SunCulture receives boost for solar irrigation enlargement in Africa

SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has obtained 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 because of its measurement and its revolutionary combination 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 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 power installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones while facilitating earnings progress and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate know-how, and access to enhance productiveness. A recent report developed b Dalberg Research shows that irrigation techniques and solar-powered water pumps can improve farmers manufacturing between 2 and four times, and their revenue between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The past 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary position because of the pandemic. 81% of SunCulture farmers, however, were capable of enhance their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it also helps carry folks out of poverty. This facility additional enables our efforts to support farmers by offering them with extra of our photo voltaic options, and sooner.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked properly together for a standard objective: to help SunCulture reach man extra farmers. It reveals how working capital may be combined with end user financing, which is crucial for making productive use applied sciences reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an progressive product and enterprise mannequin. We look ahead to seeing SunCulture grow 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 clear demonstration that we are ready to deliver on the new NDF Strategy and its commitment to offer flexible and scalable financing as well as catalytic impression. It has all of the ingredients that outline NDFs added worth in the local weather financing landscape. It demonstrates our capability to convene and mobilise further financing, as well as our unique mi of financing devices to match the wants of our partners, public or non-public. Smuggled are proud to be standing with our partners and supporting the emergence of a greener economy, exactly at this time of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through innovative merchandise and shopper credit score. FEI-OGEF is pleased 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 companion with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively provided assist to SunCulture through a mixture of technical assistance and debt investment. We are excited to continue and improve our funding in the firm by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a great instance of an revolutionary firm that is lively on the nexus of renewable vitality and agriculture, utilizing solar energy to increase farmers’ incomes. Our facility helps the further progress of SunCultures pay-as-you-go solar portfolio, leading to a more sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”

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