South Africa’s long-awaited return to the Formula One (F1) calendar is edging closer. Private investors pledged to fund the estimated R2.1 billion licensing fee should the country secure the rights to host the event from 2027.
Bids officially closed on Monday, and Minister of Sport, Arts and Culture Gayton McKenzie confirmed that South Africa had submitted a comprehensive proposal to Formula One Management (FOM).
SA Confident in Its Bid
“The F1 asked for 10 things, and we gave them 15. We are ready,” McKenzie told The Sunday Times. “Unlike other African countries bidding, we already have a track, sponsors, and the funding secured.”
The minister explained that he had approached 203 chief executives in the private sector to rally support. Seven major companies are stepping forward, including a bank, a telecoms firm, and a hospitality and gaming group. Each investor committed a minimum of R100 million. However, their identities will only be revealed if South Africa secures the hosting rights.
Private Sector Foots the Bill
Hosting F1 requires a minimum three-year agreement with FOM, costing around $40 million (R700 million) annually. Over three years, this adds up to roughly R2.1 billion.
President Cyril Ramaphosa, while backing the bid, made it clear that taxpayers would not shoulder the cost. “Don’t even come to me,” McKenzie quoted the president as saying.
A Boost for SA’s Global Image
Minister in the Presidency Khumbudzo Ntshavheni said earlier this month that private sector backing for the bid underscored international confidence in South Africa.
“The opportunity to host Formula One will create jobs, boost economic growth, and strengthen South Africa’s standing on the world stage,” she said.
Kyalami in Pole Position
The Kyalami Grand Prix Circuit, which last hosted an F1 race in 1993, is the frontrunner to stage the event. The Johannesburg-based track has a rich history. This includes past winners such as Niki Lauda, Alain Prost, Jim Clark, and South Africa’s own 1979 world champion, Jody Scheckter.
British firm Apex Circuit Design was commissioned last year to prepare upgrade plans for Kyalami to meet the FIA’s Grade 1 requirements. In June, owner Toby Venter confirmed that the FIA had approved the proposed improvement. It will cost between R90 million and R180 million and could be completed within three months.
Continental Competition
While Kyalami remains the most likely venue, rival bids are expected from Cape Town and the proposed Wakanda Smart City project, while Rwanda has also declared interest in bringing F1 to Africa.
If successful, South Africa will join the global F1 calendar from 2027, reuniting fans with one of the most prestigious motorsport events after a 34-year absence. For many local enthusiasts, it would mean more than just avoiding late-night TV broadcasts it would be the return of world-class racing to home soil.
Related article: Formula One Grand Prix Set to Make a Comeback to Kyalami After 30 Years
