Games won't benefit small businesses

Small businesses in Durban will miss out on the R20 billion spin off the Commonwealth Games are likely to bring, NAFCOC says.

Durban - Small businesses in Durban will miss out on the R20 billion spin off the games are likely to bring to the city during the Commonwealth games.

This according to the National African Federated Chamber of Commerce and Industry (NAFCOC).

The chamber represents small businesses.

Nafcoc Secretary-General in KwaZulu-Natal Paul Ngema said the big corporate companies will profit the most whilst small businesses in the city will not benefit much from the games.

On Wednesday Durban was announced as the host city for the games in 2022. The eThekwini Municipality said it projects that the city will make about R20 billion in profit from the games.

“Take the beachfront for example. The majority of those facilities are used by everyone but are owned by a few big corporations,” said Ngema.

The games are expected to bring a variety of investment in to the city through several businesses including construction, transport and tourism.

Ngema said, “There is no material benefits for people on the ground”. This he said is due to the nature of such events, for example the 2010 Soccer World Cup, having a history of looking after the interests of the big companies.

Economist Professor Vishnu Padayachee also warned people from taking out long term debts hoping for a big payday from the games.

He believes small businesses will make money in the short to medium term but doesn’t foresee small businesses benefiting in the long term.

Even with over 200 000 visitors expected he has warned against people buying or renovating their homes in anticipation of tourists coming to the games.

Padayachee said such events often don’t benefit small businesses. “The area around the stadiums would be sealed off I imagine” he said.

The city will contribute R500 million annually for the next 7 years, said municipality spokesperson Tozi Mthethwa in a statement.

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