South Africa’s attempt to bring Formula 1 back to the African continent has gained another major financial dimension, with Rothschild & Co. appointed to advise a consortium planning a new motorsport complex near Cape Town. The privately funded project is valued at 6.7 billion rand, around $410 million, and includes a Formula 1-standard circuit capable of accommodating as many as 125,000 spectators.
The initiative is being led by a group of South African business figures with strong links to the mining industry. Former Sibanye Stillwater CEO Neal Froneman is heading the effort alongside mining veteran Srinivasan Venkatakrishnan and Robert Appelbaum of law firm Webber Wentzel. The consortium, known as Blue Mountain Racing Grand Prix, is currently working on the commercial and financial structure required to make the South African Grand Prix project viable.
South Africa F1 return project targets new circuit near Cape Town
Consortium member Bob Hartslief explained that the plan is to build the 6.7 billion rand motorsport complex in the Swartland region, north of Cape Town, an area traditionally associated with wheat farming. He described the development as a private initiative intended to revitalise motorsport in South Africa.
The Formula 1 circuit itself is expected to cost approximately 2 billion rand, equivalent to around $122 million. The wider complex would also include conference and exhibition facilities, hospitality infrastructure and residential property.
Hartslief said: “The site will be able to accommodate up to 125,000 spectators,” highlighting the scale of the proposed venue.
The group has already submitted a response covering the initial technical and commercial requirements set by Formula 1. According to Hartslief, the bid has now entered an assessment phase that “could last between 12 and 15 months”. The potential addition of a South African round would form part of Formula 1’s continuing global expansion beyond the current 2026 F1 calendar.
Rothschild appointed to support South African Grand Prix bid
According to Bloomberg, Rothschild & Co. has been appointed as financial adviser to the project. Hartslief explained that the bank’s role will include helping the consortium secure Formula 1 approval, attract corporate partners and satisfy government conditions requiring the event to avoid placing a financial burden on taxpayers.
“We are working to ensure that the project is entirely supported by the private sector,” Hartslief said.
The proposed business model is based primarily on sponsorship. Blue Mountain Racing Grand Prix is seeking backing from some of Africa’s largest companies, with the aim of covering the race-hosting licence fee through private-sector support.
Hartslief added: “The support of major African companies will be fundamental to strengthening the economic sustainability of the initiative.”
Kyalami remains a rival option for Formula 1’s African return
The Cape Town-area project is not the only proposal seeking to bring Formula 1 back to South Africa. A separate initiative is being promoted by Toby Venter, owner of the Kyalami circuit in Johannesburg and CEO of Porsche South Africa.
Venter’s plan is centred on upgrading the existing Kyalami venue so that it can obtain the necessary FIA accreditation. He stated last year that work was already under way to bring the circuit up to the standards required for Formula 1.
Kyalami hosted Formula 1 races intermittently between 1967 and 1993 and remains closely associated with the history of the South African Grand Prix. Historical results and venue records from Formula 1 circuits can be explored through the ScuderiaFans F1 Circuit Records & Statistics section.
Private funding central to long-term South African F1 plan
The return of Formula 1 to Africa would carry significance well beyond the sporting aspect. A new Grand Prix could generate wider benefits through tourism, infrastructure development and international exposure, while also restoring the continent to the Formula 1 calendar after an absence dating back to 1993.
Hartslief stressed that work is continuing on both the corporate structure and financing model, with the objective of creating a project capable of operating sustainably without public financial support.
“We are building a solid model that can be sustainable over the long term,” he said.
The combination of mining-sector business experience, high-level financial advice and a private sponsorship model gives the Cape Town proposal a structured route towards Formula 1 approval. At the same time, the competing Kyalami plan means South Africa now has more than one pathway towards bringing the World Championship back to the continent.
The scale of Formula 1’s international growth provides important context for both projects, with the championship continuing to expand its global audience and commercial reach. ScuderiaFans has previously examined how Formula 1’s worldwide fan base has continued to grow, increasing the strategic value of new markets and potential Grand Prix destinations.
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