From the development of grassroots football to cutting-edge sports technology, African entrepreneurs are at the forefront of efforts to promise more economic value and structure for Africa’s sports talent.
Shola Akinlade, co-founder of Paystack, a popular payments platform in Africa, recently made headlines after acquiring a majority stake in Danish soccer club Aarhus Vremad Vødbold.
Akinlade is also the owner of Sporting Lagos FC, a professional soccer club in Lagos that plays in the second division of the Nigeria National League.
Nigerian news platform Business Day reported in March that the 38-year-old would facilitate a move for Sporting Lagos players to Aarhus and then to the European football market.
According to business stakeholders, this trend of integrating business models into sports development will create a structured and economically advantageous value chain for African talent.
Silverbacks Holdings Chief Orchestral Officer Ndei Diala believes that implementing successful business models in the sports sector is key to unlocking Africa’s high return on investment potential.
“While the proportion of African-American athletes is high, the valuations of sports franchises are skyrocketing,” she says.
Football in Africa has become the main focus of sports business development in Africa. This is not only due to the immense popularity of the sport on the African continent, but also to the enormous influence the continent plays in supplying globally recognized talent.
KPMG’s 2022 Football Benchmark Report showed that there are more than 500 African professional players in European football clubs.
This number continues to rise, with the latest FIFA transfer report showing that 759 professional players have been transferred to clubs in UEFA league matches alone.
It’s not just soccer. The international sports market for other sports such as basketball and American football shows significant growth potential.
The NBA and NFL are seeking new African talent in addition to existing African players in their various leagues.
The growing demand for African talent has led African sports entrepreneurs to spearhead efforts to build systems to monetize the sports industry.
Diarra emphasizes that adopting business models in sports can attract international brands to invest in African sports talent. But a different strategy can help African athletes get the most out of their talent.
“One way is to discover raw talent at the grassroots and nurture and develop it before harnessing it to the international sports market. This gives them a competitive advantage,” she emphasizes.
working on the model
Rainbow Sports is a sports development company introducing this business model into the African football value chain.
Rainbow Sports Group CEO Kingsley Punggon explains that the company is increasing soccer opportunities for African athletes.
“We intend to expand into other sports, including martial arts, boxing, basketball, etc., and become a trusted platform for training and showcasing world-class athletes,” he explained.
More recently, Rainbow has facilitated the transfer of players from the continent to more competitive leagues.
Ugandan soccer stars Aziz Kayondo and Alan Enyu have found spots in CD Leganes’ B team in Spain, while more players are signing with other clubs under Rainbow’s program, such as Czech Republic midfielder Vyskov.
This is in addition to a number of grassroots programs and initiatives undertaken by the company.
Additionally, startups are leveraging technology to address traditional barriers that hinder the transition of African sports talent to international markets.
Africa Sports Unified’s Gideon Ajala highlights how technology has opened up opportunities for entrepreneurship in player data and analytics.
“Data, analytics and insights will create a clear path forward for a more synergistic regulatory player-agent system to protect player value,” he explained.
Creative sports technology startups are already demonstrating ambition and commitment to leveraging technology to advance the sports ecosystem.
Uburu Africa connects African athletes to European universities using cloud-based technology that inputs player data such as video footage, statistics and insights.
Additionally, there are global efforts through FIFA and CAF to advance digital opportunities in sport.
For example, FIFA will introduce new digital skills in January 2023 and aims to support the uptake of digital skills in its member associations.
Kenny Jean-Marie, chief executive of FIFA’s member associations, said the platform “facilitates a more systematic transfer of best practice from experts and organizations”.
This momentum could further accelerate as sports technology becomes more attractive to investors in Africa.
Startup Africa estimates that as of April 2022, funding for sports technology in Africa has tripled compared to November 2020.
With these recent advances, African sports technology companies are well-positioned to take advantage of the rapidly expanding global sports technology market, which is projected to reach more than $40 billion by 2026, up from $12 billion in 2022.
bird story agency
