SunCulture receives increase for solar irrigation growth 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 expand its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector because of its dimension and its revolutionary 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 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 allow SunCulture to scale up renewable vitality installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 yearly as farmers replace diesel pumps with photo voltaic ones while facilitating income growth and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, fashionable local weather expertise, and entry to enhance productiveness. A current report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can improve farmers manufacturing between 2 and 4 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 past 12 months was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary place because of the pandemic. 81% of SunCulture farmers, nonetheless, were in a place to improve their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps carry individuals out of poverty. This facility further enables our efforts to help farmers by providing them with more 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 worked nicely together for a common goal: to assist SunCulture attain man more farmers. It exhibits how working capital can be mixed with end person financing, which is essential for making productive use applied sciences inexpensive.”
เครื่องมือที่ใช้วัดความดันเลือด , Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation may be scaled up. SunFunder organized this facility with a similar-minded group of lenders to support an revolutionary product and business mannequin. เกจวัดแรงดันลมคือ 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 an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we are ready to deliver on the brand new NDF Strategy and its dedication to provide flexible and scalable financing in addition to catalytic impression. It has all the components that outline NDFs added value within the local weather 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 partners, public or non-public. We are proud to be standing with our partners and supporting the emergence of a greener financial system, exactly right now of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture by way of revolutionary products and shopper credit score. FEI-OGEF is joyful to have the ability to refinance our inventor mortgage into this new working capital facility and continue that development alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to hurry up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively supplied help to SunCulture by way of a combination of technical assistance and debt funding. We are excited to proceed and improve our investment within the company by way of this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good instance of an revolutionary company that’s lively on the nexus of renewable energy and agriculture, utilizing 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 higher production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
Share

Leave a Comment