WeeklySA_AdminM180 BILLION WINDFALL: ‘But without immediate government action, we will watch the F1 economic engine roar past us,’ cautions Central Bank of Mountainous kingdom
By Ali Mphaki
Lesotho could secure an unprecedented target M180 billion (US$10 billion) injection into its tourism and development sectors – if Prime Minister Ntsokoane Matekane throws his weight behind a bid to return Formula 1 racing to Southern Africa.
A report in the Lesotho’s Public Eye online publication states the Cape Town F1 City Development Consortium, which includes international investors, is vying for the city’s first F1 license but needs Lesotho’s political backing to strengthen its proposal.
Matekane’s anticipated decision to support South African Cape Town F1 City Development Consortium in securing the Formula 1 (F1) licence could significantly benefit Lesotho’s tourism sector and national development. If successful, the F1 Grand Prix in nearby Cape Town would attract global attention, positioning the country as an accessible and attractive destination for billionaires and high-net-worth visitors.
The global spotlight on southern Africa could also attract investors to Lesotho’s renewable energy and manufacturing sectors, creating jobs and diversifying the economy. Tourism stands to gain as racing enthusiasts could extend their trips to explore Lesotho’s scenic highlands, adventure tourism, and cultural heritage. Improved regional transport links, spurred by F1-related infrastructure upgrades, would enhance accessibility, boosting cross-border and international tourism. The global spotlight on southern Africa could also attract investors to Lesotho’s renewable energy and manufacturing sectors, creating jobs and diversifying the economy.
Cape Town is making a strong push to join the prestigious Formula 1 calendar with plans for a Grand Prix circuit spanning a 500ha (1250Acre) air base sites, own private airport for landing of private jets and charter flights, a super yacht marina as well as cruise liner terminals accommodating +100 000 guests and located just 20km from the city centre.
While Cape Town F1 City Development Consortium aims to secure the F1 Grand Prix license to host a race in the South African city, their vision extends beyond just benefiting Cape Town or South Africa – they want the event to have a regional impact, particularly for Lesotho and the broader SADC region, according to the consortium’s chairman, Matthews MK Malefane.
“Lesotho could benefit from cross-border and international tourism, job creation and infrastructure development such as improved transport links between Lesotho and Cape Town, Lesotho is often overlooked in global events. Partnering with Cape Town’s F1 bid could boost its international profile as a tourism and investment destination.
Retšelisitsoe Mabote, Principal Economist at the Central Bank of Lesotho, agrees: “Supporting Cape Town’s bid enhances Lesotho’s global visibility and could attract foreign direct investment. But we must be realistic: our current tourism infrastructure isn’t ready.” Mabote highlighted key hurdles that include limited highstandard accommodation with fewer than five establishments currently meeting international benchmarks; a weak road infrastructure with border transport and internal routes in need of upgrades to handle VIP and mass tourist flows.
“This is a golden chance,” says Motšoari. “But without immediate action, we will watch the F1 economic engine roar past us.” Mabote adds: “Government must create the runway – private investors will bring the fuel.” *Maluti is Lesotho’s national currency equal to the SA Rand.
