Financial mechanisms for sustainable tourism development in the Southern African Development Community (SADC) region
Article Sidebar
Main Article Content
Abstract
Tourism is a key driver of socio development in the Southern African Development Community (SADC), contributing significantly to employment, gross domestic product and foreign exchange earnings in countries such as South Africa, Botswana, Namibia, Zimbabwe, and Tanzania. The study examines financial strategies that support sustainable ecotourism development, focusing on government funding, bank loans, green bonds, public-private partnerships and community-based financing mechanisms. A case study design was adopted using secondary panel data from 2020 to 2025 across the five selected countries (n=5), with Pearson correlation employed to analyse the relationship between financial interventions and sustainability outcomes. The findings reveal that countries with stronger financial systems, institutional capacity, and governance frameworks achieve more effective sustainability outcomes, whilst lower-income countries face constrained access to finance, limiting scalability and inclusiveness of ecotourism initiatives. A strong positive relationship was observed between government funding, development loans and sustainability performance. The study recommends increased national budget allocations, expansion of green financing investments, strengthening of institutional frameworks, promotion of public-private partnerships, enhancement of community -based financing and regional policy harmonisation. Further research should incorporate primary data and evaluate the long-term impact of innovative financing mechanisms on sustainable tourism development.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
References
Andalecio, A. B. P. (2021). The role of selected higher educational institutions (HEIs) and local government units on integrating food heritage research into political priorities: A public policy analysis of Luzon Island, Philippines. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 1(2), 160–189. https://doi.org/10.37715/jtce.v1i2.2201
Andalecio, A. B. P., & Martin, E. S. (2022). A preliminary study on productivity investments in tourism security of a multi-islands province: Community perspectives for holiday destination holistic strategy for Community-Based Tourism model of Romblon, the Philippines. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 2(1), 92–120. https://doi.org/10.37715/jtce.v2i1.2644
Andalecio, A. B. P., Rose, G. A. T., Isidro, M. R. J., Lee, A. T. J.-J. A., Martinez, K. L. P., Dionisio, R. A. M. M., Tamayo, R. F. M., Tampolino, J. M. T., & Valentin, A. V. W. T. (2022). Assessing the community-based tourism potentials of Romblon, Philippines: A structural equation model. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 2(2), 174–199. https://doi.org/10.37715/jtce.v2i2.2651
Anekwe, I. M. S., Ashiegbu, D., Isa, Y. M., & Potgieter, H. (2025). Circular economy and energy transition: A review of South Africa’s 5-year just energy transition investment plan (JET-IP). Mitigation and Adaptation Strategies for Global Change, 30(6), Article 48. https://doi.org/10.1007/s11027-025-10230-z
Bangura, S., & Lourens, M. E. (2025). A scoping review of social entrepreneurship as an approach to sustainable development and addressing environmental challenges in the African Union regional economic communities. International Journal of Applied Research in Business and Management, 6(2). https://doi.org/10.51137/wrp.ijarbm.2025.sbas.45875
Batinoluho, L., & Basera, V. (2022). Festivals and tourism development: Examples from Tanzania and Zimbabwe. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 2(1), 18–33. https://doi.org/10.37715/jtce.v2i1.2183
Desiderio, D., & Tevoedjre, E. (2025). African integration reimagined: From continental-level aspirations to regional-level realities. SSRN. https://doi.org/10.2139/ssrn.5524862
Hatchard, J. (2025). International cooperation and the admissibility of evidence obtained from abroad. In Proving corruption and defending the corrupt (pp. 104–125). Edward Elgar Publishing.
Hickel, J., & Kallis, G. (2020). Is green growth possible? New Political Economy, 25(4), 469–486. https://doi.org/10.1080/13563467.2019.1598964
Indrianto, A. T. L., & Oktavio, A. (2025). The role of hotels in achieving SDGs through local community empowerment: A case study of Maesa Hotel Ponorogo. IOP Conference Series: Earth and Environmental Science, 1570, 012008. https://doi.org/10.1088/1755-1315/1570/1/012008
Kafwabulula, A. C., & Mwange, A. (2025). International norms and regional commitments in consumer protection law: A critical appraisal of Zambia’s alignment with the UN, EU, and SADC legal instruments. African Journal of Commercial Studies, 6(2), 215–219.
Kapesa, T. (2025). Collaboration and partnerships: Fostering regional cooperation for sustainable development. In T. Kapesa & N. Dorasamy (Eds.), Sustainable development in Southern Africa: The critical role of public governance (pp. 239–261). Routledge. https://doi.org/10.4324/9781003596011-11
Kawimbe, S., & Chimiti, F. (2023). Applying sustainability in national parks management: Balancing public and private interests using a sustainable market orientated model in Zambia. ISAR Journal of Multidisciplinary Research and Studies, 1(6), 65–69
Kondo, T., & Mutsvangwa, S. (2025). The dynamics of fiscal deficit and current account in 12 SADC countries. Journal of Governance and Accountability Studies, 5(1), 17–31. https://doi.org/10.35912/jgas.v5i1.2499
Kupika, O. L., Mapingure, C., Mrewa, A. T., Mutanga, C. N., & Gondo, R. (2025). Climate change impacts on ecosystem goods and services: Implications for nature-based tourism in transfrontier conservation areas of Southern Africa. In K. Dube, I. O. Ezeuduji, & M. P. Swart (Eds.), Climate change and sustainable development goals discourse in rural and tourism-protected areas (pp. 29–50). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-87337-9_3
Lefatsa, P., & Nubong, G. (2025). Financial development, economic growth, and energy consumption in SADC region. BRICS Journal of Economics, 6(1), 223–258. https://doi.org/10.3897/brics-econ.6.e138454
Mangwiro, M., Chikuta, O., & Kabote, F. (2025). Agritourism in Southern Africa: A policy analysis. Frontiers in Sustainable Tourism, 4, 1501008. https://doi.org/10.3389/frsut.2025.1501008
Mbetjiha, V. (2025). An analysis of policy barriers and opportunities for youth access to entrepreneurial finance in Botswana, Namibia, and South Africa: Policy review. African Journal on Impact Economic and Social Studies (AJIESS), 3(002).
Mutanga, C. N., Mbaiwa, J. E., Gondo, R., & Kupika, O. L. (2025). Gender mainstreaming and dynamics of women participation in tourism in African rural conservation landscapes. In K. Dube, I. O. Ezeuduji, & M. P. Swart (Eds.), Tourism in rural protected areas: Trends and opportunities in Southern Africa (pp. 31–44). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-87333-1_3
Nathanael, A. C., Hussein, M. H., & Swai, J. P. (2025). COVID-19’s effects on inward foreign direct investment and earnings management in Southern Africa’s Development Community. Disclosure: Journal of Accounting and Finance, 5(1), 94–112. https://doi.org/10.29240/disclosure.v5i1.11773
Ntsobi, M., Nyamkure, B., Mwale, B. J., & Nyingwa, D. (2025). Strengthening financial sustainability: Evaluating strategic revenue diversification at the Sci-Bono Discovery Centre, South Africa. International Journal of Economics, Business and Management Studies, 12(1), 61–82. https://doi.org/10.55284/ijebms.v12i1.1501
OECD. (2011). Towards green growth. OECD Publishing. https://doi.org/10.1787/9789264111318-en
Oktavio, A., Wijaya, V., Soediro, M., Nugroho, A., Adityaji, R., & Kusumawidjaya, E. (2026). Analysis of the effects of risk management and knowledge sharing on supervisory effectiveness. Indonesian Journal Economic Review (IJER), 6(2), 344–351. https://doi.org/10.59431/ijer.v6i2.765
Oosthuizen, M. E. (2025). Leveraging paradiplomacy for enhanced cooperation and sustainability: Analysing cross-border cooperation in the Maloti–Drakensberg Transfrontier Conservation Area through its working groups. Politeia, 44(1). https://doi.org/10.25159/2663-6689/17639
Pasipanodya, S. K. M. (2025). Sustainability assessment processes for tourism in the African context: A literature review. In M. Arora (Ed.), Sustainable tourism: Entrepreneurial trends, opportunities, and strategic insights (Vol. 2, pp. 59–79). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83708-054-020251004
Pillay, K., Mohanlal, S., Dobson, B., & Adhikari, B. (2025). Evaluating institutional climate finance barriers in selected SADC countries. Climate Risk Management, 47, 100694. https://doi.org/10.1016/j.crm.2025.100694
Redclift, M. (1992). The meaning of sustainable development. Geoforum, 23(3), 395–403. https://doi.org/10.1016/0016-7185(92)90050-E
Samuelson, P. A. (1954). The pure theory of public expenditure. The Review of Economics and Statistics, 36(4), 387–389. https://doi.org/10.2307/1925895
Santoso, H. N., Widyawati, C., & Adityaji, R. (2021). The role of the promotional video “Wonderful Indonesia: A visual journey” on brand image and tourist visiting interest to Wakatobi. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 1(1), 48–60. https://doi.org/10.37715/jtce.v1i1.1799
Swart, M. P., Dube, K., & Ezeuduji, I. O. (2025). Building inclusive and sustainable tourism resilience in an era of climate change: A practical and policy perspective for Southern Africa. In K. Dube, I. O. Ezeuduji, & M. P. Swart (Eds.), Climate change and sustainable development goals discourse in rural and tourism-protected areas (pp. 147–169). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-87337-9_11
Tapfuma, M. M., Chikuta, O., Ncube, F. N., Baipai, R., Mazhande, P., & Basera, V. (2021). Graduates’ perception of tourism and hospitality degree program relevance to career attainment: A case of graduates from three state universities in Zimbabwe. Journal of Tourism, Culinary, and Entrepreneurship (JTCE), 1(2), 190–207. https://doi.org/10.37715/jtce.v1i2.2185
Tavares, W. S., Correia, L. T., Rego, M. D. C. P., & Loiola, T. (2025). Impact of regional inequalities on sustainable development strategies in Africa: A systematic literature review analysis of economic, social, and environmental challenges. European Journal of Sustainable Development Research, 9(4), em0327. https://doi.org/10.29333/ejosdr/16772
Wijaya, V., Indrianto, A. T. L., & Oktavio, A. (2025). Revitalization of Surabaya’s old precinct: Challenge and strategy of growth. Ultima Management: Jurnal Ilmu Manajemen, 17(1), 19–29. https://doi.org/10.31937/manajemen.v17i1.4134
Yahya, E. L., Sugiarto, Hendratono, T., Karya, D. F., & Oktavio, A. (2026). Intellectual capital and experience innovation as catalysts for value co-creation: Empirical evidence from Marriott International Indonesia. Business and Finance Journal, 11(1), 150–160. https://doi.org/10.33086/bfj.v11i1.8736