Sport in Africa: Unlocking its economic potential

Across Africa, sport plays an important role in everyday life. According to the Ipsos Senegal survey, just over two in three people take part in at least one sport for recreation. The most popular activities are soccer (31%), athletics and running (30%), and race walking (26%).

Yet sport’s contribution to the economy remains poorly documented. To help fill this gap, the AFD, the IOC and the World Bank pooled their expertise to produce Unlocking the Potential of Sports in Africa. The report highlights an often overlooked dimension: beyond major events and professional competition, sport in Africa has real but largely untapped economic potential.

A source of jobs and a pathway into work for young people

“Household surveys show that sport already accounts for nearly 3% of direct employment in the African cities studied,” says Thomas Melonio, AFD’s Chief Economist and a coauthor of the report. Although this figure should be treated with caution, since much of the employment in sport is informal, the sector nevertheless offers “real potential for job creation,” he adds.

Even so, few people take up sport to earn a living or build a career. “Investment in technical training for sport-related occupations is needed to develop local skills and help people, especially young people, find work through sport,” explains Linda Zanfini, coauthor and AFD coordinator of the report. Beyond vocational training itself, the report confirms that encouraging participation in sport also helps young people develop their human capital through its effects on health, education and interpersonal skills.

Other barriers also need to be addressed. Households reporting informal activity in the sector cite difficulties accessing finance (43%), a lack of information or burdensome administrative procedures (24.5%), and the cost of those procedures (20.4%). These findings point to ways public authorities can encourage entrepreneurship in the sports sector.

Building stronger local sports industries

Beyond direct employment, the sports economy supports a wide range of occupations and businesses across the continent, from manufacturing and selling equipment to managing community facilities, organizing competitions, and providing media coverage, tourism and related services. However, growth in spending on sports products and services faces both supply and demand constraints, to varying degrees across countries. Existing local businesses also remain largely informal, while companies outside the continent capture much of the value added generated by the sector. Developing Africa’s sports economy will therefore depend on countries’ ability to build a network of local small and medium-sized enterprises that can meet the needs of clubs, schools, consumers and other local stakeholders, while strengthening domestic supply chains.

Treating sport as an economic and social investment

“Sport has considerable potential in Africa, but realizing it requires sustainable investment in infrastructure as well as investment in people through training,” stresses Thomas Melonio. These investments will need to take existing inequalities into account. People often exercise in spaces that were not designed for sport, such as streets and vacant lots, because of financial barriers and a lack of nearby facilities. Women face specific obstacles. “Targeted action is needed, such as investing in infrastructure that meets women’s needs or adapting where and when activities are offered,” explains Linda Zanfini.

These challenges make a strong case for public-sector support, including from national and local governments and development finance institutions, through policies that promote sport and coordinated investment. Public-private partnerships could also help develop accessible community facilities designed for lasting use by everyone. With these conditions in place, sport can become a powerful driver of economic development, while helping meet people’s needs and address the wider challenges facing Africa today.