SunCulture receives enhance for photo voltaic irrigation expansion in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has obtained the primary disbursement from a model new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector as a outcome 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, by way of its Hivos-Triodos Fund; SunFunder through 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 allow SunCulture to scale up renewable power installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar ones whilst facilitating revenue growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, trendy local weather technology, and access to enhance productivity. A current report developed b Dalberg Research exhibits that irrigation techniques and solar-powered water pumps can improve farmers production between 2 and 4 instances, and their income between 2 and 6 occasions.
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Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The previous yr 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, have been capable of enhance their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps lift individuals out of poverty. This facility additional permits our efforts to support farmers by offering them with extra of our photo voltaic solutions, and sooner.”
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 collectively for a common goal: to help SunCulture reach man more farmers. It shows how working capital can be mixed with finish consumer financing, which is essential for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an revolutionary product and business model. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This mortgage 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 offer versatile and scalable financing as nicely as catalytic influence. It has all the components that outline NDFs added worth in the local weather financing panorama. It demonstrates our capability to convene and mobilise further financing, in addition to our unique mi of financing devices to match the wants of our companions, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economic system, precisely at this time of COVID-19.
Since our first funding in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture via innovative products and consumer credit score. FEI-OGEF is happy to have the ability to refinance our inventor loan into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively offered help to SunCulture by way of a mix of technical assistance and debt funding. We are excited to proceed and increase our funding in the firm through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a superb instance of an revolutionary firm that’s energetic on the nexus of renewable vitality and agriculture, using photo voltaic energy to increase farmers’ incomes. Our facility supports 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 activities of Hivos-Triodos Fund.”

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