Beyond Soccer: Africa’s Sports Economy Is One Big Untapped Potential

-Analysis-

DAKAR — As the Olympic flame of Athens prepares to illuminate the world of sports, Africa remains in the shadows. It’s almost paradoxical that the world’s youngest continent, where sport is a cardinal value, is struggling to emerge on the international stage. Indeed, Africa has an unparalleled potential to become a major hub for sports on a global scale. Some indicators suggest that the continent could eventually host the most prestigious of all sporting events: the Olympic Games.

Yet that ambition depends on complex conditions that highlight the need for a strategy blending sports and development in all four corners of the continent. Despite the current lack of empirical data, it is clear that sports have enormous underutilized potential in Africa. This emergence, as essential as it is inevitable, cannot occur without sustained and long-term collective effort.

Financial potential

With an average growth rate of 5% over the past 20 years, the sports economy is thriving. On a global scale, sports account for about 1.2 trillion euros, or 2% of GDP, but only 0.5% of Africa’s GDP, although growth forecasts predict an 8% increase.

Despite the inherent constraints of development deficits, sports offer a comparative advantage for Africa. Indeed, 70% of its population is under 30 years old, which allows for the fostering of careers combining sports, education and training, notably through the establishment of academies and dedicated centers.

Combining sports and development requires substantial resources and innovative financing.

For instance, the Diambars Institute in Senegal boasts an 80% success rate in national exams. Beyond these prestigious but limited-access institutions, it is now necessary to develop a proactive sports policy throughout the education and training cycle.

Combining sports and development requires substantial resources and innovative financing. In the United Kingdom, for example, the 1997 decision to allocate part of the National Lottery’s proceeds to the Olympics has made the country one of the most successful in this field.

Keys to sports developement

Ivory Coast, which recently hosted a memorable edition of the Africa Cup of Nations (AFCON) and won the cup, invested billion to organize the competition on more than a regional scale. In addition to significant economic, social, and cultural benefits, the host country took the opportunity to make significant infrastructural improvements.

Another key to sports development lies in strengthening African soccer federations, particularly by better leveraging FIFA opportunities. In its latest edition of “African Economies,” published in January, the French Development Agency (AFD) recalls that under its “more investments, more impact” strategy, FIFA invested .8 billion, including 7 million in Africa, during the 2016-2022 period. The federation also renewed the Forward 3.0 initiative with a 30% increase in resources. With 54 of 211 members, Africa is the largest soccer confederation in the world.

It is evident that African states are increasingly developing sports strategies. Morocco is an encouraging example, allocating about 1.1% of its GDP to sports. Further south, in Rwanda, sports have played a catalytic role in national reconciliation and serve as a lever for development and international influence through lucrative partnerships with major clubs like Paris Saint-Germain, Bayern Munich, and Arsenal.

Vast potential

Moreover, Africa is a significant source of talent for the world, especially Europe, with hundreds of players in soccer leagues. It is now necessary to work toward an endogenous sports policy, establishing well-structured leagues to reap economic benefits. Grassroots sports should serve as a foundation for elite sports, including women and girls, by implementing a women’s soccer development strategy.

Broadcasting should also be restructured to generate more revenue, considering streaming to reach a global audience. In fact, of FIFA’s .9 trillion dollars in broadcasting revenue in 2022, the contribution from sub-Saharan Africa is only 3%.

Senegal will host the Youth Olympic Games in 2026, the first time in Africa.

Winning the Rugby World Cup for the second consecutive time, South Africa has shown its vast potential. Looking west, Senegal will host the Youth Olympic Games in 2026, the first time in Africa. This diversification must embrace the region’s traditional, intangible, and cultural heritage. In Senegal, wrestling has established itself as a national reality, generating substantial economic gains.

In short, the challenges of democratizing sports are inherently linked to the development deficits of African states.