SunCulture Secures Funding to Promote Solar Irrigation in Africa
SunCulture, a Nairobi-based supplier of solar-powered irrigation systems, has secured new funding from Nithio Financial Intermediary (FI), an investment vehicle specializing in financing renewable energies based on artificial intelligence. The funding will enable SunCulture to increase its production and reach more small-scale farmers in Africa who need affordable and reliable access to energy and water to improve agricultural yields.
“This financing is part of a $12 million syndicated credit facility led by Mirova SunFunder and funded by its Solar Energy Transformation Fund, Mirova (through its Gigaton strategy) and Triodos Investment Management, which together will enable SunCulture to finance its Kenyan subsidiary’s inventory and receivables for its renewable energy products for productive use, related appliances and irrigation equipment,” says Nithio.
Kate Steel, CEO of Nithio further explained that; Through our investment, we aim to support the growth and scale of SunCulture, and contribute to the broader mission of the Global Energy Alliance for People and Planet (GEAPP) to accelerate the adoption of productive use devices in Africa.
SunCulture designs, manufactures, finances, and maintains solar-powered irrigation systems based on the Internet of Things (IoT) for smallholder farmers. Its systems enable farmers to spend less while growing more, and the company offers both cash sales and Pay-As-You-Grow financing. To date, SunCulture has sold more than 45,000 systems and has expanded into new sales regions through direct entry into the international market, joint ventures, and government partnerships.
The funding from Nithio FI will also support SunCulture in developing even more revolutionary tools for vulnerable smallholder farmers in Kenya. The aim is to build resilience to climate change at individual, community, and national levels, and improve the environmental, social, and economic sustainability of farming and food systems.
This investment is part of a broader mission to accelerate the adoption of productive use devices in Africa. By reducing the cost of high-quality, energy-efficient appliances and providing finance, this initiative is creating jobs and livelihoods for thousands of people who support a low-carbon future.
Impact on the Food Crisis in Africa
The funding for SunCulture is particularly significant in the context of the food crisis in Africa. Solar-powered irrigation systems can help small-scale farmers to increase their yields and reduce their reliance on rain-fed agriculture. This can make them more resilient to climate change and help to improve food security in the region.
In addition, the development of new and innovative tools for smallholder farmers can help to improve the efficiency and sustainability of agriculture. This can lead to lower costs for farmers and consumers, and can also help to reduce the environmental impact of agriculture.
Overall, the funding for SunCulture is a positive development for the African agricultural sector. It has the potential to help small-scale farmers to increase their yields, improve their livelihoods, and build resilience to climate change. This can make a significant contribution to addressing the food crisis in Africa.