The South African Government has regrettably noted the statement issued
by the Commonwealth Games Federation on the 13 March 2017. We wish to state
that while we disagree with the contents of the statement we respect the
decision of the CGF as the right holder and wish to retrace our footsteps
leading us to this point.
The Commonwealth Games Federation at their General Assembly meeting
in October 2016 resolved to support South Africa to achieve a satisfactory
resolution of all outstanding matters in order for Durban to continue with the
hosting of the Commonwealth Games 2022. South Africa was therefore required to
provide a response by 30 November 2016 on how the outstanding issues will be
resolved, failing which the Executive Board was empowered to look at an
alternative host city. South Africa duly provided feedback on the outstanding
matters with supporting documents, timeously and eagerly awaited feedback from
the Commonwealth Games Federation.
The Government of the Republic of South Africa wishes to express
its disappointment at the announcement by the Commonwealth Games Federation to withdraw
the country’s bid to host a successful Commonwealth Games in Durban 2022 this, despite
all the efforts and the positive responses from the Commonwealth Games
Evaluation Commission on the potential capacity of the Host City of Durban.
Our milestones regarding all
efforts made in hosting a successful bid are therefore as follows:
South Africa communicated
its expression of interest to host the Commonwealth Games 2022 by the 31 March
2014 and the official intention to bid took place on 22 July 2014 in Glasgow.
Edmonton and Durban were the only two candidate cities bidding for the
Commonwealth Games in 2022 Games.
Cabinet endorsed the intention by the City of Durban to bid to host the
Commonwealth Games in 2022 and directed SRSA to establish a Bid Committee to
develop the bid proposals to host the Commonwealth Games. Cabinet further
directed SRSA and the National Treasury to consider the business plans, the
proposed budget and funding model and revert to Cabinet before the
announcement of the host cities.
Feb 2015 the Canadian city of Edmonton, the only other contender bidding to
host the Commonwealth Games in 2022, withdrew its bid to host. This now left South
Africa and the City of Durban as the only City bidding to host the
Commonwealth Games in 2022.
must be emphasised that it was not a
fait accompli that South Africa will automatically be awarded the bid. South
Africa still had to undergo the arduous process of securing the guarantees,
finalise and lodge the bid documents as
per the templates provided by the Commonwealth Games Federation,, prepare for
the visit and interaction by a high
powered Commonwealth Games Federation delegation as well as events specialists
who formed part of the Games Evaluation Commission and the inbound
inspection teams of the various Continental Commonwealth Games countries and
still secure the bid through the voting process of the General Assembly which was held in Auckland
in September 2015. All this, after
securing the Cabinet approval a based
on funding guarantee of R 4.32bn.
It must be noted that when the Games were awarded to
South Africa, South Africa had not signed the host city agreement. Clauses in
the agreement were seriously going to compromise South Africa and Government
was not prepared to sign an open ended guarantee that indicated as follows:
“The Government will meet
any potential shortfall in the budget for the Organising Committee (OC) arising
from the preparations for and the hosting of the 2022 Commonwealth Games.” And
“the Government also guarantees subsidies or rental costs related to the
Commonwealth Games Village.”
to the above requirement, the Finance Guarantee was delayed but was signed in
Minister of Finance signed the guarantee in respect of the operational budget
of R2.662 928 000.00 (2 billion, 6 hundred and sixty
million 9 hundred and twenty
eight thousand rands) and a contingency budget which is capped at 18% R479
million , three hundred and twenty seven thousand and 40 rands )
The financial guarantee was also subject
to the willingness of the CGF to constructively engage with South Africa and
Durban on all possible revenue sharing streams related to the games including amongst
other things, ticketing, merchandising and broadcast rights.
Having learnt lessons from other events,
the South African Government had no appetite to issue an open ended guarantee
including having to transfer a large portion of funds to a newly established
The expectation that the South African
Government will have to provide more than what cabinet had approved could not
be sustained in the current economic environment.
South Africa successfully
hosted The All Africa Games in 1999 with a budget of two hundred and fifty-two
million rands, should it be compounded at 6% per annum over a period of
twenty-one years it will amount to R808 200 000.00 million in 2022. The actual
cost of the games is an illustration that a multi coded sport event can be
successfully hosted within an affordable budget. The 1999 All Africa Games are
comparable in size, the number of athletes, the number of technical officials
and the duration to the planned Commonwealth Games of 2022. Utilizing the All
Africa Games as a bench mark, we can state that the R4,32 Billion approved by
Cabinet is more than sufficient to deliver world Class Commonwealth Games in
our own projections.
The Table below clearly shows this comparison.
Africa Games 1999
R808 200 000.00 million *
R4, 320, 000, 000.00 billion
* The 71 includes the Commonwealth territories which are not recognized as
countries in their own right by the United Nations Charter. Strictly speaking
the numbers of countries are comparable to those on the African continent.
* Compounded at 6 percent year on year on the original budget of R252, 000,
noted the challenge related to the differences of approach in the delivery
methodology for the Games and the approved budget by the South African
Government, it then became apparent that all other necessary timelines will not
be met until clarification and consensus has been achieved on the budget and
the delivery model.
key milestone included the payment of the host city fee which was not effected.
establishment of the Organising Committee was also delayed until finalisation
of the budget and the delivery model.
As the three spheres of Government and
the sports movement, we entered the Bidding process for the City of Durban to
host the Commonwealth Games 2022 on behalf of our country and for the first
time on the African Continent. However, at this juncture, our country is
regrettably not in a position to make huge financial commitments given the
current competing socio-economic needs and global economic down turn. In the
interests of fiscal discipline and financial prudency, our government has
considered all options and remains confident that we have acted in the best
interest of South Africa.
We end by thanking all the political
principals and officials from all spheres of Government who worked tirelessly
to secure the games.
We in the same vain express our
gratitude to the South African Confederation and Olympics Committee (SASCOC)
for their collegiality.
A word of gratitude to the Commonwealth
Games Federations for believing in our BID and having initially entrusted the
City of Durban to host the Games.
We trust that history will present us
and future generations with another opportunity to host the Commonwealth Games
and other international sport events. Our Bidding and Hosting Strategy remains
focused on us attracting premier events that add value to our economic and
social cohesion imperatives. South Africa remains a premier destination for
such mega sporting events and our solid infrastructure holds the country in
good stead to host same.
Issued by The department of Sport and
Recreation South Africa
For Inquiries: contact Esethu Hasane at
the department of Sport and Recreation South Africa on 071 259 2422 email