SunCulture receives enhance for solar irrigation enlargement 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 solar sector as a end result of its size and its progressive 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 via its Solar Energy Transformation Fund; AlphaMundi via 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 energy installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers substitute diesel pumps with solar ones while facilitating income progress and job alternatives 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 providers, trendy climate expertise, and access to improve productivity. A current report developed b Dalberg Research reveals that irrigation methods and solar-powered water pumps can increase farmers manufacturing between 2 and four occasions, 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, said: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial position as a outcome of pandemic. 81% of SunCulture farmers, nonetheless, were capable of enhance their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it additionally helps carry folks out of poverty. This facility further enables our efforts to assist farmers by providing them with more of our solar options, and quicker.”
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 properly together for a common objective: to help SunCulture attain man extra farmers. It shows how working capital can be mixed with finish consumer financing, which is crucial for making productive use technologies affordable.”
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 assist an revolutionary product and enterprise mannequin. We look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second extended to a company graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we will ship on the model new NDF Strategy and its dedication to offer flexible and scalable financing as nicely as catalytic impact. It has all of the elements that define NDFs added value in the climate financing panorama. It demonstrates our capability to convene and mobilise further financing, as nicely as our unique mi of financing instruments to match the wants of our companions, public or personal. เกจวัดแรงดัน1บาร์ are proud to be standing with our partners and supporting the emergence of a greener financial system, exactly right now of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through revolutionary merchandise and consumer credit. FEI-OGEF is happy to be able to refinance our inventor mortgage 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 partner with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered help to SunCulture by way of a mixture of technical help and debt funding. We are excited to continue and increase our funding within the firm by way of this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb example of an revolutionary company that is lively on the nexus of renewable vitality and agriculture, using photo voltaic vitality to extend farmers’ incomes. Our facility helps the further development 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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