SunCulture, a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has received 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 due to 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, via its Hivos-Triodos Fund; SunFunder through its Solar Energy Transformation Fund; AlphaMundi through 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 substitute diesel pumps with solar ones whilst facilitating earnings development and job alternatives in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation reasonably priced for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added providers, fashionable climate technology, and access to enhance productivity. A latest report developed b Dalberg Research shows that irrigation techniques and solar-powered water pumps can enhance farmers manufacturing between 2 and 4 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, said: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary place as a outcome of pandemic. 81% of SunCulture farmers, nonetheless, were capable of enhance their revenue from farming in 2020. Solar irrigation helps create meals security and sovereignty, and it also helps raise folks out of poverty. This facility further permits our efforts to support farmers by offering them with more of our photo voltaic solutions, 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 well collectively for a standard objective: to help SunCulture attain man extra farmers. It shows how working capital could be mixed with end consumer financing, which is important for making productive use technologies affordable.”
Surabhi Mathur Visser, Head of Investments at SunFunder, said: This is a pioneering transaction that demonstrates how productive use applied sciences like photo voltaic irrigation could be scaled up. SunFunder arranged this facility with a similar-minded group of lenders to help an innovative product and enterprise mannequin. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “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 ship on the new NDF Strategy and its commitment to offer versatile and scalable financing as well as catalytic impression. It has all the elements that outline NDFs added worth in the local weather financing panorama. 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 financial system, precisely at this time of COVID-19.
Since our first investment in 2019, SunCulture has made huge strides to unlock the potential of smallholder agriculture by way of innovative merchandise and consumer credit. FEI-OGEF is เกจวัดความดันpressuregauge to have the ability to refinance our inventor mortgage into this new working capital facility and proceed that development 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, said: “Since 2018, AlphaMundi has successively supplied help to SunCulture through a mix of technical assistance and debt funding. We are excited to proceed and enhance our investment in the firm via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a good example of an innovative firm that’s active on the nexus of renewable energy and agriculture, utilizing photo voltaic vitality to extend farmers’ incomes. Our facility supports the additional progress of SunCultures pay-as-you-go solar portfolio, leading to a more 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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