Opportunities and Challenges of Private Investment in East Gojjam Zone of Amhara Regional State, Ethiopia

Abstract

The aims to examine opportunities and challenges of private investment activities in East Gojjam zone with the intention of providing valuable information about the investment environment of the zone to the potential investors. In addition to this, the study investigates the trend of private investment in East Gojjam Zone. Descriptive type of research design has been used in this study by giving more emphasis on qualitative data analysis method. On the other hand, quantitative research analysis has been used to provide numerical measurement and analysis of the magnitude and extent of the problem and trend of private investment in East Gojjam Zone. The study used both primary and secondary data. Pre-designed self-administered questionnaire has been used to collect primary data. The investment bureau documents have been used in gathering the secondary data in this study. In order to obtain primary data, a total of 310 questionnaires were distributed to investors found in East Gojjam zone and 305 of them were filled and returned to researchers. In addition, some secondary sources of data were surveyed to know the trend of private investment practices in the zone. The outcome of this study revealed that, the major bottlenecks of investment in East Gojjam zone are Administrative and policy related factors, Infrastructure related factors Macro economic variables which have a nationwide effect, unavailability of foreign exchange reserves and exchange rate fluctuations and Market related factors. Socio cultural factors and Geographic factors are considered as opportunities of private investment in East Gojjam Zone.

Keywords: Private Investment, Opportunities, Challenges

DOI: 10.7176/JPID/48-05