<h1 style="text-align:center;">Building Ethiopia’s Investment Ecosystem</h1>Part of RENEW’s purpose is to master the art and science of doing smaller sized equity investments in Africa. Smaller equity investments, those below 3M, are often not attractive for private equity (PE) funds to invest in since they cost the same, or sometimes more than the larger deals. Unfortunately, this creates a problem in many countries across Africa called the “missing middle”, and it makes it very hard for small and medium-size businesses (SMEs) to access capital and reach their full potential. RENEW‘s mission, in partnership with the <a href="https://www.renewcapital.com/investing" target="_blank" rel="noopener noreferrer">Impact Angel Network</a> and our partners at Global Affairs Canada, is to fill this gap in the capital market through new investment strategies. We are happy to report that in Ethiopia, it is working! In this blog, we want to share some interesting data we have discovered through some of our work, called sourcing.Sourcing is one of the key activities done by an investment firm. Sourcing is the job of everyone at the company and it involves lots of meetings, driving around and doing creative activities to find the best companies. One of the sourcing activities we do at RENEW is called the PE500: a half-day workshop hosted at The Exchange for companies to learn about private equity and the investment process. The goal is for companies and owners to learn about how PE works, and for us to meet new businesses.Throughout the 5-year term of the ABG project, our goal is to train 500 companies in Ethiopia through the PE500. Most of the companies that attend are looking for a partner to help them grow. Our aim with this training is to help owners learn about how equity investors can be a partner and then to help them learn how the equity process works.At the PE500 workshop, we cover the following topics:<ul><li>Who is RENEW, who are our investors, why are we here, and what do we do?</li><li>What is private equity, why is it important to companies in Ethiopia, and how is it unique?</li><li>What are the benefits and drawbacks of working with an equity investor?</li><li>How does the investment process work?</li><li>How can you increase the chances of attracting an equity investor?</li></ul>Through July and August of 2018, RENEW submitted a survey to 312 companies that have attended past PE500 trainings since the beginning of the ABG project. We received 150 responses to the survey. The purpose of the survey was to evaluate how the PE500 is helping SMEs improve their financial acumen and attract capital, given two of the intermediate outcomes of the ABG project are improved financial, environmental and social performance and success in attracting financing of SMEs to drive sustainable and responsible business growth. The overall target of the ABG project is to attract 52.5M Canadian Dollars (CAD) of financing, 15% of which should be provided to incubator companies. The PE500 training is a key tool for achieving these results. All data reported below was self-reported and provided by the entrepreneurs.Key survey findings:<ul><li>18 SMEs attracted financing after attending the PE500 training</li><li>4 of the 18 SMEs (or 22%) are led by women</li><li>CAD 2.3M in additional capital was secured</li><li>CAD 589K (or 26%) was secured by women-led businesses</li><li>Of the 18 SMEs, 39% received loans, 27% received grants, 17% received equity, and 17% reported other sources of funding (e.g. founders, family and friends).</li></ul>The above results indicate we have achieved 24% of the target for number of incubator companies attracting financing (18 of 75) and 15% of the target in terms of dollars (CAD 2.3M of CAD 15M).We have seen more compelling gender results, since we were targeting only 5% of incubator financing to be received by women-led businesses.More about the entrepreneurs that attended the PE500:<ul><li>Of the 312 companies to which the survey was submitted, 94 (30%) are women-led, and from the 150 companies that responded, 48 (32%) are led by female entrepreneurs.</li><li>The PE500 training is designed for business leaders and members of the senior management team, and 87% of our respondents were general managers, founders and/or owners of the businesses.</li></ul>Gender profile of the businesses that responded to the survey:<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_04_10_pm_0_269852fda6.png"></figure>About their companies:<ul><li>The companies are diversified and represent many industries and sectors, but over 60% of the companies that attended the PE training to date operate in sectors that are relevant for Ethiopia’s economic development and exist within the government’s priority sectors. These companies are also relevant for RENEW’s investment criteria and pipeline.</li><li>Of the 150 respondents, only 88 companies reported previous year revenues; of those who did report, average income was CAD 1.5M. However, this number may be misleading because large companies typically feel more confident in sharing their revenue, whereas small and medium sized companies, especially startups, often feel uncomfortable reporting small revenue results.</li><li>131 of the 150 companies reported employment data. On average, the companies have 68 employees in their workforce.</li></ul>Growth plans:At the end of each PE500 workshop, entrepreneurs are asked to complete a form providing feedback on the facilitation and content of the training. Additionally, we ask for more information about the attendees’ businesses (such as sales and employment numbers, as mentioned above), and ultimately if the attendees have interest in a one-on-one meeting with RENEW to learn more about potential financing. Most often, the feedback is very positive, and companies also provide valuable insights, such as their plans for growth as seen in the chart below.<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_05_43_pm_0_5b03b77465.png"></figure>The above chart illustrates the feedback from 104 companies regarding their plans for growth. The top initiative or plan for company growth involves increasing capacity (27%), followed by expansion and finally by working on and refining business strategy. The others did not specify.What SMEs need:<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_07_17_pm_501436b1f3.png"></figure>When companies were asked what they were most in need of, 47% responded with financing and working capital, followed by 20% reporting business support and expertise and 10% reporting strategic partnerships.Job Growth:On average, the companies that replied to the survey increased their number of employees by 44% in the current year compared to the prior year. When comparing the current year to two years ago, companies had increased their employee numbers by 71% on average.Conclusion:We believe that equity training can be a great tool to educate the market about a new funding source for companies in frontier markets like Ethiopia. These can also act as a great sourcing tool for Private Equity investors. We are excited about the results from the first 2.5 years of the program and look forward to enhancing the training to help high-quality SMEs attract capital and close the funding gap called the missing middle.

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Building Ethiopia’s Investment Ecosystem

<h1>Reframing Impact Investing in Africa</h1>The Ethical Leadership and Sustainability ParadoxFor many investors worldwide, the African market holds enormous potential for both impact and profit. The rise of impact investing – investments made with the intention of generating a social or environmental impact alongside a financial return – has been particularly pronounced. However, there's a heated debate about whether the current application of impact investing in Africa is creating unnecessary burdens on companies that are already dealing with a plethora of challenges inherent to the environment.The prospect of a double bottom line, one that measures both financial and social or environmental outcomes, is undeniably appealing. Yet, it’s vital to recognize the unique context of African economies where establishing and maintaining a business is already a Herculean task. Balancing the drive for profitability and impact may not always be practical in such a setting and could potentially distract entrepreneurs from their primary goal of building sustainable, scalable businesses.<figure class="image"><img src="/uploads/Image_ee6bbbe9cb.png" alt="Coffee being carefully prepared and selected at METAD's specialty coffee farm in Africa"></figure>Consider the example of METAD, a flourishing specialty coffee company in Africa. METAD’s leadership channeled a portion of its profits towards community upliftment initiatives such as financing NGO-led cervical cancer testing for women, building community centers and funding teachers. These initiatives were not the outcome of investor pressure, but rather a strategic and smart way to operate in the African business environment. Amid regional unrest, METAD's farms were protected by the communities they had invested in, reflecting the mutual benefit of this approach.&nbsp;Impact investing has to be sensitively calibrated to align with the specific realities of the African market. A 'one-size-fits-all' global approach might not always be effective or sustainable. Investing in ethical leaders who prioritize community well-being and environmental sustainability could also be another way to look at impact investing. Leaders need to understand the intricate social fabric and unique environmental constraints of their locales to steer their businesses toward holistic prosperity.Moreover, investors should be cautious of not overburdening African enterprises with impact requirements. Investing in these companies should be coupled with providing necessary training and resources, focusing on building strong business fundamentals that can ensure their growth. The mere act of creating sustainable jobs can have a ripple effect of positivity in communities that are often plagued by unemployment and poverty.Redefining impact investing in Africa may not necessarily mean discarding the current model entirely. It is more about adjusting the balance — prioritizing the creation of growing businesses that implicitly, through their operations, contribute to the social and environmental well-being of their communities. Let us celebrate and incentivize the leaders who are already making a significant impact through their commitment to ethical, sustainable businesses.

Redefining impact investing in Africa may not necessarily mean discarding the current model entirely. It is more about adjusting the balance ...

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Reframing Impact Investing in Africa

Renew Capital welcomed a dynamic team of 11 exceptional young professionals ranging from units in Project Management, Investment, Human Resources and Marketing and Communications.<h1 style="text-align:justify;"> Turning Pages and Chasing Dreams</h1>11 Interns Share Their Career Aspirations and Book Recommendations<figure class="image"><img src="/uploads/Meet_the_team_325b170a67.png" alt="2024 Renew Capital interns, gaining hands-on experience at an early-stage venture capital firm focused on supporting African startups."></figure>Renew Capital internship is an opportunity for recent graduates based in Africa to embark on a quest to unearth their professional goals, bring innovation to the table and invest in their future success.&nbsp;During the internship, the young professionals will work on various investment and private sector development projects that will enhance their professional skills and gain work experience in an international firm operating across eight African countries. Get to know them as they share books that have influenced and inspired them.&nbsp;<h2 style="text-align:justify;">1. Agnes Mbuvi - Investment Intern. Kenya.</h2>a) What are your professional goals?&nbsp; To become a top financial analyst in Kenya and Africa as well. I also hope to start my own investment firm in the future. where I will be able to offer investment solutions that work for the African context.b) What book would you recommend?<a href="https://www.amazon.com/Mountain-You-Transforming-Self-Sabotage-Self-Mastery/dp/1949759229" target="_blank" rel="noopener noreferrer">The Mountain Is You: Transforming Self-Sabotage Into Self-Mastery</a> by Brianna Wiest. This self-help book helped me overcome self-sabotaging tendencies. The author encourages individuals to break free from self-destructive patterns, cultivate self-compassion and build resilience to live a fulfilling life.<h2 style="text-align:justify;"> 2. Eden Hailemariam - Investment Intern. Ethiopia.</h2>a) What are your professional goals?&nbsp;To become an exceptional investment consultant. I pursued this career path to help people make informed investment decisions which in turn will have positive micro as well as macroeconomic and social effects.b) What book would you recommend?<a href="https://www.amazon.com/Kill-Mockingbird-Harper-Lee/dp/0446310786" target="_blank" rel="noopener noreferrer">To Kill a Mockingbird </a>written by Harper Lee. It narrates the childhood of Scout and Jem Atticus. I love the extent Atticus goes to defend what he believes is right, regardless of the challenges he faces. It explores themes of racial injustice, mistreatment of innocent people and social prejudice.<h2 style="text-align:justify;"> 3. Jordan Karenzi - Investment Intern. Rwanda.</h2>a) What are your professional goals?&nbsp;I would like to learn how to conduct sound market research and map out the right investments. Also, I would like to improve my communication skills and ability to relay information relating to the investment practice.b) What book would you recommend?<a href="https://www.amazon.com/Third-Door-Uncover-Successful-Launched/dp/0804136661" target="_blank" rel="noopener noreferrer">The Third Door</a> by Alex Banayan. This is a story of a young man with a dream of interviewing the most successful people in the world from different fields and different walks of life to understand the secret to their success. When Alex was at his highest, he got knocked down but he found a way to get up and push through. I applied the general message to keep a positive mindset and consider small steps as progress.<h2 style="text-align:justify;"> 4. Nahomi Kassahun - Investment Intern. Ethiopia.</h2>a) What are your professional goals?&nbsp;Currently, I am working towards improving my communication skills, especially public speaking. I hope to explore diverse career paths, build a network and develop my leadership abilities.b) What book would you recommend?<a href="https://www.amazon.com/Divergent-Veronica-Roth/dp/0062024035" target="_blank" rel="noopener noreferrer">Divergent</a> Trilogy by Veronica Roth is an extremely thought-provoking book that is set in the future. It made me question the meaning behind their nickname. The characters are based on important values: Abnegation (selflessness), Amity (kindness), Candor (honesty), Erudite (intelligence) and Dauntless (bravery).&nbsp;<h2 style="text-align:justify;">5. Ruth Ayalew - Project Intern. Ethiopia.</h2>a) What are your professional goals?&nbsp;To become a visionary policy maker. I am driven by a deep desire to bring about transformative and systematic change in Ethiopia's current landscape. I firmly believe that by implementing innovative and sustainable policies, we can overcome the obstacles that hinder progress and unlock the true potential of this remarkable nation.b) What book would you recommend?<a href="https://www.amazon.com/Habits-Highly-Effective-People-Powerful/dp/0743269519" target="_blank" rel="noopener noreferrer">7 Habits of Highly Effective People</a>&nbsp;by Stephen Covey. During my stay at the Young African Leaders Initiative (YALI), I was encouraged to read the book to understand how to live well with others and the dynamics of a great team. I learned that people have various behavioral styles.&nbsp;<h2 style="text-align:justify;">6. Heran Getaneh - Project Intern. Ethiopia.</h2>a) What are your professional goals?&nbsp;To become a detail-oriented manager and acquire a well-rounded skill set in project management. I hope to not only focus on my role but explore various aspects within the work environment and become a stellar collaborator that achieves success working with cross-functional teams.b) What book would you recommend?<a href="https://www.amazon.com/Educated-Memoir-Tara-Westover/dp/0399590501" target="_blank" rel="noopener noreferrer">Educated</a> by Tara Westover left an unforgettable impact on my spirit. The author's brilliance resides in her ability to challenge cultural standards while also appreciating the power of education. It has taught me to value any chance for personal development and learning that comes my way.&nbsp;<h2 style="text-align:justify;">7. Uwera Kamuhangire Myriam - Project Intern. Rwanda.</h2>a) What are your professional goals?&nbsp;To be an illustrious project manager or consultant in Rwanda. I also want to be an entrepreneur in the near future because I enjoy working in dynamic and flexible environments.b) What book would you recommend?<a href="https://www.amazon.com/Secret-Rhonda-Byrne/dp/1582701709" target="_blank" rel="noopener noreferrer">The Secret</a> by Rhonda Byrne. It talks about the law of attraction and how our mind is the greatest weapon that can be used to work for or against us. It teaches how positive thoughts can manifest positive outcomes and we can use this to achieve personal growth and success.&nbsp;<h2 style="text-align:justify;">8. Hiwot Endale - Project Intern. Ethiopia.</h2>a) What are your professional goals?&nbsp;In the next five years, I want to identify the career path that I want to follow, build my professional network, perfect my skills and learn more about the entrepreneurial and investment sector.b) What book would you recommend?<a href="https://www.amazon.com/12-Rules-Life-Antidote-Chaos/dp/0345816021" target="_blank" rel="noopener noreferrer">12 Rules for Life</a>&nbsp;by Jordan B. Peterson. In this remarkable read, the renowned clinical psychologist narrates unique and well thought rules to help us maintain order, improve our interpersonal interactions and establish strong bonds with others.&nbsp;<h2 style="text-align:justify;">9. Shaynerose Magabi - Marketing and Communications Intern. Kenya.</h2>a) What are your professional goals?&nbsp;To hold a leadership position soon and make data-driven decisions by improving my skills in data analysis and implementing effective marketing campaigns and conducting market research. I aim to excel in public speaking and confidently communicate my ideas with a diverse audience.b) What book would you recommend?<a href="https://www.amazon.com/Art-Happiness-10th-Anniversary-Handbook/dp/1594488894" target="_blank" rel="noopener noreferrer">The Art of Happiness</a> by Dalai Lama and Howard C. Cutler. This transformative guide sheds light on how individuals postpone their happiness and forget to live in the present.&nbsp;It implies if you aren't happy in the present, you'll never be happy in the future. Sadly, people fail to show compassion towards themselves by equating their self-worth to their success.&nbsp;<h2 style="text-align:justify;"> 10. Joy Mburu - People Operations and Development Intern. Kenya.</h2>a) What are your professional goals?&nbsp;I am looking forward to helping with the implementation of company policies and providing essential support to the People Operations and Development unit while learning its purpose.&nbsp;My career aspiration is to get a Human Resource Management certification that will enable me to grow and take on leadership roles soon.b) What book would you recommend?<a href="https://www.amazon.com/Winner-David-Baldacci/dp/0446606324" target="_blank" rel="noopener noreferrer">The Winner</a> by David Baldacci. This book takes you on a journey of trust and betrayal. “What decisions would you make in the face of intense desperation?" Characters within the plot are forced to make challenging decisions. It explores the devastating impact of betrayal from close friends and will make you shift alliances throughout the whole novel.&nbsp;<h2 style="text-align:justify;">11. Mediatrice Kampire - Data Science and Analytics Intern. Rwanda.</h2>a) What are your professional goals?&nbsp;To become a senior data analyst and project manager within the next three years by completing relevant training courses and gaining practical experience.b) What book would you recommend?<a href="https://www.amazon.com/Moved-Cheese-Spencer-Johnson-M-D/dp/0743582853" target="_blank" rel="noopener noreferrer">Who Moved My Cheese</a> by Dr. Spencer Johnson is a motivational business fable that explores the challenges of change and adaptation. The book emphasizes the importance of embracing change, being flexible and proactively seeking new opportunities.

Meet the 2024 Renew Capital interns, a talented team at an early-stage investment firm in Africa, driving growth in the continent's startup ecosystem.








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 Turning Pages and Chasing Dreams 

In this Q&amp;A with Licínio Chissano, project and investment manager at Renew Capital you will discover the creativity and vibrancy of the people in Mozambique, a country renowned for its beautiful weather and beaches. Expand your knowledge about this amazing country.<h1>How I See My Ecosystem: From Sunshine to Startups</h1>Unleashing Mozambique's Entrepreneurial Magic!Mozambique is renowned for its captivating landscapes, pristine beaches and rich cultural tapestry. In this interview with the project and investment manager at Renew Capital, Licínio Chissano, we delve into Mozambique’s entrepreneurial landscape and the promising industries that are driving its growth. Join us as we embark on a journey to uncover the innovative ideas and projects spearheaded by Mozambican entrepreneurs and how their efforts are shaping the trajectory of their nation's future.<figure class="image"><img src="/uploads/Aug_11_Ld_698f7f7ece.png" alt="Licínio Chissano, Project Manager at Renew Capital, an early-stage investment firm in Africa."></figure>Q. Briefly tell us about your background in investment/career.A. I come from a diverse background in the investment and finance industry. I started my career in social investment consulting and later joined a commercial bank in Mozambique. Working in Maputo, the dynamic city that never sleeps, was an exciting change for me. However, after five years, I wanted new challenges and considered opportunities abroad. Then, I received a job offer from Renew Capital, a firm with experience across the continent. I enjoy helping entrepreneurs at different stages of their businesses and it's fulfilling to contribute to the country's investment landscape.Q. What makes Mozambique unique, why should someone visit?&nbsp;A. Mozambique is a beautiful country that boasts over 1,500 miles of stunning coastline, as well as picturesque mountains, waterfalls and rich biodiversity. However, what truly sets Mozambique apart is its people, who are hardworking, spirited and welcoming. From the bustling streets of Maputo to the tranquil provinces, their energy is infectious and they are always eager to learn and create. When you visit Mozambique, you can look forward to a warm welcome and plenty of sunshine. The country's rich culture and friendly people will leave a lasting impression on you and the cuisine is sure to delight your taste buds. Whether you're dining at a restaurant in Maputo or exploring beyond the city, you'll find a delicious variety of dishes.Q.What are the main industries and economic activities in Mozambique?A. Agriculture remains a significant pillar of the economy, with many provinces engaging in agricultural activities. However, the logistics sector is rapidly growing, with strategic investments in ports, railways and transportation infrastructure. The government recognizes the country's geographical advantage and aims to accelerate regional trade, making Mozambique a key player in commerce and transportation within the region. Additionally, commerce plays a vital role in people’s livelihoods. Given the dispersed population living outside major cities, e-commerce platforms have gained popularity, allowing people to buy and sell goods without the need to travel long distances to urban centers. This helps to bridge the gap between rural and urban areas, making commerce more accessible.&nbsp;Q.What’s excited you about the Mozambique ecosystem in recent years?A. What excites me about the Mozambique ecosystem in recent years is the growing potential in the fintech sector. While there are some fintech present in the market, most are not locally owned. This creates a unique opportunity for local entrepreneurs to step in and fill the gaps in financial services tailored to the Mozambican community. Despite facing challenges with regulatory compliance and securing investments, many startups are eager to provide innovative fintech solutions. These startups are responding to high demand for services not adequately offered by established players like telecom companies and traditional banks. One example is the lack of efficient digital platforms for the popular "ti ti" savings groups, which are prevalent throughout Mozambican society. Furthermore, the government and development partners are making efforts to facilitate the growth of the private sector and encourage startups. Initiatives like incubation programs in public universities and the establishment of science and technological parks show promise in nurturing homegrown talent and innovative ideas.&nbsp; Q.Why are you passionate about startups and entrepreneurship in Mozambique?A. Mozambicans are incredibly innovative and creative, always coming up with ideas that have the potential to transform into businesses. However, they often face challenges in accessing funding and resources to bring their ideas to life. Many startups struggle because they lack the necessary resources and support. This is where my passion lies – in connecting these talented entrepreneurs with opportunities and providing them with the guidance and assistance they need to thrive. I am also inspired by the honesty and openness of the entrepreneurs in Mozambique, who are not afraid to seek help and collaborate with others to grow their businesses. Their energy and determination motivate me to be a part of their journey and support them in any way I can. I firmly believe that the young generation in Mozambique has great potential and by supporting them and their ideas, we can contribute to the growth and prosperity of the country as a whole.&nbsp;

What truly sets Mozambique apart is its people, who are hardworking, spirited and welcoming. 

Ecosystems

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How I See My Ecosystem: From Sunshine to Startups

Renew Capital is dedicated to helping startups navigate the risks and challenges of geographic expansion in Africa. Through in-depth research, local partnerships, and risk mitigation strategies, Renew Capital empowers startups to expand into new markets with confidence and drive growth.<h1>Entering New African Markets</h1>A quick guide to Renew Capital's strategic market entry support for startups<figure class="image"><img src="/uploads/Map_bca9f0db7b.png" alt="Map of Africa showing the countries where Renew Capital operates, supporting early-stage startups with growth potential in Africa."></figure>Geographic expansion can be an exciting opportunity for startups and their investors to reach new markets, tap into additional customer bases, and drive growth. However, it also comes with inherent risks and challenges that need to be carefully addressed. This is mostly due to the data-deprived environment which characterizes most African markets. At Renew Capital, we are dedicated to helping startups navigate these risks and develop effective strategies for successful geographic expansion for our portfolio companies, driving growth for the companies and increasing potential positive returns for our investors.<h2>Conducting In-Depth Research</h2>Before expanding into a new geographic region, we conduct in-depth research to understand the target market's dynamics, customer preferences, competitive landscape, regulatory environment, and potential barriers to entry. Renew Capital’s team is on the ground in eight African countries including Ethiopia, Kenya, Mozambique, Rwanda, Sudan, Tanzania, Uganda and Zambia.&nbsp;Our ground game provides the research team with insights and knowledge straight from those markets. We conduct customer interviews, meet with regulators and governments, and research existing resources on topics relevant to our portfolio companies. This helps our portfolio companies make informed decisions and tailor their expansion plans to specific market conditions.Also, Read: <a href="https://www.renewcapital.com/newsroom/diving-into-kenyas-startup-ecosystem-with-mwikali-muia" target="_blank" rel="noopener noreferrer">Diving into Kenya's Startup Ecosystem with Esther Mwikali</a>&nbsp;<h2>Developing Local Partnerships and Networks</h2>Our team members on the ground help us to understand and develop local partnerships and networks. We recognize that entering a new market requires a deep understanding of the local culture, business practices, and customer behavior.<h2>Mitigating Risks</h2>Risk mitigation is another critical aspect of our approach. We work closely with our portfolio companies to identify and assess potential risks associated with geographic expansion, such as regulatory compliance, currency fluctuations, political stability, and operational challenges. By developing risk management strategies and contingency plans, we help startups mitigate these risks and ensure a smoother expansion process.<h2>Empowering Startups</h2>Ultimately, our goal is to empower startups to expand into new geographies with confidence. By providing them with comprehensive support, strategic guidance, and access to our network of resources, we enable them to navigate the risks associated with geographic expansion and seize the opportunities for growth.Are you an ambitious entrepreneur seeking to fuel your startup's growth? Apply to be part of&nbsp;<a href="https://venturelab.renewcapital.com/2/">Renew Venture Lab</a> where you’ll receive investment opportunities and expansion support to take your startup to new heights.<a href="https://venturelab.renewcapital.com/2/">Apply here</a>

A quick guide to Renew Capital's strategic market entry support for startups


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Entering New African Markets

Gain insight into the startup scene in Sudan amidst conflict from Nour Tawfig, Renew Capital’s investment and project manager for Sudan, as he shares his unique perspective on the potential of the Sudanese startup ecosystem.<h1>Sudan: Gaining Perspective from Nour Tawfig</h1>Opposing sides in Sudan began fighting earlier this year, uprooting nearly three million people. Almost 700,000 have fled to neighboring countries according to IOM. Renew Capital’s investment and project manager for Sudan, Nour Tawfig, who was born and raised in Sudan and is currently based in Egypt, talks about his journey in investment management and shares his unique perspective on the current situation in Sudan.<figure class="image"><img src="/uploads/new_image_7eb88c9b9d.png" alt="Nour Tawfig, Renew Capital's Sudan Project Manager, discusses Sudan's startup ecosystem and Renew Capital's investment in early-stage startups across Africa."></figure><img>Q. Briefly share your background and how you came to investment management.I have a finance background and have worked in the corporate finance sector, focusing on investments in startups and SMEs. Over the past five years, I have raised funds from angel investors to support startups and SMEs in Sudan mainly through profit sharing models, primarily in agriculture and healthcare industries. I have also been involved in the startup ecosystem by working with accelerators and a Y Combinator-backed startup. Currently, I am pursuing a more structured and institutionalized path in investment management.Q. What industries have been standing out in the local Sudanese ecosystem in recent years?Fintech is a particularly active sector, with startups developing innovative financial products and services such as mobile banking apps and online payment platforms. Agritech is also growing, with startups working on solutions to improve crop yields and promote sustainable agriculture. In addition, ride-hailing, e-commerce, and logistics startups have seen success, capitalizing on the absence of major players like Uber and Careem due to previous sanctions. While the Sudanese startup ecosystem shows great potential due to its young population and abundant resources, more work is to be done in that space as well as the ongoing war and economic instability pose challenges to its growth and stability.Q. What is the current state of the investment scene in Sudan?Before the war, the investment scene in Sudan showed signs of growth with active investors, including local angels, Sudanese venture capital funds, and international venture capital funds, focusing on the startup ecosystem. Fundraising activities had seen significant increases, with some startups raising millions of dollars from various investors. Currently, amidst the war, the agricultural sector is one of the most active areas for investment in Sudan. Efforts are being made to raise funds for agritech startups that can improve crop yields and harvesting, particularly in areas unaffected by the war.Q. What is something that you want people to know about Sudan?Sudan has a rich history and culture and holds the potential to become a great nation. However, realizing this potential requires unity, and setting aside divisions that hinder progress. With 68% of Sudan's population being under the age of 30, recognizing the potential of young people and investing in their education, skills, and leadership capabilities will not only contribute to their personal growth but also enable them to actively participate in nation-building processes.Q. What is one principle you live by that guides your work and life?One guiding principle that shapes both my work and personal life is the commitment to always do what is right, even in the face of difficulties. This principle serves as a compass for making tough decisions, upholding my beliefs, and living a life that fills me with pride. While it may not always be the easiest path to follow, doing what is right is crucial for maintaining personal integrity and cultivating a deeply fulfilling existence.I strongly resonate with the idea that "easy choices, hard life; hard choices, easy life," as it underscores the importance of embracing the challenges that come with making the right choices. By adhering to this principle, I strive to navigate both professional and personal circumstances in a manner that reflects my values and contributes positively to my overall well-being.

Nour Tawfig, Renew Capital’s investment and project manager for Sudan, as he shares his unique perspective on the potential of the Sudanese startup ecosystem.

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Sudan: Gaining Perspective from Nour Tawfig

<h1>Demystifying Investment in Africa</h1>Exploring Capital and Startups in the African Entrepreneurial LandscapeRaising funds can be a significant challenge for entrepreneurs, particularly in Africa's complex investment landscape. As the African startup ecosystem continues to grow, it is crucial to demystify the investment process and understand the factors that influence funding opportunities.<figure class="image"><img src="/uploads/1_df43145fda.png" alt="Webinar featuring Renew Capital co-founder and Badili eCommerce founder discussing African startup funding."></figure>Join us for "Show Me the Money," part of our Demystifying Private Investment chat series on July 11, from 4 pm to 5 pm EAT to gain valuable insights from industry experts on capital trends, types of investors and the types of startups that are receiving funding in Africa.Register&nbsp;<a href="https://share.hsforms.com/1AKSHWrVmQCCaTfd88kfaeAee4rj?utm_campaign=Show%20Me%20the%20Money%20July%202023&amp;utm_medium=email&amp;_hsmi=265114055&amp;_hsenc=p2ANqtz-86psekWA0XZetctov9V4GqyAaBOAdKKeoT_w_TEgKifUDLGPJGhrTcL_Xe088H30MPxosGh5JIYG8GQDkyW_4_xqn3FomFB2CF15MhfUzmmbJHSxs&amp;utm_content=265114055&amp;utm_source=hs_email">here</a>.&nbsp;&nbsp;Key topics to be covered:<ul><li>Capital in Africa: Gain a comprehensive understanding of capital movements and which ventures it fuels. Explore the African investment ecosystem to grasp its dynamics and potential.</li><li>Startup Spotlight: Discover the types of startups that attract capital in Africa. Learn about the key factors that make startups appealing to investors, such as market potential, team capabilities, and innovative business models.</li><li>Types of Capital: Explore the various forms of capital that drive growth in Africa, including venture capital, private equity, impact investments, and grants. Understand the unique characteristics and benefits of each type.</li><li>Investor Insights: Understand the diverse investor types shaping the financial landscape in Africa. Learn about their investment preferences, risk appetites, and strategic priorities. Tailor your strategies to attract the right investors for your startup.</li><li>Fireside Chat: Hear from industry professionals who have firsthand experience in running and investing in startups. Matt Davis, Managing Partner at Renew Capital, and Rishabh Lawania, CEO and Founder of Badili, will share their insights, challenges, and successes in the African entrepreneurial landscape.</li></ul>Register&nbsp;<a href="https://share.hsforms.com/1AKSHWrVmQCCaTfd88kfaeAee4rj?utm_campaign=Show%20Me%20the%20Money%20July%202023&amp;utm_medium=email&amp;_hsmi=265114055&amp;_hsenc=p2ANqtz-86psekWA0XZetctov9V4GqyAaBOAdKKeoT_w_TEgKifUDLGPJGhrTcL_Xe088H30MPxosGh5JIYG8GQDkyW_4_xqn3FomFB2CF15MhfUzmmbJHSxs&amp;utm_content=265114055&amp;utm_source=hs_email">here</a>. Don't miss this opportunity to demystify funding in the African entrepreneurial landscape and take your journey to new heights. We look forward to seeing you there!

Exploring Capital and Startups in the African Entrepreneurial Landscape


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Demystifying Investment in Africa

Esther Mwikali, an investment and project manager in Kenya with a degree in Economics and Finance from Kenyatta University, is highly experienced in Kenya's startup ecosystem. At Renew Capital, she uses her expertise to oversee investment opportunities. Discover more about Mwikali's journey to impact investing and Kenya's entrepreneurial scene.<h1>Diving into Kenya's Startup Ecosystem with Esther Mwikali&nbsp;</h1>Meet Mwikali Muia, a mover and shaker in the startup scene of Kenya. As part of the power team at Renew Capital, she's turned her passion for helping young businesses into a thriving career in impact investing. Join us as Mwikali gives us an insider’s perspective of Kenya's bustling startups and exciting growth sectors.<figure class="image"><img src="/uploads/1679385909972_af9fef563a.jpeg"></figure>Q: What initially sparked your interest in impact investing?A: I had my eureka moment back in 2017 when I joined Meta. As Head of Community, and later as General Manager, I saw first-hand the tough road startups had to walk to connect with investors. That really stoked my curiosity and nudged me toward the investment side of things. I plunged headfirst into books and conversations with seasoned investors to build my knowledge from the ground up. Eventually, I joined Renew Capital, a company dedicated to investing in African companies and supporting their growth. Renew Capital's approach of walking alongside startups and providing genuine support resonated with me. I believe in the impact and potential of these companies, and Renew Capital aligns perfectly with my passion for supporting firms through investments.Q: What is one key aspect or unique characteristic that you believe people should know about when it comes to impact investing in Kenya?A: When it comes to impact investing in Kenya, it's crucial to recognize the country's vibrant and resilient entrepreneurial spirit. Kenyans have a strong determination and a "hustler" mindset, willing to work hard, pivot, and overcome challenges. The people of Kenya embrace innovation and possess a curiosity that drives them to explore new ideas and technologies, leading to the success of startups in sectors like fintech, healthcare, and agriculture. A great example of this is the growth of MPESA. Kenya also has a strong sense of community and trust, which plays a significant role in the investment and startup scene. Collaboration and support are fundamental, with entrepreneurs relying on their networks, family, and friends for initial capital. Moreover, Kenya's commitment to education and continuous learning, along with its strong reading culture, contributes to its innovative and entrepreneurial landscape. Overall, investing in Kenya provides an opportunity to tap into a dynamic market driven by passionate individuals, a sense of community, and a relentless pursuit of success.Q: Which industry or startup scene excites you the most?A: I find the tech-enabled startup scene most exciting, with various industries catching my attention. However, I can't single out a favorite industry because each day I come across different companies that teach me something new. Fintech has been a standout in recent years, but I encounter new and innovative companies every day. Proptech, for instance, fascinates me as they find innovative ways to address the increasing number of apartment complexes and offer affordable housing solutions. While I appreciate the exciting and shiny industries, I also have a deep passion for the homegrown sectors that are essential for our continent's development. Education, healthcare, finance, manufacturing, and agriculture are crucial areas that require innovative solutions to support the growing population and provide quality services to low-income households.Q: Is there something interesting or surprising about yourself that most people would not know?A: I grew up on a farm in Kenya. This experience instilled in me a strong work ethic, responsibility, and adaptability. I developed project management skills by overseeing tasks related to caring for animals. It also gave me a deep connection to nature and a love for the environment.

Kenya's vibrant entrepreneurial spirit and unique characteristics of the investment environment. 

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Diving into Kenya's Startup Ecosystem with Esther Mwikali 

With boundless possibilities and a growing entrepreneurial spirit, Africa's SMEs are driving innovation, creating jobs and paving the way for a prosperous and inclusive future.<h1>African SMEs: Driving Transformation, Empowering Youth and Promoting Equality.</h1><figure class="image image_resized" style="width:100%;"><img src="/uploads/METAD_farm_happy_staff_722528d469.JPG"></figure>Africa is rapidly emerging as the new frontier for business, brimming with immense possibilities and opportunities, with SMEs playing a central role in driving this narrative forward. Lesley Lokko, curator of the&nbsp;<a href="https://www.theguardian.com/culture/2023/mar/26/architect-lesley-lokko-venice-biennale-ghana-africa-wakanda-david-adjaye">2023 Venice Architecture Biennale&nbsp;</a>and prominent entrepreneur who founded the African Futures Institute, eloquently captured the prevailing sentiment in Africa by affirming the widespread belief that "It is our time." This sentiment is resonating across the continent, igniting optimism and resolute determination.Africa's young population and the role of SMEsWith a youthful and dynamic population, Africa has a tremendous opportunity for job creation and economic growth through SMEs. The continent's median age of 19 highlights the potential of its young workforce. SMEs already account for approximately 80% of jobs in Africa, making them critical for socio-economic development. Moreover, by harnessing the entrepreneurial spirit of the continent, young people can actively participate in Africa's progress.SMEs as drivers of innovation and sectoral growthSMEs play a crucial role in&nbsp;<a href="https://www.renewcapital.com/newsroom/africas-entrepreneurial-spirit-innovation-creativity-and-resilience">driving innovation</a> and filling gaps in key sectors. They bring agility and creativity to effectively introduce new ideas and approaches to address challenges. By building successful businesses, African entrepreneurs actively shape the future of their communities and contribute to the overall development of the continent.Empowering women and promoting gender equalityA positive trend across African countries is the increasing involvement and recognition of the pivotal&nbsp;<a href="https://www.renewcapital.com/newsroom/renew-capital-launches-isua-network-for-women">role of women in the business sector</a>. As entrepreneurs, women are stepping forward, demonstrating their readiness to make a positive impact and shape the future of their communities. This progressive shift promotes gender equality by providing women with equal opportunities for economic participation and leadership roles.Supporting African SMEsAt Renew Capital, we recognize the potential of Africa as a thriving hub for businesses. By providing support and guidance to entrepreneurs, we aim to unlock their full potential and pave the way for a prosperous and inclusive future in Africa.

With boundless possibilities and a growing entrepreneurial spirit, Africa's SMEs are driving innovation, creating jobs and paving the way for a prosperous and inclusive future.

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African SMEs: Driving Transformation, Empowering Youth and Promoting Equality

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa.&nbsp;<h1>Top 5 Skills For Aspiring Investment Analysts In Ethiopia</h1><figure class="image"><img src="/uploads/IMG_20230623_WA_0001_43931c8652.jpg"></figure>As the Ethiopian startup ecosystem grows and the investment scene opens up, it's an exciting time for aspiring investment analysts. To capitalize on emerging opportunities, it's essential to develop the following skills:Technical Knowledge&nbsp;As an investment analyst, you need a deep understanding of subjects such as statistics, finance, and economics. Developing multidisciplinary knowledge will be advantageous in the investment field.&nbsp;Data analysisData analysis is a crucial part of an investment analyst’s job. This skill enables you to add value to raw data, providing reasoning and suggestions based on the information gathered. Additionally, mastering tools like Excel, which is commonly used by companies, will prove beneficial.Time ManagementEffective time management is vital for investment analysts. It involves planning and organizing tasks, estimating their duration, and setting deadlines. Utilizing a calendar and mapping out weekly priorities can help you visually track time and ensure that you are meeting deadlines.CommunicationThe ability to convey information cohesively, both verbally and in writing, is essential for investment analysts. It's crucial to tell a compelling story that resonates with your audience. Understanding your audience is key to effective communication.ResearchThe internet is a valuable resource for developing technical knowledge and finding answers to questions, especially when access to education and information is limited. Leveraging the internet effectively will enhance your skills and understanding in the investment field.Developing these skills will help you get started in the investment sector. However, continually honing and combining these skills throughout your career will maximize your potential. For example, blending research with technical knowledge and communication skills can help you create high-value presentations. Remember that these skills require rigorous practice, passion, and discipline. By developing these skills, aspiring investment analysts can contribute to the growth of the Ethiopian investment sector.

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa. 
