Gayton McKenzie opens tender for SA’s Grand Prix dream

Sports, arts and culture minister Gayton McKenzie on Wednesday announced a new Bid Steering Committee (BSC) for a Formula One race in SA.

In a media conference held at the Kyalami Grand Prix Circuit in Johannesburg and attended by dignitaries including Gauteng's MEC for finance and economic development Lebogang Maile and CEO of LSM Distributors and Kyalami racetrack owner Toby Venter, the minister outlined the plans and tasks of the BSC that’s chaired by the PA’s Bakang Lethoko.

The BSC consists of individuals from various sectors, including MultiChoice CEO Rendani Ramovha; senate member at FIA and chair at Motorsport SA, Anton Roux; the CEO and co-founder at Newzroom Afrika Thabile Ngwato, and a few others. McKenzie explained that the varied expertise of the steering committee would assist with drawing up the bid document and outline specifications and compliance, while identifying the best bids and promoters to bring the Grand Prix to SA.

SA last hosted a Grand Prix at Kyalami on March 14 1993. Toby Venter said upgrades to Kyalami as Grade A Formula One circuit were at 90% and the track would be fully licensed by the end of 2025. 

On the bidders

The bid process is open to locals or to overseas promoters. Warren Scheckter, founder and CEO of SAGP and the son of former F1 driver Ian Scheckter and nephew of SA’s 1979 F1 world champion Jody Scheckter, established SAGP in 2015. There also exist two other bids: one for a race at Welkom’s Phakisa raceway and another consortium under the peculiar banner of “Wakanda City”.

Before MacKenzie’s announcement, Rwandan President Paul Kagame also announced his country's bid for a Formula One race. The minister said he welcomed an additional African bid and that he supported that and any other African state’s wishes to host an F1 race.

The European continent has numerous race events in a calendar year, while countries such as Italy have the privilege of hosting two races in a year, in Monza and Imola. “Why can’t we have an SA and Rwandan Grands Prix?” asked the minister.

What it takes to host a Grand Prix

A race can be on an existing circuit such as Kyalami in Midrand or a city street such as Monaco. The promoter is responsible for running the whole show and making it a success, from finding sponsorships to paying the obligatory, multiyear hosting fee to the Formula One company. For perspective, the Eastern Europe country of Azerbaijan reportedly pays an eye-watering $57m (about R1bn) a year to host a race on the streets of Baku City until 2026.

An insider close to the SA bid informs us there are local individuals and consortia that can realistically bring a Grand Prix to SA; however, it’s a behemoth that requires infrastructure and experienced hands to run successfully. He adds that the F1 bid documents will require at least 140 helipads set up close to the hosting circuit. He advises locals with an interest to partner up with experienced overseas promoters.

McKenzie said hosting an event the magnitude of a Grand Prix had many positive spin-offs for a country and its economy, but said the government would not commit any money to the bid. It would instead support and work with the successful promoter.

Maile said the Gauteng province stood the best chance of hosting the event thanks to its existing infrastructure but the provincial head acknowledged that a collaboration with other provinces was crucial to making a success of an SA Grand Prix

“The winning bid is expected to be announced in February. We will then take the name and the bid to the provincial structures, then onto cabinet for final approval,” McKenzie said.

BSC members

Bakang Lethoko (chair); Anton Roux; Vic Maharaj; Rendani Ramovha; Gavin Varejes; Andrew Dunn; Timothy Harris; Stephen Watson; Shane Water; Thabile Ngwato; Charnie Lee Kruger; Nomsa Chabeli and Mimandlela Ndamase.