This paper is endeavored mainly to access prospects and challenges oj private investment in thernAchievement oj private investment policy objectives. It was also aimed at investigating responses thatrncontribute Jor minimizing the challenges and strengthening private investment success in central Oromia.rnDespite the government's effort a number oj investors, investment growth rate and its contribution is stillrnJar below the level required Jor the achievement oj private investment objectives. At the national levelrnonly 11.5% are under operational level, whereas, at Regional and study area only8%and 16% out oJtherntotal approved projects are at operational level respectively. The level oj private investment activity isrnJundamental to poverty reduction, economic growth and achievement oj investment objectives orrndevelopment in general. This concern pOinted to the need Jor IInder taking in-depth assessment. To thisrnend case study design and descriptive approach were applied. Different: related literature, proclamationsrnpublications, reports were reviewed, to obtain secondary data. Different pertinent groups oj people oj thernarea in Jocus were questioned and interviewed. Standardized statistical Jormula was applied to determinernthe number oj samples Fom investors (375 Fom 4169}.Then stratified sampling was used to selectrnproportionate samples Fom each and every sector. Likewise to select experts (18) and slOck holders (18)rnworking in the area, purposive sampling technique was used data required Jrom these samples wererncollected using Questionnaire that constitutes both close ended and open-ended Jorm investor samples,rnstructured interview Jor experts working at different ladder oj the office and KII Jrom the stack holders.rnThe data collected Fom both sources was both qualitative and quantitative in nature and were analyzedrnqualitatively through description and quantitatively through simple descriptive statistics. The Researchrncame up with the result that illustrated the existence oj both prospects and challenges. From among thernchallenges, Jailure to clearly identifY and prepare investment land in advance and keep in the land bank,rnthe land was searched after the request had received, hence there is problem oj land access, shortagernbudget Jor land compensation; inFastructure problem, where Fee land is available; lengthy procedure ojrnland decision be land cause oj disintegration components oj a task in to five or more sectors, lack ojrnproper knowledge on investment policies, lack oj commitment, the existence oj some un ethical andrnirresponsible experts in investment offices and corruption are the main ones. Some others related withrninvestors are: Jail to have genuine plan, weak financial capacity, and insufficient experience, havingrnspeculator/ rent seekers/ behavior; unable to use Jull capacity and carry their obligation; un willing tornhire proJessional experts and non proJessionals as per their plan are the major.