R2 billion for Formula 1? Here's why it could be South Africa's smartest investment yet

WHEN news broke that hosting a Formula 1 Grand Prix in South Africa could cost as much as R2 billion, the headlines focused on the bill. The critics warned of wasteful spending. Parliament debated priorities. But while the accountants saw a liability, I saw something very different: 20 000 jobs waiting to be created and an economy in motion.

- DR NIK EBERL

Yes, R2 billion is a significant investment. But as Singapore discovered when it launched its Grand Prix in 2008, the right event can pay for itself many times over. According to the Singapore Tourism Board, the race generates about $$150 million (R2bn) annually in visitor spending and economic impact. Independent studies put the return on investment at three to five times every dollar spent.

Apply those multipliers to South Africa, and you are looking at R6bn to R10bn circulating through our economy — from hotels and restaurants to construction, transport, media, and broadcast rights. And that’s before considering the long-term reputational benefits that mega-events create.

Because here's the part of the equation that rarely makes it into political soundbites: the jobs don’t come from the race itself — they come from the ripple effects that the race sets in motion.

More Than a Weekend

Take Montreal. When it first hosted a Formula | race in 1978, roughly 2 000 people were employed directly for the event. Today, its motorsport sector — spanning events, tourism, suppliers, and services — sustains more than 13 000 jobs annually. These are not weekend positions. They represent a permanent industry cluster built around skills, suppliers, and global demand.