SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has received the primary disbursement from a new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector due to its dimension 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, 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 vitality installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with solar ones whilst facilitating income growth and job alternatives in rural communities.
differential pressure gauge ราคา has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, trendy local weather know-how, and access to improve productivity. A recent report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers manufacturing 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, said: “The previous yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary position as a result of pandemic. 81% of SunCulture farmers, however, had been in a place to improve their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps lift individuals out of poverty. This facility further enables our efforts to support farmers by providing them with more of our solar solutions, 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 labored properly together for a common objective: to help SunCulture reach man extra farmers. It exhibits how working capital may be mixed with end person financing, which is important for making productive use applied sciences reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an progressive product and enterprise model. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This loan to SunCulture is the second extended to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we can ship on the model new NDF Strategy and its commitment to provide flexible and scalable financing as nicely as catalytic impact. It has all the elements that define NDFs added worth in the climate financing landscape. It demonstrates our capability to convene and mobilise further financing, in addition to our distinctive mi of financing instruments to match the needs of our partners, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economy, precisely presently of COVID-19.
Since our first funding in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture by way of innovative merchandise and consumer credit score. FEI-OGEF is pleased to have the flexibility to refinance our inventor loan into this new working capital facility and continue that growth alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively provided help to SunCulture by way of a mix of technical help and debt funding. We are excited to proceed and enhance our funding in the firm by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good example of an revolutionary company that’s active on the nexus of renewable power and agriculture, using solar vitality to increase farmers’ incomes. Our facility supports 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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