SunCulture receives boost for solar irrigation enlargement in Africa

SunCulture, a solar 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 due to its dimension and its progressive combination of working capital and end-user financing.
Arranged by Spoiler , the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, through its Hivos-Triodos Fund; SunFunder through 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 sick 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 providers, modern climate know-how, and entry to enhance productiveness. A recent report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can enhance farmers production between 2 and 4 times, and their income 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 hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse monetary position because of the pandemic. 81% of SunCulture farmers, nevertheless, have been capable of enhance their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps raise people out of poverty. This facility additional enables our efforts to support farmers by providing them with more of our photo voltaic 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 worked properly collectively for a typical objective: to assist SunCulture attain man extra farmers. It reveals how working capital can be combined with finish person financing, which is crucial for making productive use technologies inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation could be scaled up. SunFunder organized Worldwide with a similar-minded group of lenders to help an innovative product and enterprise model. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This loan to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we will ship on the new NDF Strategy and its commitment to provide versatile and scalable financing as properly as catalytic impact. It has all of the ingredients that define NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise additional financing, as well as our unique mi of financing instruments 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 financial 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 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 continue that progress alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered support to SunCulture by way of a combination of technical assistance and debt funding. We are excited to proceed and enhance our funding within the company via this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a great instance of an progressive company that is active on the nexus of renewable vitality and agriculture, utilizing solar vitality to increase farmers’ incomes. Our facility supports the additional development of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a extra sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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