Business heavyweights look to bring Formula One back to South Africa

A group of South African business heavyweights has appointed global investment bank Rothschild & Co. to advise on a R6.7 billion proposal to bring Formula One back to South Africa.

The consortium, led by former Sibanye Stillwater chief executive Neal Froneman, mining veteran Srinivasan Venkatakrishnan and Webber Wentzel’s Robert Appelbaum, is proposing a major motorsport development in the Swartland north of Cape Town.

Businessman Bob Hartslief, who is part of the consortium, said the group is working with Rothschild on the project’s business and financing structure.

R6.7 billion Cape Town F1 development

The proposed Blue Mountain Racing Grand Prix development would include a Formula One-compliant circuit, hospitality facilities, conferencing and exhibition space, as well as residential property.

The circuit itself is expected to cost about R2 billion, according to details of the proposal.

The planned venue would have capacity for approximately 125 000 spectators, while the wider development is intended to create a broader commercial and hospitality destination around the potential grand prix.

The consortium has submitted a response to Formula One’s initial technical and commercial requirements and is now going through an evaluation process.

Hartslief said that process could take between 12 and 15 months.

No taxpayer funding planned

A key part of the proposal is securing Formula One approval while meeting government requirements that hosting the event should not depend on taxpayer funding.

Rothschild has been appointed as financial adviser as the consortium works to secure corporate partners and develop a sponsorship model to support the race’s licence fee.

Hartslief said the group is seeking backing from some of Africa’s largest companies.

The consortium’s proposal is not the only South African effort aimed at bringing Formula One back to the country.

Kyalami also in the race

South African businessman Toby Venter has separately expressed interest in bringing Formula One back to Kyalami in Johannesburg.

Venter, who owns the circuit and is chief executive of Porsche South Africa, has previously said upgrades were under way to secure Formula One accreditation from the Fédération Internationale de l’Automobile (FIA).

Kyalami hosted Formula One races intermittently between 1967 and 1993, but the sport has not returned to South Africa since.

South Africa does not feature on Formula One’s 2027 calendar.

Formula One’s global popularity has increased significantly in recent years, helped in part by the Netflix series Drive to Survive.

The sport’s commercial growth has also pushed its valuation to more than $23 billion, according to the report.

For South Africa, the competing proposals could potentially mark the country’s return to the Formula One calendar after more than three decades away.