Rwanda’s Grand Prix Ambition: Battling South Africa and Morocco for Formula 1’s Return to Africa
Rwanda entered the Formula 1 race competition, marking the first Grand Prix chapter on the African continent since 1993, with South Africa and Morocco, which have hosted the event before—not guaranteed a soon-to-be host status.
Rwanda capitalized on South Africa’s alleged support for Russia in the Ukraine conflict, as the continent currently lacks an event, as South Africa was reportedly excluded from the 2024 calendar. Kigali then proposed a bid involving A-listers like Western politicians, sports icons, and lobbyists for a circuit site near the upcoming Bugesera airport, focusing on commercial and hosting rights and architectural designs.
It also presented its sports sponsorship deals to support its argument, the “Visit Rwanda” tourism campaign, partnering with football clubs Arsenal, Paris Saint-Germain, and Bayern Munich, generated $620 million in 2023, a 36% increase from the previous year.
Kigali stated that this has positioned Rwanda as a major player in the sports industry, enabling the post-genocide country to transition from a sports consumer to a sports business participant.
Rwanda’s government spokesperson, Yolande Makolo, stated that the country is open to discussions with Formula 1 and global sporting partnerships to advance its development, “It wouldn’t be appropriate for Rwanda to comment on any ongoing discussions with Formula 1.”
Formula 1 CEO Stefano Domenicali has reportedly indicated Rwanda as a potential host for the upcoming World Championships due to its serious bid and promising meeting plans, over which the parties are scheduled to meet at the end of September.
Formula 1 executives have not commented on Rwanda’s bid for the World Championship, citing lower investment in infrastructure compared to South Africa and Morocco.
South Africa is under serious evaluation, according to Domenicali, in an interview with Motorsport.com last month, emphasizing the need for the right investment and strategic plan and urging caution in making decisions regarding the African continent.
Top managers in Africa are predicting Formula 1’s new venue due to the current hosts’ unwillingness to relinquish their slots for a new venue, leaving the continent uncertain about the sport’s future.
The increased race frequency could strain teams and drivers like World Champion Max Verstappen, who criticizes the overly busy calendar with 24 events in a nine-month season, adding to the concerns.
Motorsport South Africa (MSA) chairman Anton Roux is in negotiations to return Formula 1 to the Kyalami circuit in Midrand, Gauteng for the first time since 1993. Roux believes no current hosting countries are willing to relinquish their Formula 1 event slot, stating that discussions with F1 will continue until a suitable location is found.
Roux predicts Kyalami will host a Grand Prix event within three years, citing the circuit’s existing infrastructure and minor changes needed for Formula 1 races.
Morocco, a potential candidate for the Tangier circuit, last hosted an event in 1958 and is actively seeking a return. Moroccan media reports indicate that the country’s bid for the Formula 1 championship is influenced by the popularity of Formula 1 circuits in Middle Eastern countries like Saudi Arabia, Bahrain, and Qatar.
The sport’s executives are unable to confirm the name of a new host nation, eight countries are bidding for events, with Rwanda, South Africa, Morocco, and Colombia having no F1 races hosted in their territories, while Hungary, Britain, and Turkey are vying for a second slot.
They stated that F1 has not yet received any information on when another host country will be added to the 24 races, but will inform the public as soon as they receive any updates. Sports commentators argue that Rwanda’s victory in the Grand Prix would be a significant coup for East Africa’s Formula 1 fanbase and also an indication of Kigali’s significant rise in global sporting events’ status and power.
Rwanda, a founding sponsor of the NBA-backed Basketball Africa League and host of the Fifa General Assembly is set to host the 2025 UCI Road Cycling World Championship in Kigali. Ms. Makolo announced that Kigali will grace the red carpet for the annual prize-giving ceremony in the international motorsport sector in December, as the FIA General Assembly 2024 will see this year’s champions gather in Rwanda, along with their winning vehicles.
According to F1Chronicle.com, Rwanda would need to invest $270 million in the design and construction of a new Grand Prix track, with annual maintenance fees of $18.5 million.
The event’s additional costs include $30 million for infrastructure like grandstands, safety barriers, parking lots, race pits, and fencing, as well as logistics and hotels for 450,000 attendees. In the pursuit of carbon neutrality, some circuits now require infrastructure for bicycles used by fans.
Liberty Media, the owner of Formula 1, charges hosting and sponsorship fees for each race hosted at the Grand Prix, potentially reaching $55 million annually for host countries.
The Michigan Journal of Economics’ article on hosting an F1 race discusses the financial feasibility of hosting races, highlighting that revenue from sponsors and broadcast rights goes to the owners. The 2023 season saw sponsorship revenue of $445 million and broadcasting revenue of $936 million, but track owners still received minimal revenue from the Grand Prix.
