Economic impact of Formula E event in Cape Town estimated at R2.13 billion

Cape Town Mayor Geordin Hill-Lewis visited the ongoing construction of the Formula E track. Picture: Armand Hough/African News Agency (ANA)

Cape Town Mayor Geordin Hill-Lewis visited the ongoing construction of the Formula E track. Picture: Armand Hough/African News Agency (ANA)

Published Feb 15, 2023

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Cape Town - Electric racing engines are being revved up in anticipation of next week’s 2023 Cape Town E-Prix which the event’s promoters say promises fast, exciting open-wheel street racing on a stunning new track in the Mother City, specifically, the Waterfront District.

Saturday next week (February 25) will see Cape Town host the world's first fully electric street racing series, Formula E, officially the ABB FIA Formula E Championship, and it is expected the race will bring with it the latest innovations in electric vehicle and alternative energy solutions.

Rallying behind the event, the Western Cape provincial government sees the event as a chance to showcase the City and the province at large as “destinations of choice where public and private sectors collaborate to deliver successful major events which have a direct impact on the local economy and related industry sectors”.

Speaking on the impressive expected economic impact, Finance and Economic Opportunities MEC, Mireille Wenger said the demand for a green, more resilient future has never been greater, for the world and for South Africa.

“The R2.13 billion in direct and indirect economic impact generated by this event in the first year, including R481 million in global destination exposure, is very welcome, especially in these challenging times.

“The benefits of this event, and many like it, go beyond a once-off economic boost. The Formula E will be hosted in Cape Town for the next 10 years and will also provide a perfect platform to boost sport tourism to the province,” she said.

Wenger said the staging of the event would provide a catalyst for the Western Cape Green Economy and provide a platform for global, African, and local green economy players to meet on an annual basis to identify opportunities to support business and drive job creation.

Wenger said the Western Cape government was moving with speed to ramp up its energy resilience and to decrease its dependence on Eskom.

Cultural Affairs and Sport MEC, Anroux Marais said the event not only showcases important environmental matters that need to be considered for all sporting events, but it also offers people of the province the chance to come together to support an exciting new race.

“We have seen the benefits of sport for mental and physical well being, and we believe that this event is another one that can be added to our ever-growing list of annual events that bring people together in a shared space,” Marais said.

Environmental Affairs and Development Planning MEC, Anton Bredell said his department had worked very hard to ensure the needed Environmental Authorisations were in place for the race to take place.

Bredell said: “In addition, our Disaster Management Centre is working together with Porsche AG and the South African Retail Motor Industry Organisation to host a training session for our emergency and rescue services, which will focus on electrical vehicle safety and emergency response strategies.”

He said this training would benefit the entire province in the long run as it is beginning to see more and more electrical vehicles on its roads.

mwangi.githahu@inl.co.za