Navigating Legal and Administrative Hurdles to Attract Foreign Direct Investment in Zambia's Tourism Sector. A Comparative Analysis with Rwanda and South Africa

Abstract

This dissertation critically examined the legal and administrative hurdles to foreign direct Investment attraction in Zambia’s tourism sector, with a view to identifying legal structural impediments and proposes reforms. It argued that while FDI remains a vital tool for economic diversification and growth, Zambia’s tourism sector continues to underperform due to fragmented regulatory frameworks, inadequate sector specific legislation and the absence of a functional one-stop shop. The study was structured around three core objectives the first being, to analyse the legal and administrative challenges affecting FDI inflows into Zambia’s tourism sector, second, to evaluate the effectiveness of Zambia’s current marketing and investment promotion strategies and third, to draw comparative insights from Rwanda and South Africa, jurisdictions that have successfully leveraged legal and administrative reforms to attract tourism related FDI. Through analysis and comparative study, the research identified a significant gap in both academic literature and policy implementation concerning the intersection of FDI and tourism. The findings underscored the need for legislative clarity, institutional coordination and strategic marketing realignment. Key recommendations include the consolidation of licensing functions under the Zambia Development Agency, the codification of priority sectors within investment legislation, the integration of digital technologies and the establishment of a statutory framework for intergovernmental coordination. The dissertation concluded that Zambia was well positioned to emulate best practices from its regional competitors and that targeted legal and administrative reforms could substantially enhance the country’s competitiveness as a destination for tourism driven FDI.