Zimbabwe’s Rainbow Tourism Group (RTG), a hospitality chain listed on the Zimbabwe Stock Exchange, has finalised the acquisition of a commercial property in Cape Town valued at US$5.6 million. The seven-storey building, currently utilised for commercial purposes, will be converted into a hotel under the management of an international hospitality brand.
The acquisition, conducted through RTG’s South African subsidiary, RTG SA, forms part of the group’s broader strategy of regional diversification and repositioning within Africa’s evolving hospitality sector. The company secured a US$6 million loan from a Zimbabwean financial institution to finance the purchase and refurbishment of the property.
According to RTG’s company secretary, Tapiwa Mari, the building will undergo adaptive reuse and comprehensive refurbishment. Its location, in proximity to the Cape Town International Convention Centre (CTICC) and the Victoria & Alfred Waterfront, positions it strategically for both leisure and business tourism. “Its proximity to the CTICC enhances its suitability for the Meetings, Incentives, Conferences and Exhibitions (MICE) segment, while the surrounding cultural, culinary, and recreational attractions boost its appeal to domestic and international tourists alike,” Mari stated.
Cape Town, as South Africa’s legislative capital and the country’s second-largest city by population, remains a focal point of continental and global travel circuits. Its established reputation as a hub for business events, coupled with its vibrant cultural and leisure economy, offers RTG a competitive foothold within a market that continues to attract significant visitor flows from within Africa and beyond.
The move reflects wider patterns of African hospitality groups seeking to scale beyond their home markets by leveraging regional synergies. For RTG, whose operations already encompass city hotels, resorts, and conferencing facilities across Zimbabwe, the South African investment is expected to create both new revenue streams and opportunities for collaboration across borders.
While South Africa’s hotel sector remains highly competitive, RTG’s entry highlights the increasing role of African-owned operators in shaping the industry’s future landscape. The planned adaptive reuse of the property also aligns with sustainable approaches to urban development, as regional investors continue to reconfigure existing assets to meet the demands of Africa’s growing tourism economy.
