InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has signed an agreement with Savant Group Ltd, committing US$12 million to scale up SunCulture’s solar irrigation offering in sub-Saharan Africa, according to a report by Fresh Plaza.
The equity investment, made through InfraCo Africa’s dedicated investment arm, is part of an oversubscribed $27.5 million Series B capital planned to provide access to Internet-of-Things-enabled solar irrigation systems ( IoT) to hundreds of thousands of small farmers. 2030. The majority of these farmers currently rely on rain-fed agriculture or the use of diesel or gasoline irrigation pumps that emit CO2.
SunCulture CEO Samir Ibrahim said: βThis is a significant milestone for SunCulture, and not just financially β it’s a strong vote of confidence in our company’s vision, team and capabilities. We have a lot of work to do and couldn’t be more excited to build with our investors.β
SunCulture offers farmers a more sustainable route to managing climate-induced rainfall variability and replaces the need to use expensive, polluting fuel-based pumps. The company’s unique offering includes the design, manufacture, financing, installation and maintenance of integrated solar irrigation systems with safe, low voltage DC pumps. Capable of pumping up to 1,200 liters of water per hour, the economical systems are aimed at small farms of approximately 1-3 hectares. Solar PV systems include sprinklers, drip irrigation and battery storage that maximize water use efficiency by enabling farmers to irrigate their land early in the morning β minimizing evaporation β and target water to individual plants, avoiding wastage . IoT-enabled systems include remote monitoring and predictive maintenance. Battery systems also include household lighting and allow farmers to charge small devices such as mobile phones.
InfraCo Africa Chief Investment and Risk Officer Claire Jarratt said: βWe are delighted to join the other Series B investors of Savant Group Ltd. to achieve financial close for SunCulture’s latest fundraiser. Alongside our investment, InfraCo Africa’s participation will support the company to further develop its HSES and governance frameworks as the company grows and seeks to enter new markets. SunCulture’s unique approach to leveraging consumer financing and carbon credits to lower the upfront cost of its systems for farmers also aligns well with the PIDG strategy. With access to irrigation, farmers can increase their yields, ensuring greater food security for themselves and their families in the face of climate change impacts, and increased farm incomes can support broader sustainable economic growth and prosperity in rural areas. Β»
The βtotal cost of ownershipβ for a SunCulture pump is 40-60 percent lower than the cost of a fuel-based pump, depending on payment plans. SunCulture offers its pumps to small growers through a Pay-As-You-Grow model.