Solar irrigation systems

Image Credits

Solar irrigation systems

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in GPM)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Clean water and sanitation (SDG 6) Climate Action (SDG 13)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Responsible Consumption and Production (SDG 12)

Business Model Description

Provide solar irrigation solutions and maintenance services to farmers, including small scale producers through adapted financing modalities, such as the pay-as-you-go model (leasing). The offer can be complemented with training on the usage of the equipment.

Expected Impact

Production and maintenance of solar irrigation systems reduces farmers dependence on fuel, decreases GHG emissions, increases crop yields and farmers revenues, while strengthening small businesses' autonomy through affordable financing and digital tools.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Senegal: Dakar
  • Senegal: Nord
  • Senegal: Centre
  • Senegal: Sud
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Senegal faces low food sovereignty and imported 70% of its food products in 2024. It also faces low food security with 21% of the population being food insecure, in 2023. The sector is also characterized by a low productivity, contributing 15.5% GDP in 2024. Finally, the sector is a significant contributor to GHG emissions but is vulnerable to climate change (1, 2, 3, 4).

"Policy priority
The Strategie Nationale de Developpement 2025-2029 aims at increasing the agricultural productivity and fostering its modernization. The Stratégie Nationale de Sécurité Alimentaire et de Résilience 2015-2035 highlights the need for increased and diversified agricultural production as well as the importance of food processing and conservation to enhance food security (5, 6). "

Gender inequalities and marginalization issues
Women represent more than half of the country’s labor force in the rural sector and significantly contribute to agricultural production, being highly active in processing and marketing of agricultural, livestock and fishery products. Yet, only 6% of them own agricultural land. For the others, their access to land largely depends on men relatives, who owns the land, affecting their land tenure security. Coastal agricultural communities in Senegal also face heightened climate risks due to sea level rise, flooding, and erosion, adding to broader national vulnerabilities linked to erratic rainfall, rising temperatures, and desertification. Finally, climate change reinforces food insecurity particularly for the poorest households (7, 8, 9, 17).

Investment opportunities introduction
Senegal agricultural sector contributed 15.5% of GDP in 2024. To increase the sector productivity, investments in means and tools of production is key. It is particularly the case in agricultural mechanization, adapted storage and water management for agricultural production (5, 10).

Key bottlenecks introduction
Senegal’s agri-food industry faces climate vulnerability, low processing, poor infrastructure, and low mechanization, as well as weak market access, price volatility and weak regulations. The low access to finance and insurance reinforced farmers vulnerability. Strong dependence on imports and competition also are structural challenges for the sector (11, 12, 13)

Sub Sector

Food and Agriculture

Development need
Senegal’s agricultural sector faces low productivity with 30% post-harvest losses and low processing capacity, resulting in productivity 30% below the national average and low added value. Post-harvest loss cost USD 167 million annually. Climate change will affect traditional cash crop production such as ground nuts with decrease in yields between 5-25% (11, 14, 15, 22).

Policy priority
The Strategie Nationale de Souverainete Alimentaire (2024–2028) aims at reducing food imports and ensure self-sufficiency in key food products, such as cereals, key vegetables, eggs and milk production. The Stratégie Nationale d'Industrialisation encourages increased agricultrual product processing through the development of infrastructures (12, 16).

Gender inequalities and marginalization issues
Poverty is highly concentrated in rural groundnut production basins—especially Diourbel, Kaolack, and Thiès—which together host about one-third of Senegal’s poor, compounding climate vulnerability for smallholders, including many women. In addition to climate vulnerability (floods, drought and storms), women in the agricultural sector also face significant challenges related to their land tenure rights and their limited access to financing mechanisms, production inputs, and extension services, as well as restricted market access. Finally, climate shocks particularly affects the livelihoods of rural households relying on livestock and agriculture for subsistence (14, 17, 18, 21).

Investment opportunities introduction
Senegal’s Climate Smart Agriculture Plan prioritizes investments in solar irrigation, climate-resilient seeds, storage, and climate services to boost the sector's modernization and resilience. Processing and high-value agricultural and fish products are also key to increasing the sector value added (9, 19, 20).

Key bottlenecks introduction
Limited irrigation, degraded soils, low mechanization, and weak rural infrastructure are major challenges to the agricultural sector productivity, as well as difficulties in feeding and watering livestock, problems related to animal health, access to quality seeds and intrants and the high climate vulnerability, particularly threatening rural livelihoods (12, 13).

Industry

Agricultural Products

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Solar irrigation systems

Business Model

Provide solar irrigation solutions and maintenance services to farmers, including small scale producers through adapted financing modalities, such as the pay-as-you-go model (leasing). The offer can be complemented with training on the usage of the equipment.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 50 million - USD 100 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

In Senegal, only about 20% of the land suitable for irrigation is under irrigation (28).

The market for solar PV irrigation systems is estimated at USD 64.9-131 million in Senegal, based on a market penetration rate ranging between 25%-50% (27).

According to a cost-benefits analysis on solar irrigation in the Niayes region, 85% of the cases, farmers directly buy solar irrigation equipment from suppliers, in majority with personal funds and through loans (29).

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

20% - 25%

The solar irrigation system reseller’s margin estimate was based on the sale price of solar submersible pumps imported from China by Senegalese traders via Chinese e-commerce platforms (30).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

According to a profitability analysis on the use of solar irrigation compared to diesel or grid systems, farmer's loans to buy the solar irrigation system are expected to be repaid after 5 to 7 years, with a 2 years grace period (28).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 500,000 - USD 1 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Initial investment is high for the target consumers, which might impact the profitability of the model because of late payments (46).

Business - Supply Chain Constraints

Considering that solar equipment must be imported, supply chain issues might constraint the profitability of the business model.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Rain-fed agriculture dominates Senegal's agriculture. Currently, only about 20% of the land suitable for irrigation is irrigated and 90% of farming households continue to practice rainfed agriculture. Overall, 2.1% of Senegal’s total cropland is equipped for irrigation, even though the country’s potential irrigable area is estimated at around 409,000 hectares (31).

Farmers rely on costly diesel pumps for their irrigation which causes high seasonal expenses that could finance a durable and less costly solar system on the mid to long term. For instance, a cooperative of around 100 farmers spend USD 403 (XAF 225,329) yearly for the purchase of diesel fuel. They also require frequent maintenance (32, 33).

Diesel irrigation is contributing to GHG emissions and pollution of agricultural lands. Although specific nationwide emissions from diesel irrigation are not reported, agriculture in Senegal contributes approximately 41 % of national GHG emissions (excluding LULUCF). Under its Nationally Determined Contribution, Senegal commits to reducing GHG emissions by 7 % unconditionally by 2030 (4, 33).

Gender & Marginalisation

Women farmers in Senegal are predominantly engaged in rain-fed agriculture. Over 92% of irrigated crop production is managed and harvested by men. Women also face lower access to modern irrigation solution and as a result, face heavier physical burdens from manual irrigation (29, 34).

Women in rural zones often lack affordable or stable internet, limiting their ability to access mobile-based advisory services, weather forecasts, or smartphone apps for climate-smart agriculture. Lower digital literacy and fewer opportunities to use advanced technology make it harder for them to benefit from new innovations, including modern irrigation systems (35).

Northern regions, especially Saint-Louis, face extreme droughts, while Matam, Tambacounda and Louga are prone to intense rain events. Combined with decreasing and variable rainfall, this is expected to reduce agricultural yields by up to 30%, hitting rain-fed farmers hardest (35).

Expected Development Outcome

Solar irrigation saves about 4,320 litres of fuel annually, avoiding around 11,234 kg of CO₂ emissions per system. Solar irrigation systems presents 95% less emissions than diesel-based irrigation, thereby decreasing the emissions from the agricultural sector (29).

Although solar irrigation systems entail higher upfront costs, approximately USD 1.100 (XAF 621,437) per hectare compared to USD 200 (XAF 118,191) per hectare for diesel, they offer significantly lower annual operating expenses. On the longer term, solar irrigation also generates higher revenues. This cost-efficiency over time allows farmers to enhance their income while reducing dependence on fossil fuels (29).

Drip irrigation specifically improves water efficiency and reduces evaporation losses under drought conditions. For example, in Senegal and neighboring countries, solar-powered irrigation systems have achieved 18% or more water savings compared to conventional gravity methods and 2-3 times greater water productivity and economic returns (29).

Gender & Marginalisation

Solar irrigation reduces women’s workload by replacing manual irrigation with sustainably powered irrigation systems. If included in planning, it also increases women’s access to irrigation and productive agricultural resources contributing to improved incomes (36).

Solar-powered irrigation enables women and youth farmers to cultivate larger areas year-round, diversify into higher-value crops, and reduce production losses linked to rainfall variability. These gains increase agricultural productivity and income, strengthening women’s and youth’s economic autonomy and resilience to climate shocks (29).

Solar irrigation systems increase resilience of rain-fed farming communities in regions with high climatic variability, through adoption of climate-smart agricultural practices and improved water management (37).

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size

Current Value

In 2022, the productivity of small-scale food producers in Senegal was 10.3 measured as agricultural output per labor day (in Purchasing Power Parity which adjusts possible differences in local purchasing power) (38).

Target Value

By 2029, the Government of Senegal aims to strengthen the resilience of smallholder farmers and enhance agricultural productivity. The WFP programme seeks to improve the livelihoods and food and water security of approximately 169,200 households across nine regions (1).

Clean water and sanitation (SDG 6)
6 - Clean water and sanitation

6.4.1 Change in water-use efficiency over time

Current Value

In 2022, change in water use efficiency in agriculture sector has been measured as USD 0.09 per m3 (38).

Target Value

Senegal aims to achieve universal access to water and to ensure that at least 80% of the population has access to basic sanitation services (5).

Climate Action (SDG 13)
13 - Climate Action

13.2.2 Total greenhouse gas emissions per year

Current Value

Carbone dioxide emissions excluding LULUCF were of 0.7 tons per capita in 2023. Agriculture contributed to 36% of GHG emissions in 2022 (10).

Target Value

Senegal targets 7% reduction in GHG emissions unconditionally and 29% conditionally by 2030 (4).

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

Directly impacted stakeholders

People

Farmers, cooperatives and Economic Interest Groups adopting solar irrigation systems, rural entrepreneurs, and young innovators engaged in hubs such as ClimateSmart Agrihub.

Gender inequality and/or marginalization

Women farmers and women-led SMEs, if supported by agricultural investment programs, experience reduced drudgery and improved incomes.

Planet

Significant reduction of GHG emissions by replacing diesel pumps, improved water management, and reduced stress on water resources.

Corporates

Startups and service providers developing and maintaining solar solutions, local businesses integrated into the agricultural value chain, agricultural business and SMEs benefiting from improved yields.

Public sector

Ministry of Agriculture, Food Sovereignty and Livestock, Ministry of Energy, Petroleum and Mines and national research institutes (ISRA) and local technical services supporting adoption, training on, and monitoring of solar irrigation systems.

Indirectly impacted stakeholders

People

Rural communities and farming households benefiting from more stable agricultural production, improved food security, and increased incomes.

Gender inequality and/or marginalization

Women in rural areas indirectly gaining greater economic opportunities and autonomy through improved water availability and agricultural productivity.

Planet

Overall improvement in agricultural sustainability, reduced reliance on fossil fuel imports, and strengthened climate resilience at the national level.

Corporates

Financial institutions and donors integrating solar innovations into agricultural value chains; agri-food companies benefiting from a more reliable supply of produce.

Public sector

Ministry of Economy, Planning and Cooperation, development partners, NGOs (e.g., Bioversity, GGGI), and universities shaping policies, financing, and technological innovation for scaling solar irrigation.

Outcome Risks

If the price is too high, it might reinforce the unequal adoption of solar irrigation between large and small farmers could widen productivity gaps and income inequality.

Over-extraction of groundwater from increased irrigation capacity may worsen water scarcity, especially in drought period and drought affected regions.

Environmental risks may arise from the improper disposal or recycling of solar equipment.

Gender inequality and/or marginalization risk: Women farmers may face barriers to access (financing, training, technology), limiting their ability to benefit fully.

Impact Risks

Without training on water management and ensuring access to sufficient and quality water sources the installation might not reach the expected impact in terms of increase in the production (40).

Climate shocks such as droughts or floods could undermine the expected agricultural gains from solar irrigation.

Limited financing options for farmers and high upfront costs could slow the adoption of solar irrigation and reduce the expected impact. In addition, poor solar system maintenance could increase production costs and reduce expected efficiency.

Gender inequality and/or marginalization risk: Failure to ensure inclusive program design may reinforce gender gaps in agricultural technology adoption.

Impact Classification

C—Contribute to Solutions

What

Solar irrigation enhances agricultural productivity, cut irrigation costs, reduce dependence on diesel and lower GHG emissions, improving the sector's sustainability and resilience.

Who

Direct beneficiaries are farmers and smallholder farmers, especially women and youth, rural cooperatives, agri-SMEs. Indirect beneficiaries are rural communities and food value chains.

Risk

Risks include high upfront investment costs, lack of maintenance capacity and unequal access to technology, which could exclude the most vulnerable farmers, particularly women.

Contribution

Solar irrigation systems reduce GHG emissions from the sector, contributing to Senegal's objective to reduce agricultural emissions of 2.36% by 2030 (4).

How Much

Solar irrigation is the most cost-efficient model with a levelized cost of electricity of EUR 0.41/kWh vs. EUR 0.57/kWh for diesel. Solar systems can reduce GHG emissions by 95% (28, 29).

Impact Thesis

Production and maintenance of solar irrigation systems reduces farmers dependence on fuel, decreases GHG emissions, increases crop yields and farmers revenues, while strengthening small businesses' autonomy through affordable financing and digital tools.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Stratégie Nationale de Développement 2025-2029: promotes the spread of sustainable production through sustainable equipment, encourages a better water control with decreased costs, and supports the establishment of support infrastructure for the agricultural sector (5).

Nationally Determined Contribution: identifies irrigation as a climate adaptation measure for the agricultural sector (4).

Stratégie Nationale de Souveraineté Alimentaire 2024-2029: identifies water control through irrigation as a priority adaptation action by 2025-2030 (12).

Financial Environment

Financial incentives: La Banque Agricole launched Woomal Mbay, a solar irrigation solutions for agro-businesses, Economic Interest Groups, or individual farmers. The bank offers financing scheme with an interest rates of 7,5% and a reimbursement over 36 months (24).

Financial incentives: FONSIS offers investment support to projects in the fields of renewable energy and agro-business with minority participation (private equity) through his funds as well as technical assistance to SMEs for project bankability (46).

Financial incentives: Banque Agricole du Senegal with the support of the European Investment Bank and AFD, opened a new credit line to reinforce the development of sustainable agricultural value chains. It will provide financing to climate projects (47).

Fiscal incentives: The new Investment Code grants VAT suspension and refund (12–24 months), plus tariff exemptions for 3 years in Dakar/Thies and 5 years elsewhere for SME investments over USD 26,600. Strategic agricultural projects may receive additional government-negotiated benefits (48).

Regulatory Environment

Loi n° 2004-16 portant loi d’orientation agro-sylvo-pastorale: allows farmers to gather in professional organization, grants famers social protection and states that the Government and local authorities will adopt and implement a policy for the sustainable use of water throughout the country (42).

Loi n°2021-31 portant Code de l’électricité: authorizes self-production of electricity from renewable resources for industrial purposes (45).

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Bonergie, Ibriz, Agro Vert Consulting, Viltania photovoltaique, Woomal Mbay (La Banque Agricole), Sengid, ABS ENERGIE, GRIPS, SOLARCOM

Government

Minister of Agriculture, Food Sovereignty, and Livestock, National Agency for Rural Boreholes (Office des Forages Ruraux), National Agency for Renewable Energies, Government of Italy.

Multilaterals

Global Green Growth Institute, African Development Bank, Global Agriculture & Food Security Program, GET. Invest

Non-Profit

Qatar Fund for Development.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map

Senegal: Dakar

semi-urban

Senegal: Nord

The departments of Dagana and Podor as well as the Senegal River Valley present high potential for sustainable irrigation solutions for small-scale farmers, as they are cereal growing areas. Similarly, the Dieri zone is rainfed and highly vulnerable to droughts (43, 44).
semi-urban

Senegal: Centre

Rufisque, Thies and Tivaouane are areas with high potential for solar irrigation as they are horticultural regions. In addition, the regions of Kaolack, Fatick, Kaffrine can benefit from the Gambie River for a steady water supply for productive solar irrigation (43, 49).
semi-urban

Senegal: Sud

The Casamance and the Anambe Basin are a rice production area, offering great potential for solar irrigation solutions. In addition, Tambacounda, Kédougou, Kolda are bordering the Gambie River, presenting a high potential for productive irrigation supply (43, 49).

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.