SunCulture receives increase for photo voltaic irrigation growth in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has received the first 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 solar 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 by way of 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 sick mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with photo voltaic ones while facilitating earnings development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, trendy local weather technology, and access to enhance productivity. A recent report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can improve farmers manufacturing between 2 and four times, 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, 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 position to enhance their income from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps raise folks out of poverty. This facility further enables our efforts to support farmers by offering them with more of our photo voltaic solutions, and quicker.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, mentioned: “We are delighted to have led this syndicate of proactive lenders who worked well collectively for a standard aim: to assist SunCulture attain man extra farmers. เกจ์วัดแรงดันแก๊ส shows how working capital could be mixed with end user financing, which is important for making productive use technologies inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to support an progressive product and business mannequin. We look forward to seeing SunCulture grow 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 are in a position to ship on the model new NDF Strategy and its commitment to offer flexible and scalable financing as nicely as catalytic impact. It has all of the components that outline NDFs added worth in the climate financing panorama. It demonstrates our capability to convene and mobilise further financing, as nicely as our distinctive mi of financing devices to match the needs of our partners, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economic 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 via innovative products and shopper credit score. FEI-OGEF is pleased to be able to refinance our inventor loan into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered assist to SunCulture through a mixture of technical assistance and debt investment. We are excited to continue and increase our investment within the firm through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb instance of an revolutionary company that is lively on the nexus of renewable vitality and agriculture, utilizing solar power to extend farmers’ incomes. Our facility helps the further development of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a more sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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