For every £806 invested Simusolar will purchase and supply a solar-powered water pump to a smallholder farmer.
180 solar water pumps
In total, this campaign will enable Simusolar to purchase 180 solar powered water pumps, and 800 solar panels.
Simusolar focuses on building a resilient rural economy in Tanzania. By providing solar-powered equipment for productive use, and developing affordable financing systems, Simusolar help rural entrepreneurs to increase productivity and earn a consistent income all year round.
The solar powered water pumps which they supply are designed to meet the needs of rural smallholders, enabling them to water their crops during the dry season, and thereby promoting greater resilience for rural farming communities.
Key product information
Issuer: Simusolar Inc.
Issuing Country: USA
Investment target: £200,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 7% per annum
Witholding tax rate: 30% (Applicable even when investing within the IFISA. It is possible for UK tax residents to reduce this withholding tax rate to 0% through completion of a W-8 BEN form. Investors are responsible for informing themselves as to their individual tax status. The W-8 BEN form will be sent to investors by Simusolar once the offer is funded.)
Interest payment frequency: 6 monthly
Capital repayment frequency: 6 monthly
Financial instrument: Unsecured interest bearing bond
This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.
You must read the investment memorandum (provided below) where a full statement of risks is presented.
See what Simusolar do
Simusolar are one of the pioneering solar companies supported by the Energise Africa initiative, a joint venture between Lendahand and Ethex
What the project investment will enable
The funds raised in this campaign will be used to purchase 180 solar-powered water pumps, complete with accessories, and 800 solar panels. Around £145,000 will be used to purchase the pumps, with the remaining £55,000 for the purchase of the solar panels.
By supplying solar-powered water pumps to smallholder farmers, Simusolar enables them to take advantage of the power of sun to expand their cultivation area, and reduce their dependency of seasonal weather patterns. Simusolar provide a variety of different sized surface and submersible pumps, all or which come from reliable suppliers, including ennos, Aquaroyal, and SunCulture.
Each system is provided on a flexible, pay-as-you-go financing plan, that allows farmers to adjust their payments based on their harvest cycle.
Simusolar’s technology also increases security for smallholder farmers – equipment can only be used with the customer’s unique password, and mobile tracking means that devices can be located and returned to customers if lost or stolen.
Since incorporation, Simusolar have supplied and installed over 10,000 items of solar powered equipment for productive use (water pumps and fishing lights). This year (2021), Simusolar aim to increase their fishing light sales to 6,000 units, and sell 696 water pumps.
With many smallholder farmers impacted by less predictable seasonal patterns due climate change, the company plan to increase the share of revenues coming from water pump sales in future years.
Social and environmental impact
Solar water pump systems and solar fishing lights have been shown to have a significant impact on farmers’ and fishers’ lives and the environment. Food production in Sub-Saharan Africa is characterised by low productivity due to lack of mechanisation, and reliance on rain-fed agriculture. For smallholder farmers, access to solar water pumps to expanding irrigation is a key strategy to improve their resilience. Solar water pumps and fishing lights produce fewer pollutants and greenhouse gases compared to fossil-fuel-based equipment, whilst also reducing costs which would otherwise have been incurred by purchasing these fuels.
These statistics are taken from a 2018 Acumen Lean Data report, which was produced to look at how Simusolar’s products have improved the lives of their customers.
of customers purchasing water pumps have experienced increased yields
of customers purchasing water pumps have experienced an increase in income
of customers reported that their Simusolar purchase was the first time that they were able to access credit