SunCulture, a solar irrigation company headquartered in Nairobi, Kenya, has received the first disbursement from a model 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 as a outcome of its measurement and its innovative combination 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 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.
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 revenue 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 services, modern local weather technology, and access to improve productivity. A current report developed b Dalberg Research shows that irrigation methods and solar-powered water pumps can increase farmers production between 2 and 4 occasions, and their earnings between 2 and 6 times.
READ: SunCulture to distribute solar-powered water pumps across Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The previous yr was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary position because of the pandemic. 81% of SunCulture farmers, however, have been capable of increase their revenue from farming in 2020. Solar irrigation helps create meals safety and sovereignty, and it also helps raise people out of poverty. This facility further permits our efforts to assist farmers by providing them with extra of our photo voltaic options, and faster.”
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 aim: to help SunCulture attain man more farmers. It shows how working capital may be mixed with end user financing, which is crucial for making productive use applied sciences 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 support an revolutionary product and business mannequin. We look ahead to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This loan 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 can deliver on the new NDF Strategy and its commitment to provide versatile and scalable financing in addition to catalytic impact. It has all the elements that outline NDFs added value in the local weather financing panorama. It demonstrates our capability to convene and mobilise further financing, as properly as our distinctive mi of financing instruments to match the wants of our partners, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economy, exactly presently of COVID-19.
Since our first funding in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through revolutionary products and shopper credit score. FEI-OGEF is happy to have the ability to refinance our inventor loan into this new working capital facility and proceed that development alongside a committed and constructive group of lenders, famous Harr Guinness from Lions Head.
READ: SunCulture associate with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, said: “Since 2018, AlphaMundi has successively supplied support to SunCulture by way of a mix of technical assistance and debt investment. We are excited to proceed and improve our investment in the company by way of this new, progressive working capital facility.
pressure gauge weksler ราคา , Senior Investment Manager at Triodos Investment Management, stated: “SunCulture is a superb instance of an progressive company that is lively on the nexus of renewable power and agriculture, using photo voltaic energy to increase farmers’ incomes. Our facility supports the additional development of SunCultures pay-as-you-go solar portfolio, resulting in a extra sustainable and higher manufacturing for smallholder farmers, which is full aligned with the mission, ambition and activities of Hivos-Triodos Fund.”