SunCulture receives increase for solar irrigation growth in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has acquired the first disbursement from a brand 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 because of its measurement and its innovative combination 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 annually as farmers substitute diesel pumps with solar ones while facilitating revenue development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, modern climate know-how, and access to improve productiveness. A current report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can enhance farmers manufacturing between 2 and 4 instances, 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, stated: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary place because of the pandemic. 81% of SunCulture farmers, nevertheless, have been capable of increase their income from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps lift people out of poverty. This facility further allows our efforts to support farmers by providing them with extra of our solar solutions, and sooner.”
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 collectively for a standard goal: to help SunCulture reach man more farmers. It reveals how working capital could be mixed with end person financing, which is important for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation may be scaled up. pressure gauge nuova fima ราคา arranged this facility with a similar-minded group of lenders to assist an progressive product and business mannequin. We look ahead 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 deliver on the model new NDF Strategy and its commitment to supply versatile and scalable financing in addition to catalytic impression. It has all of the components that define NDFs added worth within the climate financing panorama. It demonstrates our capability to convene and mobilise additional financing, in addition to our unique mi of financing instruments to match the wants of our companions, public or non-public. We are proud to be standing with our partners and supporting the emergence of a greener economic system, precisely presently of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture via revolutionary products and client credit. FEI-OGEF is joyful to have the ability to refinance our inventor loan into this new working capital facility and proceed that growth alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered help to SunCulture through a mixture of technical assistance and debt funding. We are excited to continue and enhance our funding within the firm via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a great example of an progressive firm that is active on the nexus of renewable vitality and agriculture, utilizing solar vitality to extend farmers’ incomes. Our facility supports the further growth of SunCultures pay-as-you-go solar portfolio, leading to a extra 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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