SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has acquired the primary disbursement from a brand new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector as a outcome of its measurement and its revolutionary mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, by way of 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 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 substitute diesel pumps with photo voltaic ones while facilitating revenue development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate technology, and entry to improve productiveness. A latest 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 earnings between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The past yr 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, however, were capable of improve their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it additionally 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, mentioned: “We are delighted to have led this syndicate of proactive lenders who labored properly collectively for a standard objective: to assist SunCulture attain man more farmers. It exhibits how working capital may be mixed with finish user financing, which is crucial 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 photo voltaic irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an revolutionary product and enterprise mannequin. We look ahead to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This mortgage 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 will deliver on the new NDF Strategy and its dedication to supply flexible and scalable financing in addition to catalytic impression. It has all of the elements that outline NDFs added worth within the climate financing landscape. It demonstrates our capability to convene and mobilise additional financing, in addition to our distinctive mi of financing devices to match the needs of our companions, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener financial system, precisely right now of COVID-19.
Since เพรสเชอร์เกจน้ำ in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture by way of revolutionary products and consumer credit score. FEI-OGEF is joyful to have the flexibility to refinance our inventor loan into this new working capital facility and continue that development alongside a committed and constructive group of lenders, noted 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, said: “Since 2018, AlphaMundi has successively provided assist to SunCulture through a mix of technical help and debt funding. We are excited to proceed and improve our funding within the company through this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a superb instance of an progressive firm that’s energetic on the nexus of renewable power and agriculture, utilizing photo voltaic power to extend farmers’ incomes. Our facility supports the additional development of SunCultures pay-as-you-go solar portfolio, leading to a extra sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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