Why Kyalami doesn’t actually need SA government money to host F1 Grand Prix
Kyalami Grand Prix Circuit could host an F1 event without government funding, as private investment is possible and the circuit is the closest to meeting FIA Grade One standards, though significant upgrades are needed, raising questions about the SA government’s financial priorities. Picture: AFP
Image: AFP
It may come as a surprise to most that Kyalami Grand Prix Circuit doesn’t actually need to be funded by the SA government to host an F1 event.
In fact, any suitable venue in South Africa could potentially host an F1 event, but Kyalami has already been given approval from the Fédération Internationale de l'Automobile (FIA) to upgrade the track to an FIA Grade One circuit.
These upgrades will cost between 5 million (R83 million) and 10 million US dollars (R167 million).
This move has even been backed by F1 legend Lewis Hamilton, and more recently, SA Minister of Sport Gayton McKenzie has made it his mission to see the sport return to the country during his tenure.
F1 Event Feasibility in South Africa: Challenges and Considerations
However, Sudhir Matai, motorsport expert, automotive consultant, and managing editor of DoubleApex.co.za, explains that an F1 event can be held if it secures private funding.
“As the 2026 calendar is already finalised, 2027 is the earliest possible date, provided there is a venue that meets the criteria, of which there is none in SA at this moment,” said Matai.
“Kyalami is the closest thing we have to a suitable venue, although it does need some work, which they say won't take that long to conduct.”
Matai points out that the British Grand Prix held at the Silverstone Circuit is hosted without any government funding.
“Interestingly, the government does not need to be involved in the process at all, as is the case with the UK.”
As Matai explains, F1 operates much like a musical act which owns the rights and brings the “show” to countries that pay for it. Therefore, the reason Kyalami has been the frontrunner to host the event is that the circuit requires the least amount of work upgrades for the track to be eligible.
As for the hosting fee, this can vary anywhere between 20 million and 50 million US dollars (R335 and R838 million).
The numbers are simply astronomical, and it therefore poses the question to the SA government if ultimately it’s worth their while funding the event or if that money could be spent in other sectors like education.