The Search for New Investments

By Hedwig Siewertsen
Finding new investments is top priority for the d.o.b team. In recent months, the team members travelled to Uganda, Tanzania, Kenya, Rwanda and Burundi to expand our network.

Potential partners

During our trips we meet three types of potential partners. Firstly, we speak to entrepreneurs operating in our selected sectors (agribusiness, natural resources, waste, retail and distribution services based on mobile technology and stand-alone water and energy systems). Sometimes these entrepreneurs are looking for investors. If the entrepreneur and business model seem to match our criteria we ask the entrepreneurs to send us their business plan or investors document. Sometimes, entrepreneurs have not yet thought out their future plans, but they might have vague ideas about expansion or acquisitions. In that case, we agree that we will meet again in the future to see how we can partner in realizing their ambitions.

Financial institutions

Secondly, we contact financial institutions such as banks and investment funds. With them, we discuss about interesting (portfolio) companies and clients that might be in need of (additional) capital. Often, banks cannot extend additional loans to successful businesses because these companies might become overleveraged (too much debt compared to own capital).
These cases allow for creating a win-win situation:
d.o.b foundation has found companies that have already proven to be serious with third party funds and the bank can lend additional funds after we have increased the capital base of the company. In the case of investment funds, they might sometimes miss interesting investments if the size is too big for them. In those cases there are opportunities for d.o.b foundation to co-invest.

Service providers

Finally, we meet service providers such as consultants and development agencies that work with or for SMEs and/or low income groups. They often have a good view of the various players and potential investments that can be generated within this space.
So far we have established links with some 40 companies, 15 financial institutions and 15 service providers in the five countries visited. If our strategy is successful you should soon be able to see the result of this market development trips on our website under ‘deeds/investments’.

By the way, did you already notice that the website content is now updated to match the strategy presented in an earlier newsletter? Have a look at our website.