How Africa’s sporting appetite could spark economic growth

WITH Africa announced to be one of the co-hosts for the Men’s 2030 Fifa World Cup in Morocco, there is a growing appetite for international sporting competitions to be held on the continent. In 2023 alone, South Africa hosted the Women’s T20 Cricket World Cup and the Netball World Cup, while Cape Town became the first African city to host a Formula E ePrix.

In 2027, meanwhile, South Africa is set to host the ODI Cricket World Cup in partnership with Namibia and Zimbabwe. Other large sporting events in the pipeline include the long-awaited return of Formula One to the continent.

While such events require the right infrastructure to be put in place, in the long run, they offer more than just prestige and visibility — they provide significant economic benefits. When South Africa hosted the 2010 World Cup, for example, it boosted economic growth by 0,4% and added R38 billion to the country’s economy. This is because, in addition to the immediate boost from visitors, these events also attract investment.

Interest from outside

It’s worth noting that the African countries themselves aren’t the only ones interested in exploring what the continent has to offer in terms of sports. A growing number of international sporting federations are also keen on the idea.

For example, earlier this year the NBA announced talks to host a pre-season game in Africa, building on previous exhibition matches held on the continent in 2015, 2017, and 2018. The NBA also launched the Basketball Africa League, which acts as a feeder league to the NBA and was facilitated by an existing ecosystem of the sport across the continent.

Plus, as more African mixed martial arts fighters rise through the ranks, the UFC plans to hold its first African event, with Senegal as the leading candidate to host it. Additionally, international mass participation bodies such as Ironman and trail running’s UTMB World Series have hosted events on the continent for several years.

It is not surprising that there is a growing interest in sports in Africa, given its young, growing, and increasingly connected population. Africa is also one of the world’s fastest-growing regions in terms of economics and urbanisation. Sports spending is linked to macroeconomic development stages, and so we anticipate that the amount of disposable income spent on sports will accelerate, resulting in sports spending growing faster than incomes.