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DOB Equity, a family-backed impact investment firm active in East Africa, has announced a new direction in its investment strategy. The firm recently backed Spouts International, a Ugandan company known for its ceramic water filters. This decision aligns with the vision of the new CEO, Karen Serem Waithaka, who aims to focus on sustainable food systems, renewable energy, and water sanitation.
Spouts International: A Leader in Water Filtration
Founded in 2014 by Kathy Ku and John Kye, Spouts International produces Purifaaya-branded ceramic water filters. These filters provide a safe and affordable alternative to boiling water, reducing reliance on firewood and charcoal. This shift addresses significant environmental issues like indoor air pollution and deforestation while promoting public health. To date, Spouts has distributed nearly 300,000 filters, positively impacting around two million lives and reducing carbon emissions by over 1.5 million tons. The company has also generated substantial revenue from carbon credits.
A Milestone Investment for DOB Equity
The investment in Spouts International marks an important milestone for DOB Equity. Under CEO Karen Serem Waithaka, who was appointed in 2024, the firm is focusing on tackling East Africa’s infrastructure and climate challenges through targeted investments in sustainable sectors. “We are committed to providing patient capital to businesses that not only grow sustainably but also meet the region’s pressing needs,” Waithaka stated.
Reflecting on Past Strategies
This strategic shift comes after a period of reflection for DOB Equity. Previously led by Co-CEOs Saskia van der Mast and Hayo Afman, the firm had diversified its investments across more than 30 companies. However, challenges faced by logistics startup Sendy and e-commerce platform Copia highlighted the risks associated with investing in emerging markets, prompting a reevaluation of its strategy.
Addressing Water Access in East Africa
Currently, less than 25% of East Africa’s population has access to reliable safe drinking water. The investment in Spouts aligns with DOB Equity’s focus on water access. Beyond providing clean water, Spouts is dedicated to environmental sustainability and economic resilience.
Future Plans for Growth
Daniel Yin, CEO of Spouts, commented, “This investment allows us to scale our production and distribution networks, reaching even more communities with sustainable water solutions.”
A Broader Trend in Impact Investing
DOB Equity’s realignment reflects a growing trend among impact investors prioritizing solutions to Africa’s most critical challenges. As the firm implements its new strategy, stakeholders in the impact investment ecosystem will closely monitor its progress.
