RTG rekindles African ambition
A MASSIVE deal clinched by Rainbow Tourism Group (RTG) this week marked initial moves by the National Social Security Authority (Nssa) to whittle down its 92% shareholding in Zimbabwe’s second biggest hospitality outfit, the Zimbabwe Independent can exclusively reveal.
RTG, which is listed on the Zimbabwe Stock Exchange (ZSE), announced yesterday it would be rekindling its African ambition, as part of the deal with Swiss based Grand Metropolitan Hotels (GMH) BV.
The Swiss giant presides over a string of exclusive hospitality assets worldwide, leveraging on its €200 million asset base.
Before calling off its African ambition, RTG had interest in the Democratic Republic of Congo’s Grand Karavia Hotel and in Mozambique.
It pulled out as headwinds mounted in its home market during hyperinflationinduced turbulent times, deciding to regroup before launching another grand return.
The deal was set to be announced during the World Travel Markets Africa conference, here last night.
In an exclusive interview ahead of the official announcement, Tendai Madziwanyika, chief executive officer at RTG, said after seven years of rebuilding, RTG had entered a growth phase.
He said it had been scouting for deals, including regional management contracts and leases.
Madziwanyika emphasised that in its current form, the RTG/GMH transaction was at operational level.
Areas of interest are cross-cutting, including the establishment of a hotel school and the creation of jointly controlled outfits to identify opportunities in Zimbabwe and other markets.
The transaction also involves the launch of a digital platform for booking and other operations.
He did not rule out opportunities for much bigger talks for the acquisition of Nssa’s stake.
But much will depend on how the current agreements will work.
“After our turnaround, we are now in a growth phase, we have to grow,” Madziwanyika said.
“Nssa, our major shareholder, intends to dilute to between 25% and 35%.”
He said the RTG board had been given a mandate to identify a potential partner, who could, at the right time, qualify for such a deal.
“We wanted to conquer Africa. We wanted to grow beyond our home country. We are well and truly in a growth mode. While we were planning all this, we were approached by GMH about a year ago,” Madziwanyika said.
“They wanted to grow into Africa. Zimbabwe became one of their options to base their African expansion.
“When we (eventually) had discussions, it was amazing. They wanted a partnership. They said whatever you have we don’t touch. We want to help you drive value.
“We get our piece of the pie in the value growth. It is a unique deal. The management of the whole business on the African continent is in our hands,” he said.
Madziwanyika said GMH would champion the parties’ shared interests out of Africa.