A R6.7 billion motorsport and entertainment complex featuring a Formula 1-grade circuit is being planned for the Western Cape.

Blue Mountain Racing executive chair Neal Froneman told Moneyweb that the group has acquired 600 hectares near Kalbaskraal in the Swartland, about 30 minutes north of Cape Town on the N7.

The proposed development does not mean Cape Town has secured a Formula 1 Grand Prix. South Africa’s government-backed F1 bid has focused on Kyalami, with Cabinet approving a bid in September 2025 to host a three-year Grand Prix from 2027.

R6.7bn destination planned

Froneman told Moneyweb the proposed Western Cape development would be more than a racetrack.

Blue Mountain Racing plans to build an entertainment destination around the circuit, with an amphitheatre, conference facilities, high-end residential property and trackside apartments among the proposed features.

The development would also include a man-made lake.

According to Froneman, the circuit itself is expected to cost about R2 billion, while the remainder of the R6.7 billion would fund other infrastructure.

He said the location was selected after six to nine months of searching for a site that could meet Formula 1 requirements.

Thousands of jobs projected

Blue Mountain Racing estimates that construction could support about 15,000 jobs. Froneman said the development could also support around 15,000 direct and indirect operational jobs over its lifespan.

The company further estimates that a Formula 1 race week could create around 8,000 temporary jobs. These figures are projections from the developer and are not confirmed employment outcomes.

South Africa continues F1 push

South Africa has been pursuing the return of Formula 1 after last hosting a championship Grand Prix at Kyalami in 1993.

The Department of Sport, Arts and Culture launched a formal process in January 2025 to identify potential promoters and venues for a South African Grand Prix.

In September 2025, Cabinet confirmed its approval for South Africa to bid for a Grand Prix at Kyalami from 2027. The government said the bid was financially backed by private-sector funding.

Blue Mountain Racing’s proposed Western Cape development adds another major motorsport project to South Africa’s push to strengthen its position as a potential Formula 1 destination.