A United Nations report indicates that global food production needs to double by 2050 to adequately feed the world’s expanding population. Consequently, attention is increasingly focused on the African continent as a potential source for increased agricultural output and a future global leader in food production.

Despite possessing 65% of the world’s remaining uncultivated arable land, as stated by the African Development Bank, nations within Africa encounter substantial challenges in enhancing the productivity of their farming sectors.

Across the continent, agriculture sustains the livelihoods of 80% of families, yet irrigation is utilized by only 4% of them. Furthermore, many households lack consistent access to dependable and reasonably priced electricity. These interconnected issues are what Samir Ibrahim and his SunCulture co-founder, Charlie Nichols, have been dedicated to resolving over the past eight years.

Equipped with a novel financing approach and specifically designed, small-scale solar-powered generators and water pumps, Nichols and Ibrahim have established a customer base that is experiencing income increases ranging from five to ten times their previous earnings through the cultivation of more profitable crops, expanded land use, and increased livestock production.

The company has recently secured $14 million in funding to facilitate the expansion of its operations throughout Africa.

Ibrahim explained, “To meet the projected need for a doubled food supply by 2050, Africa presents the most viable solution, given its abundant farmers, land, and resources.”

Ibrahim identified two primary obstacles confronting African small farmers as they strive to improve productivity: limited access to markets, which contributes significantly to food waste, and food insecurity stemming from unpredictable growing conditions worsened by climate change.

As a farmer shared with The Economist earlier this year, “The timing of the rainy season has become unreliable. Rainfall is often delayed or arrives in intense bursts.”

Ibrahim, a 2011 graduate of New York University, has long held a strong connection to the African continent. His father was born in Tanzania, and his mother grew up in Kenya, eventually settling in the U.S. Throughout his upbringing, Ibrahim was captivated by stories of East Africa.

While studying for a business degree at NYU, Ibrahim met Nichols, who had experience with large-scale solar projects in the U.S., at an event for aspiring entrepreneurs in New York.

The two formed a friendship and explored potential business ventures inspired by a paper Nichols had read concerning the application of renewable energy within the agricultural sector.

After achieving second place in a business plan competition sponsored by NYU, the pair resolved to demonstrate their potential for a first-place finish. They traveled to Kenya to initiate a pilot program focused on selling solar-powered water pumps and generators.

Solar water-pumping technology has existed for many years. However, the decreasing costs of solar equipment and energy storage have made these systems increasingly accessible to a wider global audience.

This opportune timing has been instrumental in SunCulture’s success, distinguishing it from other companies that have faced difficulties. Ibrahim stated, “We entered the market as solar energy reached cost parity with grid electricity in many areas, coinciding with increased funding from development financiers for initiatives linking agriculture and energy.”

Initially, the company catered to middle-income farmers who held jobs in cities like Nairobi and cultivated crops on land they owned in rural areas. These “telephone farmers” were prepared to invest the $5,000 required for the initial installation of SunCulture’s systems.

Currently, a system costs between $500 and $1,000, making it more attainable for the 570 million farming households worldwide—supported by the company’s “pay-as-you-grow” financing model.

This approach mirrors a popular business strategy for distributing various types of solar systems across Africa. Ibrahim noted that investors have channeled nearly $1 billion into companies specializing in off-grid solar energy and retail technology, such as M-kopa, Greenlight Planet, d.light design, ZOLA Electric, and SolarHome. SunCulture essentially extends this model to agricultural applications.

“Our success is rooted in bundling services and financing. A key factor is that our customers are experiencing income increases of four to five times,” Ibrahim explained. “Historically, most funds have been allocated to power consumption. This marks the first instance of productive power utilization.”

SunCulture’s hardware includes 300-watt solar panels and a 440-watt-hour battery system. The batteries can power up to four lights, two phones, and a plug-in submersible water pump. 

Ibrahim stated that the company’s most popular product line can support irrigation for a two-and-a-half-acre farm. “We envision ourselves as a gateway to other types of appliances and are striving to become the leading solar company in Africa.”

The $14 million in funding, received from investors including Energy Access Ventures (EAV), Électricité de France (EDF), Acumen Capital Partners (ACP), and Dream Project Incubators (DPI), will enable SunCulture to broaden its reach into Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo, and Cote D’Ivoire, the company announced. 

Ekta Partners served as the financial advisor for the transaction, while CrossBoundary provided supplementary advisory services, including a market opportunity and competitive landscape analysis, under the United States Agency for International Development (USAID)’s Kenya Investment Mechanism Program.