SunCulture receives boost for photo voltaic irrigation expansion in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has acquired the first disbursement from a model new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector as a result of its size 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, via its Hivos-Triodos Fund; SunFunder via 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 enable SunCulture to scale up renewable vitality installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones whilst facilitating income growth 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 services, modern climate technology, and entry to enhance productivity. A recent report developed b Dalberg Research exhibits that irrigation techniques and solar-powered water pumps can improve farmers manufacturing between 2 and 4 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 previous year was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary position as a result of pandemic. 81% of SunCulture farmers, nonetheless, had been in a position to improve their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps carry people out of poverty. This facility further permits our efforts to assist farmers by providing them with extra of our photo voltaic options, and sooner.”
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 together for a typical aim: to assist SunCulture reach man extra farmers. It exhibits how working capital could be combined with end consumer financing, which is important for making productive use technologies affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation may be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an progressive product and enterprise mannequin. 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 prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we can deliver on the brand new NDF Strategy and its commitment to provide flexible and scalable financing in addition to catalytic influence. It has all the components that define NDFs added worth within the local weather financing panorama. It demonstrates our capability to convene and mobilise additional financing, as properly as our distinctive mi of financing devices to match the wants 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, precisely at this time of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture via progressive merchandise and client credit. FEI-OGEF is happy to have the ability to refinance our inventor loan into this new working capital facility and proceed that growth alongside a dedicated and constructive group of lenders, noted 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, stated: “Since 2018, AlphaMundi has successively supplied help to SunCulture via a mix of technical assistance and debt funding. Reduced are excited to continue and increase our funding within the company through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good example of an progressive company that’s active on the nexus of renewable energy and agriculture, using photo voltaic energy to increase farmers’ incomes. Our facility supports the further progress 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 activities of Hivos-Triodos Fund.”
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