SunCulture receives increase for solar irrigation expansion in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has acquired the first disbursement from a brand new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector because of its size and its innovative 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 by way of 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 allow SunCulture to scale up renewable vitality installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones while facilitating earnings progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, modern local weather know-how, and entry to improve productiveness. A latest report developed b Dalberg Research reveals that irrigation systems and solar-powered water pumps can improve farmers production between 2 and 4 times, and their income between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The previous year was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse financial place as a outcome of pandemic. 81% of SunCulture farmers, however, have been capable of improve their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it additionally helps carry folks out of poverty. This facility additional allows our efforts to help farmers by providing them with more of our solar options, and faster.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked nicely collectively for a typical aim: to help SunCulture attain man extra farmers. It exhibits how working capital can be combined with finish user financing, which is crucial for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an revolutionary product and business mannequin. We sit up for seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This mortgage 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 ship on the brand new NDF Strategy and its dedication to supply versatile and scalable financing as nicely as catalytic impression. It has all the ingredients that outline NDFs added worth in the climate financing panorama. It demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing instruments to match the needs of our companions, public or private. pressure gauge วัด แรง ดัน น้ำ are proud to be standing with our partners and supporting the emergence of a greener financial system, precisely right now of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through revolutionary merchandise and consumer credit score. FEI-OGEF is happy to be able to refinance our inventor mortgage into this new working capital facility and continue that growth alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to hurry up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively provided help to SunCulture through a mixture of technical assistance and debt funding. We are excited to continue and enhance our investment within the company through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good instance of an progressive firm that is lively on the nexus of renewable power and agriculture, utilizing photo voltaic power to extend farmers’ incomes. Our facility supports the additional growth of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a extra sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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