Solar Irrigated Farming – Botswana

Key Facts

• Client: Kwenantle Farmers (Pty) Ltd
• Term: 10-year term loan (15-month capital grace period)
• Guarantee instrument: Maturity Subordination
• Guarantee exposure: Starting at ~30% (Year 1), increasing to 100% (Year 8)
• Effective date: July 2024

Deal Summary

AGRI3 is supporting the mobilisation of BWP 27.4 Mln (~USD 2.0 Mln) from Stanbic Bank Botswana for Kwenantle Farmers (Pty) Ltd, an irrigated farming operation in the Talana region with 523 ha of active cultivation across wheat, lucerne, maize, and soybeans.

The loan will be used to expand productive irrigation area by 264 ha through the installation of additional pivot and sprinkler systems, new borehole infrastructure, and solar power capacity to meet the energy demands of expanded irrigation, reducing reliance on grid electricity and lowering the farm’s carbon footprint. 

Impact Rationale

The expansion project is designed around efficient water management and renewable energy principles. Solar investment will displace grid electricity for irrigation, and all expansion will remain within the existing farm boundary, preserving the 1,023 ha of surrounding native vegetation from any conversion. The company is committed to maintaining this native vegetation under active conservation management throughout the loan.

The deal supports rural employment in Botswana, targeting 150 permanent jobs by the end of the loan period (up from 100 at origination), with particular attention to training women to take on non-traditional roles including machinery operation and farm management. An AGRI3 TA programme may support this gender upskilling component.

AGRI3 is supporting Kwenantle to assess its practices against the SAI FSA standard and formalize a biodiversity conservation management plan for the 1,023 ha of surrounding land, an initiative that could form a model for conservation-linked agricultural finance in Southern Africa.

Impact Targets

Protection of natural ecosystem (direct and indirect)

Sustainable agriculture

Improved rural livelihoods