Africa’s events industry has grown significantly in recent years, with foreign investors increasingly drawn to business tourism in Africa due to its significant growth potential.
The World Travel and Tourism Council (WTTC) reports that business travel and tourism in Africa is projected to grow at an annual rate of 7.6% by 2028.
This statistic indicates a strong interest from foreign investors who recognise the untapped opportunities and potential returns that business tourism in Africa can offer.
While underrepresented in the global trade, Africa’s businesses and events still face challenges such as rolling blackouts, poor reputation, digital divides, and poverty. The events industry, therefore, continuously needs to create solutions for local challenges through the transformative power of business tourism.
“African countries have adopted various innovative solutions to overcome the challenges specific to the events industry. Infrastructure development has been a key focus, with governments across Africa investing in state-of-the-art convention centres, exhibition spaces and accommodation facilities. These efforts aim to enhance the continent’s capacity to host large-scale events and conferences and further drive foreign investment,” said Devi Paulsen-Abbott, Chairperson of the Association of African Exhibition Organisers (AAXO).
In addition to infrastructure development, countries across Africa are investing heavily in the promotion of its regions for business travellers.
AAXO member, Farirai Nandipa Mabodza, MD of Farirai Nandipa Events in Zimbabwe said: “Recently, our government has been moving to promote MICE tourism. As an organisation, we hope to be part of the initiative to promote Zimbabwe as a destination for business events and to be the bridge that connects external organisers to the Zimbabwean events space.”
Right-fit partnerships
Another key area for the development of the business tourism sector across the continent is collaboration and right-fit partnerships.
Projeni Pather, MD of Exposure Marketing and immediate past-Chair of AAXO, added: “When expanding your event across the continent, it is extremely important to find a local partner that understands the economic, cultural and social nuances of the market and has access to excellent resources and venues that are accessible and well equipped. A good local partner will have insights and access to securing funding, sponsors and industry partners for a successful exhibition.”
Improvements to accessibility, such as visa restrictions and access to the market, have also made progress in recent years with governments understanding and welcoming the economic opportunity of business tourism.
Countries such as Rwanda and Kenya have implemented e-visa systems, streamlining the visa application process and making it more accessible for international visitors.
‘Wealth of opportunity’
Mabodza continued: “Africa is a vast market: foreign investors have the opportunity to use events such as tradeshows and exhibitions to market products to the continent. With most countries working on developmental programmes, the African events space provides the platform to market what investors have to offer.”
“There is a wealth of opportunity in Africa’s emerging markets, and the exhibition and events industry provides a platform for investors and visitors to tap into. From social development, sustainability, business growth, knowledge transfer, diversification, channel growth, an untapped market with immense possibility, together with cultural diversity and heritage, leaving visitors returning for more,” added Pather.
The influx of business tourists also stimulates the local economy, generating revenue for hotels, restaurants, transportation services, and other sectors. Moreover, business tourism promotes the growth of local industries by providing opportunities for local suppliers and service providers to collaborate with international businesses, while SMEs benefit from exposure to global markets, fostering entrepreneurship and innovation.
“The events industry in Africa has tackled the continent’s unique challenges head-on. Through innovative solutions, collaboration, and knowledge sharing, African countries have successfully positioned themselves as attractive destinations for conferences and corporate events. As the industry continues to flourish, Africa is set to reap the rewards of sustained economic development and international recognition,” concluded Paulsen-Abbott.
Value of conferencing industry in SA
The following section has been provided to Tourism Update by CEO of the Southern African Association for the Conferencing Industry (SAACI), Glenton de Kock.
A study conducted on the business events industry held in South Africa between January 2019 and March 2020 projected that the GDP contribution due to the direct expenditure of international business events was R72.4 billion (€3.5bn). The same study projected that the international business events contributed R3.7 billion (€178m) to government taxes.
Recent data by Stats SA reported that there was a 12.3% increase in MICE trips taken during January and March 2023.
The South African National Conventions Bureau’s sales team won 40 of the bids submitted for the 2022/23 financial year, securing a contribution of R338 million (€16.3m) to the economy between 2022-2025. A total of 16 505 international and regional delegates are expected to attend the events.
The secured MICE events include the International Congress of African Phytomedicine Scientific Society, the Southern African Neurological Association Conference, and the Global Association of the Exhibition Industry (UFI) Global Congress. Events will be hosted in Johannesburg, Tshwane, Hammanskraal, Cape Town, Bloemfontein, Durban, Mookgophong, Muldersdrift and Pietermaritzburg.
Last year the South African National Convention Bureau reported that 55 bids for international MICE events had been submitted for the period 2022 to 2025, during the 2020/21 financial year. So far, South Africa has won 16 of the bids submitted for the 2020/21 financial year – a 29% conversion rate.
The business events already secured will contribute R296 million (€13.8m) to South Africa’s economy between 2022 and 2025 and attract 9 825 international and regional delegates.
The 55 bid submissions have a combined estimated economic impact of R899 million (€43.4m) and may potentially attract 30 521 international and regional delegates to South Africa between 2022 and 2025.
