SunCulture receives boost for solar irrigation growth in Africa

SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has received the first disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector due to its size 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, via 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 ill mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones whilst facilitating earnings progress and job opportunities 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 services, fashionable local weather know-how, and entry to improve productiveness. A recent report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can increase farmers production between 2 and 4 times, and their revenue between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The previous 12 months was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial position due to the pandemic. 81% of SunCulture farmers, however, had been capable of increase their income from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps raise folks out of poverty. This facility further enables our efforts to help farmers by offering them with more of our solar options, 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 nicely together for a typical aim: to help SunCulture attain man extra farmers. It reveals how working capital can be mixed with end consumer financing, which is crucial for making productive use technologies inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation may be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an innovative product and enterprise mannequin. 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 a company graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we are in a position to deliver on the new NDF Strategy and its dedication to provide flexible and scalable financing as properly as catalytic impact. It has all the ingredients that outline NDFs added worth within the local weather financing landscape. It demonstrates our capability to convene and mobilise further financing, as well as our distinctive mi of financing devices to match the wants of our companions, public or personal. We are proud to be standing with our partners and supporting the emergence of a greener economy, precisely at this time of COVID-19.
Since our first funding 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 ร้านซ่อมเครื่องวัดความดัน 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 speed up access 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 in the company via this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good instance of an progressive company that’s energetic on the nexus of renewable power and agriculture, using solar vitality to increase farmers’ incomes. Our facility supports the further growth of SunCultures pay-as-you-go solar 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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