Abstract
Electricity access is essential for small enterprise operations and economic development in low- and middle-income countries (LMICs). The Democratic Republic of the Congo (DRC) has one of the lowest electrification rates globally, placing undue constraints on the country's small enterprises. Efforts are currently underway to improve electricity access in the DRC and throughout sub-Saharan Africa using decentralized solar mini grids. Their effect on small enterprise energy access and enterprise operations remains largely unexplored, particularly in urban settings. We address this gap by evaluating the impact of a recently established solar mini grid on small enterprise operations in an un-electrified district in the city of Goma. We use a case-control study design to assess the adequacy of electricity supply in a sample of 128 qualitatively similar small enterprises. Cases include enterprises connected to a newly constructed solar mini grid operated by a private energy service provider. The control group includes enterprises connected to the long-standing parastatal utility grid. We analyze indicators of electricity availability and usage, reliability, perceived affordability, overall satisfaction, and value to construct a profile of electricity access and supply characteristics across the two groups. We find that electricity from the solar mini grid provides significantly improved energy access compared to the existing public utility evidenced by more hours of electricity, consistently strong voltage levels, and fewer outages. However, solar energy is more expensive. Our results confirm that investment in decentralized solar mini grids is a viable solution to improve electricity access for small enterprises in African cities. DRC is heavily investing in decentralized solar mini grids as an alternative to building out grid connectivity.
