Abstract:
Private investment plays an important role in the expansion of the economy production
capacity and long term economic growth. This study was conducted with the main objective of
investigating the factors affecting of private investment growth in burayu town Oromia
Ethiopia. The researcher has been applied Private Investment growth as dependent variable
and; infrastructure facility factor, market factor and access to bank credit, political
instability, capital factor, and investment policy factor as independent variables. The study
was conducted at two kebeles namely, Gefersa Gujjee and Abdi Nono purposively. Using
proportional random sampling technique, 236 samples are drawn from 587total populations.
(Private investment). By taking the research objectives and questions into considerations, as
the research approach is quantitative and quantitative research as well as explanatory
research design used for in this study. Quantitative of these research method was used
through survey questionnaires which were constructed in 5-point Likert scales and distributed
obtain primary data from managers/owners and employees of private investment in burayu
City Administration from two kebeles, which means; Gefersa Gujjee and Abdi Nono. The
qualitative research method would be used through document review and semi-structured
interview. Data collected through, unstructured questionaries’ and analyzed data using SPSS
version 20. Then, LRM regressions model was applied after the data sets were transformed to
natural log form. The finding of the study show that that infrastructure facility, access to
credit availability, market factor, Capital factor and Investment policy factor the independent
variables have a strong positive relationship with private investment growth and the
correlation result shows that Political instability the independent variables have a weakly
negative relationship with private investment growth. Based on the finding the study
recommended that the Burayu City administration Industry & Investment Office should assign
professional that support and monitor the private investment sector. Moreover, the Office of
Industry and Investment should increase investor awareness of regulations and acts
pertaining to private investment. In addition the city administration in collaboration with the
regional and Federal government bodies should allocate adequate budget to establish quality
infrastructural facility in the city.
