Formula 1 chiefs have scheduled talks with representatives of Rwanda in September as the country pushes forward with plans to host a Grand Prix. The development was announced by Jonathan Noble, a motorsport Formula 1 editor, in his August 8 article, “Rwanda to Meet F1 Bosses Next Month to Discuss ‘Serious’ Grand Prix Bid.”

The news came after Rwanda Development Board CEO Francis Gatare met with the president of the Fédération Internationale de l'Automobile (FIA), Ben Sulayem, on May 26, during Formula 1 Grand Prix in Monaco and discussed opportunities for developing motorsports in Rwanda, as well as the FIA 2024 Annual General Assembly and Prize Giving Ceremony, which will be held in Rwanda in December 2024.

The idea of Rwanda hosting Formula 1 may appear to be a dream too big since Forbes estimates that the total cost of building a permanent circuit and hosting a Grand Prix could hit around USD1 billion, with an annual operation cost of approximately USD50 million.

However, no dream is too big to achieve for a determined nation like Rwanda, especially considering that a Formula 1 Grand Prix is one of the world’s most powerful tourism adverts.

About two decades ago, Rwanda embarked on an ambitious journey of hosting international events. At the time, Rwanda did not have any hotels that could host international delegates yet it had bid to host the New Partnership for African Development (NEPAD) conference.

Rwanda decided to build its first five-star hotel, Intercontinental Hotel. Some people doubted Rwanda, saying that the country was too poor to afford such infrastructure. Others said that Rwanda was wasting its ‘little money’.

But still, Rwanda did it, and the move unlocked multiple opportunities for the country, to the extent that it is now among the leading countries in Africa in hosting international events, after South Africa.

Rwanda’s strategy has always been a multi-sectoral approach when it comes to any event, including sports. In doing so, Rwanda is looking to bring global sporting events in a bid to drive tourism as the country positions its events and entertainment business to the world.

Revenue generated by sports tourism shot up almost 60 times, from USD120,000 in 2019 to USD7 million in 2022, according to RDB. In 2023, Rwanda hosted 27 sports events that generated USD13 million in revenue, reflecting another 60 per cent growth in revenues generated from sports events that attracted almost 14,000 international visitors.

The growth is an indication that Rwanda is bound for greatness and ready to take on greater challenges for greater returns.

Generally, MICE revenues stood at USD 95 million in 2023, while tourism stood at $800 million in the same year. The figures are clear proof that Rwanda is betting on Formula 1 in anticipation of making a big investment for big revenues.

Sports transformation has extended beyond the realms of politics and economics, seeping into the very fabric of society, including the realm of sports. Over the past three decades, the evolution of the sports industry in Rwanda has undergone a remarkable metamorphosis, evolving from obscurity to prominence on regional and international stages.

The foundation built over the last 30 years should be firm enough to enable Rwanda to produce elite athletes in the next five to 10 years.

Prior to the 1994 Genocide against the Tutsi, Rwanda existed as a closed society, shielded from the prying eyes of the outside world. Sporting endeavors, though present, remained largely confined to the local sphere, with limited exposure and resources hindering significant progress.

However, the post-genocide era ushered in an era of openness and reform, catalyzing a dramatic shift in the landscape of Rwandan sports. With newfound zeal and determination, Rwanda embarked on a journey of revitalization, leveraging sports as a vehicle for unity, development, and national pride.

One of the most notable transformations in Rwandan sports has been the diversification and expansion of sporting disciplines and infrastructures.

Investment in state-of-the-art facilities (BK Arena, Amahoro Stadium, Kigali Golf Resort & Villas, and Gahanga Cricket Stadium), coupled with strategic partnerships with international federations, has elevated Rwanda's stature as a host of prestigious sporting events, such as the Tour du Rwanda, Basketball Africa League (BAL), FIBA Afrobasket, CAVB African Nation's Championship, and the ATP Rwanda Challenger Tour, among others.

Looking ahead, Rwanda possesses the ingredients for hosting international events like Formula 1.

Rwanda is stepping up efforts to promote the sports sector, and tap into the benefits of the development that can come with it and that is why Basketball Africa League (BAL) president Amadou Gallo Fall opened up on August 14, 2023 about Rwanda’s potential to become a sports hub not just for Rwandans but also people from across the world.

In December 2023, Ultimate Fighting Championship (UFC) Dana White said the body is strongly considering shifting the events in African cities with Nigeria, Rwanda and South Africa being their target locations in the first place.

The African sports industry is seen as a significant, underexploited business opportunity. Consulting firm Oliver Wyman estimates that the sports market in Africa is currently worth over USD 12 billion but could grow to exceed USD 20 billion by 2035.

Rwanda has seen an opportunity in this sector and is moving towards taping into every possible opportunity including investing in construction of a formula 1 circuit and holding the Rwanda Grand Prix.

No dream is too big for Rwanda.