SunCulture, a Nairobi-based company specializing in solar-powered irrigation for farmers, has acquired $27 million in funding.
This raises their total capital to over $65 million, with investors including InfraCo Africa Ltd., Acumen Fund Inc., Netflix co-founder Reed Hastings, and former Alphabet CEO Eric Schmidt.
The company’s goal is to supply solar-powered irrigation systems to rural farmers, with a target of installing 274,000 units in Kenya alone as part of a larger effort to raise $219 million.
That funding would come from equity, debt, grants, and carbon financing, according to SunCulture.
These systems offer an efficient and affordable option for traditional irrigation techniques by using renewable energy and involving minimal maintenance.
SunCulture operates in Kenya, Uganda, and Ivory Coast and has established distribution partnerships in Ethiopia, Zambia, and Togo.
The company has successfully sold 47,000 units of solar panels that can be easily mounted on small structures like buildings or shacks, sometimes with batteries.
These panels operate efficiently with as little as 310 watts of power, which is approximately the same amount needed for powering five standard fluorescent light bulbs.
Sustainable irrigation solutions are important for smallholder farmers in Africa to increase crop yields, ensure food security, and adapt to changing climate conditions.
With only 4% of farmers having access to these necessary resources, there is a growing need for investment and support in sustainable irrigation systems.
SunCulture’s primary offer of cost-effective solar-powered irrigation systems is changing farming practices by providing farmers with a reliable and affordable way to water their crops.
This has resulted in reduced reliance on unpredictable rainfall, leading to increased crop yields and the potential for multiple harvests in a season.
Additionally, SunCulture’s sustainable solution offers farmers a more environmentally friendly alternative improving their overall profitability and livelihoods.
The company’s vision for Africa’s agriculture involves expansion and CEO Samir Ibrahim is exploring new services like soil testing to help farmers improve their crop yields.
SunCulture also plans to provide insurance options for farmers to minimize risks and protect their livelihoods from unexpected events.
Its approach to affordability involves utilizing innovative financing models that make its products more accessible to low-income customers.
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By selling carbon credits, SunCulture reduces costs for consumers and promotes environmental sustainability.
“We’re the largest smallholder solar irrigation company in Africa. We use financial services and carbon revenues to make the cost of solar irrigation 50% cheaper than diesel and petrol pumps,” said Samir Ibrahim, SunCulture’s CEO.
Infrastructure is a critical component in the success of African agriculture, as many farmers lack access to proper roads, storage facilities, and irrigation systems.
Climate change worsens these challenges, leading to unpredictable weather patterns and extreme events that can devastate crops.
Addressing these issues will require innovative solutions and collaboration between governments, organizations, and farmers to build a more resilient and sustainable agricultural sector in Africa.
Expanding innovation in agriculture across Africa is important for addressing food security and economic development challenges.
SunCulture empowers African farmers to be self-sufficient and adapt to climate change, creating a sustainable agricultural future for the continent.
The potential impact of such solutions is huge, offering hope for a brighter and more prosperous future for farmers and communities across Africa.