Energy Access for Small Enterprises Sourcing Solar Mini-Grid Electricity in Eastern Democratic Republic of Congo

Abstract

Access to electricity is widely considered essential to small enterprise performance and important to economic activity in low- and middle-income countries. However, the Democratic Republic of Congo (DRC) has disproportionately sparse electricity access, placing a significant burden on the country’s small enterprises. Efforts are underway to expand electricity access in the DRC using decentralized solar mini-grids, but there is limited evidence of their effect on small enterprises. This study aims to address this gap in knowledge by examining electricity access from a recently developed solar mini-grid in a previously un-electrified neighborhood in the city of Goma in eastern DRC. We employ a case-control study design to assess electricity supply in a sample of 128 qualitatively similar small enterprises connected to a solar mini-grid by the private supplier, Nuru or the DRC’s primary national grid supplier, the Société Nationale d’Électricité (SNEL). A set of five electricity access indicators are used to construct a detailed profile of small enterprise electricity access-based experiences. Using descriptive statistics and a series of logistic regressions in our analysis, we find that Nuru’s solar mini-grid electricity provides significantly improved electricity in both quantity and quality relative to SNEL. Additionally, we find that even though Nuru-connected enterprises pay significantly more for their electricity, they report greater levels of perceived electricity affordability, value for money and overall satisfaction. Our results suggest that solar minigrid electricity is a viable solution for improved enterprise electricity access in urban DRC.