SunCulture receives boost for photo voltaic irrigation growth in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has acquired the first disbursement from a 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 due to its measurement 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, via its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi by way of both its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will enable SunCulture to scale up renewable energy installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 annually as farmers substitute diesel pumps with solar ones whilst facilitating revenue development and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, modern local weather expertise, and entry to improve productivity. A current report developed b Dalberg Research reveals that irrigation methods and solar-powered water pumps can enhance farmers manufacturing between 2 and 4 times, and their income between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The past yr was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary position as a 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 security and sovereignty, and it also helps raise individuals out of poverty. This facility additional enables our efforts to assist farmers by offering them with extra of our solar solutions, and quicker.”
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 properly collectively for a common goal: to help SunCulture attain man more farmers. It reveals how working capital can be mixed with finish user financing, which is essential 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 applied sciences like photo voltaic irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an innovative product and business model. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we are ready to deliver on the model new NDF Strategy and its commitment to offer flexible and scalable financing as nicely as catalytic influence. It has all the ingredients that outline NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise additional financing, in addition to our unique mi of financing instruments to match the needs of our partners, public or private. We are proud to be standing with our companions and supporting the emergence of a greener financial system, exactly right now of COVID-19.
Since our first funding in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture via innovative products and consumer credit score. FEI-OGEF is joyful to be able to refinance our inventor mortgage into this new working capital facility and proceed that growth alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively provided support to SunCulture through a mix of technical help and debt funding. เกจวัดแรงดัน1บาร์ are excited to proceed and increase our funding in the company by way of this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a superb example of an revolutionary company that’s active 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, leading to a more sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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