SunCulture receives boost for solar irrigation enlargement in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has obtained the primary 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 because of its dimension and its innovative mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, through 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 unwell mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with photo voltaic ones while facilitating revenue growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy local weather know-how, and access to enhance productivity. A latest report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can enhance 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, mentioned: “The past yr 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, nonetheless, were capable of enhance their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it also helps raise individuals out of poverty. This facility additional allows our efforts to assist farmers by providing them with extra of our solar solutions, and quicker.”
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 well together for a typical objective: to assist SunCulture attain man more farmers. It reveals how working capital can be combined with end consumer financing, which is essential for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: 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 innovative product and business model. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “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 will deliver on the brand new NDF Strategy and its dedication to supply versatile and scalable financing as properly as catalytic influence. It has all the elements that outline NDFs added worth in the local weather financing panorama. It demonstrates our capability to convene and mobilise additional financing, as well 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 financial system, precisely at this time of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through progressive merchandise and client credit. FEI-OGEF is joyful to have the flexibility to refinance our inventor mortgage into this new working capital facility and proceed that development alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
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Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively provided support to SunCulture through a combination of technical help and debt investment. We are excited to proceed and improve our investment within the company by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good example of an innovative company that is energetic on the nexus of renewable energy and agriculture, using solar vitality to increase farmers’ incomes. Our facility supports the further growth of SunCultures pay-as-you-go solar portfolio, resulting in a more sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”

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