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IOL News
2 hours ago
- IOL News
Zimbabwe's Rainbow Tourism Group invests R100 million in Cape Town hotel acquisition
Rainbow Tourism Group-owned Victoria Falls Rainbow hotel in Zimbabwe is within walking distance of the mighty Victoria Falls and very close to all the adventure activities in the resort town. Image: Supplied Tawanda Karombo Zimbabwe-listed hotelier, Rainbow Tourism Group (RTG), is expanding into South Africa with the $5.6 million (nealry R100 million) acquisition of a Cape Town commercial property that it intends to turn into a prime hotel. RTG, which runs city and resort hotels in Zimbabwe, said on Thursday that it was in the process of finalising a strategic acquisition in Cape Town through its South African-registered subsidiary, Rainbow Tourism Group (SA). RTG SA has entered into a sale and purchase agreement with Elleke Hospitality for this acquisition. Under the agreement, RTG will acquire the seven-storey commercial property located along Buitengracht Street in Cape Town. 'The property which is currently a commercial asset, will undergo adaptive reuse and refurbishment to transform it into a branded hotel operated under a leading international hospitality group,' said Tapiwa Mari, RTG company secretary. 'The total consideration for the acquisition is roughly 9.3% of the company's market capitalisation on the Zimbabwe Stock Exchange (ZSE).' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading RTG said the acquisition of the Cape Town property and its development into a branded hotel was in alignment with the board's overarching mandate to identify and pursue growth opportunities that support the company's long-term vision of expansion. 'To ensure world-class delivery, the Company is presently in advanced discussions with reputable international hotel brands to secure a management agreement for the acquired property,' explained Mari. 'Partnering with a global operator is expected to drive international skills transfer, operational efficiency, and increased visibility of the RTG brand on the global stage.' The redevelopment of the property into a modern, fully operational hotel will be consistent with international hospitality standards guided by the specifications and brand standards of the selected global hotel partner. This will ensure that 'the final product meets world-class benchmarks in design, guest experience, and service' delivery. RTG plans the Cape Town hotel to stand as a competitive and high-impact asset within Cape Town's hospitality landscape. To finance the acquisition, RTG has secured $6m loan facility from a Zimbabwean finance institution at terms it said were consistent with its existing borrowing arrangements. The loan facility carries a fixed interest rate of 12.5% per annum with a tenure of five years. On drawdown, the loan facility is expected to raise RTG's gearing ratio from 9% as at the end of 2024 to approximately 32% post the transaction. With a premium location along a major arterial route leading into Cape Town's Central Business District (CBD) and offering high visibility and pedestrian traffic, the acquisition property has close proximity to key business and leisure landmarks such as including the V&A Waterfront, Cape Town International Convention Centre (CTICC), the DHL Cape Town Stadium and the Bo-Kaap tourist district. 'This premium location positions the property as an ideal candidate for conversion into a hotel development that caters to both corporate and leisure travellers,' noted Mari. '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.' The Cape Town acquisition 'presents an opportunity to diversify both the Group's balance sheet and revenue streams by establishing a presence in one of Africa's most vibrant and competitive tourism' markets. Cape Town is a globally acclaimed destination and a key hospitality hub offering strong market fundamentals, including high occupancy rates, well-developed infrastructure, and year-round international visitor appeal. Mari said establishing a footprint in this environment not only enhances RTG's regional and global profile but also provides direct access to global best practices in hospitality operations, customer experience, and service excellence. BUSINESS REPORT
IOL News
10 hours ago
- IOL News
MVC warns of greater secrecy following Ramaphosa's doubling of political donation limits
My Vote Counts warns that doubling political donation limits will increase secrecy, weaken democracy, and allow wealthy donors greater influence over South African politics, calling for transparency and accountability. Image: Oupa Mokoena / Independent Newpapers Advocacy NGO My Vote Counts (MVC) argues that President Cyril Ramaphosa's recent proclamation to double the disclosure threshold and annual donation limit in the Political Funding Act (PFA) will increase secrecy in political funding and make it easier for private interests to unduly influence South Africa's politics. The proclamation, published on Monday, 18 August in the Government Gazette, raises the annual donation limit from R15 million to R30 million and increases the disclosure threshold from R100,000 to R200,000. MVC warned these changes 'will deepen secrecy in political funding and make it easier for private interests to influence our politics and for corruption to occur.' While recognising the importance of funding for political parties in a democracy, MVC emphasised the need to balance adequate funding with transparency and safeguards against undue influence. The NGO said the decision to increase the limits 'does not strike such a balance' and called it 'a politically expedient power grab that diminishes our ability to exercise constitutional rights, namely, our political rights (section 19) and our right of access to information (section 32).' By doubling the disclosure threshold, MVC said, 'the details of all donations under R200,000 will not be known to the public. This is an enormous sum for most South Africans and donations of such amounts should be made public knowledge to facilitate scrutiny of parties' relationships with donors and ensure that donors are not receiving anything in return.' The State, MVC added, 'has never provided a legitimate reason why all donations should not be disclosed to the public.' Drawing from four years of disclosure data, MVC revealed 'a handful of wealthy individuals dominate our private political funding landscape.' ''Doubling the amount a donor can donate to a party in a year to R30m will give donors an even greater ability to have an outsized influence on our political system. It will also make parties more susceptible to undue influence. And because the law does not regulate donations from related parties through the different legal entities they control, wealthy donors can now have an even more significant impact.'' The NGO also criticised the law for failing to regulate donations from related parties through different legal entities, allowing wealthy donors to multiply their impact. MVC had hoped Parliament would use the opportunity to review the limits based on context-specific evidence. ''When the opportunity arose, My Vote Counts (MVC) was hopeful that Parliament would remedy the limits to make them fit for the South African context. This is an issue that MVC has long argued – that the original limits adopted in 2021 were not only too high, but had been adopted without due regard to empirical evidence and were therefore irrational and unlawful.'' However, MVC criticised Parliament for ignoring this research. 'Instead of taking the time to do the actual work of developing limits that are fit for South Africa,' the Portfolio Committee on Home Affairs and the National Assembly 'decided to reject and ignore the research,' basing amendments on flawed original limits. Led by the ANC, MVC said most political parties favored 'less oversight and fewer restrictions on donations from wealthy donors, regardless of the consequences for democracy, and for transparency and accountability.' MVC said it is currently challenging the constitutionality of the PFA in the Western Cape High Court. The case argues that the original limits were 'irrational and unlawful' due to lack of empirical basis, and challenges the President's power to set the limits, which 'places too much power in a conflicted officeholder.' MVC noted that a judgment is pending, and a successful ruling could set aside the new amendments retrospectively. MVC called the recent proclamation 'a setback for our democracy' but vowed to continue advocating and litigating to ensure the PFA 'is constitutional and upholds the principles of transparency and accountability.' The NGO said they will also request the President to release 'the reasons and full record of factors that were considered as he applied his mind to this matter.' 'We cannot allow those in power to jeopardise our democracy and water down constitutionally protected rights for their narrow, self-serving interests,' said MVC. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL Politics
The South African
11 hours ago
- The South African
Patricia de Lille dissolves board of SA Tourism
South Africa's Minister of Tourism, Patricia de Lille, has dissolved the board of South African Tourism (SA Tourism) with immediate effect, citing unlawful conduct and governance failures linked to the recent suspension of the entity's CEO, Nombulelo Guliwe. This bold move follows the board's controversial resolution on 1 August 2025 to place Guliwe on precautionary suspension – a decision De Lille has ruled as procedurally invalid and ultra vires (beyond their legal powers). SA Tourism has recently been embroiled in scandal after allegations surfaced around a R100 million tender irregularly awarded to Pomme Express, a company accused of lacking credentials and providing misleading information to secure contracts for Meetings Africa 2025 and Africa's Travel Indaba 2025. The board's decision to suspend Guliwe – appointed in February 2024 following a rigorous recruitment process – came just days after these allegations gained public traction. In a formal letter sent to all board members on Tuesday night, De Lille cited key legal failings: The board lacked a chairperson (after Prof. Gregory Davids' resignation) and was not lawfully constituted to pass such a resolution. (after Prof. Gregory Davids' resignation) and was to pass such a resolution. The special board meeting where Guliwe was suspended was not properly convened in line with Section 18(2) and 18(3) of the Tourism Act No. 3 of 2014 . where Guliwe was suspended was not properly convened in line with of the . Only a board chairperson is legally empowered to call a special meeting, and no clarity was provided on who called the 1 August meeting. is legally empowered to call a special meeting, and no clarity was provided on who called the 1 August meeting. The board, created under Section 13 of the Tourism Act, failed to operate within its statutory limits and violated the principle of legality under the Constitution. 'The board acted prematurely, unlawfully and outside the scope of its powers,' said De Lille, confirming her decision under Section 16(1) and 16(3) of the Tourism Act. The now-dissolved board included: Judi Nwokedi Miller Matola Ikaneng Pilane Maija de Rijk-Uys Tumelo Selikane Ayanda Mazibuko Jonathan Gadiah Lawson Naidoo Rachel Nxele The Institute of Directors in South Africa (IoDSA) has expressed concern, noting the governance implications of De Lille's move. 'It is concerning if boards fear that fulfilling their duties could lead to their own dissolution,' said IoDSA CEO Parmi Natesan, who added that King IV guidelines affirm a board's right to appoint and, if necessary, suspend or remove a CEO – if done lawfully . Natesan emphasised that board charters do not override legislative statutes, but warned that political intervention could undermine effective governance if not handled carefully. De Lille confirmed that she will: Appoint an interim structure in accordance with Section 16(3)(b) of the Act in accordance with Section 16(3)(b) of the Act Initiate a new board recruitment process under Section 12(2) Meanwhile, the suspended CEO, Guliwe, remains in limbo as investigations into the tender scandal and board actions continue. This saga marks a major governance shakeup in a critical sector tasked with reviving tourism in the wake of economic downturn. Whether De Lille's decision is seen as accountability in action – or ministerial overreach – remains to be tested in both public opinion and legal forums. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
