Formula One in Kigali! Rwanda indeed dreaming big 

Rwanda announced that it has been holding talks with Formula One CEO Stefano Dominecali to join the high profile Formula One Grand Prix (F1) global circuit.

Formula One is regarded as the pinnacle of motorsport that many countries dream of joining but only a handful form the annual 24-round race championship.

This is ambitious. Even one of Africa's biggest economies South Africa has failed to bag an F1 round despite spirited attempts over the past two year.

But Rwanda, whose international sports hosting portfolio, collaborations and sponsorship to major foreign football teams like UK-based Arsenal and French team Saint Germain, has left tongues wagging, is dead serious with its plans.

Domenicali told the authoritative British magazine Autosport last week that Rwanda is serious and has already presented a good plan and he will be having a meeting with government and motorsport bodies next month.

Thailand and South Korea are the other countries with a firm interest in hosting an F1 race in the near future. Domenicali is planning a visit to the Thai capital of Bangkok after next month’s race in Singapore F1.

“Rwanda represents an ideal opportunity for the return of Formula One to Africa. We are serious about submitting our candidacy. 
“Our interest in Formula One is in line with the national strategy to use sport as a lever for economic transformation," Automobile Club of Rwanda president Christian Gakwaya was quoted saying by Autosport. 

“For motorsports in Rwanda, hosting F1 is an important part of a broader strategy that includes infrastructure development, capacity building (social and economic development) and schools, and the drive to host more international events and championships.”

But does Rwanda have the capacity to host an F1 race, and if so what are the tangible benefits now and in the future?

F1 is a premium product with a heavy capital outlay that would cripple many African economies. Despite its ambitious plans to host major international sports conferences, motorsport is very low key in Rwanda where outdated machines compete in the country's Africa Championship (ARC) round, the Mount Gorilla. 

Nonetheless, the country has dynamic, ambitious, youthful motorsports executives who have dared to dream, and have been warming up towards the FIA -- the motorsport international governing body which has shown a high level mutual respect towards Rwanda by accepting to stage its annual awards ceremony in Kigali in December, a first for an African country.

Rwanda will have to start from scratch by constructing an F1 track, most likely a government investment which costs upwards of $270m (Sh35 billion). 

The grandstands are estimated to cost $14m (Sh1.8b), safety barriers and fencing $8m (Sh1.04b) while much more will be needed for parking and administration blocks. This is where things start getting interesting. 

The facility will require an annual maintenance budget of Sh2.4b according to industrial sources.

Rwanda will be happy and proud to be associated with an F1 race but F1, the World Rally Championship (WRC), or all other motorsport events are owned by the FIA which makes money through a third party event promoter who grabs everything.

There is a company called Liberty Media, the owner of Formula One which charges a hosting fee and takes all income generated by the race through sponsorship. 

Liberty Media inspects and certifies the track and must be paid an annual hosting fee of between $15-50 (Sh1.95b-Sh6.6b) depending on the month of the season, the later the month, the higher the fee. 

Liberty Media is an American company which bought the F1 from previous owner, Briton Bernie Ecclestone.

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