SunCulture receives increase for photo voltaic irrigation enlargement in Africa

SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has received the first disbursement from a 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 measurement and its progressive combination 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 replace diesel pumps with photo voltaic ones whilst facilitating revenue growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, trendy climate technology, and entry to enhance productiveness. A current report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can enhance farmers manufacturing between 2 and 4 times, and their revenue 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 year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial place due to the pandemic. 81% of SunCulture farmers, nevertheless, were capable of improve their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps lift folks out of poverty. This facility additional enables our efforts to support farmers by providing them with extra of our solar 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 nicely together for a common goal: to help SunCulture attain man extra farmers. เพชเชอร์เกจ reveals how working capital could be mixed with finish person financing, which is crucial for making productive use technologies inexpensive.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation could be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an revolutionary product and enterprise model. We sit up for seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “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 will deliver on the new NDF Strategy and its commitment to supply versatile and scalable financing as well as catalytic influence. It has all the components that define NDFs added value within the climate financing panorama. It demonstrates our capability to convene and mobilise extra financing, in addition to 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 partners and supporting the emergence of a greener financial system, precisely right now of COVID-19.
Since our first funding in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture by way of progressive products and client credit. FEI-OGEF is pressure gauge ไท วัสดุ to have the power to refinance our inventor mortgage into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, famous 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 through a mixture of technical help and debt funding. We are excited to proceed and enhance our funding within the company through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good example of an revolutionary firm that is energetic on the nexus of renewable vitality and agriculture, using solar power to increase farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a more 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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