Africa's sports economy is expected to grow significantly, reaching $20 billion by 2035. However, experts argue that this growth will not be achieved without the development of infrastructure designed to capture this value. Nicolas Pompigne-Mognard, Founder of African Collaborations Group (ACG), made this argument in a recent live interview on SABC Channel Africa. He emphasized that Africa needs sports infrastructure that generates its own revenue, sustains its own operations, and contributes to the economy.
Pompigne-Mognard, who was appointed to the FIFA Task Force for Infrastructure Development in Africa in 2022, described the current state of sports infrastructure in Africa. He noted that many stadiums are built in isolated areas and are used for only 25 to 30 days per year, leaving them as a burden on the country's budget. This, he argued, is because they were built for a single purpose, such as football, and lack a commercial operating model and revenue diversification.
ACG's proposed solution is the development of sports and entertainment districts. These are masterplanned, mixed-use developments anchored by multi-purpose sports venues, surrounded by an ecosystem of 15 to 20 asset types. These asset types include indoor arenas, hotels, conference centers, training academies, cinemas, restaurants, nightlife, schools, gyms, retail, residential, commercial offices, and media production facilities. This model aims to create infrastructure that operates 365 days a year.
The sports and entertainment district model has been designed to generate diversified revenue streams. According to Pompigne-Mognard, even when there are no sports events, the district can still attract visitors for concerts, weddings, fairs, and other activities. The district can also provide amenities such as gyms, cinemas, and restaurants, making it a vibrant and dynamic hub of activity.
ACG's Advisory Board comprises 28 members, including former FIFA Secretary General Fatma Samoura. Other members include the head of the Real Madrid Santiago Bernabeu Stadium renovation, the founder of Afro Nation, and the consultant who built Rwanda's convention bureau strategy. ACG invests at the pre-development stage, creating the conditions for institutional and private investors to finance projects that are bankable, investable, and financially sustainable.
A key aspect of ACG's model is that it does not require government funding. Instead, the organization works to create conditions for institutional and private investors to finance projects. This approach aims to ensure that sports infrastructure development is financially sustainable and does not burden the government's budget.
The development of sports and entertainment districts in Africa has the potential to transform the continent's sports economy. By creating infrastructure that generates its own revenue and contributes to the economy, Africa can unlock the full potential of its sports industry. ACG is working to originate such districts across Africa, providing a new model for sports infrastructure development.
Key points
- Africa's sports economy is projected to reach $20 billion by 2035.
- Current sports infrastructure in Africa is often underutilized and lacks a commercial operating model.
- ACG's sports and entertainment district model aims to create infrastructure that generates diversified revenue streams and operates 365 days a year.
