The private sector has committed to funding the estimated R2.1bn licensing fee if South Africa gets the green light to host Formula One grands prix from 2027.
Bids closed on Monday and sport minister Gayton McKenzie told the Sunday Times the department had submitted “more than what was asked for” to F1 Management (FOM), the London-based organisation that decides where races will be staged.
“The F1 asked for 10 things, we have done 15. We are ready. None of the other African countries bidding has a track ... We have the sponsors, the track and the money.”
He said he had ensured that the South African bid was “hugely attractive for F1 to come to Africa”.
Winning the licence for 2027 would break a three-decade drought since South Africa hosted its last F1 race, at Kyalami in 1993.
The bid names Kyalami as the circuit for 2027, but McKenzie said the bid is for three years with an option of a further three years. That meant other cities — such as Cape Town — could also come into contention.
McKenzie said he had gone to “203 CEOs” with cap in hand to obtain the money. The seven companies that came on board included a bank, a telecom operator and a gambling and hospitality group. The minimum commitment was R100m.
They would only be identified if South Africa was awarded the licence, which was expected to cost between $35m (R600m) and $40m a year. A three-year agreement at $40m a year would add up to about R2.1bn at the current exchange rate.
McKenzie said tourism planning for a possible grand prix had already started. Packages for motorsport fans would include visits to the Kruger National Park and Robben Island.
“We want them to bring their wives with, if the wives are not into racing there would be special flights to go see the big five or Robben Island. We have a team working on that, so that it’s not just all about racing,” he said.
Last week, the cabinet gave its approval for the bid to be lodged. Although private funding has been secured, the government has agreed to provide financial guarantees.
Ramaphosa understands racing, but there’s some people, when you speak to them, they say, ‘How much? For dikoloi [cars]?’
— Gayton McKenzie, sport minister
McKenzie said President Cyril Ramaphosa had “made it very clear” that the government will not pay for the event. “Don’t even come to me,” he quoted Ramaphosa as having told him.
The sports minister, a member of the PA, said some of his cabinet colleagues knew very little about F1 or the economic opportunity it offered and had required a lot of convincing before they would back it.
“When I went to cabinet to present, I had all my ducks in a row. I had my letters of commitment from the companies, the amounts... I said, ‘It’s costing you nothing, all I need from you is the guarantee and you get all the VAT.’
“It’s easier to speak to President Ramaphosa because he understands racing, but there’s some people, when you speak to them, they say, ‘How much? For dikoloi [cars]?’ So with the president there, that made it easy.
“My colleagues in the cabinet asked very tough questions but at the end of the day even they could see that this bid is flawless, because I have done the work,” McKenzie said.
South Africa’s possible rivals for the 2027 grand prix calendar slot include Rwanda, Nigeria, Morocco, Türkiye and Portugal.
“All these countries are fighting to host the F1 because it is profitable,” McKenzie said. He said in Singapore’s case, the return on investment was ] “three-fivefold what they put in”.
He cited Azerbaijan, whose global profile had been boosted since it hosted the first F1 grand prix in its capital, Baku, in 2017. “Nobody would have gone to Azerbaijan, but because of F1 the country is showcased, and we now know it’s a beautiful country.”
He said F1 followers were high-rollers. “F1 is not a poor man’s sport. Those who travel for F1, following the calendar, have money.”
Toby Venter, the owner of the Kyalami circuit, said the Fédération Internationale de l’Automobile (FIA) — global the governing body for motorsport — had approved the circuit’s plans to implement upgrades that would make it compliant with F1 grand prix requirements.
“Our plan for the upgrade is a huge formal engineering endeavour and has nothing directly to do with FOM ... What it means is that the world governing body for motorsport [FIA] has approved our plans to prepare Kyalami for an F1 event.”
He said R60m had been put aside for the upgrade, which could take three months.
“Kyalami is 90% ready, the track itself doesn’t have to be changed. The upgrades concern additional tyre barriers ... and two other F1-specific things — hi-tech track barriers and additional tar run-offs.”
Venter said South Africa was in a strong position because FOM wanted to have Africa on the calendar and it was the only country on the continent that had a suitable race track.
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