Challenges and Trends of Private Sector Investment Incentive (In The Case of Dire Dawa City Administration)

This thesis intended to examine the challenges and trends of private sector Investment Incentives provision on current implementation process, to attract investment, in Dire Dawa City Administration (DDCA). The purpose of the study is to identify the major challenges and opportunities of investment incentives in Dire Dawa Administration. To achieve the stated objective the researcher focused on primary and secondary sources of data. The research considered 100 respondents. The collected data was analyzed using descriptive statistics using frequency and percentage. The outcome of this study revealed that, the major bottlenecks of investment in Dire Dawa city are Administrative and policy related factors, Infrastructure related factors Macro economic variables which have a nationwide effect, unavailability of foreign exchange reserves and exchange rate fluctuations and Market related factors. Socio cultural factors and Geographic factors are considered as opportunities of private investment in Dire Dawa city. Based on the conclusion given the researcher forwarded a recommendation to create a critical link between the investment office and other sectors providing different services to support investors.