South Africa’s billion-rand opportunity in F1’s digital economy

WHEN South Africans talk about Formula 1, the conversation usually centres on whether Kyalami will host a Grand Prix again, how much it would cost, and whether government can justify the spend.

- DR NIK EBERL

Yet while we debate tarmac and tax breaks, a parallel Formula 1 is unfolding — one that doesn’t require billions in infrastructure or international approvals. It lives in games, esports, digital twins and creator platforms. And it could be worth more to our economy than the physical race.

The official lap counts often quoted — such as the 847 million laps run in F1’s video game last year — should be a wake-up call. Fl’s digital platforms attract millions of players worldwide, and esports competitions regularly draw hundreds of thousands of live viewers. The grid of the future is as much digital as it is physical. The question is whether South Africa will take its place on it.

A Market We Already Own

South Africa already has a formidable base. Industry research shows there are 26.5 million gamers in the country, and the local gaming industry generated around R7.3 billion in revenue in 2023 — a 52% jump year-on-year. Ninety-one percent of that comes from mobile titles, which means gaming is not a niche pastime: it’s mainstream, affordable, and woven into the lives of young people. On average, South African gamers spend about R480 a year on games. Scale, not spend per head, is the real advantage. Our demographics reinforce the case. With a median age of 27, South Africa has one of the youngest populations of any middle-income country. That means millions of digital natives already fluent in gaming, social media and online communities — the exact building blocks of esports and the creator economy.

Why FI’s Digital Economy Matters

Fl’s digital ecosystem can be grouped into four pillars: