Rwanda’s splash entry into the fight to host a Formula 1 event has opened a three-horse race to bring the first Grand Prix chapter on the African continent since 1993, but with all contenders – including South Africa and Morocco which have hosted the event before – not guaranteed a soon-to-be host status.
With no event currently held on the continent, it is understood that Rwanda jumped into the fray to take full advantage, after learning last year that South Africa – which was poised to be included in the 2024 calendar – was reportedly frozen out over its alleged support for Russia in the war against Ukraine.
Kigali then came up with a quick plan whose details remain under wraps, but it includes a galaxy of A-listers like Western politicians, sports icons, and lobbyists to headline the bid; it drew proposed spending on the commercial and hosting rights, architectural designs of a circuit site near the upcoming Bugesera airport.
It also tabled its sports sponsorship deals to make its case, with the “Visit Rwanda” tourism campaign that has established partnerships with football clubs Arsenal, Paris Saint-Germain, and Bayern Munich, which helped Rwanda generate $620 million in 2023 – a 36 percent increase from the previous year.
This, Kigali told Formula 1, has put Rwanda in the big hitters club and enabled the post-genocide country to move from being a consumer of sport to a participant in the business of sport.
“It wouldn’t be appropriate for Rwanda to comment on any ongoing discussions with Formula 1,” said Government Spokesperson Yolande Makolo, explaining adding that Rwanda has always been open about its interest in pursuing any opportunity, including global sporting partnerships to drive forward its development.
Last month, media reports quoted Formula 1 CEO Stefano Domenicali saying Rwanda was a contender for a hosting slot, as it had a “serious” bid and “presented a good plan” over which the parties would meet “at the end of September”.
Formula 1 executives, however, declined to comment on Rwanda’s ambitious bid, and its chances against South Africa and Morocco, whose investment in a circuit and other requisite infrastructure would be much lower since they already have Formula 1 tracks that hosted previous events.
“Thank you for getting in touch. We have no further comment other than what Stefano has already said on record,” they wrote last week, in response to emailed inquiries from The EastAfrican.
But, last month, Domenicali told Motorsport.com that South Africa is being seriously evaluated, with a disclaimer that the parties need to have the right investment and the right strategic plan, adding that they needed to be careful in making the right choices going to the African continent.
Top managers of the spot argue that Formula 1 is keeping Africa guessing on its choice for the likely new venue of the lucrative and popular sport on the continent, in part due to all current hosts’ unwillingness to relinquish their slots to accommodate a new venue.
But they also add that there are other factors to weigh, like the strain that the increased frequency of races would put on teams and drivers like World Champion Max Verstappen, who has spoken out against what he perceives to be an already overly busy calendar, with 24 events in a nine-month long season.
“I cannot sit here and tell you it will be this or that country,” said Anton Roux, chairman of Motorsport South Africa (MSA), which is at the centre of the negotiations to return the sport to the Kyalami circuit located in Midrand, Gauteng, for the first time since 1993.
“Once you are in discussions with F1 you keep at it until you get the slot, but I don’t think any of the countries currently hosting Formula 1 events at the moment is willing to give up its slot,” he added.
That said, Roux remains optimistic that Kyalami will host a Grand Prix event “at least in the next three years”, explaining that the circuit is already in place and needs only very minor changes to host Formula 1 races again.
Morocco is also a potential candidate, whose Tangier circuit last hosted an event in 1958 and has been knocking on the doors for a return.
Moroccan media reports show that the country’s bid rides on the popularity of Formula 1 circuits in Middle East countries like Saudi Arabia, Bahrain and Qatar.
But the sport’s executives cannot confirm when a new host nation will be named. Out of the eight countries bidding for events, only four have no F1 races hosted in their territory, and these are Rwanda, South Africa, Morocco, and Colombia, while Hungary, Britain, and Turkey are pushing for a second slot.
“We do not have information yet on when F1 will add another host country to the 24 races. We will certainly notify you as soon as we receive any updates.
"Thank you for your understanding,” they said. Sports commentators argue that for Rwanda to beat the competition and take the Grand Prix to the “City of a Thousand Hills” would be a major coup – a big win for East Africa’s growing Formula 1 fanbase, but also an indicator that Kigali has attained the undeniable status and power of global sporting events.
Rwanda is set to host the 2025 UCI Road Cycling World Championship in Kigali, while “Visit Rwanda” is a founding sponsor of the NBA-backed Basketball Africa League. Last year, Rwanda hosted the Fifa General Assembly.
In December, Kigali will roll the red carpet for the international motorsport annual prize giving ceremony as the FIA General Assembly 2024 will see this year’s champions gather in Rwanda, along with their winning vehicles, Ms Makolo said.
According to F1Chronicle.com, Rwanda would need to invest about $270 million, which is the cost of designing and building a new Grand Prix track, with annual maintenance fees of about $18.5 million.
There are additional costs for other infrastructure such as grandstands, safety barriers, parking lots, race pits and fencing, which could cost about $30 million, and nonsport-related infrastructure such as logistics and hotels for the event’s 450,000 attendees to stay in.
In a race to become carbon neutral, some circuits these days also require infrastructure for bicycles used by the fans.
Formula 1 commercial rights owner Liberty Media then imposes hosting fees and sponsorship fees which, for each race hosted at the event, could be as high as $55 million (this is the fee paid by the host countries Azerbaijan, Saudi Arabia and Qatar) each year for the duration of the Grand Prix contract.
An article, Is Hosting an F1 Race Financially Feasible? in the Michigan Journal of Economics highlights how little the host or owner of the track takes from the races, with revenue from track sponsors and broadcast rights all going to the Formula 1 owners.
For the 2023 season, sponsorship revenue was $445 million while for the 2022 season, broadcasting revenue hit $936 million but, at the end of the races, track owners are left with very little revenue from the Grand Prix.