Africa has spent decades producing athletes who generate billions of dollars for international sporting organisations, yet much of the money, infrastructure and commercial value remains outside the continent. President Paul Kagame believes Rwanda’s new Formula 1 agreement offers an opportunity to begin changing that imbalance.
Speaking in Kigali on Tuesday during the announcement of the African Grand Prix, Kagame questioned a global sports economy in which African talent has helped enrich international leagues while African countries have struggled to attract equivalent investment.
“For decades, African athletes have been a pillar of the global sports economy, adding significant commercial value to top leagues with the continent receiving almost nothing in return,” he said.
His remarks went beyond the announcement of a motor racing event.
They raised a broader economic question. How can Africa move from supplying talent and audiences to owning more of the infrastructure, businesses and revenue generated by international sport?
Kagame argued that major sporting partnerships can help reverse the imbalance.
“Partnerships like the one we are building help break this cycle because they serve as a catalyst for sports infrastructure development,” he said.
“This is not just about building venues; it’s about creating a sustainable economic model where different revenue streams across hospitality, tourism, and entertainment are generated and anchored into local communities.”
The figures involved in global sport illustrate the size of the opportunity.
Formula 1 generated approximately $3.41 billion in revenue in 2024, according to financial results published by its parent company, Liberty Media.
Its income comes from race promotion agreements, television broadcasting rights, sponsorship, hospitality and other commercial activities.
The English Premier League, another major destination for African sporting talent, generated approximately £6.3 billion in revenue during the 2023/24 season, according to Deloitte’s Annual Review of Football Finance.
African footballers have contributed significantly to the league’s international appeal, with players such as Mohamed Salah, Sadio Mané, Didier Drogba and Yaya Touré becoming globally recognised sporting figures.
Yet the economic benefits associated with major international competitions are concentrated largely in the countries hosting clubs, stadiums, broadcasting operations and commercial infrastructure.
Kagame said Rwanda wants to demonstrate that African countries can become destinations for major global sporting investments rather than remain primarily sources of talent and consumers of international sports content.
“We want to contribute, not just participate, and this new chapter in motorsports starts today,” he said.
The African Grand Prix will be hosted at a purpose-built circuit in Bugesera, approximately 40 kilometres south of Kigali, near the country’s new international airport.
The project could create demand for construction companies, engineering firms, logistics providers, hospitality businesses, event organisers and specialist technical services.
It could also attract investment in hotels, restaurants, entertainment venues and tourism activities, particularly if the circuit operates throughout the year rather than being used exclusively for the annual Formula 1 race.
Rwanda has already pursued sports-related international marketing through Visit Rwanda partnerships with Arsenal, Paris Saint-Germain and other sporting organisations.
These agreements have helped position the country’s tourism brand in front of international audiences, although the financial returns attributable to individual sponsorships are not always publicly disclosed.
The Formula 1 project represents a different commercial undertaking because it involves the development of permanent sporting infrastructure within Rwanda.
For local businesses, the most important question will be whether procurement arrangements, employment opportunities and supporting investments enable them to participate meaningfully.
The agreement’s total financial value, hosting fees and infrastructure budget have not yet been made public. Consequently, claims about how much Rwanda will earn from the Grand Prix would be premature.
Successful Formula 1 events can generate substantial visitor spending, but their economic performance varies depending on attendance, construction costs, government support, commercial rights and the share of spending retained locally.
Kagame acknowledged that the benefits of international sporting partnerships do not happen automatically.
“Sports is a great equalizer, but we have to be intentional about delivering this promise,” he said.
His argument reflects a growing discussion across Africa about sports investment, commercial ownership and the need to retain more economic value from international competitions.
The African Grand Prix will therefore be more than a test of Rwanda’s ability to host Formula 1.
It will also test whether an African country can use a major global sporting franchise to create lasting businesses, technical expertise and employment opportunities that continue generating value long after the racing cars have left the circuit.
