How Can Rwanda Afford to Sponsor Arsenal?
In 2018, Visit Rwanda, which is an extension of the Rwandan Tourist Board, signed a $39million USD deal with Arsenal Football Club to become a shirt sleeve sponsor for 3 years.
The partnership caused significant controversy. Critics argued that it was immoral for Rwanda to spend money on sponsoring football teams, while it takes foreign aid to help fund its schools, hospitals and infrastructure. So why did the government choose to spend its money in this way?
While it is a somewhat novel way of spending, the partnership constitutes a significant investment in Rwandan tourism. Increasing awareness and visibility through marketing a is one of the most important ways to develop the tourism industry. The sponsorship, therefore, is part of a wider effort to boost the value of the tourism industry in Rwanda.
By all accounts, it seems that the investment has worked. According to Rwandan Development Board CEO Clare Akamanzi, revenue increased by 17% overall after just one year of sponsoring Arsenal. There has been a 22% rise in European visitors, and the United Kingdom has gone from the fifth biggest market to the second biggest market for tourism to Rwanda.
Responding to critics, Akamanzi said: “Anyone who criticises our deal with Arsenal on account of Rwanda being poor or an aid recipient, either wishes for Rwanda to be perpetually so, or doesn’t understand that in any business marketing costs are a key component of a company’s expenditures”.
It is clear therefore, that while there are critics, the strategy is targeted at increasing prosperity in Rwanda. Visit Rwanda has also secured a deal with Paris Saint Germain more recently as a tourism partner, in a 3-year deal valued around $9 million USD.