Exploring Determinants of Mini-Grid Business Sustainability in Ethiopia
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Date
2024-06-03
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A.A.U
Abstract
The thesis titled "Exploring Determinants of Mini-grid Business Sustainability in Ethiopia"
aims to comprehensively investigate and analyze the factors crucial to ensuring the long-term
viability of mini-grid businesses in Ethiopia, employing a hybrid model approach. The study
employs a mixed-method research design, integrating qualitative insights gathered through
rigorous document review, including detailed analysis of reports, project documents, and
existing literature, alongside quantitative data collected through questionnaires. The study's
target population comprises 101 participants from key organizations such as GIZ EnDev,
ERG, Renesys Engineering, USAID, UNIDO, Petroleum and Energy Agency, and the Ministry
of Water and Energy, selected using an available sampling method encompassing all relevant
stakeholders within the mini-grid ecosystem. "Both the literature review and regression
analysis reveal a robust and statistically significant relationship between regulatory
frameworks, access to finance, technical capacity, grid integration, pricing strategies,
community engagement, maintenance protocols, and the sustainability of mini-grid businesses.
This is evidenced by a high correlation coefficient (R = 0.896) and a strong adjusted Rsquared
value (0.892). ANOVA results further validate the model's robustness, showing a
significant F-value of 1815.215 with a p-value below 0.001."The study concludes by
advocating for a holistic strategy that integrates supportive policies, financial innovations,
technological advancements, and community involvement to foster sustainable mini-grid
business models in Ethiopia.