Get documents about "050710 - Managing Money Sensibly PSG Alphen Asset Management
Document Sample
The Alphen Angle is an electronic publication of
Managing PSG Alphen Asset Management
Money
PSG Alphen
Asset
Sensibly
Management
05 July 2010 Print Friendly pdf
The Hangover – coming soon (next week) to a cinema near you
My wife and my liver will be glad when the World
Cup is over. South Africa, its economy and its
people will be sad to see it come to a close.
South Africa has proved itself to be an extremely
Shaun le Roux capable host and the tournament has been a
fantastic advertisement for the country. The
stadiums are magnificent and the logistical
planning and organisation have been impressive.
Indeed, it is almost certain that we will look back
on this sporting extravaganza as one of the more
positive events in our nation’s history.
The obvious questions are: what are the long
term benefits and what happens after the World
Cup?
As far as the immediate benefits are concerned,
some sectors of the economy have profited
substantially before and during the event. The
construction industry has enjoyed a windfall
couple of years.
Stadiums, the Gautrain and other road and transport projects have kept the contractors very
busy. Just when the global downturn started to weigh on a variety of mining and infrastructural
projects, the World Cup projects came around to cushion the blow. The differentiating factor
of the World Cup-related projects has been the degree of urgency. Whereas, the average
government and parastatal project has and will continue to be subject to inevitable delays in
specification, award and execution, the World Cup projects had strict FIFA-imposed deadlines;
they had to be done on time. If only FIFA could oversee all our infrastructure projects!
The event has been a massive boon to the hospitality and leisure sectors. I can personally
vouch for the healthy volume of beer sold by the likes of SAB Miller over the past month, and
am eternally grateful that we won’t be subjected to Budweiser, at R30 a bottle nogal, on an
ongoing basis. Early indications are that, although we would have liked to see higher tourist
numbers, those that came spent freely. All this amounts to a very smart once-off injection
straight into the vein for the SA economy.
The spotlight has been on South Africa over the past few weeks, and the country has delivered.
For this, we can give ourselves a pat on the back. It is indeed gratifying to know what we are
capable of achieving if we put our minds to it. A lot of hard work went into the event, both in
terms of planning and delivery. Those that were involved should have gained invaluable skills.
Managing
Money
Sensibly
05 July 2010
The World Cup has also been a very positive exercise in nation-building. Unfortunately, we
seem to find very few opportunities to unite the nation behind one cause. We rallied behind
Bafana Bafana and threw our full weight into making the tournament a success by welcoming
our visitors. If only we could continue on this path of building our nation and bridging the
gap between rich and poor with the same gusto!
So, what happens next week, after Spain have lifted the trophy? We will have to nurse the
inevitable hangover – literal and figurative. Once the last tourist has left it is back to real life.
Focus will return to some of the economic and social issues facing our country: the poor
state of education and health, service delivery and unemployment. This country is crying out
for true leadership. Indeed, let us hope that the World Cup will be the spark that spurs the
politicians on to deliver to those that need it most rather than jostling for a seat on the gravy
train.
Prepare yourself for the unavoidable lull in infrastructural spend. As discussed above, the
urgency in execution will fall by the wayside. Unfortunately, there is less money than
previously in the kitty to fund the very necessary projects in power, transport, housing,
health and education. Yet, these projects are essential to our long term development and
growth. Hopefully, the successes of delivery into the World Cup will be the blueprint for
execution on infrastructural projects in the future.
Before we become gloomy and pre-occupied with the issues we face, we should
acknowledge how positive the World Cup has been. There have been both the shorter
term economic spin-offs and the longer term capacity improvements. The tournament
served as a catalyst for the roll-out of a vastly improved public transport system in the major
cities. Many citizens of Johannesburg and Cape Town have used buses and trains for the first
time in many years and were generally impressed. There is no reason why a working public
transport system cannot be a part of our everyday lives. The economic and environmental
benefits will be significant.
Security arrangements during the tournament have been top notch. Tourists and citizens
have felt free to walk in areas that they would normally avoid. Again, it just goes to show
what can be achieved when we apply our minds to the matter of security.
It is imperative that South Africa has the will and savvy to leverage off this massive once-off
event. Lessons should have been learnt, skills developed and capacity created. To let this go
to waste would be criminal. Let us hope that next week we will be reading about what a
success the tournament was, the benefits reaped, what we have learned and how our
leadership will be employing this knowledge going forward. I for one would rather see
attention given to these stories than some of the other drivel that had been hogging
newspaper headlines before the World Cup came around.
ADRIAN CLAYTON SHAUN LE ROUX NEELS VAN SCHAIK
MARK SEYMOUR PHILIPP WÖRZ MARK CLIFF
PSG Alphen GREG FLASH
Asset If you have any queries regarding the above commentary please contact Mark Cliff on 021 799 8069 or 083 700 3600 or
Management
is an authorised
PLEASE NOTE: While every effort has been made to ensure that the information contained herein is correct, PSG Alphen Asset Management cannot be
Financial services held responsible for any errors that may occur. The views of the contributors may not necessarily reflect the house view of PSG Alphen Asset Management.
provider Views and opinions expressed herein may change with market conditions and should not be used in isolation.
PSG Alphen Asset Management is a subsidiary of PSG Fund Management Holdings (Pty) Limited
