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Solar-Powered Smart Irrigation Systems

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Solar-Powered Smart 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).
10% - 15% (in IRR)
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.
Short Term (0–5 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
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Clean water and sanitation (SDG 6) Zero Hunger (SDG 2) Partnerships For the Goals (SDG 17)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Climate Action (SDG 13) Industry, Innovation and Infrastructure (SDG 9)

Business Model Description

Invest in solar-powered smart irrigation systems that can be automated and remotely managed for agricultural production. The technologies include pumping systems for drip, sprinkler, and laser spray irrigation. Private operators provide after-sale services to ensure efficient technology use. Returns are generated through a B2C model, where smallholder farmers purchase products via a pay-as-you-go (PAYG) structure, reducing financial constraints and improving affordability and accessibility.

Expected Impact

Foster the dissemination of local innovations, improving irrigated agriculture value added, agricultural yields, farmers' income, and food security, while reducing pollution and production costs.

How is this information gathered?

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

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Mali: Sikasso
  • Mali: Koulikoro
  • Mali: Kayes
  • Mali: Mopti
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Sector Classification

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

Food and Beverage

Development need
In 2024, 13.2 million Malians experienced insufficient food consumption, with 1.4 million facing severe food insecurity. By 2025, 2.9 million people, including refugees and internally displaced persons, will require food security assistance. Climate change and a population expected to double by 2045 will further strain food supplies (2, 8, 12).

Policy priority
Politique Nationale de la Sécurité Alimentaire et Nutritionnelle, 2019 targets: 1) sustainable food availability to meet national demand by 2030; 2) enhanced capacity to prevent, mitigate, and reduce climate risks; 3) improved food accessibility; and 4) better nutritional status for the population (14).

Gender inequalities and marginalization issues
The 2025 INFORM Index, a global risk assessment for humanitarian crises and disasters, ranks Mali as the 14th most vulnerable country to humanitarian crises and natural disasters. As of September 2024, 378,500 people were internally displaced—57% women and girls, and 66% children—mainly due to conflict and flooding. These pressures severely impact food security, underscoring the urgent need for agricultural investment to support vulnerable populations (8, 9, 10, 11).

Investment opportunities introduction
Mali's economy relies heavily on small-scale subsistence and family agriculture, which contributes 35.1% to GDP growth. Investing in climate-resilient technologies, modernization, and market integration offers high returns and development impact, boosting food availability, value-added products, and income (18).

Key bottlenecks introduction
Transportation costs, limited road networks, lack of cold storage, and security risks pose major barriers for investors, restricting supply chain development and weakening food system resilience (16).

Sub Sector

Food and Agriculture

Development need
Malian farmers face limited access to quality inputs and infrastructure, leading to just 4.5% of arable land being cultivated and agro-food processing contributing only 6.1% of GDP. Climate change is expected to reduce agricultural productivity by over 40% by 2040, threatening the livelihoods of 80% of Malians, or about 15.3 million people (3, 4, 5, 6, 7, 20).

Policy priority
Plan National d’Investissement dans le Secteur Agricole, 2015-2025 aims to position Mali as one of West Africa's top agricultural producers and an agro-industrial powerhouse, leveraging its agricultural raw materials. This will be achieved through modernizing production systems while preserving the environment and natural resources (15).

Gender inequalities and marginalization issues
In Mali, only 3.7% of women own agricultural land, compared to 44.8% of men, despite women making up 60% of the agricultural workforce and contributing to 80% of food production. On average, women own 0.6 hectares of land, 1.1 hectares less than men, limiting their capacity to generate income (1, 19).

Investment opportunities introduction
93% of Mali's agricultural land, or 40.64 million ha, is not yet farmed. In addition, only 15.25% of the cultivated land is equipped with irrigation equipment. With an estimated 2,720 and 11,000 billion cubic meters of renewable groundwater and surface water respectively, Mali offers a significant potential for solar-powered smart irrigation systems (16, 17).

Key bottlenecks introduction
High competition from imported goods and limited technology adoption by smallholder farmers may constrain the development and scaling up of local private sector-led initiatives in Mali's food and agriculture sector, slowing growth and innovation (15).

Industry

Agricultural Products

Pipeline Opportunity

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

Solar-Powered Smart Irrigation Systems

Business Model

Invest in solar-powered smart irrigation systems that can be automated and remotely managed for agricultural production. The technologies include pumping systems for drip, sprinkler, and laser spray irrigation. Private operators provide after-sale services to ensure efficient technology use. Returns are generated through a B2C model, where smallholder farmers purchase products via a pay-as-you-go (PAYG) structure, reducing financial constraints and improving affordability and accessibility.

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.

0.6 million ha of cropland area suitable for solar-powered groundwater irrigation.

Mali has an estimated 2,720 billion cubic meters of renewable groundwater surface and 11,000 billion cubic meters of renewable surface water, of which 5,000 billion are produced internally (14, 15).

International Food Policy and Research Institute estimates that out of the 2.2 million ha of irrigable cropland area in Mali, 0.6 million ha are suitable for solar-powered groundwater irrigation, based on cost-benefit analysis against diesel-powered irrigation. The regions with the highest market potential are Sikasso, Southwest Koulikoro, East Kayes, North Segou, and West Mopti (26, 29).

With 12 million people employed in agriculture, an average household size of 6 people, half of the available irrigation potential suited for solar-powered systems, an average price of USD 1,600 for smart irrigation systems, and a minimum adoption rate of 5%, the market size is conservatively estimated at about USD 80 million (22, 26, 31, 32).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

ROI
Describes an expected return from the IOA investment over its lifetime.

10% - 15%

Consultations with private companies developing solar-powered smart pumps for agriculture in Mali, in January 2025, indicate a 1-year ROI of 20% for pumps used to produce carrots on 0.125 ha of land (22).

A study by International Food Policy and Research Institute that assesses the financial feasibility of developing groundwater solar irrigation in Mali indicates an IRR of over 12% for tomato in peak months in Sikasso, Koulikoro, Kayes, Segou, and Mopti, when crop water demand is highest (26).

The economic appraisal of a benchmark project that rehabilitates irrigated farm lands in Koulikoro, Sikasso, and Segou in Mali indicates an IRR of 20.9%. The project integrates other initiatives related to market gardening, fish farming, and stock breeding, besides small-scale irrigation (23).

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.

Short Term (0–5 years)

Consultations indicate that solar-powered smart irrigation technologies generate positive return within a year in Mali (22).

Ticket Size

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

< USD 500,000

Market Risks & Scale Obstacles

This business model is vulnerable to risks of default from smallholder farmers with a Pay-as-you-go (PAYG) system, as 51.7% of the rural population faces economic risk. An individual's inability to pay faces further risks from climatic variations that affect production (22).

Market - High Level of Competition

Companies that develop solar-powered technologies locally face competition from imported products. Domestic producers operating in Mali indicate a price differential of up to 200x in favor of foreign-produced goods (22).

Impact Case

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

Sustainable Development Need

More than 80% of Mali's population depend on predominantly rainfed agriculture and only 5% of smallholder farmers practice irrigation. However, the level of rainfall will decrease by 5%-8% by 2030 due to climate change. This could lead to up to 40% loss in agricultural productivity (5, 21, 28).

76.48% of Mali's land cover suitable for irrigation was not yet equipped in 2022. Additionally, irrigated lands are also mostly limited to the production of cotton, sugarcane, and rice, thereby limiting the agricultural productivity of vegetables and other cereals (21, 32).

The irrigated agriculture water use efficiency was USD 0.05/m3 in 2021. This means that each cubic meter used for irrigation in Mali generates only USD 0.05 of value added. This is six times lower than the value added generated in regional benchmark examples (35).

Gender & Marginalisation

72.2% of Mali's economically vulnerable are farmers, some of whom lack access to adequate irrigation equipment. Those who have access to irrigation equipment are exposed to high vulnerability, as traditional irrigation pumps use costly, intermittent, and polluting diesel and electricity (39, 41).

Women cultivate on average 1.1 ha less than men and only a maximum of 20% of them have access to agricultural equipment in rural areas. This exposes them to higher risks of financial vulnerability and poverty, especially in the face of climate change with related climatic variability (19).

4.45 million people faced moderate or severe food insecurity in 2021. Rural populations (21.5%) were more at risk compared to urban (14.4%) ones. In 2022, 58.7% of the population, or 13.3 million people, could not afford a healthy diet due to high prices and limited production stocks (37, 38).

Expected Development Outcome

Smart solar-powered technologies improve agricultural productivity and increase the resilience of Mali's production system to climate change. This increases smallholder farmers' income and consumption and improves the overall food security.

Solar-powered smart irrigation technologies improve the productive use of Mali's arable land and promote sustainable and efficient agricultural and water management practices.

Gender & Marginalisation

Solar-powered irrigation systems provide a cleaner and cost-efficient alternative to low-income smallholder farmers. The Pay-As-You-Go system further alleviates the financial pressure on the poorest stakeholders, thereby improving accessibility.

Irrigation technologies increase the productivity of women-owned land, increasing their income, off-season and downstream income generating activities opportunities, food security, intrahousehold decision power. This results in better outcomes for their children (39).

Smart solar-powered irrigation technologies increase agricultural capital and the demand for agricultural labor in rural areas.

Primary SDGs addressed

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

6.4.1 Change in water-use efficiency over time

Current Value

USD 0.05/m3 for irrigated agriculture water use efficiency in 2021 (35).

Zero Hunger (SDG 2)
2 - Zero Hunger

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

2.3.2 Average income of small-scale food producers, by sex and indigenous status

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

Current Value

Data on the volume of production per labour unit is not available. However, the agricultural output per labour day of small-scale producers was USD 18.54 in 2019; USD 18.54 for males and USD 16.95 for females (48).

Data on the average income of smallholder farmers is not available. However, the harvest value was USD 182,568 on average in 2017-2018 according to Enquête Agricole de Conjoncture Intégrée aux Conditions de Vie des Ménages, with USD 215,527 for men and USD 20,989 for women (38).

19.9% in 2021; 14.4% in urban areas and 21.5% in rural areas (37).

Target Value

By 2025, Plan National d’Investissement dans le Secteur Agricole 2015-2025 aims to double the volume of produced tomato (143,827 tons), potato (123,738 tons), voandzou (45,960 tons), cowpea (351,522 tons), wheat (70,050 tons), cotton (1 million tons), and millet (2 million tons); triple the volume of maize (4.7 million tons); and tenfold the volume of sugarcane (2.9 million tons) (15).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025 targets food security for all Malians by 2025 (15).

Partnerships For the Goals (SDG 17)
17 - Partnerships For the Goals

17.7.1 Total amount of funding for developing countries to promote the development, transfer, dissemination and diffusion of environmentally sound technologies

Current Value

Data on the total investment in environmentally sound technologies is not available. However, the amount of tracked exported environmentally sound technologies was measured at USD 14.2 million in 2019 (48).

Secondary SDGs addressed

Gender Equality (SDG 5)
5 - Gender Equality
Climate Action (SDG 13)
13 - Climate Action
Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

Directly impacted stakeholders

People

Smallholder farmers, including women, and farmer associations benefit from the reduced production costs, increased off-season production opportunity, increased productivity, and higher agricultural yields.

Gender inequality and/or marginalization

Women farmers benefit from increased productivity. Overall, rural women benefit from the reduced time spent fetching water, fostering the potential for new downstream income generating activities.

Planet

Solar-powered irrigation systems minimize greenhouse gas emissions from diesel-powered systems, mitigating climate change.

Corporates

Agro processing companies, agro dealers, wholesalers, exporters, and market sellers benefit from the increased supply of raw inputs. Seed producers benefit from the increased demand for their products.

Public sector

Ministère de l'Agriculture benefits from reaching its production targets for priority crops and from the increased value added generated per volume of water used for irrigation.

Indirectly impacted stakeholders

People

Consumers benefit from the reduced prices, improved nutrition, and improved food security. Some smallholder farmers benefit from the transition to medium-scale commercial farming in the medium- to long-term.

Planet

Water conservation improves in the medium-term, mitigating the effect of water scarcity.

Public sector

Ministère de l’Environnement de l’Assainissement et du Développement Durable from the decarbonization of the agricultural production system to reach its agriculture- and energy-specific national defined contribution targets (34).

Outcome Risks

Production of solar photovoltaic panels involves the use of toxic materials. This can pose environmental and health risks if proper decommissioning and recycling procedures are not implemented (33).

The manufacturing of the solar panels outside the domestic borders could pose a risk of heightened reliance on imported goods and could increase the quantity of imported greenhouse gas emissions.

Installation and maintenance activities associated with photovoltaic panels may lead to soil erosion and compaction.

If not managed and drained adequately, the water used for irrigation could stagnate beyond the normal growing season, leading to waterborne diseases (24).

Impact Risks

Technical failures, malfunctions, or improper maintenance of the solar panels can disrupt agricultural productivity, water supply, and water use efficiency.

Climatic shocks may disrupt agricultural production, limiting the financial capacity of some smallholder farmers, and excluding them from benefitting from this opportunity.

Locally developed smart solar irrigation systems can amount to up to 6 times Mali's national poverty line. Despite the Pay-As-You-Go structure, the poorest farmers may still be excluded (22, 26 ,27).

Impact Classification

C—Contribute to Solutions

What

Solar-powered smart irrigation improves irrigated agriculture value added, agricultural yields, smallholder farmers' income, and food security, while reducing pollution and production costs.

Who

Smallholder farmers, seed producers, food processors, distributors, and export-oriented companies benefit from solar-powered smart irrigation systems.

Risk

Improper installation and maintenance of the solar panels, the cost of the smart technologies, and the effect of climatic hazards on yields can limit the impact of the business model.

Contribution

Solar-powered irrigation increases agricultural yields and the arable land area without carbon emission. Otherwise, irrigation is performed with diesel or costly electrical sources (39).

How Much

Solar irrigation could increase farmers' income by up to USD 5,262 per ha, or 34.5% of the average harvest value in 2017-2018. This gives a total net revenue of USD 39 million per year (39,40).

Impact Thesis

Foster the dissemination of local innovations, improving irrigated agriculture value added, agricultural yields, farmers' income, and food security, while reducing pollution and production costs.

Enabling Environment

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Policy Environment

Politique Nationale de Sécurité Alimentaire et Nutritionnelle, 2019: highlights irrigation equipment as priority investments to improve food availability by 2030 in Mali (14).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025: outlines the development of local irrigation systems (in lowlands and for market gardening) as a priority initiative to improve rural populations' living conditions (15).

Contribution Déterminée au Niveau National Révisée, 2021: outlines Mali's environmental targets, including a 29% reduction in agriculture emissions and a 31% reduction in energy sector emissions by 2030, by initiatives such as solar irrigation projects, among others (34).

Financial Environment

Financial incentives: Accelerating Impacts of CGIAR Climate Research Africa (AICCRA-Mali) partnered with private smart solar-powered irrigation operators to reach 6,255 smallholder farmers in Sikasso and Niono (39).

Financial incentives: Fonds de Garantie pour le Secteur Privé covers 50% to 70% in guarantees for loans to companies operating in renewable energy for more than a year in Mali. The fund offers regular guarantee for loans up to USD 641,225 and co-guarantee for loans over USD 1.6 million (22, 25).

Fiscal incentives: Companies that invest a minimum of 5% of their sales in research and development (R&D) benefit from a reduction in the rate of corporate and business income tax (IBIC - IS) to 25% for a further two (2) years, independently of their investment regime (42).

Other incentives: In other Sub-Saharan African countries such as Kenya, private providers of smart solar-powered irrigation systems receive up to USD 12 million in equity, debt, grants and carbon financing from Nithio, Triodos, InfraCo, and Solar Energy Transformation Fund (44, 46).

Regulatory Environment

Law No. 02-006 on water code, 2002: establishes water development and management plans. The plans set the general objectives for the use, development and quantitative and qualitative protection of water resources (24).

Law No. 02-006 on water code, 2002: authorizes smallholder farmers to auto produce water for irrigation purposes. A decree issued by the Minister of Agriculture sets out the general technical conditions for project implementation, operation and maintenance of irrigation facilities. (24).

Order No. 2020-012/P-RM on exemption of renewable energy equipment from VAT, import duties and taxes, 2020: exempts solar equipment, including photovoltaic panels, from VAT and import duties (43).

Marketplace Participants

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Private Sector

EcoTech Mali, Emicom Mali, Fonds de Garantie pour le Secteur Privé, Nithio Financial Intermediary, Triodos Investment Management, InfraCo Africa, Solar Energy Transformation Fund.

Government

Ministère de l'Agriculture, Ministère de l’Environnement, de l’Assainissement et du Développement Durable.

Multilaterals

International Water Management Institute, World Food Programme, United Nations Women, Government of Canada, German Cooperation, KfW Development Bank, Coopération Suisse, African Development Bank, Accelerating Impacts of CGIAR Climate Research Africa Mali.

Non-Profit

Antenna Foundation, Union nationale des coopératives de planteurs et maraîchers du Mali, Coordination nationale des organisations paysannes du Mali.

Target Locations

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country static map
rural

Mali: Sikasso

Sikasso has the largest suitable cropland area for solar-powered irrigation in Mali, evaluated between 0.2-0.65 million ha, or 43% of cultivated land. The most important circle is Bougouni with 195,500 ha, followed by Sikasso and Yanfolia with 100,000 ha to 150,000 ha available, each (26, 30, 45).
rural

Mali: Koulikoro

Koulikoro has about 0.15 million ha of land cover suitable for solar-powered groundwater irrigation (26, 45).
rural

33% of the cultivated area is suited for solar-powered small-scale irrigation in Segou. This amounts to 145,000 ha of cropland cover. The different circles have a potential of 5,000 ha to 50,000 ha each, except Baroueli and Tominian which have less than 500 ha of suitable land cover (26, 30, 45).
rural

Mali: Kayes

Kayes has 0.9 million ha of land cover suitable for solar-powered groundwater irrigation (26, 45).
rural

Mali: Mopti

Mopti has 0.8 million of land cover suitable for solar-powered groundwater irrigation (26, 45).

References

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