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
Highlights
According to the report of United Nations Conference on Trade and Development (UNCTAD) (2002), Investment is one of the primary engines of growth in all economies
Administration factors: More focuses on the transparency and ease accessibility of management or administration system and style for investment in the study area such as investment regulation and policy, access to investment area(land), anti-corruption and disclosures, improved local management skill, employment opportunities, institutional environment, government services and technical assistance. c
Challenges of Private Investment The main factors which are considered to be challenges of private investment are depicted in the following part of analysis
Summary
According to the report of United Nations Conference on Trade and Development (UNCTAD) (2002), Investment is one of the primary engines of growth in all economies. Its effectiveness rests on strong complementarities with other elements in the growth process, most notably technological progress, skills acquisition and the development of innovative capability. These elements make investment a natural point of departure for Governments seeking to formulate a robust development strategy. The link between investment and these other determinants of growth, is not an automatic process It requires among other things a favorable macro policy environment and specific policies and institutions aimed at encouraging savings and attracting and directing investment to key sectors in the economy thereby enhancing the contributions of investment to skills formation, technological change, competitiveness and economic growth. Utilizing the advantage of natural resources for export of high-value agricultural products is the best strategy to achieve rapid economic growth for a country
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