SunCulture receives boost for solar irrigation expansion in Africa

SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has acquired the first disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector as a outcome of its size and its revolutionary 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 through its Solar Energy Transformation Fund; AlphaMundi via both its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
This will allow SunCulture to scale up renewable vitality installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 yearly as farmers replace diesel pumps with photo voltaic ones while facilitating earnings development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate technology, and entry to improve productiveness. A current report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can increase farmers manufacturing between 2 and 4 instances, and their income between 2 and 6 instances.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The past 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse financial position as a outcome of pandemic. 81% of SunCulture farmers, however, had been capable of improve their income from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it also helps lift individuals out of poverty. This facility further allows our efforts to support farmers by providing them with more of our photo voltaic solutions, and faster.”
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 well together for a typical goal: to assist SunCulture attain man extra farmers. It shows how working capital could be mixed with finish person financing, which is essential for making productive use applied sciences reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences 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 mannequin. We look ahead to seeing SunCulture grow 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 are able to deliver on the new NDF Strategy and its dedication to offer versatile and scalable financing as well as catalytic impression. It has all of the components that outline NDFs added value in the local weather financing panorama. It demonstrates our capability to convene and mobilise additional financing, as properly as our distinctive mi of financing devices to match the needs of our partners, public or personal. We are proud to be standing with our partners and supporting the emergence of a greener financial system, exactly at this time of COVID-19.
Since Smooth sailing in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture via progressive merchandise and consumer credit score. FEI-OGEF is pleased to have the flexibility to refinance our inventor loan into this new working capital facility and continue that progress alongside a dedicated 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 supplied support to SunCulture via a mix of technical help and debt investment. We are excited to continue and improve our funding within the firm via this new, innovative working capital facility.
Key , Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good instance of an revolutionary company that is active on the nexus of renewable vitality and agriculture, using solar energy to extend farmers’ incomes. Our facility supports 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 actions of Hivos-Triodos Fund.”
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