Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
RAINBOW Tourism Group (RTG) retained significantly more procurement value within Zimbabwe in 2025, channelling US$18,1 million into local suppliers as the hospitality group sharply reduced its reliance on international procurement.
This shows the growing potential of tourism to generate economic value beyond hotel room sales, with RTG’s procurement spending supporting domestic businesses, small and medium enterprises (SMEs), youth- and women-led suppliers and employment.
RTG’s 2025 annual report shows that spending on in-country suppliers rose 20,6 percent from US$15 million in 2024 to US$18,1 million, while international procurement collapsed by 96 percent from US$2,32 million to US$93 047.
“Procurement spending increased between FY2024 and FY2025 in line with higher operational demand and business growth.
“Total spending on in-country suppliers rose from US$15 million to US$18,1 million, an increase of 20,6 percent, reinforcing the group’s strong commitment to local sourcing,” RTG said in its 2025 Annual Report.
The figures point to a significant shift in how tourism expenditure is transmitted through the wider economy.
Rather than procurement expenditure flowing offshore, an increasing share is being retained within Zimbabwe, creating business opportunities for local producers and service providers while supporting employment and domestic productive capacity.
The localisation drive was accompanied by a substantial expansion in RTG’s supplier network, which increased from 828 to 1 080 during the year, representing 30,4 percent growth.
This means the value-retention effect was not concentrated among a small number of established suppliers, but was spread across a substantially larger domestic business network.
RTG said participation by SMEs and historically under-represented supplier groups also increased.
“Spending on small and medium enterprises increased by 20,6 percent, while procurement from youth-led and women-led suppliers increased by 206 percent, indicating steady and balanced growth across inclusive supplier categories.”
The simultaneous increase in local procurement and participation by SMEs, youth- and women-led businesses gives the procurement shift a broader economic-development dimension.
For the tourism industry, this creates potential linkages extending from hotels into agriculture, food processing, manufacturing, transport, maintenance, construction and other service industries.
RTG’s international procurement figures underline the scale of the shift.
“Spending on international suppliers declined from US$2,32 million to US$93,047, a reduction of 96 percent, reflecting a deliberate shift toward local procurement to manage costs and currency exposure.”
The reduction in overseas procurement also comes at a time when businesses are under pressure to manage foreign-currency requirements and contain operating costs.
By increasing domestic sourcing, RTG is effectively using its purchasing power to deepen local supply chains while reducing exposure to imported inputs.
The group said its economic value creation initiatives were intended to generate benefits extending beyond its own operations.
“Economic value creation is driven by initiatives that support sustainable growth while delivering tangible benefits to both the business and the wider community.”
RTG said it continued creating employment for local people and expanding production of goods and services, contributing to infrastructure development and foreign-currency generation.
The group’s domestic economic footprint was further complemented by investment in energy resilience.
“Investment in technology remained a key focus, highlighted by the installation of a solar power plant at Kadoma Hotel & Conference Centre operating under a net metering arrangement, which improved energy efficiency and reduced reliance on conventional power sources.”
The investment demonstrates how tourism businesses are increasingly linking operational efficiency with longer-term resilience, particularly through alternative energy sources.
RTG also recorded a rise in its direct fiscal contribution, with total taxes paid increasing 18 percent from US$11,23 million in 2024 to US$13,27 million in 2025.
“This increase was driven primarily by higher VAT and PAYE payments, reflecting increased revenue generation, higher employment levels, and salary growth during the year. Corporate tax contributions also increased in line with improved financial performance.”
The tax contribution adds another layer to the group’s economic impact, alongside procurement, employment and supplier development.
“Overall, the increase in tax payments between 2024 and 2025 is directly aligned with business growth and highlights the group’s continued contribution to public revenues and economic growth.”
RTG said its economic performance was being monitored through regular reporting and structured reviews.
“The group is committed to the monthly reporting of economic performance and to the truthful and faithful presentation of information, underpinned by daily tracking of operational results and structured monthly performance reviews conducted by hotel management teams and senior executives,” it said.
