Many African countries are recognising the economic potential of sports and entertainment, but there is a conviction that significant investments in talent and infrastructure are needed to fully capitalise on this opportunity.
On the sidelines of the just concluded African Investment Forum in Rabat, Morocco, The New Times’ Alice Kagina caught up with Clare Akamanzi, CEO of NBA Africa, to discuss about the need for perspective shift, economic potential of sports, and returns on investment in the sector.
Below are excerpts.
You are almost one year in at NBA Africa, how has it been?
It’s been a learning curve. Obviously, having come from RDB (Rwanda Development Board) was like a comfort zone since I had spent many years there. I have learnt a lot being at NBA Africa.
I knew so much about BAL (Basketball Africa League) because of the partnerships we have in Rwanda but from the inside, I had so much to learn and extremely exciting and I am very energized now that I see and understand much better about how we can actually use sports to transform Africa.
I see its possibility. I see it every single day, and I really can’t wait to see Africans benefitting from sports and entertainment because this is the future. It’s been one year of learning, but one year of immense appreciation of how crucial sports is for the economy.
What is the current landscape of investor interest in the sports sector in Africa?
First of all, we are seeing sports as one of the fastest-growing sectors on the continent. In fact, the sports industry is projected to grow by 8 per cent over the next few years, significantly outpacing the continent’s average GDP growth.
This means there is a lot of opportunity for growth for those who invest in the sports sector. Since NBA investment in Africa, we have [opened] offices in five countries, namely South Africa, Kenya, Senegal, Nigeria and Egypt. We are investing because we see there is an opportunity not only commercially but also to transform the economies of Africa using sports.
We’ve also invested in a new league that has done four seasons already. We’re now going to the fifth season of the BAL. And we’ve seen it grow. When we started four years ago, it was during COVID.
From the first season of Basketball Africa League which took place in a bubble because of the Covid-19 pandemic, the second season in BK Arena had 45,000 people that came to watch the game and the following year, we had 70,000 people, last season, we had about 120,000 people coming to watch the games in-person.
The same increase is noticed on our digital platforms; we have about one billion engagements throughout all our social media platforms. The growth is real in terms of BAL but the impact is beyond.
If you look at Rwanda, 15 per cent of the revenues from tourism is coming from events, and sports events are a critical part of them contributing directly to bringing millions of dollars to the country.
We are seeing more and more investors in teams like Tigers in Rwanda and Nairobi City Thunder which became the first Kenyan team to qualify for BAL because of the investments raised that enabled them to get good players.
The investment landscape is growing because companies are seeing opportunities to support teams through sponsorship or equity. The likes of Inyange, RSSB, Summa, and others.
For me, all of this shows that we are only scratching the surface because the opportunity is really large and NBA is committed to unlock that.
In October, you announced the construction of 100 outdoor courts in Kenya. How do you plan to expand these kinds of facilities across the continent?
NBA has announced that we’ll build 1,000 courts in Africa. 100 of those will be in Kenya, but the rest will be distributed among 11 countries, including Rwanda.
This means increase of access to the basketball game with more kids playing, and we have seen African governments having similar initiatives of investing in courts to breed talent in several countries.
Once they have that kind of access at a grassroots level, we begin to give them other opportunities such as participating in Basketball Without Boarder camps, where we bring talent, train them, and put out good talents taken to play professionally. We also have an NBA academy in Senegal where the best identified on the continent are taken. This year, we have our first child from the academy drafted into the NBA.
NBA Africa is an investment valued at $1 billion, how are the financial returns and how do you get to create partnerships?
The more games we have, the more seasons we have, the more funds we have, and as our fans increase, it gives us an opportunity to monetize the sport.
So, the more funds, the more the sponsorship, because sponsors want to see how many people can watch their products. Same thing with the media where sports make money by selling broadcasting rights to broadcasters to show the game.
We see all of that increasing, there is more media, more sponsorship, and more merchandise. For me, sports and basketball in particular is a story of growth and that demonstrates return.
Of course, we are not here to make profit very quickly, NBA is very aware that this is a long-term investment and we know we are going to be here for decades. We are not in a hurry to make money because we are not leaving. The important thing is growth.
What challenges are sports development efforts facing in Africa?
The challenges are there but the good thing is that we see them improving.
One of them is how we produce new sports, with the perception of sports as a recreation of physical education, more of a by-the-way, yet there is huge economic opportunity for people. Many countries rely on tourism for their economies, sports is as important as tourism in terms of how it can transform an economy and the talent that it has.
The second one is even though we see more infrastructure coming up, they’re not enough. We need an arena in all the major cities of Africa, a world-class arena that can host big games. We need to see more courts in all schools and communities.
Additionally, to consume sports, you need infrastructure like affordable internet and access to smart gadgets. For me, those are the things that will allow sports to grow even more. But this also goes with the increase of disposable income as economies continue to grow so that people can also consume sports and entertainment.
You participated in the Africa Investment Forum. Are there some projects that NBA Africa is seeking to make investments deals for?
No, our deals are constant in terms of investment sports, sponsoring sports, and investing in teams, and this means that all the things that are discussed here, infrastructure, electricity, and energy are relevant to us.
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All those provide a platform because you can’t watch a game without electricity, internet or good infrastructure. That’s why we are here to engage with financiers and leaders, and to preach the gospel of sports being a huge economic opportunity.
What advice would you give to an entrepreneur or investor looking to venture into sports investments?
Take time to understand sports. Take time to see the opportunity, learn from countries that have made sports such a big opportunity and then go into it, invest, get to know the details. Once you do, there’s no turning back because sports is only going to grow.
Africa is a youthful continent with an average age of 19. The future is here because this is where the consumer of sports is going to be for the next 20 to 30 years.
From an NBA Africa perspective, do you see any efforts towards establishing a continental women’s league?
We invest a lot in women and we have programmes like BAL4Her and our clinics are 50-50 gender inclusive but for a women’s league, it is something that we will explore down the road, but for the moment, we started with BAL and we need it to grow and be sustained.
Any parting shot?
We are coming back to Kigali for our conference in May, though not the finals. As usual, we want to see BAL paint the whole city of Kigali red because that’s what we do. The city is so lit, and we see BAL as a part of that.
Other cities we will be playing in are Morocco, Senegal, and South Africa. Watch the games on apps, and on TV but also come and watch the games in the arena.
Read the original article on New Times.
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