Scoring for Africa: An Alternative Guide to the 2010 World Cup

This is clever.


Chair of the Africa Progress Panel, Kofi Annan and United Nations Development Programme Goodwill Ambassador and football star Didier Drogba have published ‘Scoring for Africa – An Alternative Guide to the World Cup’. The publication compares the ‘vital statistics’ of each African country in the games against their competitors in terms of development – examining key indicators such as trade, investment, economic growth, CO2 emissions and human development.

For example, on trade and investment in Africa the report shows that in:

• GROUP A South Africa-France: While France is still one of the largest wine producers in the world, South Africa is catching up fast. In 2010, South African wines outsold their French competitors in several markets, including the UK. Since 1994, wine exports from South Africa have increased from 50 million litres to nearly 400 million litres, making the country the world’s 9th largest wine producer.

• GROUP B Nigeria-South Korea: Trade between Nigeria and South Korea has been on a steady rise, totaling $2.65 billion in 2008. As a result, Nigeria has emerged as South Korea’s third largest trading partner in Africa. South Korea is Nigeria’s fourth largest trading partner.

• GROUP C Algeria-UK: The UK is the largest foreign investor in Algeria and is particularly interested in the country’s oil and gas sectors.

• GROUP D Ghana-Germany: Having a long history of trade relations, both countries are aiming to increase the total trade volume to €500 million this year. Germany is Ghana’s fifth largest supplier and seventh most important export destination. Ghana’s exports to Germany are dominated by three traditional export goods:cocoa, gold, and timber.

• GROUP E Cameroon-Netherlands: While negotiations on an EPA continue, interim agreements have been signed by Cameroon, which has allowed for duty free access to the EU for all cocoa and chocolate products. This has meant an improvement in comparison to the taxes the country was subject to previously. However, under the EPA agreement, some of the cocoa products are not covered by the duty free access and are subject to a higher tariffs

• GROUP G Brazil Cote D' Ivoire:  In line with Brazil’s renewed focus on South-South relations, the government has expanded and prioritized trade ties with African countries. As a result, Brazil’s annual trade with Africa has jumped from $3.1 billion in 2000 to $26.3 billion last year. While trade between Brazil and Côte d’Ivoire is still relatively small, both countries are major cocoa producers and founding members of the Cocoa Producers’ Alliance (COPAL).

2010 World Cup Broadcasting Rights

Interesting New York Times piece on world cup broadcast rights.

I noted that according to the sports research firm Sportcal, FIFA has generated over $2.15 billion revenue worldwide, from the sale of television rights for the 2010 world cup, an amount which is up 53 percent from the 2006 event in Germany, with a viewership of 26 billion.  

Fortunately, in Africa, FIFA and the African Union of Broadcasters have concluded a strategic cooperation agreement which ensures the distribution and broadcasting of all 64 FIFA World Cup matches live on free-to-air television and radio in 41 territories in English, French and Portuguese. The move has been welcomed by several African countries who cannot afford to pay the high prices for broadcast rights of the world cup. 

Broadcasting is an audio visual service classified under the WTO General Agreement on Trade in Services as Communication Services (in the audio visual sub sector) while News Agency Services are a sub sector classified under the Recreational, Sporting and Cultural sector (see  WTO W/120). 


These services can be provided through mode 1 (cross border supply); mode 2 consumption abroad e.g. tourists travelling to South Africa to consume world cup related services; mode 3, commercial presence of a foreign entity; or mode 4- supply of a service through the movement of natural person (service provider) into a foreign market.

A list of FIFA’s global media rights licenses for the 2010 World Cup can be obtained here.

Hosting the 2010 World Cup: What does it take?

The 2010 FIFA World Cup fever in SA is high and I am compelled to comment on some legislative and economic aspects.  

South Africa will be the first African nation to host the world cup after the country won the all-African bidding process, beating Morocco and Egypt. 

In preparation for the world cup, the South African Government passed a comprehensive Act of Parliament termed the Special Measures Act of 2006, allowing the national state departments to mobilize and fully meet the 17 guarantees contracted by FIFA.  In addition the country has spent billions on infrastructure projects, transport, security, communication etc.

The newly mandated legislative environment provides assurances on:

• entry and exit permits by the Ministry of Home Affairs
• media centre(s) by the Ministry of Communications
• work permits by the Ministry of Home Affairs
• transport by the Ministry of Transport
• customs duties and taxes by the Ministry of Finance
• immigration, customs, check-in procedures by the Ministry of Home Affairs
• other taxes, duties and levies by the Ministry of Finance
• pricing policy by the Ministry of Environmental Affairs and Tourism
• safety and security by the Ministry of Safety and Security
• FIFA’s ownership of media and marketing rights by the Ministry of Communications and the Ministry of Trade and Industry
• bank and foreign-exchange operations by the Ministry of Finance
• exploitation of marketing rights by the Ministry of Trade and Industry
• telecommunications and information technology by the Ministry of Communications
• indemnity by the Ministry of Justice and Constitutional Development
• International Broadcast Centre by the Ministry of Communications
• national anthems and flags by the Ministry of Foreign Affairs
• medical care by the Ministry of Health. 

The trade guarantees by the South African government include intellectual property rights through the amendment of the Merchandise Marks Trade Act 1941. However, there have already been complaints regarding counterfeits and the International Authentication Association, expects that FIFA official suppliers may loose millions.

On taxes; FIFA, a Zurich based Association governed by Swiss law has been granted full tax exemption by the SA government.  The SA tax waiver termed a “tax bubble” , applies to custom duties, taxes, costs and levies on the import and subsequent export of goods belonging to the FIFA delegation, its commercial affiliates, the broadcast right holders, the media and spectators travelling to South Africa for the 2010 World Cup. However foreign soccer payers will reportedly not be exempt from the standard 15% tax to the South African Revenue Service and ticket sales will have 14% VAT applied.

FIFA , has been referred to as a charity by the International Tax Association, and recently was the subject of debate in the Swiss Parliament following a proposal to terminate FIFA’s tax free status in Switzerland. 

Meanwhile the Brazilian government, which has already been awarded the opportunity to host the 2014 World Cup, has reportedly agreed that FIFA and its partners can be exempt from taxes on any goods and services related to the tournament for five years; from January 2011 until the end of 2015.