The Exchange - East Africa's Source for Financial News The Exchange MAY 2017 - FINAL (1) | Page 21

MAY 2017
21.
Interview with
Saskia van der Mast,
Investment Manager
at DOB Equity
1.
Tell us a about DOB Equity, its
roots and what its purpose is in
East Africa?
R: DOB is backed by a Dutch family
that has its roots in entrepreneurship
in the Netherlands. They were very
successful in retail and actually started
the first chain of supermarkets there.
The company grew further in retail in
the Netherlands and abroad. From the
late nineties the family started pursuing
social activities globally with a mission
to combine entrepreneurship with
impact, the foundation for what DOB
is doing now. Over the years we have
focused our strategy on investing equity
in scalable and innovative companies
that have the potential to impact
the lives of low and middle income
communities in East Africa.
2. What criteria should companies
have in order to receive your
funding?
R: The key to all investments we do is
the company’s management team. We
invest in people. Anyone can have a
great idea but in the end it’s all about
execution. Other criteria are proof
of market; innovation and a scalable
and financially viable business model.
All companies we invest in must have
impact either through its product
or service or by offering a market to
producers. We can invest across most
sectors but have an interest in retail and
distribution, logistics, agri-business,
education and renewable energy.
3. What has been your most
strategic/profitable deal in East
Africa to date and why?
R: One of our most successful
investments has been in M-KOPA Solar,
headquartered in Nairobi, Kenya, a
company that has grown into one of the
world’s leading pay-as-you-go energy
providers to off-grid households. As one
of M-KOPA’s first investors, in July 2010
DOB Equity’s rational was to test the
world’s first solar leasing product using
mobile money and embedded GSM
technology. I remember meeting the
founding team in early 2010 and being
impressed by what was only an idea
then. We invested later in the year and
have been extremely proud to be part
of this company’s journeyever since.
This is an example of a management
team that has been able to execute on
an innovative and scalable business
plan, build a company that people are
proud to work for, build a brand that
people want to be associated with and
have a tremendous impact with over
500,000 solar home systems financed
and continuous product development.
DOB Equity did a successful (partial)
exit of M-KOPA in 2015, proving that
sustainable impact and solid financial
returns can go hand-in-hand.
4. What challenges have you faced
in making deals in Africa?
R: One of the challenges DOB faced when
it was initially based in the Netherlands
was not being on the ground; I would be
in the region every six weeks. However,
we now have two offices in East Africa,
in Nairobi and Dar es Salaam and being
closer to our partners allows us to add
more value and pro-actively manage the
portfolio. Obviously, pre-investment
being on the ground makes business
development and due diligence much
more effective.
5. What advice do you give
local firms so they can meet
international standards in
attaining funds from PE firms
such as yourself ?
R: The advice I would give to
companies would be to try to focus on
best practices across the organization;
making sure governance structures are
in place; proper financial accounting
is implemented from the on-set and
management has skin in the game.
Alignment between all shareholders is
crucial for a private equity player.
6. Where do you see East Africa’s
economy in the next 5-10 years?
R: I am a strong believer that every
inefficiency holds an opportunity to
make money and further socio-economic
development. With private sector
developments happening in East Africa,
new business models being rolled out,
together with the entrepreneurs who
are determined to fight for their dreams
make it a very exciting time to be in the
region as an investor and as part of the
business environment.
Two areas I think we will see develop
over the next 5-10 years are in local value
addition and agriculture. With GDP
growth, urbanization and a growing
and young population there is room
for building new brands specifically
marketed to the middle and low income
consumers. Companies that focus on
efficiencies throughout the supply
chain;decreasing waste by working
closer with suppliers and seeing them
as partners;making use of technology to
support its operations and focusing on
manufacturing quality products.