Performance, Challenges and Prospects of Private Investment In Sebeta City Administration
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Date
2012-06
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Addis Ababa University
Abstract
In recent times privale sector has became an important growth engine in developing economies as it
plays roles in generating wide employment opportunities, reduce poverty, generating income and help
economic growth and transfer of know-how. 77,e Ethiopian government has also undertaken many policy
measures to encourage the involvement of this sector in country's economic activities since the adaption
of market based economic policy. In light of this, the research has been conducted to identify performance
level, challenges and prospects of private investment in sebeta city administration.
To achieve this objective primCily and secondCilY data were collected which is qualitative and quantitative
in nature. To obtain this data questionnaire, FGD and KII was employed where as to collect secondary
documented data ./i'om different institutions, different formats were used Firm level data is the main
source of dala f or the study which was selected through questionnaire from a sample of 115(20%) out of
572 approved private investments in the study area based on simple random and systematic random
sampling techniques. Purposive sampling method was also employed to collect data from focus group
discussants and interviewees which were mainly used triangulate data collected through questionnaire.
The result of the study showed that the peljormance of private in vestments approved at the study area is
found to be poor like the status shown at national and regional level. For this low performance, lack of
appropriate project screening and appraisal, poor service delively and unresponsiveness, acute problem
in supply of basic in./i'astructure, rent seeking of some investors and govemment employees, gap in skill
of govemment employee and entrepreneurship skill of promoters and weak follow-up and after care
services of investment projects have been identified. Ample investment potential that pertain to location
advantage, stability, ffi'ailability of workforce, proximity to markets, etc have also been identified.
Based on the major finding of the thesis stated above, recommendations were forwarded that could solve
the problem and capitalize the opportunities available. In this regard, improving project screening and
appraising, improving service delivelY and empowering both service providers and promoters, improving
the supply of basic inji'astructure, strengtheningfollow up and after care services and heavy promotion of
area's investment opportunities by targeting at more beneficial projects are factor that needs emphasis by
concerned regional and local bodies.
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Keywords
Challenges and Prospects