SunCulture receives boost for solar irrigation growth in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has received the first disbursement from a brand new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector due to its size and its innovative combination of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, through its Hivos-Triodos Fund; SunFunder by way of 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 allow SunCulture to scale up renewable power installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with photo voltaic ones whilst facilitating earnings development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, modern climate expertise, and access to improve productivity. A latest report developed b Dalberg Research exhibits that irrigation systems and solar-powered water pumps can increase farmers production between 2 and four times, and their earnings between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps across Africa

Samir Ibrahim, Chief Executive Officer at SunCulture, said: “The previous 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary place due to the pandemic. 81% of SunCulture farmers, however, have been in a place to enhance their revenue from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it additionally helps lift people out of poverty. This facility further allows our efforts to support farmers by offering them with more of our photo voltaic solutions, and faster.”

Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked well collectively for a standard objective: to assist SunCulture reach man extra farmers. It reveals how working capital may be mixed with finish consumer financing, which is crucial for making productive use applied sciences reasonably priced.”

Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation may be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an progressive product and enterprise model. We look forward to seeing SunCulture develop 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 clear demonstration that we are ready to deliver on the new NDF Strategy and its dedication to offer flexible and scalable financing in addition to catalytic influence. It has all of the elements that define NDFs added value in the climate financing landscape. It demonstrates our capability to convene and mobilise further financing, as well as our unique mi of financing devices to match the needs of our companions, public or non-public. We are proud to be standing with our partners and supporting the emergence of a greener financial system, precisely at this time of COVID-19.
Since เกจวัดแรงดันอาร์กอน in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through revolutionary merchandise and consumer credit score. 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 committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to speed up access to sustainable solar-powered farming

Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively provided assist to SunCulture by way of a mix of technical assistance and debt investment. We are excited to continue and enhance our investment in the company by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good instance of an revolutionary company that’s lively on the nexus of renewable energy and agriculture, using solar energy to extend farmers’ incomes. Our facility helps the further development of SunCultures pay-as-you-go solar portfolio, leading to a extra 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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