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Sector Overview - Exhibitions And Conferences
South Africa Leads The Way In A Booming African Business Events Market
By Shumirai Chimombe
The Meetings, Incentive Travel, Conferences and Exhibitions (MICE) sector plays a vital role in economic development as it creates jobs, attracts large numbers of business travellers, fosters collaboration, and benefits local industries such as hospitality, transport and entertainment.
South Africa continues to be a prime business travel destination for local and international conventions, symposiums and trade shows. The country has improved its global ranking as a business event destination, moving up five spots in the 2023 International Congress and Convention Association (ICCA) Global Ranking Report. It has maintained its position as the number one meeting and conference destination in Africa and the Middle East, according to the report.
The ICCA uses strict criteria for its global rankings, including the requirement that only association conferences are recognised, excluding corporate or government events. Conferences must be attended by at least 50 international delegates, last at least two days, and rotate through at least three countries.
In 2023, South Africa hosted 98 association meetings and conferences that met the ICCA criteria. These had a total estimated economic impact of just over R2 billion.
South African Tourism CEO, Nombulelo Guliwe emphasised the significance of the ranking accolade in enhancing South Africa’s global standing as a sought-after destination for meetings. She noted that all business events hosted in the country are crucial because they not only contribute to arrival numbers and the economy, but they also showcase the expertise in various economic sectors.
“Business events significantly boost our country’s economic development and growth by generating direct spending and creating jobs, fostering industry innovation and networking, and expanding market opportunities through international exposure. They enhance tourism by attracting delegates from across the globe and improving infrastructure while also strengthening the country’s global image and cultural exchange.
These business events offer professional development for South Africans attending these international conferences, including youth and women from previously disadvantaged backgrounds, fostering future business leaders. Overall, business events are crucial for stimulating economic activity, driving innovation, and promoting long-term economic sustainability.”
Nombulelo indicated that for the 2023/24 financial year, the South African Tourism’s National Convention Bureau (SANCB) submitted 95 bids for international business events to be hosted in South Africa between 2024 and 2032. These have a combined estimated economic value of just over R1.5bn and can potentially attract 60,040 international and regional delegates to South Africa between 2024 and 2032. So far, South Africa has won 19 bids, with an estimated economic impact of R85m and a total of 3,055 delegates.
The Value Of The MICE Sector
In the South African market, the international segment accounts for 70.8% of MICE events held in the country, while the domestic segment comprises 29.2%. The value of international events stands at R86 billion while the domestic value stands at R35.6 billion.
Both international and domestic segments are projected to grow at a compound annual growth rate (CAGR) of 16 to 17% through 2032.
Source: Allied Market Research
“The SANCB has committed R5.7m through its Bid Support Programme for these secured conferences, which will also contribute to the regional spread of business events and will be hosted in Johannesburg, Tshwane, Ekurhuleni, Cape Town, Sun City, Parys, Skukuza, and Potchefstroom.”
The ICCA Statistics Report is published every year early in May. Results are tabulated through the reports of ICCA member countries who submit the number of international and regional meetings that they hosted during the preceding calendar year to ICCA.
Cape Town: A Leader In Africa
Cape Town has cemented its status as Africa’s premier destination for business meetings, hosting the most international in-person association meetings on the continent in 2023. The city hosted a total of 42 international ICCA association meetings, a significant increase from the 30 meetings held in the previous year. This increase solidifies its position as Africa’s leading business meetings city, a title it has maintained for over a decade. Following closely behind was Kigali, Rwanda’s capital, with 31 meetings, and Nairobi, Kenya’s capital and East Africa’s commercial hub, which hosted 21 business events, according to the ICCA report.
In addition, Cape Town has been recognised as the Africa’s best Meetings, Incentives, Conferences and Events (MICE) destination at the 5th Annual World Mice Awards 2024, with Sun City Resort winning Africa’s best MICE hotel. The World MICE Awards celebrate and reward excellence in MICE tourism, and is the sister event of the World Travel Awards. This year’s gala awards ceremony took place in Ho Chi Minh City, Vietnam in September.
Factors Driving The Growth Of The Mice Sector In Africa
The MICE sector is booming in Africa, with several countries recording impressive growth.
There are a number of factors driving continued growth of Africa’s MICE sector according to Allied Market Research. The rise of experiential travel has created demand for unique and immersive MICE experiences, boosting the popularity of boutique hotels, eco-lodges, and themed accommodations. Changes in lifestyle, increased tourism promotion, and improved transport facilities are all expected to fuel further growth.
The meetings segment dominates Africa’s MICE market with 60.4% of the market share, followed by conventions (19.5%) and incentives (12.7%). The incentives market is experiencing the highest growth rate at 17.2% , reflecting the growing trend towards rewarding employees and clients through immersive experiences.
South Africa holds a higher value compared to other African markets, even though all countries are expected to experience robust growth between 2023 and 2032. Rwanda leads by 18.4% CAGR.
Sectors that are key contributors to the MICE industry include information technology and telecommunications (25.7%); agriculture and food (19.8%), and finance (18.5%).
Value In 2023
USD (Bn): International - $4.67, Domestic - $1.93
Rand (Bn): International - R86.2, Domestic - R35,6
CAGR: International - 16.2%, Domestic - 16.8%
Market Share: International - 70,8%, Domestic - 29,2%
Source: Allied Market Research
Africa's Business Events Performance By Country
Nigeria: Value - $0,8 Billion, CAGR - 16.2%
South Africa: Value - $6,6 Billion, CAGR - 16.4%
Kenya: Value - $1,3 Billion, CAGR - 17.1%
Egypt: Value - $0.7 Billion, CAGR - 18.1%
Rwanda - $1.3 Billion, CAGR - 18.4%
