SunCulture receives increase for solar irrigation growth in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has acquired the first disbursement from a brand 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 because of its measurement and its innovative mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, by way of its Hivos-Triodos Fund; SunFunder through its Solar Energy Transformation Fund; AlphaMundi via both its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will allow SunCulture to scale up renewable power installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones while facilitating income growth and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, fashionable local weather know-how, and entry to enhance productiveness. A latest report developed b Dalberg Research shows that irrigation methods and solar-powered water pumps can increase farmers production between 2 and 4 occasions, and their earnings between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The previous 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse financial place as a outcome of pandemic. 81% of SunCulture farmers, nevertheless, were in a place to improve their income from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it also helps carry people out of poverty. This facility additional permits our efforts to assist farmers by offering them with more of our photo voltaic options, and quicker.”
เกจแรงดันลม -Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored properly together for a standard objective: to help SunCulture attain man extra farmers. It shows how working capital may be combined with end person financing, which is important for making productive use technologies 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. SunFunder arranged this facility with a similar-minded group of lenders to assist an revolutionary product and business mannequin. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This mortgage to SunCulture is the second prolonged to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we will deliver on the brand new NDF Strategy and its dedication to provide versatile and scalable financing as nicely as catalytic impact. It has all of the components that outline NDFs added value in the climate financing landscape. It demonstrates our capability to convene and mobilise further financing, as nicely as our distinctive mi of financing instruments to match the needs of our companions, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener economic system, 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 via progressive merchandise and consumer credit score. FEI-OGEF is joyful to have the ability to refinance our inventor mortgage into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively offered support to SunCulture by way of a mixture of technical help and debt funding. We are excited to continue and enhance our funding within the firm through 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 is active on the nexus of renewable vitality and agriculture, utilizing solar energy to extend farmers’ incomes. Our facility helps the additional growth of SunCultures pay-as-you-go solar portfolio, resulting in a extra sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
Share

Leave a Comment