SunCulture receives enhance for solar irrigation expansion in Africa

Unique , a photo voltaic irrigation company headquartered in Nairobi, Kenya, has obtained the first disbursement from a brand 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 as a end result of its measurement and its progressive combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, by way of its Hivos-Triodos Fund; SunFunder by way of 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 ill mitigate over 20,000 tons of CO2 annually as farmers substitute diesel pumps with solar ones while facilitating revenue progress and job alternatives 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, trendy climate expertise, and access to improve productivity. A current report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers manufacturing between 2 and four 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 financial place because of the pandemic. 81% of SunCulture farmers, however, have been capable of increase their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps lift individuals out of poverty. This facility further permits our efforts to help farmers by offering them with extra of our photo voltaic solutions, 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 collectively for a standard objective: to assist SunCulture attain man extra farmers. It shows how working capital can be mixed with end user financing, which is important for making productive use technologies 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 support an revolutionary product and business mannequin. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This mortgage to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we will ship on the new NDF Strategy and its commitment to offer flexible and scalable financing in addition to catalytic impact. It has all of the ingredients that define NDFs added worth in the climate financing landscape. It demonstrates our capability to convene and mobilise extra financing, as nicely as our distinctive mi of financing devices to match the wants 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 big strides to unlock the potential of smallholder agriculture via revolutionary products and consumer credit score. FEI-OGEF is happy to have the ability to refinance our inventor loan into this new working capital facility and continue that growth alongside a dedicated and constructive group of lenders, noted 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, stated: “Since 2018, AlphaMundi has successively supplied support to SunCulture by way of a combination of technical help and debt investment. We are excited to proceed and increase our investment in the firm through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good example of an revolutionary company that’s lively on the nexus of renewable vitality and agriculture, using photo voltaic vitality to extend farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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