ASSESSING FACTORS CONTRIBUTING TO THE LOW LEVEL OF INVESTMENT (IN CASE OF WOLKITE TOWN INVESTMENT)

Abstract

Investment is very essential to mobilize human and natural resource to more productive efficient and effective utilization of available resource by allocating them in investment activity. So the government of Ethiopia has given much concern to this activity. However, this activity is in its low level in the country and in one of the urban center, wolkite town. For this reason, the purpose of this research paper is to assess the factors responsible for the low level of investment activity in the town.The source of data includes both primary and secondary method of data collection secondary data obtained by conductive structured questionnaire on private investment in the town and oral questions for the manager of service office of the town. The study used descriptive analysis in analyzing investment climate of the town and qualitative data of the survey made on investors in wolkite town administration. The questions include information about investment type in the town, promotional activities on investment opportunities and incentives given for investors by the governmental bodies, problems faced investors and possible solutions to alleviate problems in the future. The secondary data collected from written materials available in investment office The results showed that poor infrastructure, high level of tax and initial investment fee and corruption were the most serious problems hindering private investment in the town. For achieving improvement and progress, the city administration should tackle corruption, improve infrastructure and eliminate factors that diminish expectation of return of investors. Finally, the data obtained from primary and secondary source analyzed, through inferential methods