Premier

I have been informed by the Department of Cultural Affairs and Sport as follows:

(a) The total contribution made by the Western Cape Government towards the Formula E events for the 2022/23 financial year was R 8 million.

1. The Western Cape Government's goal is to become the green economic hub of Africa, the event provides a platform to catalyse this strategic imperative which may be summarised as follows:

• Demonstrate Western Cape environmental, commercial and technological credentials on a global scale;
• Catalyse the adoption of e-Mobility & Renewable Energy Solutions;
• A repeat tourism driver over a 5 to 10-year hosting period;
• Global Destination Marketing of the province via the Formula E global media channels.

Formula E officially the ABB FIA Formula E Championship, is the world's first fully electric

street racing series, bringing the latest innovations in electric vehicles and alternative

energy solutions to city centres:

1. 1. for thrilling entertainment,
   2. to further enhance technologies and
   3. to fight climate change by offering a solution to air pollution, the electric vehicle.

The series also features the world’s most progressive cities as the cars and drivers

navigate through inner-city street courses. By racing on the streets, the series acts as

a catalyst, helping to refine the design of electric vehicles and improve the driving

experience for everyday road car users all over the world.

E-Movement approached the Provincial Government of the Western Cape for event

sponsorship for the hosting of the ABB FIA Formula E World Championship. The

sponsorship was approved and the Western Cape will therefore be the host of the

Formula e Prix annually for the next 5 years starting in 2023 with an estimated

economic impact of R2.2 billion rand including global destination exposure of R481

million as indicated in E-Movement (Pty) Ltd, the rights holders of the Cape Town leg

of the Formula E.

The event took place in Cape Town on the 25^th of February 2023 with subsequent

fringe events namely Africa’s Green Economy Summit, Evrit Africa, E-Fest Electric, and

Cape Town E-Prix. These events offered much-needed opportunities for the Western

Cape Government and its sector stakeholders to enter discussions on the migration

to renewable energy sources as well as the ability to create new partnerships within

the sector. 

The event sponsorship was approved based on the economic and social and

sustainability benefits it would have on the Western Cape.  The significant economic

impact for the hosting city provides extensive opportunities for showcasing an ability

to host large-scale world-class events. The various events had direct attendance of

more than ±18 000 people with an extensive economic impact and a preliminary AVE

of ± R20 million which is a critical tool in destination marketing for both investment and

tourism.

Therefore benefits to the Western Cape and the main driver for sponsoring these

events include but are not limited to:

• Economic Impact: A unique opportunity to increase economic activity in the local economy via Local manufacturing of the track safety barriers and fences which will be produced in Cape Town by Martin and East.
• Annual recurring event: Opportunities for a repeat tourism driver over multiple-year events; and the event, tourism, hospitality and leisure sectors will benefit from the approximate 8000 people that will travel to the Cape Town E-Prix.
• Destination Marketing: Promoting Western Cape and investment opportunities to a worldwide audience on an annual basis.
• Global Media Exposure:  Cape Town E-Prix will be broadcasted in 197 territories with a worldwide audience of over 20 million viewers per event.
• B2B, B2G and B2C Platform: Could potentially build valuable relationships with some of the biggest names in sport and business.
• Infrastructure Renewal: An opportunity to improve the stadium precinct for the benefit of all road users; and an opportunity to attract investment into targeted Western Cape Green Economy projects.
• Legacy: A lasting heritage for Western Cape.
• The World’s most iconic and progressive cities: Cape Town joins this grouping of progressive cities such as London, New York, Rome, Jakarta etc.
• Societal and Environmental Benefits: Showcasing electric mobility solutions to the general public; showcasing the Western Cape’s integration of renewable energy in its energy mix; and showcasing the Western Cape’s transformation to an electric fleet.
• Developing and Showcasing your City: Demonstrating Cape Town’s environmental, commercial and technological credentials on a global scale.
• Building Brand Association: Work with strategic partners to build a solid platform for mutual benefit.
• Community Engagement: Through sport and technology, educate citizens on Western Cape’s commitment to sustainability.

The establishment of Cape Town as the host city for Formula E will result in significant

job creation such as the construction of all the barriers and fences which were done

locally to further support the Western Cape Government’s mission of job creation. The

benefit to the visitor economy is extensive as it relates to visitor expenditure which is

critical for tourism recovery Post Covid-19.