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The News A slew of top international sporting events is coming to East Africa, which governments are betting on to provide an economic boost and attract foreign investment. Despite a strong growth forecast for the region, unemployment among the fast-growing youth population remains stubbornly high, leading to political instability and leaving the authorities looking for ways to create more jobs. The first sporting spectacle to land in the region will be the 2027 Africa Cup of Nations, co-hosted by Kenya, Tanzania, and Uganda. Then in 2029, Nairobi will welcome competitors for the World Athletics Championships. And in the early 2030s Formula 1 will return to Africa with an annual Grand Prix in Rwanda. Travel, hospitality, construction, and entertainment are among the key sectors expected to benefit from the events over the next few years. World Athletics said the 2023 championships in Budapest generated $400 million when its overall impact was taken into account, which Kenya would hope to match. When it comes to AFCON, the hosts are eyeing the $2 billion in economic benefits that the Confederation of African Football said stemmed from the last tournament in Morocco, with Uganda alone targeting $500 million, according to a member of its organizing committee. And while Rwanda has not published official projections for the economic impact, it has confirmed that its new $2 billion Bugesera airport, currently under construction will sit adjacent to the planned Formula 1 circuit, along with hotels, apartments, and logistics facilities. Peng Chen, co-founder of ticketing platform HustleSasa that operates in six African countries, said the events would serve as “proof points” for investors looking at the sports ecosystem in Africa, including the long-term sustainability of investments in things like arenas. “The trickle down economy will also be massive,” Chen added. He told Semafor he expected visitors in host cities to spend “hundreds of dollars everyday” between transport, food, accommodation, and entertainment including side events. The desire to tap into the economic benefits is among factors driving new investments, especially in sports infrastructure, in Kenya and Uganda. Kenya revealed details last month of a partnership with pan-African sports investment outfit Zaria Group — led by Dallas Mavericks President Masai Ujiri — to build a 10,000-seater indoor arena in Nairobi. It is set to be part of a larger entertainment district that will also include the new $350 million Talanta Stadium being constructed for AFCON. Uganda has also unveiled plans for the Turkish firm Summa, which constructed one of its AFCON stadiums, to build a 15,000-seater indoor arena in Kampala. In this article: Know More The various plans come at a cost, with governments committing significant amounts to make the events happen. The three AFCON hosts, who each paid a $30 million fee for the right to host the tournament, have all invested in building new venues — along with Kenya’s Talanta Stadium spend, Uganda’s Hoima Stadium cost $112 million, and Tanzania’s Mama Samia Stadium has a $130 million price tag. This expenditure, along with the money for refurbishing old facilities, is putting pressure on national budgets. Besides hosting events, Rwanda has also used marketing partnerships with global sports clubs to attract tourists with its Visit Rwanda partnerships. The country currently has multi-million dollar sponsorship deals with Aston Villa, PSG, and the LA Clippers. Kenya’s government expects to host an additional 1 million visitors in Nairobi during the month-long AFCON, growing the $3.85 billion earned from tourism in 2025. Rwanda’s strategy to boost this sector has partly leaned on sports events and sponsorship — with the country aiming to hit $1.1 billion in annual tourism revenue by 2029. Martin’s view Major international sporting events are welcome in East Africa, however, there is a piece missing. In order to ensure the long-term sustainability of major investments in stadiums and arenas, governments must first prioritise the development of the troubled local sports sector. Kenya’s own top-flight football league and national teams, for instance, have been riddled with challenges ranging from leadership wrangles to payment delays. Kenya’s global athletics icons, including 1500m world-record holder Faith Kipyegon, have complained over the poor state of training facilities across the country. Uganda is one of the world’s top-ranked netball teams, but its netball federation has faced allegations of corruption. Chronic underfunding and mismanagement have similarly affected several other sports and fueled their decline. Once the international visitors have gone home, the question is whether the stadiums and facilities will lie empty and fall into disrepair. Supporting and investing in local sportsmen and women, clubs, leagues and venues is the key to ensuring the region develops lucrative sports ecosystems that create meaningful opportunities. Room for Disagreement Kenyan critics of the AFCON infrastructure developments have argued that the projects have been an avenue for corruption and risk escalating Kenya’s $98 billion debt burden. Kenya’s auditor-general in February flagged major financial irregularities in relation to the construction of the Talanta Stadium, saying that $83.7 million could not be properly accounted for. “It will leave us with a heavier debt burden at a time when the existing debt is crippling and critical sectors like education and health are struggling,” Nairobi-based economist Ian Mwangi told Semafor. He said that the $344 million infrastructure bond floated for the 60,000-seater stadium could balloon, echoing concerns shared by Ruto’s opponents. Notable - CAF President Patrice Motsepe called for a “heightened sense of urgency” in the development of facilities for AFCON 2027, even as he dismissed reports that a postponement of the tournament could be on the cards due to the state of some of the stadiums.
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