East Africa eyes sport events windfall

East Africa is positioning itself to capitalize on the economic opportunities presented by a wave of major international sporting events. Governments in the region are optimistic that these events will generate significant revenue and attract foreign investment, despite challenges such as high youth unemployment and political instability.

The first major event to arrive will be the 2027 Africa Cup of Nations (AFCON), co-hosted by Kenya, Tanzania, and Uganda. In 2029, Nairobi will host the World Athletics Championships, while Rwanda plans to host an annual Formula 1 Grand Prix beginning in the early 2030s. The sectors expected to benefit most from these events include travel, hospitality, construction, and entertainment.

World Athletics estimates that the 2023 World Athletics Championships in Budapest generated $400 million in economic impact, which Kenya aims to surpass. Host countries are predicting even greater returns - Kenya hopes to generate $2 billion from AFCON, with Uganda targeting $500 million, and Rwanda's Bugesera airport will be located near the Formula 1 circuit.

The investments in sports infrastructure are substantial, with governments committing significant funds. The three AFCON hosts have each invested $30 million, while other stadiums are costing millions. These expenditures are straining national budgets. While the economic benefits are promising, there are concerns about the long-term sustainability of these investments.

Critics point out that many national sports organizations in the region are plagued by management issues and chronic underfunding, and there are worries about stadiums becoming empty and falling into disrepair after the events. Some argue that prioritizing the development of the local sports sector is crucial to ensure the long-term viability of these investments.