SunCulture receives increase for photo voltaic irrigation enlargement in Africa

SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has obtained the first disbursement from a model new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector due to its measurement and its innovative mixture 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 by way of 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 power installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 yearly as farmers replace diesel pumps with photo voltaic ones whilst facilitating revenue progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, modern local weather expertise, and access to enhance productivity. A current report developed b Dalberg Research shows that irrigation methods and solar-powered water pumps can increase farmers production between 2 and four occasions, 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 previous 12 months was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary place due to the pandemic. 81% of SunCulture farmers, nevertheless, have been capable of enhance their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it additionally helps raise individuals out of poverty. This facility further allows our efforts to help farmers by offering them with extra of our solar options, and sooner.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored nicely together for a common objective: to help SunCulture attain man more farmers. It shows how working capital could 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, stated: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation may be scaled up. pressure gauge weksler ราคา arranged this facility with a similar-minded group of lenders to help an revolutionary product and enterprise model. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “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 can deliver on the new NDF Strategy and its commitment to provide flexible and scalable financing as well as catalytic impact. It has all of the components that define NDFs added value within the local weather financing landscape. It demonstrates our capability to convene and mobilise additional financing, in addition to our distinctive mi of financing instruments to match the needs of our companions, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economic system, precisely at this time of COVID-19.
Since our first funding in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture by way of revolutionary merchandise and consumer credit score. FEI-OGEF is pleased to have the ability to refinance our inventor mortgage into this new working capital facility and continue that development alongside a committed and constructive group of lenders, famous 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 offered help to SunCulture via a mix of technical help and debt funding. We are excited to proceed and improve our funding in the company through this new, progressive working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good instance of an innovative company that’s lively on the nexus of renewable energy and agriculture, using solar power to increase farmers’ incomes. Our facility helps the additional progress of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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