Impact investor DOB Equity backs Tanzania’s Zanrec
DOB Equity, a Dutch family-backed impact investor in East Africa, has invested in Zanrec to expand the company’s growth and to widen its range of commercial solutions in waste collection, recycling and awareness in Zanzibar.
Brigit van Dijk – van de Reijt, CEO of DOB Equity, said: “As one of the few successful private waste management companies in East Africa, Zanrec is well-positioned to set an example and showcase opportunities for value chain extension, specifically in the organic waste.”
“DOB is committed to create further awareness and to find solutions for the growing waste problem that starts challenging economic drivers such as the tourism industry. The waste sector is in need of long term capital, consolidation of private initiatives and integration along the value chain. With DOB’s long term horizon and a local presence, we believe we can actively contribute to strengthen the sector.”
Zanrec is a privately owned waste management company, founded in 2012, with a strong management team, streamlined operations and ready for further growth.
Zanrec complements the Zanzibari government waste collection by collecting predominantly organic waste from the hotels on Zanzibar.
Zanrec has a strong focus on education and waste prevention and established a community-driven waste management structure in 8 villages, actively involving and educating thousands of people.
Tourism is an important economic asset for Zanzibar and it is likely to grow going forward.
For tourism to continue its sustainable growth in Zanzibar it needs to go hand in hand with a growth in responsible and sustainable waste management on the island, which to date – unfortunately – has not been the case.
Zanrec collected over 3,000 tons of waste last year and the investment will help the company expand on that.
The company currently works with around 20% of the hotels on Zanzibar.
Ralph Jansen, Investment Manager of DOB Equity, added: “Zanrec is the first mover on Zanzibar in this important segment. It has an attractive waste service proposition for the hotel sector on Zanzibar, proven by its ability to scale to financial sustainability. Along with the substantial social and environmental impact it has on local communities, this investment fits perfectly in DOB Equity’s portfolio.”
Justin Madho, CEO of Zanrec, said: “We are very pleased and looking forward to working with DOB Equity on the expansion of our business. Our target output is a Zanzibar where people live in a clean environment, without waste-related diseases and a community that is equipped and educated enough to conserve their land and water environment and that keeps Zanzibar an attractive tourist destination.”
“With DOB Equity we have found a financing partner that understands what it takes to sustainably grow our waste collection businesses and extend our business into value-add recycled products that suit the regional market.” Source: Africa Global Funds