A project should be understood as a coherent and organized set of activities aimed at achieving a specific end. Generally, a timeframe (deadline) and a budget are established to reach a goal, which is why a project is considered a plan or a program.

Furthermore, an investment is the process by which a company or an individual allocates resources to projects (commercial, industrial, or financial) in the hope of generating profits over time. Investing, therefore, involves exchanging a current expense, which is certain, for future, uncertain benefits.

The decision to invest is thus considered a bet on the future. This broad definition related to the concept of an investment project calls for a few comments:

• Activities: An investment project involves the realization of an investment, which may include conducting commercial, industrial, or service activities, implementing institutional measures, carrying out community development activities, or constructing large infrastructures, among others.
• Coherent and organized set: By definition, every project is a “construct” that requires group dynamics (decision-making, communication, etc.) and involves stakeholders who are clearly identified (the main actors).
• Objective: From the moment one decides to embark on an investment project, it is clear that a specific goal is being pursued. Generally speaking, these goals can be of general interest, profit-oriented, social objectives, etc., and each project should be evaluated with one of these primary objectives in mind.
• Budget: The implementation of an investment project involves mobilizing scarce resources (human, financial, technological, etc.), which will be compared to the revenues generated or the monetary or non-monetary advantages that will result.
• Spatio-temporal: Time plays a crucial role in the evaluation of an investment project, and this must be carried out within a well-defined space.

That said, an investment project is a proposal for action that, based on the use of available resources and means, considers it possible to obtain profits. These benefits, which are not certain, can be achieved in the short, medium, or long term…

This text is an excerpt from the book “Procédés Techniques D’élaboration Des Projets D’investissement“ written by FLAVIEN TUMBULA KIAMU.

We invite you to read the following article, “MARKETING-MIX.”