SunCulture receives increase for solar irrigation enlargement in Africa

SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has acquired the primary disbursement from a model new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector because of its measurement and its revolutionary mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors in the facility are Nordic Development Fund; Triodos Investment Management, by way of its Hivos-Triodos Fund; SunFunder via its Solar Energy Transformation Fund; AlphaMundi through both its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will enable SunCulture to scale up renewable energy installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with solar ones while facilitating revenue progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy local weather expertise, and entry to improve productivity. A recent report developed b Dalberg Research reveals that irrigation systems and solar-powered water pumps can increase farmers production between 2 and four occasions, 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, mentioned: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial position as a outcome of pandemic. 81% of SunCulture farmers, nevertheless, were in a place to improve their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it also helps raise people out of poverty. This facility additional enables our efforts to support farmers by providing them with more of our solar options, and quicker.”
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 standard goal: to assist SunCulture reach 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, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation can be scaled up. เกจวัดแรงดันลม arranged this facility with a similar-minded group of lenders to support an innovative product and business model. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan to SunCulture is the second extended to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we will ship on the new NDF Strategy and its dedication to supply versatile and scalable financing in addition to catalytic influence. It has all of the components that outline NDFs added value in the local weather financing landscape. It demonstrates our capability to convene and mobilise further financing, in addition to our unique mi of financing devices to match the needs of our partners, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener economic system, exactly right now of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture through innovative merchandise and client 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 dedicated and constructive group of lenders, famous 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, mentioned: “Since 2018, AlphaMundi has successively supplied help to SunCulture via a mixture of technical assistance and debt investment. We are excited to continue and increase our investment in the firm via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a good instance of an innovative firm that’s energetic on the nexus of renewable energy and agriculture, utilizing solar vitality to extend farmers’ incomes. Our facility helps the further development of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a extra 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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