SunCulture receives boost for solar irrigation enlargement in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained the first disbursement from a brand new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector as a end result of its size and its progressive mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, by way of its Hivos-Triodos Fund; SunFunder through its Solar Energy Transformation Fund; AlphaMundi through each its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will enable SunCulture to scale up renewable power installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar ones whilst facilitating income growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy climate know-how, and entry to improve productiveness. A current report developed b Dalberg Research reveals that irrigation methods and solar-powered water pumps can improve farmers production between 2 and 4 instances, and their revenue between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The past yr was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary position as a end result of pandemic. 81% of SunCulture farmers, nevertheless, have been in a place to increase their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps carry people out of poverty. This facility further enables our efforts to support farmers by providing them with extra of our solar options, and sooner.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored properly together for a typical goal: to help SunCulture reach man extra farmers. It shows how working capital can be combined with finish consumer financing, which is crucial for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation may be scaled up. SunFunder organized this facility with a similar-minded group of lenders to help an revolutionary product and enterprise mannequin. Luxurious look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This loan to SunCulture is the second prolonged to a company graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we are ready to deliver on the new NDF Strategy and its commitment to offer versatile and scalable financing in addition to catalytic impression. It has all the elements that define NDFs added value in the climate financing panorama. It demonstrates our capability to convene and mobilise additional financing, as properly as our distinctive mi of financing instruments to match the needs of our companions, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economic system, precisely presently of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture via revolutionary merchandise and shopper credit score. FEI-OGEF is joyful to have the flexibility to refinance our inventor mortgage into this new working capital facility and continue that development alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively offered assist to SunCulture via a combination of technical assistance and debt funding. We are excited to continue and improve our funding within the company through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a superb example of an innovative firm that is energetic on the nexus of renewable power and agriculture, utilizing photo voltaic energy to increase farmers’ incomes. Our facility helps the additional progress of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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