SunCulture receives boost for solar irrigation expansion in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has obtained the primary disbursement from a new US $11m syndicated debt facility to expand 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, through 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 unwell mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones while facilitating earnings progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin 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 enhance productivity. A current report developed b Dalberg Research shows that irrigation methods and solar-powered water pumps can improve farmers production between 2 and 4 instances, and their earnings between 2 and 6 occasions.
เกจแรงดัน : SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The previous 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary place as a outcome of pandemic. 81% of SunCulture farmers, nevertheless, had been capable of enhance 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 additional permits our efforts to help farmers by offering them with more of our solar solutions, 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 labored properly collectively for a standard goal: to assist SunCulture reach man more farmers. It reveals how working capital can be combined with end person financing, which is crucial for making productive use applied sciences reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an innovative product and business model. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This loan to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we can deliver on the model new NDF Strategy and its commitment to offer flexible and scalable financing as properly as catalytic impact. It has all the elements that define NDFs added value in the local weather financing panorama. It demonstrates our capability to convene and mobilise further financing, in addition to our unique mi of financing devices to match the needs of our partners, public or non-public. We are proud to be standing with our partners and supporting the emergence of a greener economic system, precisely presently of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through progressive products and consumer credit score. FEI-OGEF is pleased to have the ability to refinance our inventor loan into this new working capital facility and proceed that progress alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture companion 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 support to SunCulture through a mix of technical help and debt investment. We are excited to proceed and increase our funding within the firm via this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good example of an progressive company that is energetic on the nexus of renewable power and agriculture, utilizing solar energy to increase farmers’ incomes. Our facility helps the additional growth of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a more 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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