SunCulture, a photo voltaic irrigation company headquartered in Nairobi, Kenya, has received the primary disbursement from a brand new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector because 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, through 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 allow SunCulture to scale up renewable power installations at smallholder farms and households that ill mitigate over 20,000 tons of CO2 yearly as farmers substitute diesel pumps with photo voltaic ones while facilitating earnings development and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added companies, fashionable climate expertise, and access to enhance productiveness. เกจวัดแรงดันsumo developed b Dalberg Research shows that irrigation methods and solar-powered water pumps can increase farmers production between 2 and 4 instances, and their earnings between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The previous yr was devastating for the tens of millions of smallholder farmers in Kenya; 87% are in a worse financial place due to the pandemic. 81% of SunCulture farmers, however, were able to enhance their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps carry individuals out of poverty. This facility further permits our efforts to assist farmers by providing them with more of our solar solutions, and faster.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked properly collectively for a common objective: to assist SunCulture attain man more farmers. It exhibits how working capital can be combined with end user financing, which is important for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation may be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an progressive product and enterprise model. We sit up for seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This mortgage 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 can ship on the model new NDF Strategy and its dedication to offer flexible and scalable financing in addition to catalytic impact. It has all of the components that outline NDFs added value within the local weather financing panorama. It demonstrates our capability to convene and mobilise additional financing, in addition to our distinctive mi of financing instruments 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 economy, precisely at this time of COVID-19.
Since our first investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture through progressive merchandise and client credit. FEI-OGEF is pleased to have the flexibility to refinance our inventor loan into this new working capital facility and proceed that progress alongside a committed and constructive group of lenders, noted 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, stated: “Since 2018, AlphaMundi has successively provided help to SunCulture by way of a mixture of technical assistance and debt investment. We are excited to proceed and increase our investment in the firm by way of this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, said: “SunCulture is a good example of an innovative firm that is lively on the nexus of renewable energy and agriculture, utilizing solar power to extend farmers’ incomes. Our facility supports the additional progress of SunCultures pay-as-you-go photo voltaic portfolio, resulting in a extra sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
Share