AFCON 2027: A Game-Changer for Socioeconomic Development in East Africa
The 2027 African Cup of Nations (AFCON) will be jointly hosted by Uganda, Kenya, and Tanzania. Being the first time that three countries will co-host the tournament, the event is predicted to produce significant socio-economic benefits. AFCON has the potential to catalyse development across sports, infrastructure and transport in the region. However, without strategic planning and substantial investments made for the tournament, there runs the risk of encumbering losses. This article examines economic benefits of AFCON 2027 and suggests how challenges can be mitigated.
Harnessing Tourism for Growth
AFCON is a magnet for tourism, attracting thousands of fans internationally, athletes, and associated personnel, which has a ripple effect on the host country economy. The increased inflow of foreign currency from visitors boosts demand for local currencies, causing them to appreciate in value. The 2024 AFCON host, Côte d’Ivoire, had a 0.6% increase in its gross-domestic-product (GDP) growth between Q4 2023 and Q1 2024, with Q1 2024 coinciding with the AFCON tournament. When Gabon hosted AFCON in 2021, the event catalysed urban development projects in Libreville and Port-Gentil.
The co-hosts of AFCON 2027, should they adequately design and execute their plans, can expect similar positive impacts on their economies. Hosting a mega sporting event also promotes economic diversification in East Africa by increasing demand for workers in sectors like logistics management, marketing, and event planning. This fosters skill development and enhances future employability of local workers.
While mega sports tournaments like AFCON boost tourism and GDP in host countries, these surges tend to be short-lived. By positioning themselves as prime tourist destinations, the co-hosts can shape themselves into more frequented tourist destinations, ensuring continued revenue generation long after the tournament ends. The East African nations can follow Côte d’Ivoire’s lead and update their online tourism information system so those visiting during and after the tournament can easily find information on what to do in the region. Alternatively, national tourism boards can sponsor teams to visit attractions which raises the profiles of both the teams and their country akin to how Visit Rwanda became Arsenal’s official tourism partner. Nonetheless, drawing attention to tourist attractions must be met with investments into infrastructure, including transport.
Enhancing Transportation Networks
Mega sporting events like AFCON can serve as catalysts for development of transport systems. In East Africa boda bodas and matatus (mini vans) are common modes of public transport in rapidly growing cities. However, these systems also contribute to congestion, pollution and safety concerns. Whilst matatus and boda bodas are convenient, the success of hosting AFCON 2027 calls for modern integrated mass transit networks in parallel to classic modes of transport in the region.
Kampala is currently reviewing its public transport system as part of the Kampala City Roads Rehabilitation Project, supported by the African Development Bank. The Kampala Capital City Authority (KCCA) aims to reduce traffic congestion by introducing a bus rapid transit (BRT) system. Meanwhile, the Kenyan government has signed an agreement with the European Union to finance a BRT system in Nairobi, with the first fleet of buses expected to be operational by the end of 2024. Dar es Salaam, Tanzania, has already made strides in improving safety and travel times through the early-stage implementation of a mass BRT system, partially financed by $290 million worth of credit from the World Bank's International Development Association. Thus, developing functional mass transit systems is vital not only for better navigation routes during AFCON but also to promote efficient movement in rapidly developing regional cities.
Improving Sports Infrastructure
Hosting AFCON requires significant sports infrastructure development. The host countries will need to deliver a minimum of four 20,000-seater and two 40,000-seater stadiums to satisfy the Confederation of African Football (CAF) standards. Most countries have opted to upgrade their existing infrastructure and construct new stadiums.
In Uganda, reconstruction works for the Mandela National Stadium in Kampala were undertaken by the UPDF Engineering Brigade between 2019 and 2024. Costing over $25 million, the 42,000-capacity stadium is now fully operational, featuring smart solutions including digital ticketing and a video assistant referee (VAR). Renovations of Kampala’s Nakivubo Stadium have also recently been completed by Ham Enterprises in collaboration with the Ugandan government. Costing nearly USD $200 million, the upgraded 35,000-seater stadium features athletic tracks, a FIFA-standard football pitch, a basketball court, and a boxing ring. In addition to renovating existing stadiums, a new CAF-approved stadium is under construction in Hoima, western Uganda.
In Kenya, the Kipchoge Keino Stadium, Nyayo National Stadium, and Moi International Sports Centre (Kasarani) have been earmarked to undergo extensive renovations ahead of AFCON 2027. Additionally, the ceremony for the new 60,000-seater Talanta Stadium in Nairobi took place in March 2024. This is a stadium advertised as specifically designed for football use and set to feature the latest sports broadcasting technology.
Tanzania’s 60,000-seater Benjamin Mkapa Stadium in Dar es Salaam has also been recently renovated, and the new 30,000-seater Dr Samia Suluhu Hassan Stadium is under construction in Arusha. With these significant advancements underway, the host nations appear to be on track to deliver the required stadiums and infrastructure on time.
However, there are legitimate concerns surrounding the timely completion of these projects, particularly given the substantial investments required. The 2027 AFCON hosts are required to deposit a guarantee fee of $90 million to CAF by 15 January 2025. This is to minimise the risk of a last-minute re-allocation of hosting rights due to a failure to deliver the required sports infrastructure on time – an occurrence that is not uncommon. For example, Kenya, one of the 2027 co-hosts, was stripped of hosting rights for the 2018 African Nations Championship (CHAN) due to stadium infrastructure delays. Thus, it is critical that the AFCON 2027 co-hosts take proactive measures to ensure appropriate infrastructure is delivered in a timely manner.
Adopting a milestone-based project funding approach could incentivise contractors to meet project deadlines whilst minimising the mismanagement of funds. Thorough risk assessment and contigency planning will also be essential to mitigate delays before they become catastrophic. Additionally, leveraging international expertise by collaborating with firms experienced in delivering large-scale sports infrastructure could help ensure timely completion. Uganda has already taken steps in this direction by engaging Summa International, a Turkish firm, to construct its new Hoima Sports Stadium.
Post-Tournament Sustainability
Beyond the challenge of meeting looming deadlines, there is the risk that the newly constructed or renovated sports facilities may become ‘white elephants’ - costly infrastructure that become underutilised or abandoned. This phenomenon has been observed in other host countries of large-scale sporting events, like South Africa where $1.1 billion was spent on the 10 stadiums for the 2010 World Cup, many of which were underutilized after the event.
To minimise this risk, the host countries should develop robust post-AFCON utilisation strategies for their sports infrastructure by drawing inspiration from strategies of hosts of similarly large-scale tournaments. For example, Qatar, host of the 2022 World Cup, developed innovative legacy plans which integrated community feedback into stadium designs and repurposed several stadiums into mixed-use facilities including hotels, shopping centres, and sports medicine facilities.
South Africa partially resolved its ‘white elephant’ issue by sharing the $600 million Cape Town Stadium with the Stormers rugby team and hosting international rugby games. By adopting a similar approach, the AFCON 2027 co-hosts can create a sense of local ownership and ensure that stadiums remain economically viable and beneficial to local communities long after the tournament. The multi-purpose design of stadiums like Nakivubo and Kasarani position East African nations well to avoid wasting their investments.
Central to preventing redundancy of newly developed sports infrastructure is prioritising sports development by investing in grassroots training programs. Fostering domestic talent creates more local based professional players, improves fan interest and thus creates demand for continued use of the stadiums. Additionally, foreign investment can be attracted by showcasing the region as viable for international sponsors and sports franchises. AFCON 2027 co-hosts must strategically invest in grassroots sports and their national teams to ensure new sports infrastructure remains economically viable.
Conclusion
As Uganda, Kenya, and Tanzania prepare to host AFCON 2027, it is imperative that they put in place the necessary infrastructure to maximise the benefits this tournament presents. The stage is set to highlight East Africa's rich cultural heritage and economic potential while driving critical socioeconomic development. The tournament promises to not only boost tourism in the region but also, if well executed, benefit the domestic populations of the various countries. Furthermore, endowed with immense sporting talent, the tournament will echo the calls for greater investment in grassroots and professional players alike. Nonetheless, proper planning and timely execution is needed for the region to reap these benefits.