Abstract:
The main objective of the study was to assess challenges and opportunities of private
manufacturing investment in case of West Shoa zone, Oromia, Ethiopia. In order to
achieve the objective, the study used descriptive research design. The researcher used for
data analyses quantitative and qualitative method and analyzed as the equivalently
(QUAN – QUAL) research method used to obtain a more complete understanding from
two data bases, corroborate results from different methods and compare multiple levels
within a system. The study employed purposive Sampling, Firstly, the study used
purposive/ judgmental sampling technique used to purposively selected 12 private
manufacturing investors in West Shoa Zone on the basis of inclusion criteria, and these
criteria were year of establishment, according to their size, higher operational efficiency
and number of employees. Then after, the researcher used stratified proportional sampling
divided into Nine (9) Sectors namely Gypsum powder processing paper products, Rubber
& plastic product factors, Cement factor, Bottled & water, Textile, Non-metallic minerals,
metal & wood work and Agro-processing. Finally, simple random sampling used in order
to create homogeneity of private manufacturing sectors and provide that all employees of
the given investor to give their views towards challenges and practices of In Private
Manufacturing Investment. The study used 182 employees to obtain questionnaire
response and interview for detail explanation of the study. The study used descriptive data
analysis method by using frequency, mean, standard deviation and detailed explanation in
words.. According to the finding result found out foreign market relate challenge is one of
challenge that affect private manufacture not actively participate because there is
inefficient production, there is high transportation cost and they are uncooperativeness
global market. As well as, the study found out related to challenges associated with
unable to produce at full capacity breakdown of power affect the performance of private
manufacturing investors. The finding revealed that opportunity related factors drive
private manufacturers: access to land, the good commitment of local government
authorities, reliability of telecommunication service, the presence of electric power for
investment, the presence of financial institutions in the area are good opportunity for
private manufacturing investment in the study area. The study recommended that the
government should alleviate this problem by coordinately working with financial service
providers found both within Ethiopia and abroad in order to make available funds for
investment sector in addition to giving due attention to reserve foreign currency that useful
for importing raw materials and capital goods.
