SunCulture receives enhance for solar irrigation enlargement in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has acquired the primary disbursement from a 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 as a result of its measurement 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, via its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi by way of 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 sick mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with photo voltaic ones whilst facilitating income growth and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, trendy local weather expertise, and access to enhance productivity. A latest report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can increase farmers production between 2 and four instances, and their earnings between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps throughout Africa

Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The past year was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary place due to the pandemic. 81% of SunCulture farmers, nevertheless, had been in a position to increase their revenue from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it also helps raise individuals out of poverty. This facility additional permits our efforts to help farmers by providing them with extra of our solar options, and quicker.”

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 well together for a standard aim: to assist SunCulture attain man extra farmers. เกจวัดแรงดันน้ำดิจิตอล exhibits how working capital may be mixed with finish user financing, which is important for making productive use applied sciences 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 can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to support an innovative product and business model. We look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we can deliver on the new NDF Strategy and its dedication to provide flexible and scalable financing as properly as catalytic impression. It has all the elements that outline NDFs added worth in the local weather financing landscape. It demonstrates our capability to convene and mobilise further financing, as nicely as our unique mi of financing instruments to match the needs of our companions, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener economic system, precisely right now of COVID-19.
Since our first investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture through innovative products and client credit score. FEI-OGEF is pleased to have the power 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 associate with Togo to hurry up entry to sustainable solar-powered farming

Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively provided assist to SunCulture through a combination of technical help and debt funding. We are excited to continue and increase our funding in the company by way of this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb example of an revolutionary firm 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 photo voltaic portfolio, leading to a more 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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