in the international press suggesting FIFA has concerns over South Africa’s ability to deliver the complex range of facilities in time for 2010,” he elaborates. He points to the construction of major stadia and extensive infrastructure delivery that needs to take place, all pretty much within the same essential time frame, "placing concentrated demand on the country's manufacturing and construction resources."
However, he adds "high level supply chain management and procurement strategies will help reduce delivery risk." The third is a need for strong communication about South Africa’s commitment to reach its goals. “From my perspective, South Africa needs to be vocal and positive in telling the world where the country will be – not only through to 2010, but perhaps to 2020 and beyond.” "These meassages will build and sustain investment confidence in SA property - and the economy as a whole."
Collins will be sharing his thoughts at the annual IPD/SAPOA property investment, which is being held on 26 and 27 October 2006 at the Cape Town International Convention Centre.