SunCulture receives enhance for solar irrigation growth in Africa

SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has acquired the primary disbursement from a brand new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector as a result 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, by way of its Hivos-Triodos Fund; SunFunder through 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 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 replace diesel pumps with photo voltaic ones while facilitating income development and job alternatives 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 companies, fashionable local weather technology, and entry to enhance productiveness. pressure gauge 10 bar developed b Dalberg Research reveals that irrigation systems and solar-powered water pumps can improve farmers production between 2 and 4 instances, and their income between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps throughout 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 monetary place due to the pandemic. 81% of SunCulture farmers, nonetheless, have been able to enhance their income from farming in 2020. Solar irrigation helps create food security and sovereignty, and it additionally helps carry folks out of poverty. This facility additional allows our efforts to assist farmers by offering them with more 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 labored nicely together for a common objective: to assist SunCulture reach man extra farmers. It exhibits how working capital may be combined with finish person financing, which is crucial for making productive use technologies affordable.”

Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: 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 help an revolutionary 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 extended to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we are able to deliver on the model new NDF Strategy and its commitment to offer flexible and scalable financing in addition to catalytic impact. It has all of the elements that outline NDFs added worth within the climate financing panorama. It demonstrates our capability to convene and mobilise further financing, in addition to our distinctive mi of financing devices to match the wants of our companions, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economy, exactly at this time of COVID-19.
Since our first investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture by way of revolutionary merchandise and consumer credit score. FEI-OGEF is joyful to find a way 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 entry to sustainable solar-powered farming

Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively provided help to SunCulture via a mixture of technical assistance and debt funding. เพรสเชอร์เกจ are excited to continue and improve our investment in 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 example of an innovative company that is energetic on the nexus of renewable power and agriculture, utilizing photo voltaic energy to extend farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go solar portfolio, leading to a extra sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”

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