TTHESIS TITLE: FACTOR AFFECTING THE ROLE OF PRIVATE INVESTMENT IN AGRICULTURAL SECTOR IN SOUTH WEST SHOA

Abstract

Ethiopia is one of the leading agrarian economies due to the fact that is has huge resource potential to attract domestic and foreign direct investment. The objective of this study was to identify and analysis factor affecting private investment in agricultural sector in South West Shoa. The results of micro level study showed that access to credit, access to infrastructure facilities, access of market, market factor, investment incentives and agro climate factors are significantly determinants of agricultural investment in the study areas. The results of this study also revealed that most of the problems encountered by agricultural investors were lack of commitment to invest, lack of adequate finance and institutional constraints. The intervention program might be viewed as strengthening institutional set-up and improves the micro economic stability in one hand and encourage investors to invest on the others hand. This could be done by establishing true, independent and efficient institution and eliminating unnecessary regulation so as to create access to credit, provide infrastructure facilities to the agricultural investment. The Oromian regional governments should work with investors to make conducive investment climate and open up its doors to investors by applying appropriate policies and investment incentives to achieve the long term development of the regional economy