| Abstract: | The objective of this study is to assess the Ethiopian investment policy and investment opportunities for FDI. This study employed mixed research method where both qualitative and quantitative data were used. To address the research objective 211 sampled respondents were selected. The researcher employed stratified sampling followed by random sampling technique for selection of FDI sample respondents. The samples used for analysis were selected from foreign direct investments which are currently under business operation, since there are similarities among investments in the same sector stratified random sampling was used to select samples from each sector. First the strata were formed based on sector of FDI then the sample were selected from each stratum. For the selection of sample employees and government officials purposive sampling technique was used to get persons from different sectors that can better provide information about FDI. For the purpose of this research, 50 foreign direct investors which are currently operating were considered to be the representative samples. The other samples for the research were employees and government officials. Accordingly, 30 government officials and 131 employees were selected purposely with the intention of obtaining the persons that can provide more information about FDI. 211 questioners were distributed; from which 180 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 180 responses using SPSS 24 software package. Descriptive statistics research design was employed. All out puts were reported using percentage and mean results. The result of this study indicated that the admission, regulation. Tax, fiscal, Monetary and credit policies, and investment law stated by the Ethiopian investment policy as a policy they are good, but they are not properly implemented. In addition, the availability of adequate labor force, raw materials, rapid population growth, huge market demand, availability of resource, investment guarantees and incentives are considered as an opportunity to attract foreign investors and play positive role to realize Ethiopian investment goals. On the other hand, shortage of foreign currency, capital market, credit access from financial institution, lack of adequate power supply, shortage of infrastructures are some of the factors that hinder FDI investors to invest in Ethiopia. The study recommends that in order to sustain and improve the inflows of foreign direct investment and realize the Ethiopian investment goals, the Ethiopian government first should focus on to overcome factors that hinder foreign investors. |
