SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained 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 solar sector because of its dimension 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 by way of its Solar Energy Transformation Fund; AlphaMundi by way of each 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 sick mitigate over 20,000 tons of CO2 annually as farmers exchange diesel pumps with solar ones whilst facilitating earnings progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, modern local weather technology, and access to enhance productiveness. A latest report developed b Dalberg Research reveals that irrigation systems and solar-powered water pumps can improve farmers manufacturing between 2 and four occasions, and their earnings 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 millions of smallholder farmers in Kenya; 87% are in a worse financial position due to the pandemic. 81% of SunCulture farmers, nevertheless, had been capable of enhance their income from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps raise people out of poverty. ตัววัดแรงดันน้ำมัน allows our efforts to help farmers by providing them with extra of our photo voltaic options, and sooner.”
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 properly together for a common objective: to assist SunCulture attain man more farmers. It shows how working capital could be combined with end user financing, which is essential 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 can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an progressive product and business model. We look ahead to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, said: “This mortgage to SunCulture is the second extended to an organization graduating from the EEP Trust Fund managed by NDF. It is a clear demonstration that we will deliver on the brand new NDF Strategy and its dedication to supply versatile and scalable financing in addition to catalytic influence. It has all the elements that outline NDFs added value in the local weather financing landscape. It demonstrates our capability to convene and mobilise extra financing, in addition to our distinctive mi of financing devices to match the wants of our companions, public or personal. 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 merchandise and shopper credit. FEI-OGEF is happy to have the flexibility to refinance our inventor loan into this new working capital facility and continue that progress alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture partner with Togo to speed up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively offered assist to SunCulture through a mixture of technical assistance and debt investment. We are excited to continue and increase our funding within the company via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good instance of an revolutionary firm that is energetic on the nexus of renewable energy and agriculture, utilizing photo voltaic power to increase farmers’ incomes. Our facility supports the additional growth of SunCultures pay-as-you-go photo voltaic portfolio, leading to a extra sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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