เกจวัดแรงดันออกซิเจนราคา , a photo voltaic irrigation firm headquartered in Nairobi, Kenya, has received the first disbursement from a new US $11m syndicated debt facility to increase its operations in sub-Saharan Africa.
The new mortgage is groundbreaking for the productive use photo voltaic sector as a end result of its measurement and its progressive mixture of working capital and end-user financing.
Arranged by SunFunder, the co-investors within the facility are Nordic Development Fund; Triodos Investment Management, via its Hivos-Triodos Fund; SunFunder through 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 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 substitute diesel pumps with photo voltaic ones while facilitating income progress and job opportunities in rural communities.
SunCulture has pioneered a Pay-As-You-Gro business model to make solar-powered irrigation inexpensive for smallholder farmers in sub-Saharan Africa, combining end-user finance, value-added services, modern climate expertise, and entry to improve productiveness. A current report developed b Dalberg Research reveals that irrigation methods and solar-powered water pumps can improve farmers production between 2 and 4 occasions, and their income between 2 and 6 occasions.
READ: SunCulture to distribute solar-powered water pumps throughout Africa
Samir Ibrahim, Chief Executive Officer at SunCulture, mentioned: “The past year was devastating for the millions of smallholder farmers in Kenya; 87% are in a worse financial position as a end result of pandemic. 81% of SunCulture farmers, however, were in a position to improve their revenue from farming in 2020. Solar irrigation helps create food security and sovereignty, and it additionally helps carry individuals out of poverty. This facility additional permits our efforts to assist farmers by providing them with extra of our solar solutions, and sooner.”
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 nicely together for a common aim: to help SunCulture reach man more farmers. It exhibits how working capital may be combined with end user financing, which is important for making productive use applied sciences inexpensive.”
Surabhi Mathur Visser, 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 innovative product and business model. We sit up for seeing SunCulture grow in Kenya and ne markets.
Karin Isaksson, Managing Director at NDF, mentioned: “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 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 value within the local weather financing landscape. It demonstrates our capability to convene and mobilise additional financing, in addition to our distinctive mi of financing instruments to match the wants of our partners, public or non-public. We are proud to be standing with our companions and supporting the emergence of a greener economic system, exactly right now of COVID-19.
Since our first investment in 2019, SunCulture has made large strides to unlock the potential of smallholder agriculture through innovative merchandise and shopper credit. FEI-OGEF is happy to be able to refinance our inventor loan into this new working capital facility and continue that progress alongside a dedicated and constructive group of lenders, noted 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, mentioned: “Since 2018, AlphaMundi has successively provided help to SunCulture through a mixture of technical assistance and debt funding. We are excited to continue and enhance our funding in the firm via this new, revolutionary working capital facility.
Sjoerd Melsert, Senior Investment Manager at Triodos Investment Management, mentioned: “SunCulture is a great example of an revolutionary company that’s active on the nexus of renewable power and agriculture, using solar vitality to increase farmers’ incomes. Our facility supports the further progress of SunCultures pay-as-you-go photo voltaic portfolio, leading to a extra sustainable and better production for smallholder farmers, which is full aligned with the mission, ambition and actions of Hivos-Triodos Fund.”
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