CAPE TOWN, Sept 22 – A South African consortium led by former Sibanye-Stillwater Chief Executive Officer Neal Froneman is developing a R6.7 billion ($375 million) motorsport complex north of Cape Town as part of an effort to bring Formula One back to Africa, Bloomberg news reported on Tuesday.
The Blue Mountain Racing Grand Prix group is working with Rothschild & Co on the project’s business and financing structure, according to businessman Bob Hartslief, a member of the consortium. The proposal is focused on the wheat-growing Swartland region of the Western Cape.
The consortium includes Froneman, mining executive Srinivasan Venkatakrishnan and Robert Appelbaum of South African law firm Webber Wentzel.
The proposed development would feature a Formula One-compliant racing circuit costing about R2 billion, alongside conference and exhibition facilities, hospitality infrastructure and residential property. The venue is being designed to accommodate approximately 125,000 spectators.
Rothschild is advising the consortium as it seeks Formula One approval, corporate partners and compliance with government requirements that the event should not rely on taxpayer funding, Hartslief said.
The group is also pursuing sponsorship from some of Africa’s largest companies, with corporate backing expected to support the race’s licensing costs.
The consortium has already submitted a response to Formula One’s initial technical and commercial requirements and entered an evaluation process that Hartslief estimates could take between 12 and 15 months.
Second South African bid
The Swartland proposal adds another contender to South Africa’s efforts to return Formula One to the continent. A separate initiative is centred on Kyalami, the Johannesburg circuit owned by businessman Toby Venter, who is also chief executive officer of Porsche South Africa.
Venter has previously said that upgrades were being undertaken at Kyalami with the objective of securing accreditation from the Fédération Internationale de l’Automobile (FIA), Formula One’s governing motorsport authority.
Kyalami hosted South African Formula One races intermittently from 1967 through 1993, with the 1993 event remaining the most recent Formula One race held on African soil.
The latest proposals come as South Africa continues to assess options for a Formula One return, with Cape Town and Kyalami among the projects previously associated with the country’s efforts to secure a place on the championship calendar.
Formula One’s expanding commercial value
Formula One’s commercial profile has expanded significantly in recent years, supported in part by the global popularity of Netflix’s Formula 1: Drive to Survive. The sport’s increased international audience has contributed to a sharp rise in its valuation.
Formula One is now valued at more than $23 billion, compared with the $4.4 billion that Liberty Media paid to acquire the business in 2017.
For South Africa, the competing proposals represent an attempt to reconnect the country with a global motorsport series that has been absent from Africa for more than three decades. The proposed Cape Town development would also seek to combine the Grand Prix with broader commercial infrastructure spanning hospitality, exhibitions, conferences and real estate.
