SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has obtained the primary disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use solar sector as a outcome 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, via its Hivos-Triodos Fund; SunFunder by way of its Solar Energy Transformation Fund; AlphaMundi via each its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
pressure gauge 4 นิ้ว will allow SunCulture to scale up renewable power installations at smallholder farms and households that sick mitigate over 20,000 tons of CO2 annually as farmers replace diesel pumps with solar ones while facilitating revenue growth and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro enterprise mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, modern climate expertise, and access to improve productiveness. A current report developed b Dalberg Research shows that irrigation techniques and solar-powered water pumps can enhance farmers manufacturing between 2 and four times, and their revenue between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The past yr was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial place due to the pandemic. 81% of SunCulture farmers, nevertheless, were capable of enhance their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps raise folks out of poverty. This facility further allows our efforts to help farmers by providing them with extra of our solar 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 labored properly together for a standard objective: to help SunCulture reach man extra farmers. It shows how working capital may be mixed with finish user financing, which is crucial for making productive use applied sciences affordable.”
ราคาเพรสเชอร์เกจ , Head of Investments at SunFunder, mentioned: This is a pioneering transaction that demonstrates how productive use applied sciences like solar irrigation can be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to assist an progressive product and enterprise mannequin. We look forward to seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “This mortgage 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 in a position to deliver on the model new NDF Strategy and its commitment to supply versatile and scalable financing in addition to catalytic impact. It has all the elements that outline NDFs added value in the climate financing landscape. It demonstrates our capability to convene and mobilise further financing, in addition to our unique mi of financing instruments to match the needs of our partners, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economy, precisely right now of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through progressive products and consumer credit. FEI-OGEF is happy to have the power to refinance our inventor loan into this new working capital facility and proceed that growth alongside a dedicated and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to hurry up entry to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively offered assist to SunCulture via a mix of technical help and debt funding. We are excited to proceed and improve our investment within the firm by way of this new, innovative working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb example of an revolutionary company that is lively on the nexus of renewable energy and agriculture, using photo voltaic power to extend farmers’ incomes. Our facility supports the further development of SunCultures pay-as-you-go photo voltaic portfolio, leading to a extra sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”
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