It’s official: Rwanda bids to host F1

“A big thank you, Stefano Domenicali and the entire team at Formula 1, for the good progress in our discussions so far. I assure you that we are approaching this opportunity with the seriousness and commitment it deserves. Together we shall build something we can all be proud of,” President Kagame said.

Known for its astute lobbying -- and at times seen to punch above its weight -- Rwanda is pushing to get the nod to host the coveted race, especially after hosting all the Formula 1 top decision makers in Kigali.

The event, which kicked off with the 2024 FIA General Assembly on December 10, marks the first time the award ceremony is coming to Africa, in which the best performing drivers of 2024 will be awarded. 

The event is attended by more than 800 delegates, and motor sport enthusiasts from across the world.

The Formula1 CEO Stefano Domenicali, a few days ago, told media that Rwanda is among African countries they are talking to for a possibility of hosting a Formula 1 race on the continent, a long-awaited return since it was last held in South Africa in 1993.

“We are looking at Africa, but not in 2026,” he said. “We would not be realistic to say they will be ready. We are talking to countries like Rwanda, for example, South Africa requested, but we need to be sure that whenever it will be done, it will be done in the proper way.”

“Africa is the only continent not present in our world championships” Mr Domenicali added.

When asked if they are looking at having the races in Africa come 2027 after the Dutch Formula1 mandate expires in 2026, he said: “2027, I think will be premature. I need to be realistic; it takes time to build a Formula1 ecosystem. But we have the pressure to push the ones that are interested. We shall get at least two, therefore, we have to put the right pressure to make it as fast as possible.” 

Rwanda’s Foreign Affairs minister Olivier Nduhungirehe said the push to host a Formula 1 race is part of a broader strategy to use sports as a driver of economic growth and global visibility.

He said Kigali has already demonstrated its ability to host big sporting events, citing the country’s collaboration with the NBA’s Basketball Africa League, which has seen some games played at the BK Arena in Kigali, and the 2025 UCI Road World Championships, an annual cycling competition, coming up in Kigali next year.

Mr Nduhungirehe also said the country’s multimillion-dollar investments in sports infrastructure, partnerships, and global sponsorship deals are already paying dividend. 

The “Visit Rwanda” campaign, promoted through sponsorships with football clubs Arsenal, PSG and Bayern Munich, and its strategy of hosting major sporting events, have significantly boosted tourism, contributing $636 million in revenue in 2023 — a 36 percent increase from 2022.

President Kagame recently attended the Formula 1 Qatar Grand Prix 2024 race at the Losail International Circuit in Doha.

Whether such enthusiasm and commitment towards the sport will sway the top Formula 1 leadership to favour Kigali, remains to be seen, as it battles South Africa and Morocco, the two other African countries angling for hosting rights.

Rwanda jumped into the fray after learning last year that South Africa, which was poised to be included in the 2024 calendar, had been frozen, allegedly due to its failure to condemn Russia for its invasion of Ukraine.

Kigali officials then crafted a plan that they keep close to the chest, but have benefited from support of powerful lobbyists, sporting icons and powerful, influential politicians and global personalities, including superstar Lewis Hamilton, who has on several occasions made his support for Rwanda’s bid public, noting that the time is right for a Formula 1 race to be held in Africa.

“Rwanda is one of my favourite places. I've been doing a lot of work in the background on it,” the Briton superstar said. “I’ve spoken to people in Rwanda, I've spoken to people in SA. That’s a longer project, Rwanda, but it’s amazing that they’re so keen to get a part of it.” 

The seven-time world champion, in an interview in August, said, “No-one gives anything to Africa.” 

“I think having a Grand Prix there will really be able to highlight just how great the place is and bring in tourism and all sorts of things. Why are we not on that continent?”

Formula 1 was last in South Africa’s Kyalami circuit in 1993.

Analysts say Rwanda would need $270 million, which is the cost of designing and building a new grand Prix track, with an annual maintenance kitty of $18.5 million.

Yet these costs do not include the necessary track additions for races such as grandstands, which need $14 million, safety barriers and fencing at a cost of $8 million, race pits, offices and parking lots.

There have been arguments that it might not make business sense for Rwanda to go through such trouble and investment to host the race, as studies show that the host country gets very little from hosting, since most of the revenues go to the F1 franchise owners.

An article in the Michigan Journal of Economics, titled Is Hosting an F1 Race Financially Feasible? says Liberty Media, the owner of Formula 1 takes the lion’s share of the proceeds.

Noting that after Liberty Media has completed its necessary track inspections, track hosts must pay a hosting/race promotion fee of $15-50 million and upwards for prime-time races to Liberty Media, which must be paid for every single race hosted.

It adds that all revenue from track sponsors and broadcasting rights for races goes to Liberty Media. 

And that track owners are left with very little revenues from Grand Prix. 

Ticket revenues end up being their sole source of income, which in most cases is not enough to be profitable.