DETERMINANTS OF PROJECTS IMPLEMENTATION PERFORMANCE IN GEDEO ZONE WITH SPECIAL REFERENCE TO PRIVATE INVESTMENT

Economic and political reforms have been introduced in Ethiopia and these have boosted private
investment over the last three decades. The reforms have brought measurable improvements, but
the progress of private investment development has remained slow. Hence, this study was
conducted with the main objective of identifying the determinants of private project
implementation performance in Gedeo Zone. The researcher collected data from investors by
structured questionnaires from 178 investors using stratified sampling technique. The researcher
employed both an explanatory and descriptive research approach. Both qualitative and
quantitative methods of data analysis techniques have employed using spss version 20. To
conduct analysis of the data researcher used descriptive and logit model. Major challenges faced
in Gedeo zone administration was shortage of access to road, electricity in rural areas of Gedeo
Zone, shortage of finance, that is basically concerned with the higher need of banks for
collateral requirements to grant investment loans and the incapacity of private investors to meet
financial institutions' collateral requirements, sectorial ignorance of financial institutions in
their credit policy, basically in agriculture. The research found that business experience, and
training and project preparations deficiency of infrastructure facilities and access to credit
determine private investment projects implementation performance in Gedeo zone. Based on the
findings of the study, the government should revise credit access, procedures, and governance,
infrastructural facilities, like power supply, water and road access.