WaterEquity, a global asset manager devoted to attracting private investment for water and sanitation, has contributed US$5 million to Kenya’s SunCulture, a company that supplies smallholder farmers with solar-powered irrigation systems and agricultural technology.
SunCulture provides climate technology, funding, and a digital marketplace to help smallholder farmers produce more food. In Sub-Saharan Africa, the company holds a market share of over 50% for solar irrigation systems for smallholder farmers. Its solar-powered water pumps and irrigation systems have revolutionized smallholder farming by facilitating water access, lowering labor costs, and boosting crop yields.
In April 2024, the company raised an oversubscribed US$27.5 million Series B funding round to support its expansion and develop new products. WaterEquity has since invested US$5 million in the company through its new Water and Climate Resilience Fund.
A cost-effective substitute for manual and diesel water pumps are SunCulture’s solar-powered water pumps. In addition to being used for irrigation, over 90% of users use the pumps to access groundwater for cleaning, cooking, and drinking, which helps rural households more consistently, effectively, and sustainably meet their daily water needs. In order to increase water access for millions of farmers and their families in rural Africa, SunCulture will be able to scale its operations and broaden its impact thanks to WaterEquity’s investment.
“WaterEquity understands that water investments don’t fall into a single box – scaling water infrastructure can deliver both incredible impact and strong commercial returns. We’re proud to be the first investment from their new fund and look forward to growing our business together,” said Samir Ibrahim, CEO and co-founder of SunCulture.
The investment, according to Aleem Remtula, head of PE and infrastructure investments at WaterEquity, represented a turning point in the company’s new approach to assisting businesses and initiatives that fill important infrastructure gaps and create long-term resilience against rising water stress.
“Rural communities face the greatest challenges in accessing reliable water, with over 80 per cent of Africa’s rural population using sources that require collecting water outside their home, a huge time burden for mainly the women and girls who are responsible,” he said. “At WaterEquity, our Water & Climate Resilience Fund is designed to invest in decentralised, resilient solutions that can scale equitably. SunCulture exemplifies the kind of company we seek out – locally grounded, adaptation-focused, and committed to expanding water access to underserved communities.”
A wide range of international investors are represented in the Water & Climate Resilience Fund, including Microsoft, Starbucks, Xylem, Ecolab, Reckitt, Gap Inc., and others.
