International Dynamics:

1
Beyond the World Cup Investment and Cultural
Opportunities between Africa and the U.S.

• International Dynamics
• The Role of the American Private Sector in
  African Development
• Jerry Vilakazi
• CEO, Business Unity South Africa
• Prepared with the assistance of Humphrey
  Wattanga, Africa Venture Partners

2
Beyond the World Cup

• True legacy of the 2010 FIFA World Cup will
  emerge from successful showcasing of South
  Africas and Africas hospitality, security,
  ingenuity and capacity to deliver on its promise.
  
• This great sports spectacle thats expected to
  attract an army of 20,000 journalists, 500,000
  tourists and over 1 billion television viewers
  will offer an unprecedented opportunity to
  showcase the other mostly unheralded side of
  Africa

FOR HOST CITY CAPE TOWN FIFA WORLD CUP SOUTH
AFRICA 2010?
3
bustling cities, world class facilities,
thriving commerce and industry and a spirited,
driven, enterprising people that are alive with
possibility.
4
Beyond the World Cup

• Africa is poised to leverage the ensuing uptick
  in confidence and perception and the upgrade of
  infrastructure stock, especially in South Africa,
  to build on the positive economic growth and
  investment pattern that has been observed on the
  continent over the past decade leading to 2008.
• Africa has in the past decade experienced a surge
  in FDI while recording high rates of return
• The rate of return on investment in Africa has
  remained the highest among developing regions
  income on inward FDI grew by 31 in 2007
• FDI inflows into Africa rose to 88 billion in
  2008, another record level, despite the global
  financial and economic crisis. This increased the
  FDI stock in the region to 511 billion.
• However, Africas share of FDI still remains low
  about 3 of global FDI and 8 of FDI to
  developing countries.

FOR HOST CITY CAPE TOWN FIFA WORLD CUP SOUTH
AFRICA 2010?
5
Role of American Private Sector

• The American private sector can play a key role
  in marketing Africa as an investment destination
  
• Ahead of 2000 Sydney Olympics, Visa, launched an
  aggressive marketing campaign promoting Australia
  using the Australia prefers Visa platform. This
  platform colorfully featured and highlighted both
  the destination and Visas Olympic sponsorship,
  generating an estimated US40 million in annual
  marketing value for Australia.
• Five years later Australia was voted most
  favorite tourism destination by international
  audiences.
• The exclusive club of 2010 FIFA World Cup
  sponsors includes four key American
  enterprisesVisa, Coca Cola, Anheuser-Busch and
  McDonalds who will be spending millions of
  dollars in sponsorship activations. These can be
  mutually applied to enhance Africas image.
• Most FDI in Africa has been directed towards
  natural resources that are often extracted and
  exported as raw goods.
• With improving infrastructure and policy changes
  geared towards attracting FDI theres greater
  opportunity to invest in value added services.
  Investors are coming to these realization hence
  the development of projects such as Cargills
  Cocoa Processing Plant which will now process
  over 100,0000 tonnes of cocoa into butter, powder
  and liquor right there in Ghana.
• Vast value adding opportunities exist in Africa
  in agricultural, mining, manufacturing and
  services sectors.

FOR HOST CITY CAPE TOWN FIFA WORLD CUP SOUTH
AFRICA 2010?
6
Role of American Private Sector

• Example
• American private firm Herakles Telecom has teamed
  up with local firms to fund and develop the SEA
  Cable System (SEACOM)a 17,000 km, 1.28
  Terabits/second undersea fiber-optic cable that
  will increase broadband access in southern and
  eastern Africa and assist with the broadcasting
  requirements for the World Cup.
• Beyond the World Cup this installed
  infrastructure will present myriad opportunities
  for value added services such as
• Telemedicine
• Digital Villages
• Distance Education
• IPTV, HDTV
• Peer-to-Peer Networks etc.

FOR HOST CITY CAPE TOWN FIFA WORLD CUP SOUTH
AFRICA 2010?
7
Role of American Private Sector
Realization of Africas vast market potential
will require integral collaboration with the
American private sector towards changing
long-held negative perceptions, building enabling
infrastructure and developing value-adding
capacity. the kind of economic change taking
place in Africa today has the potential to affect
every company, organization, and individual on
the planet. As such, steering that change in
positive directions requires adaptability,
innovation, and the collaborative participation
of many constituencies. Through the Global
Innovation Outlook, IBM is already working on
market initiatives and thought-leadership
projects together with business leaders, policy
makers, academia, and the non-profit
sector. Samuel J. Palmisano Chairman and
Chief Executive Officer IBM Corporation Foreward
for IBM Global Innovation Outlook Report 2007
FOR HOST CITY CAPE TOWN FIFA WORLD CUP SOUTH
AFRICA 2010?