Patrice Motsepe, one of South Africa’s first black people to be listed on the Forbes International top rich people in the world has recently bought Sundown’s Soccer Club. Sitting at number 500 on the Forbes list, this is a milestone for most South Africans. It gives hope to those who seek affirmation for their hard work.One could argue this is a strategy to get back into the game, and a quick fix solution to the millions he has lost as a result of the recession. Patrice is not the only one invested in the African Game.
Government has employed many other small companies to build stadiums and transport tourists.This is all good and well for many who have not known what it means to be part of a huge economical project. Individuals whose companies have been registered as builders and organizers are earning more than R100 000 into their personal pocket now - this quickly classifies most of them as high-income earners, with most believing, and acting, as the rich do.
“While this seems all good and well in practise, it is a ticking bomb” says Palesa Ncube, Economist for Standard Bank. “The thing is right now, these 'rich' people are earning far more than they are accustomed to. They believe that the money they are making with their contracts will secure them in the future, which is not necessarily true. They have pushed up their income brackets far too quickly, which will soon end after 2010. Outspending on luxury items, without thinking about the future.”
In a recent radio show on South Africa’s leading radio broadcaster SA FM, Tim Modise spoke about 2010 and all the things planned. He spoke about how life changing it was for most people to move up from middle-income earners to high-income earners in such a short space all because of 2010.
In most South African minds, 2010 is the light at the end of the tunnel. With FIFA’s support, the estimated turnover expected into the country for the event would be between 40 000 to 500 000 people. This number is set to boost the economy significantly as well as highlight South Africa to the rest of the world.
With this said, we started asking South Africans about their thoughts after 2010, and it seems as though no one has an answer, or rather no one has planned beyond that.
Merchais runs a refurbishment company that is largely contracted to the Government for the 2010 stadiums project. Since 2007 he has been making an estimated 2, 3 million worth of business yearly.
“It hit me the other day that I should stop spending my money supporting this lifestyle I have created for myself since this contract. The recession is real, because I don’t know if I will ever make as much money as I have made from this one contract after 2010. Business is almost finished and we now have to fight for new contracts after 2010”
This is a hard truth in Merchias and so many newly found wealth individuals. So whilst many are weathering the recession by capitalizing on 2010, the question we need to ask: Are they ready for what lies beyond the game?
Opportunity: Help Them See Past 2010.
- Adene
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