Black economic empowerment company African Renaissance Holdings (ARH) has joined forces with the South African Grand Prix Bid Company in its initiative to apply for a licence to stage the formula-one grand prix in South Africa.
ARH has investments in the gaming, mining, telecommunications and food-processing industries.
The chairperson of ARH, Dr Vincent Msibi, said his company recognises the potential that the grand prix had to stimulate tourism, provide jobs and create industrial development.
”These things are desperately needed within the South African economy and we want to be part of this seven-year project with its unequalled worldwide exposure, high-tech association and potential to generate over R1-billion per year for our economy,” said Msibi.
Msibi; Seth Phalatse, former executive director of BMW South Africa; and Jurgen Kogl, MD of ARH, will join the board of the bid company.
Jay Naidoo, former Cabinet minister and currently chairperson of the Development Bank of South Africa, represents Murray and Roberts on the board, and Nolwazi Mdluli-Motlekar, former head of SA Tourism in London, has also recently been appointed.
ARH joins Murray and Roberts, South Africa’s leading construction company, and One Vision Investments, part of Iranian-based worldwide conglomerate Pars Oil, in their support for the bid.
Bid company chief executive Dave Gant has recently returned from two meetings with formula-one boss Bernie Ecclestone in London.
”Formula-one management and Mr Ecclestone are extremely well disposed toward staging the event in South Africa and we are probably still looking at April 2008 as the date for the first race,” said Gant.
”Mr Ecclestone is comfortable with our proposals in respect of the financial model and management plans and would like to finalise things before the end of the year. It really is now up to the South African government to decide whether they want to support this project or not.”
Dr Denis Worrall, chairperson of the bid company, said Ecclestone has instructed the formula-one management representative for South Africa, Alan Curtis, to proceed with the establishment of the South African F1 Drivers’ Academy, an organisation that will provide training and careers for young South Africans in motor sport as racing drivers, engineers, race officials and administrators.
”This will provide the necessary impetus to the transformation of the sport in our country and hopefully we could see the emergence of South Africa’s first black formula-one world-champion driver,” said Worrall.
Gant said there is a lot of competition from other countries wishing to host the formula-one grand prix, including India and Russia.
”However, we have committed over R3-million towards this project and are very optimistic. The private sector has responded well and we are confident about putting together the complete public private-sector partnership to undertake the project.”
It is standard practice for governments to support the staging of the formula-one grand prix financially in their countries in order to enjoy the huge national economic impact that the event generates.
Gant believes that more than 25 000 foreign tourists will travel to South Africa to watch the event and that 120 000 spectators could be expected to attend on the day of the race, which will be held at the proposed new R500-million track in Cape Town adjacent to the international airport.
Hermann Tilke, the architect who designed the Malaysian, Chinese, Bahrain tracks and, more recently, the new Turkish circuit, has been commissioned to prepare master-plan designs for the site, which will include facilities for go-karting and drag racing. — Sapa