- Africa Finance Today
- Posts
- Rwanda’s Cycling Economy
Rwanda’s Cycling Economy
Cycling in Rwanda is more than just sports. It is a way of life, and an industry that could be valued in millions of dollars.
If there is one activity that brings people together, it is sports. In Rwanda’s case, it has been cycling. For many years now, millions of Rwandans have come to admire the sports that cycling is.
Every year, hundreds of Rwandans take to the streets to support and watch Tour du Rwanda, a national cycling race that has been held for more than 35 years now, first as a regional tournament, and later as an international race.
Tour du Rwanda is the perfect way to see Rwanda’s rolling hills.
This year’s race kicked off on February 18, 2023, attracting 94 riders and 20 teams from 15 countries.
Riders come from Eritrea, Ethiopia, Mauritius, Algeria, South Africa, United Arab Emirates, and as far as Kazakhstan, France, Britain, Israel, Belgium, Italy, Netherlands, and Germany, all looking to challenge their Rwandan counterparts in their land.
Tour du Rwanda is the perfect way to see Rwanda’s rolling hills. Courtesy.
Cycling in Rwanda is more than just sports. It is a way of life, and an industry that could be valued in millions of dollars.
When hundreds of revelers take to the streets every year, there are tens of corporate companies that leverage this opportunity. Companies invest millions in sponsorship deals, and they use the opportunity to brand and market their products and services.
It is something that if you are a brand and marketing director of a company you don't want to miss being part of.
The largest brewery companies such as Bralirwa and Skol; processing firms such as Inyange and Ingufu Gin; telecommunications giants such as MTN Rwanda and Techno Mobile; petroleum multinationals such as SP Rwanda and TotalEnergies; as well as sports betting, airlines, media, and financial services companies invest in the race.
Even the President of Rwanda Paul Kagame attends the final day of the race. That is how significant the race has become.
President Paul Kagame attends Tour du Rwanda in 2023. Courtesy.
“With a substantial audience of over one million individuals tuning in to witness this race, it is only justifiable to invest in endeavors that bring joy,” one MTN Rwanda official said during the signing of a silver sponsorship agreement between Mobile Money Rwanda, a subsidiary of MTN Rwanda, and Rwanda Cycling Federation.
The official was referring to the value that corporate companies like his see in being part of the race, and perhaps also referring to how many people watch the sprint through Rwanda Television, which has the rights to show the race live.
Growing in Leaps & Bounds
Last year alone, it took Rwf1.4 billion to organize the Tour du Rwanda, an increase from Rwf740 million that was spent in 2020.
The government every year invests a fair chunk into the organization while the rest of the budget comes from sponsorship deals.
In 2020, the government had announced it would invest Rwf300 million while Skol Brewery Limited had pledged to invest Rwf200 million in sponsorship deals.
This year the organisation of the race cost in the north of RWF1.2 billion with the government contributing 40 per cent to the budget and sponsorship deals covering the remaining 60 per cent, according to the Ministry of Sports.
“This year TDR (Tour du Rwanda) created around 600 jobs and more than 1,000 people are expected to participate in one way or the other (look at it from the accreditation point of view),” Zephanie Niyonkuru, the Permanent Secretary at the Sports Ministry told me.
Niyonkuru says the value of the tournament goes beyond just sponsorship deals to include value created by sponsors to activate their sponsorship rights across the race.
For instance, he estimates that activation costs – amount of money spend by sponsors to advertise their products – could be 1.5 times or 2 times the sponsorship package, leading to an optimistic figure of extra Rwf1.4 billion spend on the economy.
Alongside Tour du Rwanda, the Rwandan Cycling Federation organises the Rwanda Cycling Cup series over the course of the year.
Rwanda will host the UCI Road World Championship in 2025. Courtesy.
The country’s cycling scene has grown in leaps and bounds to produce elite and amateur riders most of whom have gone on to represent Rwanda nationally and internationally.
Three teams representing Rwanda – Team Rwanda, Java Inovotec, and May Stars – at this year’s race comprise of some of Rwanda’s best riders in Africa such as star rider Moise Mugisha who won the Tour du Rwanda in 2022, the 2020 Grand Prix Chantal Biya, and 2022 Tour du Cameroun.
Star rider Joseph Areruya who won Tour du Rwanda in 2017 and became the first cyclist from Rwanda to ride in the Paris–Roubaix Road race in 2019 is also competing this year.
The economic impact of the cycling industry in Rwanda appears to be huge.
From employing professional riders, trainers, mechanics; hundreds of drivers that follow the race every year, and ushers that guide people at these annual events, to businesses that sell bicycles and spare parts, entertainers, as well as services providers such as hotels and restaurants, cycling creates real impact to Rwanda’s economy.
That growth has earned Rwanda a position to host next year’s UCI Road World Championships, marking the first time the tournament will be hosted in Africa.
Reply