Although some progress has been made in recent years, ensuring universal access to electricity remains a major challenge in many countries in sub-Saharan Africa, particularly in rural areas. In light of this challenge, solar photovoltaic (PV) mini-grid systems have emerged as a promising solution for off-grid electrification. However, little is known about their actual performance and reliability when used in real-world applications. Using real-time monitored data and IEC's evaluation standard, this paper examines the performance and reliability of a 375 kWp off-grid PV mini-grid system installed in a remote small town in Ethiopia. The findings showed that the mini-grid produced 1182 kWh/day of electricity compared to the estimated generation of 2214 kWh/day, a difference of 1032 kWh/day (46.6% less). In contrast, 87% of the average daily electricity generated was delivered to the load. The discrepancies can be attributed to average PV capture losses of 2.75 kWh/kWp/day and system losses of 0.40 kWh/kWp/day. The performance evaluation results revealed that the mini-grid system is performing poorly, with average on-site module efficiency (ηpc), temperature corrected performance ratio (PRcorr), capacity factor (CF) and overall system efficiency (ηsys) of 9.85%, 42%, 13%, and 8.76%, respectively. It was found that the daily PV energy output could not meet the daily demand. As a result, the load is shed off from the power supply for 13 h a day; between 17:00 and 19:00 and again between 21:00 and 08:00. The study demonstrated that accurate demand assessment and robust system sizing, taking into account the impact of local weather conditions and prospective electricity demand growth is critical to ensure high performance and reliability of off-grid PV mini-grid systems.