South Africa Likely to Raise Over $100 Million for F1 Entry in 2027, Says Minister

Alex Harrington | Dec 29, 2024

Nov 23, 2024; Las Vegas, Nevada, USA; Mercedes AMG Petronas driver George Russell (63) drives for position against Scuderia Ferrari driver Charles Leclerc (16) during the Las Vegas Grand Prix at Las Vegas Circuit. Mandatory Credit: Gary A. Vasquez-Imagn Images / Gary A. Vasquez-Imagn Images

South Africa is gearing up to bring the sport of Formula One racing back to its turf, with ambitions set for a grand return in either 2026 or 2027. This initiative is spearheaded by Gayton McKenzie, the Minister of Sport, Arts, and Culture, who is determined to gather the estimated two billion rand required annually to host this highly-anticipated event.

It's a prospect that has not only invigorated motorsport enthusiasts across the country but also captivated both corporate sponsors and international stakeholders eager to see Formula One racing back on the African continent.

Sports minister Gayton McKenzie is confident they will be able to raise R2bn required to stage F1 in the country. pic.twitter.com/PQTBjKYmlJ

— Mahlatse Mphahlele (@BraMahlatse) December 19, 2024

Historically, the Kyalami Grand Prix Circuit holds a fond place in the hearts of many as it was the last venue to host a Formula One Grand Prix in South Africa in 1993. Thus, McKenzie's proposal promises to rekindle past glories and invigorate a sport that has been dormant on South African soil for over three decades.

Leading this charge is a newly formed steering committee announced by McKenzie himself at the Kyalami Grand Prix Circuit. Comprising prominent figures like Bakang Lethoko, Anton Roux, and Rendani Ramovha, this committee will be instrumental in steering the bid process, ensuring rigorous compliance, and serving as the primary point of contact for Formula One officials and stakeholders.

“To pull an F1 race off, you are looking at about R2bn per year,” McKenzie stated, admitting the magnitude of the task at hand. In particular, the committee will oversee critical decisions, such as selecting a city and track for the event, which makes Gauteng a likely candidate due to the logistical benefits offered by the Kyalami circuit.

“Don’t hold me to 2026, that is just me being an optimist, but 2027 is what we are looking at. Timelines are that the bid committee will report back at the end of February or March. They have two months to find the company that will promote F1 and government will support it. Gauteng has an advantage because they already have this track here in Kyalami,” McKenzie shared.

Financially speaking, staging a Formula One race is no small feat, with a five-year contract estimated to need approximately R10 billion. However, the proposal has already attracted significant interest from the corporate sector.

“This means if you are going to have a five-year contract you need R10bn, but I can tell you we have had a lot of offers already from hospitality people who want to put down R400m. We said to them we are not at that point yet but there are big sponsors approaching my office every day because they want to get involved. If it is done correctly, it can be profitable,” he confirmed.

Potential sponsorships from juggernauts like Red Bull and Heineken, who are already active participants in F1, appear promising.

“If you can see companies, and I am going to mention their names, like Red Bull, Heineken, they are already involved in the sport and they are here. Red Bull have already gone out of their way to bring David Coulthard here recently," McKenzie added.

He expresses confidence in Africa's appetite for hosting such a world-class event, noting, “I can tell you now that there is a huge appetite from Africa. Things that kept me awake at night was the bid but the money issue was not keeping me awake, and government is not going to foot most of the bill, that I can tell you.” He remains optimistic about avoiding potential sponsor reluctance, warning, “I am just saying I will have serious questions of the sponsors if they don’t sponsor us because they are sponsoring F1 in other countries. If they don’t want to get involved, I will ask them what is wrong with our country, but I don’t think it will go that far.”

The global allure of hosting an F1 race extends beyond sheer entertainment. The economic and social benefits are bountiful, offering enhanced tourism, job creation, and a lift in global prestige for South Africa.

“We are going to deliver an F1 bid and this country will never look back,” McKenzie pledged, seeing the event as an investment rather than a mere expenditure. Moreover, aspirations extend to nurturing young talent, particularly from underrepresented communities and women, marking a big step toward making motorsport more accessible. Desiré Wilson, a South African who took home a win in a Formula One race in 1980, serves as an inspiration for this initiative.

Adding depth to South Africa's effort is the international support. Lewis Hamilton has long championed the cause for a South African Grand Prix, with McKenzie vowing to fulfill Hamilton's vision. The future outlook for South African F1 racing looks particularly bright if all goes to plan—the bid committee aims to earmark mid-February 2025 to submit their proposal, with the expectation of finalizing an update by the end of February. As the clock ticks towards 2026, it is evident that the return of Formula One racing could herald a new, exciting era for both South Africa and the continent at large.