Demographic Determinants of private investment in the pastoral and agro pastoral communities In Afar regional state, Ethiopia

Political and economic activities have neglected the Afar regional state and its community, limiting the development potential of this pastoral and agropastoral community. To address this, the Afar Regional State Investment Commission was established to promote and facilitate regional investment by fostering a favorable investment climate. Nevertheless, private investment in the region is still at an unsatisfactory stage. So, an attempt is made to provide some insight on demographic determinants on private investment growth in the Afar regional state, Ethiopia, the study is employed mixed research approach and utilized data collected from 309 private investors in the region by using cross-sectional data analyzed through descriptive statistics and a binary logistic model in Stata 14 software. Gender, educational attainment, age, marital status, ethnicity, culture, and the number of dependents are the main demographic variables that are considered in this study. The study reveals that gender and age positively and statistically significantly influence private investment growth. While the number of dependents has a negative and significant influence on private investment growth in the region. The research contributes practical policy-making direction to the Afar Investment Commission by shedding light on how demographic factors are shaping private investment growth and offering critical direction development efforts in the region. This study examines the influence of demographic determinants of private investment in the Afar regional state. this area has received little attention in research, and the study contributes unique insights into the determinants influencing investment in a neglected region of Ethiopia.