DOB Equity, a Dutch family-backed impact investor specializing in East African ventures, intends to buy interests in at least three firms this year, despite a drop in private equity deals in the region. Investments are planned in the electric mobility, insurance, and health-tech industries. The transactions vary from $250,000 to more than $5 million, with shareholdings ranging from 10 percent to 49 percent.
DOB has invested in 23 firms in Kenya, Uganda, Tanzania, and Rwanda, ranging from renewable energy to trash recycling, education, agriculture, and retail and distribution. Twiga Foods, a farm product distributor, M-Kopa Kenya Ltd., a solar electronics store, Sendy Ltd., a transport and logistics provider, and Copia Kenya are among the e-commerce firms in the portfolio.
DOB Equity was investigating entering Ethiopia just before the beginning of Covid-19 in order to control Africa’s second-largest population. Following a decrease in flows in the first seven months of this year, investment into East Africa will be welcomed.
According to Nairobi-based I&M Burbidge Capital, the value of announced merger and acquisition agreements fell to $416 million from $853 million the previous year. Transactions dropped to 60 from 70 the previous year, with the majority of agreements taking place in the financial services and technology sectors.