DETERMINANATS OF PRIVATE INVESTMENT IMPLEMENTATION PERFORMANCE IN SULULTA TOWN, OROMIA REGIONAL STATE

Abstract

This study analyzed investment implementation performance in relation to its determinants in Sululita town of Oromia Regional state. The sample consisted of 62 private investor’s selected using stratified random sampling method. The data were collected through structured questionnaires. The descriptive analysis and duration model were used as the main technique of data analysis so as to identify the main factors affecting private investment implementation performance. The findings of the study showed that access to infrastructure facilities, access to credit, and bureaucratic red tapes have significant and negative impact on the investment implementation performance. However, education level of the investors, access to land and corruption were found to have no significant impact on the investment implementation performance. Finally, the State of Oromia, Ethiopia, must attract and encourage private investors by applying and improving policies which promote private investment. In this way, they will actively contribute to the overall development and growth of the Ethiopian economy by considering the aforementioned determinants of project performance.