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Rationale for Action

to identify the key macroeconomic determinants of private investment in the country, more information is required on these factors. In addition, the private sector is predominantly characterized by small-scale, informal, and service sectors oriented mostly operating in domestic markets and not vigorously entering the productive sectors (manufacturing and agriculture) and the export market (Mulu, 2019). This indicates a need to identify weaknesses and constraints and thereby improving the country’s export trade competitiveness and building its capacity of resilience to shocks.

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