A good investment climate fosters productive private investment, and it is the engine for growth and poverty reduction. It creates opportunities and jobs for people. It expands the variety of goods and services available and reduces their cost, to the benefit of consumers. This paper focuses on to identify on determinants of private investment in Debre Tabor town. The study was employed by using both descriptive and explanatory research design with quantitative and qualitative methods. The total population of the study are 103 of this the researcher select 82 samples for the study since the population is not homogeneous stratified sampling is used. The quantitative aspect of the data focused on description of socio- economic variables, investment and business related variables and analysis of relationship among the dependent and explanatory variables of the authority. Explanatory research study is most appropriate because it is more efficient, economical and flexible enough to minimize bias and maximize reliability of the collected data. From this study it is found that the determinants regarding the investment activity in the town are the expected return on the investment, business confidence, internal unrest, interest rate, corruption, and tax, level of saving, finance, and infrastructural development. And the model shows that in such a way that: -relationship among the dependent and independent variables are significant.
Keywords: Ethiopian investment agency, Determinants of investment, Regression model, Debre Tabor Town and Debre Tabor Town investment office.