SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has obtained the first disbursement from a model new US $11m syndicated debt facility to expand its operations in sub-Saharan Africa.
The new loan is groundbreaking for the productive use photo voltaic sector because of its measurement and its progressive combination 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 via its Solar Energy Transformation Fund; AlphaMundi via each its SocialAlpha and AlphaJiri Investment Funds; and the AfDB’s FEI OGEF managed b Lions Head.
เกจวัดแรงดันคือ will enable SunCulture to scale up renewable power installations at smallholder farms and households that unwell mitigate over 20,000 tons of CO2 yearly as farmers exchange diesel pumps with solar 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 affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, trendy climate expertise, and access to improve productiveness. A current report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can increase farmers production between 2 and 4 instances, and their revenue between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, stated: “The previous 12 months was devastating for the hundreds of thousands of smallholder farmers in Kenya; 87% are in a worse financial position as a outcome of pandemic. 81% of SunCulture farmers, however, have been in a place to increase their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it additionally helps carry people out of poverty. This facility further allows our efforts to help farmers by offering them with more of our solar solutions, and quicker.”
Jemimah Kwakye-Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who labored well collectively for a standard objective: to assist SunCulture reach man more farmers. It shows how working capital may be combined with finish person financing, which is crucial 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 applied sciences like solar irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an progressive product and business model. We 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 transparent demonstration that we can deliver on the new NDF Strategy and its dedication to provide flexible and scalable financing as properly as catalytic impact. It has all the elements that define NDFs added worth in the local weather financing landscape. It demonstrates our capability to convene and mobilise further financing, as properly as our unique mi of financing devices to match the needs of our companions, public or personal. We are proud to be standing with our companions and supporting the emergence of a greener economic system, precisely presently of COVID-19.
Since our first investment in 2019, SunCulture has made big strides to unlock the potential of smallholder agriculture via revolutionary products and shopper credit. FEI-OGEF is pleased to be able to refinance our inventor mortgage into this new working capital facility and continue that growth alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to hurry up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, stated: “Since 2018, AlphaMundi has successively supplied help to SunCulture via a combination of technical assistance and debt investment. We are excited to continue and enhance 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’s active on the nexus of renewable power and agriculture, using solar vitality to extend farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go solar portfolio, leading to a more sustainable and better manufacturing for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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