DECEMBER 2020 Introduction 2

THE AFRICAN FOOTBALL INDUSTRY AND ITS MAIN CHALLENGES DECEMBER 2020 Introduction 2 INTRODUCTION The football industry is rapidly growing on a global level and the African continent is no different - one continent that has already hosted top tier competitions such as its first FIFA World Cup in 2010 in South Af- BEYOND THE REALMS OF LEISURE rica. Many talented professional football AND FANDOM, FOOTBALL HAS players have come out of the region since BOTH A SYMBOLIC AND CULTURAL the 1950’s and more exponentially since the SIGNIFICANCE IN AFRICA 1990’s. Beyond the realms of leisure and fandom, football has both a symbolic and cultural significance as it takes part in all aspects of social and economic development in Africa. In fact, the African continent has enormous potential to become a key destination for the global football industry. Consequently, World Football Summit (from here on, WFS) aimed to bring the international leading football event to Durban for the first time in March, 2020. During the WFS Africa, experts were supposed to discuss key areas such as the legacy of that 2010 FIFA World Cup a decade later, as well as digital adaptation, talent development, new compe- tition models, smart investment, the rise of OTT and sponsorship activation across the continent. Unfortunately, WFS Africa was postponed due to the coro- navirus outbreak, but as we reschedule the event, WFS has created a survey to generate further knowledge about the African football industry. Surveyed were a number of different professionals - including WFS Africa speakers and moderators - who were asked to share their expertise within the industry and give further insights across a variety of different topics, including: Introduction 3 The economic and social impact of football in the continent The professionalism of the industry The main challenges to tackle heading to 2025 The report has been developed by SPSG Consulting, a consulting firm specialised in providing business solutions to corporations, sports entities and public services in the fields of sponsorship, partnership and sport. WFS would like to thank everyone that participated in the making of this report. Survey methodology 4 SURVEY METHODOLOGY The results presented in this report were collected from an online qualitative survey carried out in March 2020. The survey’s respondents are high profile professionals working in the sports industry in various positions at different football clubs and associations, federations and governing bodies, academies, media and agencies, among others. 2.56% 2.56% 2.56% 2.56% Other sub-Saharan Africa Other 2.56% Cameroon Bénin 2.56% D.R. of the Congo South Africa 2.56% Sénégal 23.08% Côte d'Ivoire 2.56% Zambia Figure 1: Percentage of respondents by country Egypt 5.13% Zimbabwe 5.13% Tanzania 15.38% Botswana 7.69% Kenya 7.69% Nigeria Ghana 7.69% 7.69% Survey methodology 5 They also originated from countries all over Africa, giving a broader vision on their perception of the state of the industry. In terms of the methodology, respondents were asked to rank different statements from a scale of 1 (totally disagree) to 7 (totally agree) on the following topics: Football industry in Africa Economic and social impact in Africa Importance of the revenue streams in the football industry in Africa (from the club perspective) Interests of football competitions/leagues in Africa Main football industry challenges to tackle in Africa Therefore, the report is divided into these main areas. Some additional data from secondary sources was also pro- vided to have a better comprehension of the industry. THE AFRICAN FOOTBALL INDUSTRY AND ITS MAIN CHALLENGES FOOTBALL INDUSTRY IN AFRICA WORLD FOOTBALL SUMMIT in Africa 7 SURVEY RESULTS: High level of performance of PanAfrican leagues (as to Europe) High level of performance of National leagues (as to Europe) High level of professionalism in football federations High level of professionalism in football clubs High level of professionalism in football leagues / competitions Important level of technology applied to the fan experience Important level of technology applied to players performance (matches) Important level of technology applied to stadia Important level of technology applied to players performance (training) By 2025, the industry's professionalism will increase The perception of corruption is high 1 2 3 4 5 6 7 In a scale of 1 (minimum – totally disagree) to 7 (maximum – totally agree), experts were asked to share their opinion on the following statements – topics in regards to the football industry in. Football is one of the most popular sports in Africa and in the past decades the industry has gained a solid international reputation. According to FIFA’s Professional Football Report 2019, there are 22,525 professional players (data available for 44 countries), with 96% of the countries having more than 75% of top-tier domestic players and a total number of 682 professional clubs (data available for 47 countries) un- der the member associations of the Confédération Africaine de Football (the African football’s governing body; CAF from now on). in Africa 8 PERCEPTION OF CORRUPTION IN THE AFRICAN FOOTBALL INDUSTRY As per the respondents, one of the main challenges to tackle is the high perception of corruption in the African football industry. In the past decade there has been a wave of poor governance structures, corruption scandals and accusations of financial mismanage- THE PERCEPTION OF CORRUPTION ment. Despite the numerous issues that IN THE FOOTBALL INDUSTRY football has faced, CAF is already working REMAINS AS ONE OF THE MAIN on rebuilding trust by combating corruption CHALLENGES TO TACKLE IN AFRICA at every level, such as through a newly formed CAF Governance Committee and with the support of the FIFA and the African Union with whom they have signed a Memorandum Of Understanding. They are also tackling other aspects that may threaten the development of the Af- rican football industry, like technical and officiating structures and professionalism. FOOTBALL LEAGUES AND COMPETITIONS IN AFRICA Respondents consider there to be room for improvement in raising the level of professionalism of the football leagues and competitions in Africa as, in some cases, they are un- derfunded - especially in women’s football - and could be better managed. Indeed, stronger football structures are needed to fight some of the challenges that hamper the growth of the domestic leagues. One example is a sports facilities deficit, with African countries having, generally speaking, stadiums below FIFA standards or with lack of maintenance. FIFA plans to raise $1bn to build at least one stadium meeting those standards per country. Meanwhile, the surveyed experts highlighted a need for im- proved football performance in comparison to other com- petitors. In fact, experts stated that the quality of the national and domestic games and PanAfrican leagues in African countries is not as high as it is in Europe. One reason for in Africa 9 that may be the large migration of top African talent moving overseas; players that are looking for more opportunities in bigger and more competitive markets. TECHNOLOGY IN THE FOOTBALL INDUSTRY The appliance of new technology advancement can drive the development and evolution of the sport worldwide, and is increasingly doing so already. In this report, respondents believe that, currently, the level of technology applied to footballers’ performance in Africa is significant. Some local elite clubs are already applying systems that enable them to RESPONDENTS BELIEVE THAT, collect data through the monitoring of play- CURRENTLY, THE LEVEL OF ers during training sessions and matches. TECHNOLOGY APPLIED TO Through these technologies, coaches can FOOTBALLERS’ PERFORMANCE IN receive different information about the AFRICA IS SIGNIFICANT team’s performance and identify areas of improvement so they can personalise training plans and tactics accordingly, through data-based decisions. In the same way, technology applied to football stadia is crucial as it can eventually maximize the fan experience by: 1. Optimising all the different procedures (i.e. use of electronic systems to enter the stadia, cashless oper- ations, provision of digital information in real-time…) 2. Driving consumption (i.e. buying food or merchandise from your seat, personalised offers and promotions…) 3. Raising fan engagement (i.e. through offering additional online content while watching the match: stats, highlights…) 4. Assuring attendants’ safety through the monitoring of their behaviour (i.e. using facial recognition…) in Africa 10 5. Others (i.e. environment sustainability, analysis of the game…) According to respondents, Africa has many iconic stadia that are embracing technology and applying some of these features. Since 2010, they have continuously undergone a series of up-to-date improvements. For instance, Morocco is the first African country to use the Video Assistant Refer- ee system in domestic league games. However, these systems are still new to many African re- gions, and thus there is still a lot of new opportunities to capitalise on existing technologies that can enhance the global African football product by combining the physical world with the digital one: especially if compared with Eu- ropean countries that have been applying technology to the development of sports for longer. It should also be considered that the Covid-19 crisis is raising important new challenges as football games will need to take appropriate precautions to minimise the risk of con- tagion. New measures will require more space (as fans, workers and players will need to respect social distancing in the stadium) and information (football teams will need to ensure attendants’ security by providing information on the measures incorporated, as well as best practice recommen- dations), which will assume a higher cost because stadia will be obliged to comply with strict rules and provide sani- tary materials and devices to the public.

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