SunCulture receives enhance for photo voltaic irrigation expansion in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has acquired the first disbursement from a new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector due to its size and its progressive 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 by way of its Solar Energy Transformation Fund; AlphaMundi via each its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will enable SunCulture to scale up renewable power installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones whilst facilitating earnings development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy climate technology, and entry to improve productiveness. A latest report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can enhance farmers production between 2 and four instances, and their income between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps across 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 because of the pandemic. 81% of SunCulture farmers, however, have been able to enhance their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps carry individuals out of poverty. This facility additional allows our efforts to support farmers by providing them with extra of our solar options, and quicker.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored nicely collectively for a common goal: to help SunCulture attain man extra farmers. It exhibits how working capital could be mixed with end user financing, which is essential for making productive use applied sciences inexpensive.”
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 organized this facility with a similar-minded group of lenders to assist an innovative product and business mannequin. We look ahead to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second extended to a company graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we can ship on the new NDF Strategy and its dedication to supply flexible and scalable financing in addition to catalytic influence. It has all the elements 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 unique mi of financing devices to match the wants of our partners, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener economy, precisely right now of COVID-19.
Since our first investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture by way of innovative merchandise and shopper credit score. FEI-OGEF is joyful to be able to refinance our inventor mortgage into this new working capital facility and proceed that development alongside a dedicated 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 mix of technical assistance and debt investment. We are excited to proceed and improve our funding within the firm through this new, progressive working capital facility.
Forbidden , Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a superb instance of an progressive firm that’s active on the nexus of renewable power and agriculture, using photo voltaic energy to extend farmers’ incomes. Our facility supports the additional development of SunCultures pay-as-you-go photo voltaic portfolio, leading to a extra sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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