| Abstract: | The aim of the study was to assess the Opportunities and challenges of private investment in the
regional state of Harari. The study was survey type which was collected from sample
respondents of 246 investors out of 684 investors in the region. The study has employed survey
questionnaire so as to gather data from large number of respondents with in specified period of
time. The study used stratified random sampling design because it endeavored to stratify the
population in different sectors of investment. Within the strata to select the respondents, simple
random sampling; lottery method was used. The study was analyzed using mixed approach both
qualitative and quantitative research approach by applying descriptive statistics with the tool
Statistical Package for Social Science (SPSS Version 26) computer program to run the
questionnaire. From the finding the opportunities include being a world heritage city which is a
known tourist destination, tax incentives provided by the state, the availability of infrastructure,
being a potential market area (center of trade) among the rural areas surrounding the region
and less operational cost mainly labor cost are amongst them. The study has also identified the
challenging factors which include high inflation, unavailability of foreign currency, exchange
rate fluctuation, interruption of electric power, interruption of water, political instability, poor
tax administration and customs procedure, contraband, land provision, less work on awareness
creation by the investment office, ethnic conflict among dwellers of the region were among the
challenging factor of private investment in the region. In order to overcome the challenges and
enhance the opportunities available to investors, the region, as well as the investment office has
to work together with investors to create a conducive investment climate to achieve the GTP II
goal which is becoming a middle income country by 2025. |
