ASSESSMENT OF CHALLENGES AND PROSPECTS OF PRIVATE INVESTMENT IN THE CASE OF GURAGE ZONE

Abstract

The aim of the study was to assess the challenges and prospects of private investment in the Gurage zone. The study was survey type which was collected from sample respondents of 70 investors out of 231 investors in the zone. The study has employed survey questionnaire so as to gather data from large number of respondents with in specified period of time. The study used stratified random sampling design because it endeavored to stratify the population in different sectors of investment. Within the strata to select the respondents, simple random sampling; method was used. The study was analyzed using both qualitative and quantitative data analysis methods. The study revealed that Accessibility of natural resource, followed by infrastructure, next cheap labor, and good governance are the main opportunities. As indicated the survey cheap labor, good governance rate the least from the alternatives. As investors responded that they faced different types of challenges at beginning of the investors face obstacle (challenge), only 35.3%of private investors satisfied by their tax payment. because of such challenges 33.8% of private investors have plan to shut down their investment projects . And the respondents indicated that they observed the coordination problem at Gurage zone I investment office, by 55.9%. The factors that affected the investment decision shows that good investment environment, the feasibility of the investment project, the existence of potential investment opportunity in the zone and good infrastructure are significant variables that had positive contribution to the private investment activities of the zone.