RTG Reports US$3M Loss Due to Donor Funding Withdrawal, Delayed Government Payments

RAINBOW Tourism Group (RTG), one of Zimbabwe's leading hospitality groups, has cited the loss of an estimated US$3 million in donor-funded business and delayed government payments among key factors that put pressure on revenues during the 2025 financial year. Presenting the group's annual report for the year ended 2025, RTG chief executive officer Tendai Madziwanyika said the trading environment remained challenging, with government austerity measures and liquidity constraints weighing on domestic demand. "The 2025 trading environment remained challenging, as Government austerity measures and delayed settlements placed pressure on domestic demand and liquidity. "The withdrawal of USAID funding resulted in an estimated US$3 million in forgone potential revenue while continued liquidity challenges required the group to realign input costs on an ongoing basis, notwithstanding the relative stabilization of the Zimbabwean dollar," he said. Keep up with the latest headlines on WhatsApp | LinkedIn Madziwanyika said the group responded by intensifying its focus on foreign currency earnings, diversifying its geographical footprint and business lines, and replacing lost donor-funded business with commercial and regional demand. "This strategy delivered tangible results, with foreign currency revenue increasing by 28% to US$24,1 million and accounting for 48% of total Group revenue compared with 43% in 2024," he said. Despite the challenging operating environment, RTG's revenue increased 13% to US$50.3 million, supported by a 28% increase in foreign currency revenue to US$24.1 million. Gross profit margins improved significantly to 74%, which the group attributed to stringent procurement optimisation. Operating profit stood at US$5.4 million, while EBITDA closed at US$7.8 million. However, the group said EBITDA and operating profit were moderated by US$1.6 million in once-off acquisition and expansion-related costs. Net profit for the year stood at US$3.25 million, translating to basic earnings per share (EPS) of 0.13 US cents, compared with 0.22 US cents in 2024. Total assets grew 28% to US$82.7 million, reflecting the expansion of the group's property portfolio. During the year, RTG deployed US$15.5 million in capital expenditure as part of its inorganic growth and product modernisation strategy. A major milestone was the US$8 million acquisition of MSK House in Cape Town, South Africa, marking the group's first regional hotel footprint. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address. To complete the process, please follow the instructions in the email we just sent you. There was a problem processing your submission. Please try again later. Locally, RTG acquired Montclair Resort and Conference Centre in Nyanga for US$5 million and integrated Batoka Safaris into its Heritage Expeditions Africa (HExA) portfolio. Read the original article on New Zimbabwe . AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals , representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica . To address comments or complaints, please Contact us . AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 90 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Johannesburg, Nairobi and Washington DC. Get the latest in African news delivered straight to your inbox By submitting