Abstract:
The main purpose of this study was to examine challenges and benefits of private investment
activities in Gondar metropolitan city and Debark town. In addition to this, the study had
investigated the trend of private investment in Gondar metropolitan city and Debark town. In
order to achieve general and specific objective of the study, mixed research approach and
Descriptive type of research design was applied. The study has collected both qualitative and
quantitative data from both primary and secondary sources. Also the target population of this
study include all manufacturing, merchandise and service sectors. This research used stratified
sampling techniques and the sample size244 for all sectors. To collect primary data questionnaire
distributed for target respondent and investment bureau officer were interviewed. On the other
hand, in this study the investment bureau documents were used to gather the secondary data.
Collected data was analyzed by descriptive statistics using SPSS 25. The main finding of the study
indicates that Gondar and Debark investment area has job opportunity, economic development
opportunity, poverty alleviation, religious freedom and natural resources were available as
benefits. In addition in Gondar and debark in activity both regional and federal government should
develop infrastructure, bureaucracy; financial institutions, political instability. Market, provision
of land, as challenges.to enhance investment activity bothreginal and federal government should
developinfrastructure,improve bureaucracy, financial institutions should also increase their
access to finance, improve ending mechanism and should set sound interest rate .Finally this study
recommends that Political unrest and instability needs special attention since it was challenge of
investment activity of Gondar and Debark at significant level.
