Earlier this year a report on the decline of populations in China sent the marketing and brand world into a bit of a spin. For years, even coming out of The Pandemic, the eyes on the possibility of doing business in China were still sitting out there as the fourth piece of a BRIC strategy for companies.
However when the reports came out, coupled with the ongoing issues of supply chain, travel, government issues and the like, you could hear and see companies turning their dollar filled gaze elsewhere. That seems to be holding true for sports business as well, as in recent months the desire for China seems to be waning, while two other areas…India and the content of Africa…are arising.
Now India is not that much of stretch due to the size of the population, a more democratic government, the influx of immigrants on a high level to North America, and a growing interest in areas like sport and health and wellness. While sports like cricket and kabaddi are still dominant, the rise in soccer continues while other like tennis and basketball are also on the uptick. There is also a growing market and interest in girls and women’s sports, where not too long ago the thought of putting dollar investment in young women who would have interest in competing beyond a national level was not seen as doable. Factor in tech, companies with deep Indian ties looking to invest more in American sport, AND the steady stream of American investment going into 20/20 cricket and you have more than a small reason to pay attention to Indian sport now more than ever.
Then there is Africa, which has been somewhat of a mystery for anyone looking to grow sport on the continent in a major way. In concept it seems pretty straightforward; countries with growing populations that have select city centers on which to build around. However nothing is simple on a grand scale with so many cultures, political and historical differences, all of which factor very deeply into large scale growth in any business, let alone sport. Yes we have seen a great deal of talent in sports like soccer and basketball flow out of Africa to the highest levels, and in recent years to the college and high school level in the U.S. There have been some legendary Olympic runs (no pun intended) in Track and Field and rugby and cricket, and the World Cup exposed areas of the Continent to bigger investment as well. But for organized team sports, the challenges are daunting. Into that mix in recent years is the long term investment the NBA has made into Basketball Africa, with the hopes of creating everything from content to business opportunities to increasing talent pool and using hoops as bridge to education and other social programs as well.
How hot is Africa? In last four weeks there have been “investment groups” from no less than six countries…South Africa, Tanzania, Ghana, Senegal, Rwanda, Nigeria…reaching out to senior officials in and around the U.S. to talk about building investment in sports from the grassroots to professional athlete tours to brands both looking to spend in the United States in sports and to learn and build bridges to use sports as a social qualifier for growth in those countries. Most come armed with letters and calls from heads of sport, regional development experts, youth leaders and even country presidents. All understand the value sport can bring in everything from flag football to soccer to Olympic sports.
The question becomes one of leadership and dollars. While American sport looks to better understand the culture and demand and the needs in Africa through sport, can these advisors and funds be the right ones to have sustained growth in what certainly will not be a quick fix and a hockey stick pattern of success tied to investment. How does politics play out country by country, and can trans-Africa investments like NBA Africa work as a sustainable model.
All of that is to be seen, but it is quite remarkable to hear from so many silos of Africa all with one focus…how do we use sport as a bridge…financial, health and wellness, commerce, tourism…to rise the tide not just in a country but in a continent. One to watch for sure.
