The private sector has committed to fund the estimated R2.1bn licensing fee if South Africa gets the green light.
South Africa’s bid to host a Formula One (F1) Grand Prix rolled closer to the start line with the private sector committing to fund the estimated R2.1bn licensing fee if South Africa gets the green light to host the high-octane sport from 2027.
Bids closed on Monday, and Sport Art and Culture Minister Gayton McKenzie said his department had submitted “more than what was asked for” to F1 Management (FOM).
SA ready
“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.”
McKenzie told The Sunday Times that he had ensured that the South African bid was “hugely attractive for F1 to come to Africa”.
The Sport, Arts and Culture Minister said he had gone to “203 CEOs” with cap in hand to obtain the money.
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Private sector
He said the seven companies that came on board included a bank, a telecom operator and a gambling and hospitality group. The minimum commitment was R100m.
The companies 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 as required by the FOM, which costs $40m a year, would add up to about R2.1bn at the current exchange rate.
No government funding
Despite, Cabinet approving the sports department’s request to bid for the Kyalami racecourse in 2027, 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 return of F1 to South Africa will delight many South African fans, who have to contend with tuning into pay TV on weekends to satisfy the pangs of an F1 adrenaline rush.
ALSO READ: F1 is coming home: SA likely to host Grand Prix at Kyalami by 2027
SA on the map
At a media briefing earlier this month, Minister in the Presidency Khumbudzo Ntshavheni announced that the bid was “fully financially supported by the reputable South African private sector and, if successful, will contribute to job creation and economic development.”
“The mere granting of an opportunity for South Africa to bid for the prestigious Formula One Grand Prix is an affirmation of South Africa as an important world actor and confidence in the country,” Ntshavheni said.
Kyalami
British-based company Apex Circuit Design was tasked with drawing up plans for Kyalami’s upgrades last year to achieve the required Grade 1 status to host F1.
The grading is determined by the kilogramme-to-horsepower ratio. The ratio of F1 cars is the lowest of any motorsport class and therefore requires the highest FIA certification.
In June, Kyalami owner Toby Venter announced that the Fédération Internationale de l’Automobile (FIA) had approved the proposed upgrades Kyalami required to host a F1 race for the first time since 1993 and had been granted a three-year window to comply.
Venter was confident that the upgrades for which the circuit would foot the bill – estimated to be between R90 million and R180 million and set to take three months – could be completed before the end of the year.
Competition
While Kyalami is the favourite to host an F1 race, other local bids are expected to come from Cape Town and Wakanda Smart City. Rwanda has also expressed its intention of being the first to bring F1 back to Africa.
The Kyalami circuit hosted 21 Grands Prix from 1967 to 1993. Its list of winners includes Niki Lauda, Alain Prost, Jim Clark and South Africa’s very own Jody Scheckter, a former F1 champion.
The 16-corner 4.529km layout underwent a huge revamp after Venter bought it at auction in 2014.
ALSO READ: Kyalami or Cape Town? Race to host SA F1 Grand Prix revs up
