Social Enterprises: How to succeed in the renewable energy sector in Sub-Saharan Africa

Abstract: In 2015, the United Nations developed 17 goals to work towards sustainable development by 2030. Among these goals, goal number seven focuses on providing clean and affordable energy for all, to solve problems such as poverty and to reduce greenhouse gas emissions around the world. In Sub-Saharan Africa, 600 million people live without access to electricity. Furthermore, millions of people in Sub-Sharan Africa die each year because of indoor air pollution that comes from combustible and inefficient energy solutions. Because of these issues, social enterprises are a vital component to be able to work towards providing renewable energy solutions and efficient cooking solutions to households in Sub-Saharan Africa. This thesis analyses social enterprises working within the renewable energy sector in Sub-Saharan Africa, and investigates what a social enterprise must do to succeed. To answer this question, the authors carried out interviews to identify the factors that contribute to success and barriers that prevent the success of social enterprises active within the mentioned sector and region. The answers from the interviews were later on compared with findings from existing literature discussed in a literature review. Social enterprises in Sub-Saharan Africa that works within the renewable energy sector must work together with local employees to access knowledge about external factors that could engender barriers. Other barriers that a social enterprise might encounter are linked to profitability and affordability, and what the business is primarily focusing on achieving.    Social networks and financial institutions are of importance for social enterprises to succeed in Sub-Saharan Africa. Furthermore, by providing excellent customer service together with having the right abilities and knowledge, a social enterprise will have a higher chance of success. One of the most critical variables when aiming for success in the renewable energy sector in Sub-Saharan Africa is to have a well thought out business model before entering a new target market. This thesis concludes that the identified success factors and barriers, along with the explanation behind them, can be used as guidelines for future social enterprises that want to establish in the renewable energy sector in Sub-Sharan Africa.