November 29, 2018

Dutch, family-backed impact investment firm DOB Equity has made an undisclosed investment in Ten Senses Africa, a producer, processor, and trader of certified organic and fair-trade macadamia nuts.

Ten Senses was founded in 2006 by Dora Waruiru, who at the time through her work heading the EPTF to promote corporate social responsibility among Kenyan SMEs, came in contact with macadamia farmers who were struggling to secure a fair price for their nuts. Through ties the company has established with both macadamia farmers and buyers, Ten Senses sources nuts from more than 3,000 farmers, mostly concentrated on Kenya’s coast, and operates processing facilities in Nairobi.

This investment will help DOB capitalize upon rapidly-growing demand for traceable, organic, and fair trade nuts from health-conscious consumers in both domestic and international markets.

Globally, the macadamia market is expected to grow at a CAGR of 7.5 percent over the 10-year period of 2018-2028, according to Future Market Insights. However, it is the Middle East and African regions that are forecast to reflect the highest consumption volume as well as value over the considered time period.

We expect the growing global demand for health-conscious and natural, organic products to continue over the long-term,” said Brigit van Dijk-van de Rejit, CEO of DOB Equity,  “As one of the largest certified organic producers in Kenya, Ten Senses is well-positioned to benefit from these trends.”

With such promising market potential, this investment will provide Ten Senses the capital needed to expand its processing capacity, to lift its trade volumes at higher margins; to further develop its sales across Europe and the U.S., and to launch new product lines and include more nuts and dried fruits within existing sourcing, infrastructure, and markets.

“We are very pleased and looking forward to working with DOB Equity on the expansion of Ten Senses,” said Frank Omondi, CEO of Ten Senses.  “We have an ambitious growth trajectory and to unlock the full potential throughout the value chain, we need a local partner like DOB Equity that understands what it takes to secure sourcing, improve the process and enter new markets.”

For DOB, the investment not only gains the firm exposure to a strong food category and niche, but also provides an investment opportunity with a high level of sustainability and positive impact.

“Apart from the instantly strong partnership we felt with the management based on its values to grow Ten Senses, we were equally attracted by the social as well as environmental impact of the sector. Macadamia processing is zero-waste, its shells are used as fuel, the cracked nuts are being sold and those rejected are being used for high value macadamia oil.”

Other sustainable investments made by DOB in Kenya over recent years include an undisclosed investment in Kenyan dairy processing company, Countryside Dairy in 2016.  At the time, the investment gave DOB – which has offices in Kenya, Tanzania, and the Netherlands – entry into Kenya’s Sh100 billion (US$980 million) dairy sector while expanding its regional portfolio, which already includes Tanzanian dairy processor, Tanga Fresh.

DOB also was a participant in a $10.3 million Series A in 2017 for Kenya’s Twiga Foods – a disruptor of the food and ag supply chain that was launched with the goal of resolving the fragmentation in the produce market in order to generate value and returns for producers, vendors, and consumers.

“Twiga is an outcome of the Nairobi start-up ecosystem, the years of investments that have gone into developing talent, supporting hubs, and attracting capital to the market,” said Grant Brooke, co-founder of Twiga Foods at the time. “The team at Twiga and growth of the company are testaments to the fact that Kenya is on the cusp of solving huge global problems.”

-Lynda Kiernan