SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has received the primary disbursement from a brand 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 due to its size and its innovative 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 through 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 ill mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones while facilitating earnings growth 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, modern local weather technology, and access to improve productiveness. A recent report developed b Dalberg Research reveals that irrigation techniques and solar-powered water pumps can improve farmers production between 2 and four occasions, and their revenue between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The past year 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 able to increase their revenue from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it additionally helps carry folks out of poverty. This facility further enables our efforts to support farmers by offering them with extra of our photo voltaic solutions, 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 common aim: to help SunCulture reach man extra farmers. It shows how working capital could be combined with end user financing, which is crucial for making productive use technologies affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation may be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an revolutionary product and enterprise mannequin. We sit up for seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This mortgage to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we can deliver on the brand new NDF Strategy and its commitment to offer flexible and scalable financing in addition to catalytic impression. 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 unique mi of financing devices to match the wants of our companions, 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 investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture through progressive products and shopper credit score. FEI-OGEF is happy to have the ability to refinance our inventor loan into this new working capital facility and proceed that development alongside a committed and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively offered support to SunCulture via a combination of technical help and debt funding. We are excited to continue and increase our funding in the company via this new, progressive working capital facility.
เกจวัดแรงดันลมดิจิตอล , Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good example of an progressive company that is lively on the nexus of renewable power and agriculture, utilizing photo voltaic energy to increase farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go solar portfolio, resulting in a more sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”