CHALLENGESAND BENEFITS OF PRIVATE INVESTMENT ACTIVITIES IN GONDAR METROPOLITAN CITY AND DEBARK TOWN

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.