DOB Equity, a prominent family-backed impact investment fund based in Kenya and the Netherlands, is undergoing a strategic shift in its investment focus aimed at addressing pressing sustainability challenges in East Africa. This recalibration comes in the wake of the recent appointment of Karen Serem Waithaka as CEO, who brings over 15 years of experience in the financial sector and a commitment to fostering impactful investments.
Under the previous leadership of Co-CEOs Saskia van der Mast and Hayo Afman, DOB Equity built a diverse portfolio of over 30 companies across various sectors. While this expansion has fostered growth, the firm has faced significant hurdles with some of its investments, including setbacks experienced by notable companies like logistics startup Sendy and B2C ecommerce startup Copia, which have either ceased operations or encountered severe financial difficulties. These challenges underscore the inherent risks of investing in emerging markets and highlight the need for a more robust and responsive investment strategy.
In response to these developments, Karen is steering DOB Equity towards a focused investment strategy centered on sustainable food systems, renewable energy, and water sanitation. “The new strategy aims to address some of the continent’s most pressing needs,” Karen explained, emphasizing the firm’s commitment to providing “patient capital” where it is needed most. By investing in businesses that offer solutions to infrastructural gaps and climate-related challenges, DOB Equity seeks to enhance the resilience and sustainability of communities across East Africa.
Karen’s background in finance, including her recent role as Chief Investment Officer at Catalyst Fund, positions her well to implement this new strategy. She emphasized that impact investing is about more than just providing capital; it also involves actively supporting portfolio companies in governance, strategy, and overall advisory to ensure their long-term success. “At DOB, our goal is to invest in businesses providing solutions that address some of these gaps, while also supporting these businesses with our active hands-on approach,” she stated.
The challenges facing East African businesses are multifaceted. Infrastructure deficits, a challenging regulatory environment, funding gaps, and limited regional integration pose significant obstacles to growth. By focusing on companies that tackle these issues, DOB Equity aims to foster sustainable development while ensuring financial viability.
Karen’s vision aligns with DOB Equity’s core investment philosophy, which prioritizes impact and sustainability. “Our impact thesis continues to be the core driver of our investment strategy. We invest in companies that provide solutions enabling communities to become more sustainable and resilient, while simultaneously ensuring the lasting viability of these businesses,” she noted. This dual focus on tangible impact and business growth is essential for navigating the complexities of the investment landscape.
As DOB Equity embarks on this new chapter, the industry will be closely observing how the firm’s refocused strategy will shape its future. The success of this approach may hinge on Karen’s ability to restore investor confidence while reaffirming the firm’s commitment to impactful investments.
DOB Equity’s renewed focus on addressing East Africa’s sustainability challenges presents an opportunity to drive positive change in the region. With Karen Serem Waithaka at the helm, the firm is poised to make significant strides toward enhancing the resilience and sustainability of communities across East Africa while contributing to the broader goals of sustainable development.
As stakeholders await the outcomes of this strategic pivot, DOB Equity’s commitment to impactful and sustainable investments under Karen’s leadership holds the promise of addressing some of the most pressing challenges faced by the region today.