Setting the Stage: Assessing the Impact of Kenyan and Rwandan Bids to Host the Grammy Academy and Formula 1
Is this East Africa’s moment on the global stage? On December 9th 2024, President William Ruto revealed that Kenya had invested Ksh 500 million in a bid to host the Grammys. Similarly, Rwandan President Paul Kagame announced his nation’s bid to host a Formula One (F1) Grand Prix. The announcement followed Rwanda hosting the Federation Internationale de l’Automobile (FIA) General Assembly and Annual Awards gala in Kigali. These proposals follow the successful establishment of the Basketball Africa League (BAL) in Kigali and the collaboration between YouTube music sensations COLORS and Spotify in Nairobi. This article outlines how East Africa may maximise the benefits of becoming an international hub for entertainment and translate this attention into sustained growth.
Kenya’s Grammy Bid
Former Cabinet Secretary for Youth Affairs, Creative Economy and Sports, Kipchumba Murkomen, shared more details on the deal the Kenyan government signed. The agreement was signed with Grammy Global Ventures, the international arm of the Recording Academy, which presents the Academy Awards – Grammys. Murkomen described the agreement as a commitment by both parties to establish an Africa Academy headquarters in Kenya.
The establishment of the Africa Academy headquarters and centres is part of the Recording Academy’s broader strategy to expand into Africa, with partner states hosting these centres and an African Grammys ceremony. Consequently, the Academy signed memorandums of understanding (MOUs) with other countries such as Rwanda, Ghana and Nigeria. Each nation was required to pay a fee of $2.5 million which will be used to set up an African Grammy Awards hub and stage other Grammy events. This expansion follows the signing of MOUs with Gulf States, such as the UAE, and the establishment of the Latin Recording Academy in 1997 and the Latin Grammy Awards in 2000.
The impact of hosting the African Recording Academy should not be overlooked. This is illustrated by the impact of the Latin Recording Academy which was founded in 1997. The organisation has empowered the next generation of Latin music creators, primarily through the Latin GRAMMY Cultural Foundation. The foundation has donated over $10m to students, schools and music programs, awarded 427 scholarships and developed educational programs for children from 8-18 years old. They estimate these programs have impacted over 3 million students. Furthermore, they have extensively collaborated with Latin music stars to mentor scholarship recipients and visit high schools. An African Recording Academy committed to creating the next generation of African music stars can have a similar effect.
The Kenyan Government plans to accommodate the African Recording Academy in the 160-acre Konza Digital Media City (KDMC). KDMC is currently at the design stage and projected to cost $284.1 million, with South Korea financing the development. KDMC is a part of the larger Konza Technopolis plan, a large technology hub and flagship project of the government’s Kenya Vision 2030. It’s currently under construction 64 km south of Nairobi. The incorporation of the Recording Academy into this smart and sustainable city is a unique selling point of the Kenyan proposal.
Is Public Money Being Spent on The Grammy Bid Justified?
Alternatively, it could be argued that Kenya’s creative industry could be stimulated more sustainably. Organisations such as the Heva Fund exist to empower creatives and could benefit from increased public funding. This includes formalising education in the arts, making funding more available and working with local creative organisations. They argue that a more direct approach, including investment in these initiatives, would be more cost effective and foster sustainable growth. Furthermore, hosting the Grammy Academy may be seen as a vanity project, a potential ‘white elephant’. This is a burdensome project, the cost of which exceeds its value. They may be proven right if the country fails to prepare its artists and put in place the necessary infrastructure to take advantage of the opportunity they may soon be presented with.
Rwanda’s Formula One Bid
The first F1 race in Africa took place in 1962 with the inaugural Grand Prix taking place in South Africa. Despite South Africa’s rich motorsport history, Rwanda is attempting to overtake it in the race to bring F1 back to Africa. While the country’s Grand Prix circuit is yet to be constructed, reports suggest the new international airport under construction on the outskirts of the country’s capital, Kigali.
Hosting an F1 Grand Prix attracts hundreds of thousands of visitors and places the host country on the world stage. Over 6 million fans attended F1 race weekends in 2023, approximately 300,000 fans per Grand Prix across the 22 race weekends. If successful, the race would increase traffic for the country’s airline, RwandAir, and Bugesera International Airport. This is a new international airport under construction that should be operational by 2028, which just happens to be when the next slot opens on F1’s calendar.
It's also worth noting the attention the country will command during an F1 race weekend. The sport boasts an annual cumulative TV audience of over 1.5 billion people. This provides Rwanda with another opportunity to advertise their tourism sector and broadcast, Visit Rwanda, around the world. Akin to their partnership with Arsenal and PSG, this would serve the ultimate goal of increasing the number of visitors to the land of a thousand hills.
However, we must note the intense competition around the world for the 24 race weekends on Formula One’s calendar. Drivers and teams are against efforts to increase the number of races further due to logistics constraints and fatigue. Additionally, while a potential Rwandan Grand Prix could take place annually, it faces stiff competition for the initial contract and each subsequent renewal. Not to mention the expensive undertaking that is developing a grand prix circuit. However, with the Kyalami circuit in South Africa failing to meet F1’s grade one status, Rwanda may be in pole position to host Africa’s next grand prix.
East African Access to Formula One Driving
Similarly, Rwanda must grapple with the huge financial burden placed on countries who host F1 Grand Prix events. The majority of which will come from constructing a brand new racing circuit, estimated to cost upwards of $270 million as well as annual maintenance costs averaging $18.5 million. Additionally, there is an annual promotion fee that must be paid to Liberty Media, the owner of F1. It is estimated to be between $15 million and $50 million. Rwanda also faces allegations of sports-washing, when countries use sporting events to clean up their international image by drawing attention away from their dubious human rights record.
Furthermore, it can be argued that hosting a Grand Prix will not open Formula One to Rwandan talent – due to the tremendous cost of participating in motorsport. Participation in a single season of Formula Three, a stepping stone to Formula One, costs drivers more than $1 million. This led seven-time world champion, Lewis Hamilton, to refer to the sport as a ‘billionaire boys’ club’.
Additionally, there are only 20 drivers’ seats at the pinnacle of motorsport, not to mention many youth karting competitions are confined to Europe. It can be argued that Rwanda would be better served by investing in sports with lower barriers to entry such as basketball, football and athletics. These sports would truly offer young East African athletes the opportunity to transform their lives and rise to the top of their discipline.
The country has already acted as a springboard for East African athletes looking to get to the next level. The Basketball Africa League (BAL) hosted its first edition, and part of every edition since, at the Bank of Kigali (BK) Arena in Kigali. Two of the BAL’s brightest graduates, Ulriche Chomche and Khama Malauch, stand out as some of Africa’s most promising basketball prospects. The former is the first BAL player to be drafted into the National Basketball Association (NBA) and the latter committed to Duke University in 2024.
Conclusion
East African countries are making plans to extend their famous welcoming spirit beyond wildlife tourism and to prestigious sports and entertainment events. Kenya’s investment in its bid to host the Africa Recording Academy looks set to pay dividends, particularly in the enrichment of the nascent creative industries. The country’s plan to incorporate the academy into a new sustainable city sets its bid apart from its competitors. However, the government cannot stop there, it needs to empower the country’s creative industry to pave the way for the potential significant attention and investment that comes with the Grammy Academy.
Alternatively, Rwanda’s pitch to host an F1 grand prix promises to strain the country’s finances and presents a massive opportunity cost to its government. However, the prospect of commanding the world’s attention for a weekend might be enough to push the country over the line. These high-profile proposals showcase the region’s incredible spotlight potential – whether or not they will be realised remains to be seen.
