SunCulture receives boost for solar irrigation expansion in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has received the first disbursement from a model new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use solar sector due to its dimension and its revolutionary combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, through its Hivos-Triodos Fund; SunFunder through 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 power installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with photo voltaic ones while facilitating earnings progress and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy climate technology, and entry to improve productiveness. A recent report developed b Dalberg Research reveals that irrigation systems and solar-powered water pumps can enhance farmers production between 2 and 4 times, and their income between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The past year was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse financial position because of the pandemic. 81% of SunCulture farmers, nevertheless, were capable of improve their income from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps carry people out of poverty. This facility further allows our efforts to help farmers by offering them with extra of our photo voltaic options, and faster.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, stated: “We are delighted to have led this syndicate of proactive lenders who worked well together for a typical objective: to help SunCulture reach man more farmers. It shows how working capital may be combined with end user financing, which is essential for making productive use technologies affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an progressive product and business model. We look forward to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This mortgage to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. เกจวัดแก๊สหุงต้ม is a transparent demonstration that we are able to deliver on the model new NDF Strategy and its dedication to provide flexible and scalable financing as properly as catalytic impact. It has all the ingredients that define NDFs added value within the local weather financing panorama. It demonstrates our capability to convene and mobilise additional financing, as nicely as our distinctive mi of financing instruments to match the wants of our companions, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener financial system, precisely at this time of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through revolutionary merchandise and shopper credit. FEI-OGEF is joyful to have the power to refinance our inventor loan into this new working capital facility and proceed that progress alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively supplied help to SunCulture via a combination of technical help and debt investment. We are excited to proceed and increase our investment in the company via this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good example of an progressive company that’s energetic on the nexus of renewable power and agriculture, utilizing solar vitality to increase farmers’ incomes. Our facility helps the additional progress of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a more sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”

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