SunCulture receives increase for photo voltaic irrigation enlargement 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 increase its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector as a result of its dimension and its revolutionary combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, via its Hivos-Triodos Fund; SunFunder by way of its Solar Energy Transformation Fund; AlphaMundi via each 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 sick mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones whilst facilitating earnings growth 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 services, modern local weather expertise, and access to improve productiveness. A latest report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers production between 2 and 4 occasions, and their income between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary place as a result of pandemic. 81% of SunCulture farmers, nonetheless, were able to increase their income from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps raise people out of poverty. This facility additional allows our efforts to assist farmers by offering them with extra of our photo voltaic 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 nicely collectively for a common aim: to help SunCulture reach man more farmers. It shows how working capital can be combined with end consumer financing, which is crucial for making productive use applied sciences affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation could be scaled up. SunFunder organized this facility with a similar-minded group of lenders to support an innovative product and enterprise model. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “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 are ready to deliver on the model new NDF Strategy and its commitment to offer versatile and scalable financing in addition to catalytic impression. It has all the elements that outline NDFs added value within the climate financing landscape. เกจวัดแรงดัน demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing devices to match the wants of our companions, public or private. 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 investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture via revolutionary merchandise and client credit score. FEI-OGEF is joyful to have the power to refinance our inventor mortgage into this new working capital facility and proceed that progress alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to hurry up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered assist to SunCulture by way of a mix of technical assistance and debt investment. We are excited to continue and improve our funding in the firm via 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 energetic on the nexus of renewable power and agriculture, using photo voltaic power to extend farmers’ incomes. Our facility helps the further growth of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a more sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”