Sollatek Kenya Solar Water Pump 3: 5% Bond
For every £5,000 invested into this campaign, Sollatek will be able to provide and install a solar water pumping system to a Kenyan farm.
Your investment will help Sollatek provide clean energy irrigation systems to 11 off grid farms
Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy.
Sollatek is expanding their offering to provide solar water pumps to rural, off-grid farmers in Kenya, partnering with a local borehole company, and has already installed 28 solar water pumping systems of different sizes from smaller irrigation pumps to larger borehole pumps. They aim to install another 9-14 over the next 20 months.
Key product information
Issuer: Sollatek Electronics (Kenya) Ltd.
Issuing Country: Kenya
Investment target: £55,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 5% per annum
Withholding tax rate: 15% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: 6 monthly
Notional repayment: 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.
What the project investment will enable
Over a two-year period, Sollatek will use funds raised from this campaign to procure, import & install solar water pumping systems for promoting agriculture and farming use. Typically, to install a solar water pumping system at a farm served by a borehole costs £5,000. The £55,000 raised under this campaign will allow Sollatek to provide solar water pumping to approximately 11 farms. However, many of the sites will have different needs which will determine the size, type and cost of the system, therefore the company projects to be able to install a range between 9-14 sites. The company expects more similar projects to equip additional farms and agricultural centres in the near future and regards the Energise Africa initiative as a valuable flexible funding partner.
Most of these systems will be paid for by the farm as they see their value increase due to increased production. Where a system is installed on a financing arrangement the repayments will be determined on a case-by-case basis in accordance to what each organization can afford. All of the farms are located in rural, underserved communities that are off-gird or have weak grid connection.
Funds from this campaign will be used to purchase and import high quality solar water pumping equipment such as 120-260W panels, maintenance free batteries, charge controllers, invertors, remote monitoring systems and solar water pumps. In addition to equipment, funds will be used for site surveys, installations and training at each of the sites. All equipment is sourced through trusted international partners and is manufactured to international quality standards as well as being subjected to Kenyan Bureau of Standards (KEBS) import testing. Panels are subjected to 25-year warranty, batteries have 2-year warranty, charge controllers 5 years, invertors 2 years and pumps 2 years. Sollatek works with Kenya’s Water Resource Management Authority (WARMA) to ensure all the boreholes are properly licensed with borehole reports to ensure sustainable water use.
Sollatek Electronics Kenya
The money raised from this campaign will be used as working capital to allow Sollatek to procure, import & install solar water pumping systems to off-grid farm sites in the “underserved” areas of Kenya, which includes counties of Turkana, Tana River, Kilifi, and Kwale. These areas are defined as "underserved" by the Kenyan Government based on their CRA (Commission Revenue Allocation) report.
Social and environmental impact
Solar water pump systems have been shown to have a significant impact on farmers' lives and the environment. Africa is characterised by low productivity, and reliance on rain-fed agriculture, despite the many potential benefits of irrigation. Climate change is affecting rainfall patterns, which in turn is causing increased crop failures and lower yields. Expanding irrigation is a key mitigation strategy for smallhold farmers. Solar water pump systems produce fewer pollutants and greenhouse gases compared to diesel-based systems whilst also reducing fuel costs which would have been incurred through using diesel systems
Kenya has over 5.4 million hectares of farmable land and agriculture makes up 25% of Kenya’s GDP. However, only 6% of the agricultural land is irrigated. Solar water pump systems help save money for small farm owners by reducing fuel and labour costs.
increase in gross profits for farmers within 1-2 crop seasons
of Kenya's arrable land is irrigated
reduction in the cost of using a solar system in place of a diesel system over the lifetime of a system