SunCulture receives enhance for solar irrigation growth in Africa

SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has acquired the first disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use solar sector as a result of its size and its progressive combination of working capital and end-user financing.
Arranged by เครื่องมือวัดความดัน , the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, via its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi through 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 energy installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with photo voltaic ones whilst facilitating income growth and job opportunities 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 providers, trendy climate know-how, and entry to enhance productivity. A recent report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers production between 2 and four occasions, and their earnings between 2 and 6 instances.
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 due to the pandemic. 81% of SunCulture farmers, nevertheless, had been in a position to improve their revenue from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it also helps raise people out of poverty. This facility further permits our efforts to help farmers by providing them with extra of our photo voltaic solutions, and faster.”
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 together for a standard objective: to help SunCulture reach man more farmers. It exhibits how working capital may be mixed with end person 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 solar irrigation may be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an progressive product and enterprise mannequin. We look forward to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This loan to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we are in a position to deliver on the new NDF Strategy and its commitment to supply flexible and scalable financing in addition to catalytic influence. It has all of the elements that outline NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise additional financing, in addition to our distinctive mi of financing devices to match the wants 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 presently of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through innovative merchandise and consumer credit. FEI-OGEF is pleased to find a way to refinance our inventor loan into this new working capital facility and continue that progress alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
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Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively supplied help to SunCulture through a combination of technical help and debt investment. We are excited to proceed and enhance our investment within the company by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a great example of an revolutionary company that is lively on the nexus of renewable vitality and agriculture, using photo voltaic power to extend farmers’ incomes. Our facility helps the further growth of SunCultures pay-as-you-go solar portfolio, leading to a more 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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