SunCulture receives boost for solar irrigation growth in Africa

SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has obtained the primary disbursement from a model new US $11m syndicated debt facility to increase 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 in the facility are Nordic Development Fund; Triodos Investment Management, via its Hivos-Triodos Fund; SunFunder through its Solar Energy Transformation Fund; AlphaMundi by way of 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 power installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones whilst facilitating earnings progress and job alternatives 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 providers, modern climate know-how, and entry to enhance productivity. A recent report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can enhance farmers production between 2 and four instances, 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 previous 12 months was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary place due to the pandemic. 81% of SunCulture farmers, nonetheless, have been able to enhance their income from farming in 2020. pressure gauge ราคา ถูก helps create meals security and sovereignty, and it also helps raise folks out of poverty. This facility additional permits our efforts to help farmers by providing them with more of our photo voltaic solutions, and sooner.”

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 common goal: to assist SunCulture attain man more farmers. It shows how working capital could be combined with finish user financing, which is important for making productive use applied sciences 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 could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an innovative product and enterprise model. We look forward to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This loan to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we can deliver on the brand new NDF Strategy and its commitment to offer versatile and scalable financing as nicely as catalytic impression. It has all the components that define NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise extra financing, in addition to our unique mi of financing instruments 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 economy, exactly right now of COVID-19.
Since our first funding in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture through revolutionary products and shopper credit score. FEI-OGEF is joyful to find a way to refinance our inventor mortgage into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up entry to sustainable solar-powered farming

Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively supplied assist to SunCulture by way of a mixture of technical help and debt funding. We are excited to continue and increase our investment within the firm through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good instance of an revolutionary firm that is active on the nexus of renewable power and agriculture, using photo voltaic energy to extend farmers’ incomes. Our facility supports the further growth of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”

Share

121 Responses

Leave a Reply

Your email address will not be published. Required fields are marked *