Most welcome investment into SA motor racing

THE ARTICLE “Porsche SA targets sales pole position” by Roy Cokayne published in Business Report, May 12 refers. Toby Venter’s recent purchase of the Kyalami Grand Prix Circuit at auction for the record price of R205 million, and the subsequent upgrade announcement of R100m, sets a new precedent for investment into motor racing in South Africa.

Your readers may be wondering if Mr Venter will see a return any time soon, considering the scale of his investment. Venter is by all counts a highly successful businessman who doesn’t strike me as the kind of man who would risk that sum of money, no matter how passionate he is about the sport. As stated in your article Venter is considering the construction of a centralised parts distribution centre at the race track – a wise move taking into account the central location of the Midrand track, which could be seen as a hub between Porsche Centre Johannesburg and the new Porsche Centre Pretoria.

More than that, motorsport offers numerous benefits for companies operating in the motor sector. In 2012, the UK motorsport engineering and services industry had a turnover of £9 billion (R166bn), with 4 300 businesses employing 41 000 people.

Venter’s investment can been seen as a major vote of confidence in the motorsport industry of South Africa. We already enjoy huge success on a global scale, including the three-time podium finishing Toyota Dakar Hilux locally engineered by Glynn Hall of Hallspeed.

One can argue that the current state of motorsport in South Africa has been in decline for some time now, however, with investments of this scale into the sport, one can only hope that the rest of corporate South Africa will awaken to the opportunities presented by a sport that has solid links to the motor industry of South Africa, which makes up at least 6 percent of the country’s gross domestic product.

Motorsport offers a platform provided by no other sport and savvy business leaders like Toby Venter understand this philosophy and are able to secure a first-mover advantage to enter the sport while it is making a recovery in South Africa. Hopefully his investment will unlock a series of much needed large scale investment and sponsorship into the sport. IAN MCGREGOR IAN MCGREGOR IS A DIRECTOR OF PREMIER MOTORSPORT, THE LEADING MOTORSPORT MANAGEMENT AND MARKING AGENCY IN SOUTH AFRICA.