SunCulture, a solar irrigation firm headquartered in Nairobi, Kenya, has acquired the primary disbursement from a new US $11m syndicated debt facility to broaden its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use solar sector as a result of its measurement 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, by way of its Hivos-Triodos Fund; SunFunder by way of its Solar Energy Transformation Fund; AlphaMundi by way of both 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 annually as farmers replace diesel pumps with photo voltaic ones while facilitating revenue growth and job opportunities in rural communities.
เกจวัดแรงลม has pioneered a Pay-As-You-Gro business mannequin to make solar-powered irrigation affordable for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, modern climate technology, and access to enhance productivity. A recent report developed b Dalberg Research exhibits that irrigation methods and solar-powered water pumps can improve farmers manufacturing between 2 and four occasions, and their income 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 yr was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse monetary place due to the pandemic. 81% of SunCulture farmers, nevertheless, have been in a place to increase their income from farming in 2020. Solar irrigation helps create food safety and sovereignty, and it additionally helps raise people out of poverty. This facility additional permits our efforts to help farmers by providing them with extra of our solar options, and sooner.”
pressure gauge ออก หลัง -Fosu, Investment Officer, who led the transaction for SunFunder, said: “We are delighted to have led this syndicate of proactive lenders who worked properly together for a common goal: to assist SunCulture attain man extra farmers. It shows how working capital may be mixed with end consumer financing, which is essential for making productive use technologies reasonably priced.”
Surabhi Mathur Visser, Head of Investments at SunFunder, stated: This is a pioneering transaction that demonstrates how productive use technologies like solar irrigation can be scaled up. SunFunder organized this facility with a similar-minded group of lenders to assist an progressive product and business mannequin. We look forward to seeing SunCulture develop in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, stated: “This mortgage to SunCulture is the second prolonged to an organization graduating from the EEP Trust Fund managed by NDF. It is a transparent demonstration that we will deliver on the model new NDF Strategy and its dedication to offer flexible and scalable financing in addition to catalytic impact. It has all the components that define NDFs added worth within the climate financing panorama. It demonstrates our capability to convene and mobilise additional financing, as nicely as our distinctive mi of financing instruments to match the wants of our companions, 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 via innovative products and client credit score. FEI-OGEF is pleased to have the power to refinance our inventor loan into this new working capital facility and proceed that development alongside a dedicated and constructive group of lenders, noted Harr Guinness from Lions Head.
READ: SunCulture companion with Togo to speed up access to sustainable solar-powered farming
Judith Santbergen, Senior Investment Manager at AlphaMundi, mentioned: “Since 2018, AlphaMundi has successively supplied help to SunCulture through a mixture of technical help and debt funding. We are excited to proceed and improve our investment in the company through this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a superb instance of an innovative company that’s lively on the nexus of renewable vitality and agriculture, using photo voltaic vitality to extend farmers’ incomes. Our facility helps the additional growth of SunCultures pay-as-you-go photo voltaic portfolio, leading to a more sustainable and higher production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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