The purpose of this study was to identify the problems of educational investment in private primary school of Wolaita zone. The methodology used in this study was mixed method. Questionnaire and interview were used to collect data. Two school owners, 10 school principals, 11 town/woreda educational experts, 12-unit leaders and 64 teachers were included in the study. The result of the study indicated that factors that affect educational investment include lack of good governance at government investment offices, low supply of land, low access to credit, low level of supervisory support, and low supply of text-books by the government.. Hence it is recommended that private investors, education offices, investment office experts and financial institutions should work together to improve the currently declining interest of investors in the sub-sector.