This research was done in Metekel Zone of Benishangul Gummuz Region State with the objective of assessing therntrend, level of contributions, constraints and prospects of agricultural private investment. The primary data for thernresearch were collected through opinion survey. Questionnaires were filled in by sample investors and governmentrnbodies. Additional opinions were solicited through face-to-face interview and focus group discussions. Secondaryrndata were obtained from relevant government offices at various levels.rnThe analysis showed that the trend of the projects in agricultural private investment showed fluctuation over thernyears since the commencement of private investment. It was found that agricultural private investment increasedrnfrom 1993/94 to 1999/000. Conversely, the trend of investment projects showed decline from 1999/00 to 2005/06.rnFrom 2006/07 to 2007/08, the trend showed increment and progress.rnThe study also showed that although the number of workers employed in agricultural private investment sector inrnthe zone was high in number (compared to other investment sectors) the quality of their life and work has not beenrnin a good condition. Facilities in housing and transportation were better offered on the investment sites compared tornhealth care services, subsidized food and drinking water. Many of the investment firms did not sign contractualrnagreement with the workers. There was also frequent turnover. As the result, the workers in agricultural privaterninvestment of the study area felt job insecurity and instability. The overall average contribution of governmentrnrevenue from agricultural private investment was below one percent to the total annual revenue. The main causes forrnless contribution to revenue were less volume of the investment, weak tax administration and follow~up, lessrnwillingness of the investors to pay and long-term tax holiday allowed for annual crops and exit of investors.rnInfrastructure, governance, fi nancial institutions and market were found to be the determinants of agriculturalrnprivate investment in the study area. Service delivery while obtaining land for investment was much delayed and thernnumber of days it took was far more than the standard set. Road network, telecommunication, electric power andrndrinking water supply were poor and as such found to be the constraints to the sector in the study area. Road netrnwork was the most highly needed and superior determinant factor for agricultural private investment amongrninfrastructure facilities. Lack of road network resulted in lack of proper market for products, problems in providingrnsupplies to the workers on the investment sites and made investors unwilling to invest in areas away from thernworeda towns. The analysis mainly showed that bribe, practice of tax collection and administration, promotion andrnsupport for the sector, weak conflict resolution mechanisms and absence or low enforcement of investment relatedrnpolicies and laws were the main governance related constraints which negatively influenced expansion andrncontribution of agricultural private investment in the zone. Moreover, financial constraints had a negative impact onrnthe utilization of resources such as land and productivity of the investors in the zone in the agricultural sector.rnFurthermore, the study showed that lack of transportation, distance of investment sites from niche market, lack ofrnfull demand in the area and low price were the main market constraints in the study area. Analysis also showed thatrnthe investments were not environmentally- friendly.rnRegarding the prospects, with the optimistic view of most investors to expand investments and the amendedrninvestment law, the study indicated that there is possibility for private agricultural investment to contribute to therndevelopment of the region more than what has been achieved so far. Conversely, the various constraints have madernsome investors hold pessimistic view about the future investments and are thus possible threats to expansion andrncontribution of the sector.rnFinally, the study was concluded by offering some recommendations that may help to overcome the constraints andrnmay ass ist the government in policy formulation. The recommendations were offered in relation to improvingrnworking condition, government revenue generation, so lving service delivery and bureaucratic problems, enhancingrnphysical and financial infrastructure and natural resource conservation.rnKey words: Government revenue, employment opportunity, physical and financial infrastructure, bureaucracy, enablinGrninvestment environment, casual employment, temporal)' employment, pennanent employment, revenue forgone