Let UAP take you to the World Cup
As the logistics and numbers of the 2010 World Cup become clearer, and after my brief trip to South Africam it’s time to re-evaluate financial plans for the Cup and specifically take a fresh look at UAP who are the only company to so far come up with a targeted finance product.
I had looked at the UAP Insurance plan earlier and dismissed/rejected it on the basis of its marginal return. E.g. investing 5,000 shillings per month over next 42 months would give about 233,000 shillings at an assured internal rate of return of about 6%. However, of that, my own savings would be about 210,000 shillings (90%) while UAP would have chipped in only about 10%.
However it is important to note, and they state this in the 2010 product, that the package is a savings plan toward the World Cup, and not an investment plan and it is therefore wrong to compare the plan to an investment fund or unit trust.
The main benefits of saving with UAP come not from the investment return, but from their in-built package which includes discounted air tickets, discounted accommodation and a chance to (save &) travel with other Kenyans fans who could also be your friends. UAP will also bid for some of the limited number of tickets that will be made available here (from the quota allocated to Kenya) thus providing some assurance that the match tickets can be obtained beforehand at FIFA-recommended prices and not from scalpers at the last minute.
During my week in South Africa, in which the conference paid for hotel, air travel and some meals I still used about shillings 6,000 on upkeep, some meals, gifts, beers, newspapers etc. Accomodation at the hotel (bed and breakfast) - next to Jo'Burg airport- was about 6,000 shillings and a round trip air ticket would probabbly have costs about 40,000 shillings. Food in SA was reasonable at about 300 per meal, but there were some unexpected bills like currency exchange which sometimes cost 300 or 600 shillings each.
All this makes UAP package look pretty attractive for a similar trip to SA four years from now. Or I could stay home and watch the games on DSTV or some local TV channel, but I’d rather be there in person.