AAXO NEWS

Convention Centres: Catalysts for transformation in Africa’s urban landscape

On 31 October 2024, we celebrated World Cities Day. It is essential to acknowledge the profound impact that convention centres and business events have on Africa’s urban landscape. These venues are more than mere locations; they are dynamic engines of economic growth, job creation, and social interaction that significantly shape the fabric of our cities.

Gary Corin, chair of the Association of African Exhibition Organisers (AAXO), emphasised: “Convention centres and business events are integral to the design and functionality of our cities. They drive economic growth, create jobs, foster social interactions, and promote cultural exchange, making their role in sustainable urban development indispensable.’

In an era marked by rapid urbanisation and burgeoning populations, the demand for innovative, multifunctional spaces is more pressing than ever. Convention centres are at the forefront of this transformation, significantly contributing to economic vitality, social connectivity, and contemporary urban design.

Shaun Bird, general manager of the Sandton Convention Centre (SCC), said: "The events and exhibitions industry has a substantial impact on local economies, generating significant revenue and facilitating the sharing of knowledge.”

Economic Impact: A Catalyst for Growth: Convention centres serve as vital catalysts for economic growth. The International Congress and Convention Association (ICCA) estimates that business events contribute approximately $1 trillion to global GDP. Cities such as Cape Town and Johannesburg have adeptly leveraged their convention facilities to attract international conferences, generating millions in revenue. For instance, in the 2023/24 financial year, the Durban International Convention Centre (Durban ICC) contributed R6.3 billion to South Africa’s GDP, underscoring its crucial role in driving national economic growth.

Lindiwe Rakharebe, chief executive officer of Durban ICC, said: “The Durban ICC is not just a convention centre; it is a beacon of opportunity, driving economic growth while positively impacting local communities.”

Adele Hartdegen, chief executive officer of the Johannesburg Exhibition Centre (JEC), highlights, “Convention centres are integral to both local and national economies, serving as hubs where exhibitors and visitors converge to forge important deals.”

The Gallagher Convention Centre (GCC) also plays a vital economic role, hosting between 300 and 400 events annually and welcoming approximately 650,000 visitors each year. Leniese van der Merwe, marketing manager of Gallagher Convention Centre, said: “These figures highlight our essential role in the local economy.”

These statistics illustrate how convention centres not only promote business transactions but also stimulate local economic growth, creating a vibrant environment for communities and industries alike.

Job Creation in the Business Events Sector

The business events sector is crucial for job creation and economic development.

According to the World Travel & Tourism Council (WTTC), travel and tourism supported 24 million jobs in Africa in 2019.

“Our new initiatives, such as MusicEx, have created over 3,000 work hours, showcasing our commitment to community development,” Ms van der Merwe said. The ongoing growth of the business events sector not only enhances job opportunities, but also fosters community engagement and economic resilience, acting as a catalyst for demand in industries such as hospitality and logistics.

Ms Hartdegen, from JEC, emphasises the sector’s significant impact, stating: “In 2023, our projects generated over 3,000 temporary jobs, making a substantial contribution to the local economy. “

While Durban ICC estimates that it created and/or sustained approximately 11,387 annualised jobs in the South African economy during the 2023/24 financial year, comprising 6,818 direct jobs and 4,569 indirect jobs.

“Our commitment to sustainability and community engagement ensures that as we attract the world to Durban, we uplift our residents and preserve our environment for future generations,” Ms Rakharebe added.

Attracting investment: Convention centres are instrumental in attracting foreign direct investment (FDI). The World Bank indicates that countries with robust business event infrastructures are more appealing to investors. Rwanda’s investment in the Kigali Convention Centre has positioned the country as a key player in the international meetings arena, setting a benchmark for others in the region.

Social interaction and networking: building community: Business events foster collaboration, with a report from the Events Industry Council revealing that 84 per cent of attendees forge new connections, promoting partnerships and innovation. Convention centres serve as vibrant platforms for cultural exchange, allowing cities to showcase their unique heritage to a global audience. This cultural diplomacy is crucial for fostering goodwill and understanding, as these venues bridge cultures through events that celebrate local traditions.

Community engagement: Many convention centres are designed to serve the community beyond business events, hosting local gatherings, exhibitions, and educational programmes to enhance participation. “We believe in giving back; our long-standing relationships with local charities have made a significant impact,” Ms van der Merwe said.

Shaping the future: In alignment with the United Nations’ Sustainable Development Goals (SDGs), the design of convention centres can prioritise sustainability. For example, Nairobi is integrating green building practices into its convention centre designs to minimise environmental impact. Urban revitalisation: Convention centres can serve as catalysts for urban revitalisation, often leading to improved infrastructure, enhanced transportation links, and more vibrant public spaces. The Cape Town International Convention Centre has played a pivotal role in the city’s urban regeneration efforts, attracting further investment and development. Mr Bird said: “To fully harness this potential, cities must ensure that they have first-class facilities and convention centres to attract major events and conferences. This includes upgrading infrastructure and collaborating with stakeholders to create a seamless business tourism experience.”

Smart city integration: As African cities evolve, the integration of smart technologies into convention centres can significantly enhance operational efficiency and improve the visitor experience. Features such as advanced audiovisual systems and highspeed internet make these venues increasingly attractive for international events.

Success in this sector requires careful attention to several key factors to ensure benefits for both visitors and local residents. Connectivity and accessibility are crucial; convention centres should be easily reachable via public transportation, walking, and biking, including seamless integration with existing transit networks, and ample parking facilities. Mixed-use development is another essential aspect. A convention centre surrounded by hotels, restaurants, retail spaces, and residential buildings creates a vibrant, walkable environment that appeals to both visitors and locals. Incorporating public spaces – such as parks, plazas, and waterfronts – enhances the experience for everyone, providing inviting gathering spots. Finally, the economic benefits for the local community must be considered. A wellintegrated convention centre can stimulate local businesses, create jobs, and boost tourism revenue, as highlighted by Ms Rakharebe from DICC.

A case study in success: Cape Town has solidified its position as Africa’s premier destination for business meetings, hosting 42 international association events in 2023 — up from 30 the previous year. The ICCA report emphasises the role of business events in driving economic growth in the Western Cape, which recorded a total of 51 international meetings in 2023. Local leaders assert that these gatherings are vital for innovation and economic prosperity, further

enhancing Cape Town’s appeal, through its high service standards and diverse offerings for delegates.

Conclusion: A vision for the future

Mr Bird affirmed: “By delivering exceptional experiences, we not only enhance our city’s vibrancy but also contribute significantly to the broader economic landscape.” As African cities continue to grow and evolve, prioritising the design and integration of convention centres will be crucial for fostering vibrant, resilient, and inclusive urban environments.

Investing in these spaces goes beyond mere event hosting; it shapes the future of our cities and communities. “Convention centres play a pivotal role in this effort, serving as catalysts for local economic growth by attracting tourism and business investment,“ Mr Corin said.

As we celebrate World Cities Day, let us recognise the vital role that these venues play in shaping the future of our cities and nurturing a thriving urban ecosystem. Together, we can advance the development of robust convention centres across Africa that not only enhance infrastructure, but also create spaces for collaboration and innovation.