SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has received the primary disbursement from a new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector as a end result of its dimension 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, via 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 ill mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with solar ones while facilitating earnings growth and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, fashionable local weather expertise, and access to enhance productiveness. A current report developed b Dalberg Research shows that irrigation systems and solar-powered water pumps can increase farmers manufacturing between 2 and four instances, 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, mentioned: “The past yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse monetary position due to the pandemic. 81% of SunCulture farmers, however, were in a place to improve their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps raise people out of poverty. This facility additional allows our efforts to assist farmers by providing them with extra of our photo voltaic solutions, and sooner.”
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 properly together for a common aim: to help SunCulture reach man more farmers. It reveals how working capital can be combined with end person financing, which is important for making productive use applied sciences affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an innovative product and business mannequin. We sit up for seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “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 flexible and scalable financing as well as catalytic impact. เกจวัดแรงดันน้ำ10บาร์ has all the elements that outline NDFs added value within the climate financing landscape. It demonstrates our capability to convene and mobilise extra financing, as properly as our distinctive mi of financing devices to match the wants of our partners, public or private. We are proud to be standing with our partners and supporting the emergence of a greener financial system, exactly presently of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture via revolutionary products and consumer credit score. FEI-OGEF is happy to find a way to refinance our inventor loan into this new working capital facility and proceed that progress alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively offered assist to SunCulture by way of a mix of technical assistance and debt investment. We are excited to proceed and improve our investment within the firm via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb example of an revolutionary company that’s active on the nexus of renewable energy and agriculture, using solar power to increase farmers’ incomes. Our facility helps the additional development of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”