Renewable energy microfinance initiatives have emerged as a promising tool for fostering sustainable development in rural areas of Ethiopia, particularly among women farmers who often face economic and social barriers. A mixed-methods approach was employed, combining qualitative interviews with quantitative data analysis on participant financial records over a one-year period. Participants reported an average increase in monthly income of £20 (7%) due to improved energy access and reduced fuel costs. Challenges include limited technical support and high initial investment requirements. The renewable energy microfinance programmes demonstrated positive effects on financial stability for Ethiopian women farmers, though significant improvements are needed in service delivery and affordability. Policy recommendations include expanding outreach efforts to underserved areas, enhancing technical assistance, and exploring alternative financing mechanisms such as government subsidies or public-private partnerships.
Abebe et al. (Thu,) studied this question.