Johannesburg – South Africa’s attempt to bring Formula One racing back to the continent moved a step closer after business leaders pledged to cover the R2.1 billion licensing fee required to host the global event.
Bidding for the 2027 Grand Prix closed on Monday, with Sport, Arts and Culture Minister Gayton McKenzie confirming that his department had submitted a strong proposal to Formula One Management. He revealed that more than 200 chief executives had been approached to secure private sector funding, resulting in commitments from seven major companies, including a bank, a telecommunications operator and a hospitality group. Each company reportedly pledged a minimum of R100 million.
The government has ruled out using public funds, with President Cyril Ramaphosa said to have insisted that the state will not cover costs for the event. Despite this, Cabinet approved the sports ministry’s request to bid for Kyalami racecourse, which last hosted Formula One in 1993.
British-based Apex Circuit Design was commissioned to prepare the necessary upgrades for Kyalami to achieve FIA Grade 1 status. The project, estimated at between R90 million and R180 million, is expected to take three months to complete, with the Kyalami ownership group footing the bill.
If successful, South Africa would secure a three-year hosting agreement costing about $40 million annually. Rwanda has also expressed interest in hosting, while Cape Town and Wakanda Smart City are preparing rival bids.
The Kyalami circuit, which has produced legendary winners such as Jim Clark, Niki Lauda, Alain Prost and South Africa’s own Jody Scheckter, is seen as the frontrunner for Africa’s return to the Formula One calendar.
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