KwaZulu-Natal Premier Sibusiso Ndebele has confirmed that Durban is to host the South African round of the A1 Grand Prix World Cup of Motor sport in January next year.

Premier Ndebele made the announcement at a joint press conference held with eThekwini Mayor Obed Mlaba and businessman and chairperson of A1 Team South Africa, Tokyo Sexwale.

Mr Ndebele said: "Durban is South Africa's own Monaco, and it is appropriate that the event should take the form of a Monaco-style street race along one of the most beautiful beachfronts in the world."

Ndebele said although 25 countries took part in the World Cup of motor sport, only 12 were given a chance to host a round of the series.

"It is of great significance that South Africa is one of them.

"It is roads that build the economy and not the economy that builds roads. This is in context of what the spin off will be with the event being held in the Province.

"This event will benefit both the Province and the City and moreover the people of KwaZulu-Natal," said Mr Ndebele.

The cost of staging the event including broadcasting to at least 14 countries around the world, the creation of a street track in eThekweni and all other infrastructure and management coasts will be around R91.6 million.

Mayor Mlaba said the municipality's estimates were that at least 100 000 spectators would attend the event, with half of these being from outside the province and the country.

"This will be A1 Grand Prix's only street race, and the first race of its kind to be staged in the city. Durban has shown a deep passion for sport, whether it be soccer, rugby, cricket or other sports codes.

"We are more than confident that these sports fans - as well as those who traditionally watch sport from the comfort of their armchairs -- will join us on the streets on the 29th of January as proud hosts of this exciting event."

"A1 Grand Prix is more than just a sport. It unites nations and encourages patriotism. We therefore see this as an opportunity to generate great excitement, passion and pride among South Africans," said Mr Mlaba

Mr Mlaba said the event would attract visitors from across the county, and would assist in building the profile of the province.

"Durban is South Africa's playground for world class sporting events. And we are even more confident that with the World Cup Soccer on our doorstep Durban will once again be showcased as a city that will attract even one of the major games to be played here.

"We see long-lasting economic benefits from this event, and appreciate the confidence in our province that has been expressed by A1 Grand Prix South Africa," the Mayor added.

Mr Sexwale said the event would spark immense business confidence in the Province and attract major investment, locally and internationally.

"This is the Grand Prix of Nations, the World Cup of Motorsports - driver versus driver, with high octane excitement in technologically advanced motor racing cars," Mr Sexwale said.

"A1 Grand Prix is more than just a sport. It unites nations and encourages patriotism. We therefore see this as an opportunity to generate great excitement, passion and pride among South Africans," he said.