African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4062

Full Length Research Paper

Determinants of growth of private investment in Jimma City, Ethiopia

Tigist Waktole
  • Tigist Waktole
  • Department of Management, Jimma University, Jimma, Ethiopia.
  • Google Scholar
Mekonnen Bogale
  • Mekonnen Bogale
  • Department of Management, Jimma University, Jimma, Ethiopia.
  • Google Scholar

  •  Received: 03 May 2018
  •  Accepted: 24 July 2018
  •  Published: 14 August 2018


Private investment is one of the mainsprings of economic growth. Jimma city has been identified as the low private investment activities in the development and growth of the economy. Thus, the objective of this study is to explain the determinants of private investment in the city. In an attempt to achieve this objective, data was collected through self-administered questionnaire from 171 sample respondents through a systematic sampling technique and analyzed through inferential analysis. Seventeen variables were considered for analysis and the result reveals nine variables, that is, education, marital status, age, personal saving, inflation, public investment, investment incentive, raw materials and land are a statistically significant determinant of private investment of Jimma city. Therefore, if the city has to benefit from the economic rewards of the private investment, it is recommended for all stakeholders to pay more attention to those determinants.


Key words: Administrative factors, factors of production, financial factors, personal factors, private investment.