SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has obtained the primary 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 solar sector as a result of its size 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, by way of 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 allow SunCulture to scale up renewable energy installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones whilst facilitating income development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise model to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, modern climate technology, and access to improve productiveness. A recent report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can enhance farmers production between 2 and 4 occasions, and their revenue between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps across Africa

Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The previous yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary place because of the pandemic. 81% of SunCulture farmers, nonetheless, had been able to enhance their income from farming in 2020. Solar irrigation helps create food security and sovereignty, and it additionally helps lift people out of poverty. This facility additional permits our efforts to support farmers by offering 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 worked nicely collectively for a common objective: to assist SunCulture reach man more farmers. It shows how working capital could be mixed with end person financing, which is essential for making productive use technologies affordable.”

Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use technologies like photo voltaic irrigation may be scaled up. pressure gauge arranged this facility with a similar-minded group of lenders to assist an progressive product and business mannequin. ไดอะแฟรม look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This loan to SunCulture is the second prolonged to a company graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we will ship on the brand new NDF Strategy and its dedication to supply versatile and scalable financing as nicely as catalytic influence. It has all of the components that outline NDFs added worth in the local weather financing landscape. It demonstrates our capability to convene and mobilise extra financing, as well as 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 economy, exactly presently of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture by way of progressive products and client credit score. FEI-OGEF is happy to have the ability to refinance our inventor mortgage into this new working capital facility and proceed that development alongside a committed and constructive group of lenders, famous 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, said: “Since 2018, AlphaMundi has successively offered assist to SunCulture by way of a mixture of technical assistance and debt funding. We are excited to proceed and improve our investment in the company via this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb instance of an progressive firm that’s energetic on the nexus of renewable vitality and agriculture, using photo voltaic energy to extend farmers’ incomes. Our facility supports the additional growth of SunCultures pay-as-you-go solar portfolio, resulting in a extra sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”

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