Determinants of Agricultural Projects Implementation Delays: The Case of Agricultural Projects Financed by Development Bank of Ethiopia Nekemte District

Alemu Olika (Alex)^1, and Gemechu Mulatu²

¹Development Bank of Ethiopia, Strategic Planning and Change Management Directorate, Senior Officer, Addis Ababa, Ethiopia

²Wollega University, College of Business and Economics, Department of Economics, Nekemte, Ethiopia

Cite this paper:
Alemu Olika (Alex) and Gemechu Mulatu. Determinants of Agricultural Projects Implementation Delays: The Case of Agricultural Projects Financed by Development Bank of Ethiopia Nekemte District. Journal of Business and Management Sciences. 2024; 12(4):175-196. doi: 10.12691/jbms-12-4-3

Abstract

The Agricultural Development Project aims to reduce rural poverty by improving and increasing agricultural production through a community-based approach to designing and implementing components that directly impact the lives of the poor in the participating provinces and districts. However, it is characterized by delays in implementation due to technical and socioeconomic factors. To improve this problem, the timely implementation of agricultural projects becomes more crucial. Thus, the purpose of this study in the DBE Nekemte district was to determine the variables influencing agricultural projects in the study area and analyze the causes of delay factors that have significant contributed to the delay in implementing agricultural projects. The study used an entire population of project owners and employees of banks whose position was above officer, and the survey was conducted by distributing questionnaires across the eligible respondents. The data was collected from 125 respondents. From the literature review, thirty-nine (39) delay factors were identified. Factors of delay under study were categorized into five main groups: project behaviour, consultants and stakeholders, bank-related, project owner, and macroeconomic factors, and then their impacts on delay were assessed using RII and regression analysis. The three most notable factors contributing to agricultural implementation delays were identified as: (1) inflation; (2) a shortage of equity contributions; and (3) a lack of utilization of the disbursed funds (used for another purpose). The study concluded that inflation-related delay factors had the significant impact on project implementation, followed by macroeconomic factors, and the second highest was missing utilization of the disbursed fund, followed by project owner-related delays, while delays in providing services for utilities such as water, electricity, etc; followed by consultants & stakeholders-related delays, exhibited the least causes of delay. This study can benefit stakeholders dealing with agricultural projects to mitigating and establish suitable solutions for overcoming the delay.

Keywords:
agricultural project delay factors development bank of Ethiopia implementation nekemte district

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