SunCulture receives enhance for solar irrigation enlargement in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained 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 due to its dimension and its innovative combination 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 via its Solar Energy Transformation Fund; AlphaMundi through 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 unwell mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar ones while facilitating revenue development and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate technology, and entry to improve productivity. A current report developed b Dalberg Research exhibits that irrigation systems and solar-powered water pumps can improve farmers production between 2 and 4 times, and their revenue between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The previous yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary position due to the pandemic. 81% of SunCulture farmers, however, had been in a place to increase their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps raise folks out of poverty. This facility further allows our efforts to assist farmers by providing them with extra of our photo voltaic options, 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 worked properly together for a typical goal: to assist SunCulture reach man more farmers. It exhibits how working capital can be mixed with finish consumer financing, which is crucial for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to support an revolutionary product and enterprise model. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “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 model new NDF Strategy and its commitment to offer flexible and scalable financing in addition to catalytic impact. It has all the components that outline NDFs added worth within the local weather financing panorama. It demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing devices to match the wants of our companions, public or private. We are proud to be standing with our partners and supporting the emergence of a greener financial system, exactly at this time of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture via progressive products and client credit. FEI-OGEF is pleased to be able to refinance our inventor loan into this new working capital facility and proceed that growth alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to speed up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively supplied support to SunCulture through a mixture of technical assistance and debt investment. We are excited to proceed and increase our investment in the company by way of this new, progressive working capital facility.
เกจวัดแก๊สlpg , Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a great instance of an progressive company that is energetic on the nexus of renewable power and agriculture, utilizing solar vitality to extend farmers’ incomes. Our facility helps the additional progress of SunCultures pay-as-you-go solar portfolio, resulting in a more sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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