<h1 style="text-align:center;">The Angels Return</h1>&nbsp;We recently hosted another group of impact angel investors here in Addis Ababa, and I thought it would be good to continue with our tradition of sharing some about their time here.First, a quick recap of what RENEW is doing: RENEW is implementing a new model for how the West can engage Africa. Rather than the traditional model of aid and charity, RENEW’s model uses the West’s capital to invest in high-quality local companies. It is important to clarify that these are profit-oriented investments…not grants, aid or free money of any kind. By applying a market-based strategy that is more appropriate to the realities on the ground here in Africa, local companies will not only create jobs and pay taxes, but provide good returns to investors. This strategy is shaped by three trends RENEW sees happening in Africa and the West. These are:<ol><li>The rise of angel investors versus venture capital funds as a way for wealthy investors to use their capital to support higher risk investments</li><li>The potential of SMEs in Africa, and the rise of the African middle class and private sector</li><li>The formalization of impact investing as a more favorable mechanism to create sustainable impact</li></ol>After a year of rolling this strategy out in Ethiopia, we feel we accurately predicted the market. We recently helped close our first angel group investment in a local energy company, and we have a number of deals scheduled to close this year.This year RENEW has hosted over 25 investors from the West in Ethiopia. We have formalized partnerships with two funds and have closed our first investment. We have a number of investments we are in the process of closing for other angel groups that are forming across the U.S. and Europe.This trip was a little unique because one of the members was a return investor, and the trip was focused on the coffee value chain. We looked at companies along almost the entire supply chain of coffee and it was an eye-opening experience. Here’s the rundown:We had…<ul><li>Site visits with five local companies</li><li>One trip to Yirgechaffe – one of the most well-know coffee farming areas in the country</li><li>A tour of the largest coffee processing factory in Ethiopia</li><li>A reception where entrepreneurs from over 20 businesses had a chance to socialize with investors, and we counted at least two business-to-business deals take place</li><li>A trip to Lalibela and Gondor</li></ul><figure class="image"><img src="/uploads/photo_collage_out_and_about_coffeeland_001_e1a11aebd3.jpg"></figure>There were five investors in the group (excluding the RENEW team), all with various backgrounds including medicine, fund management, entrepreneurship and financial management. Most had skills that spanned multiple industries. Some had extensive experience traveling in Africa. Some had not visited for years; others make regular trips. Needless to say, all of this offered us hours of discussions in the car between meetings, and stories in the evenings over dinners.The results... In the end, we got strong commitments to move forward on some opportunities. There’s a lot of work to be done, but overall the trip was a huge success.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

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The Angels Return

<h1 style="text-align:center;">Portfolio Accomplishments: Part One</h1>&nbsp;<figure class="image image-style-align-left image_resized" style="width:9.4%;"><img src="/uploads/logo_tm_0_433b35c58a.png"></figure> In partnership with RENEW, the Impact Angel Network (IAN) has invested in three companies to date, with two more investments closing soon. RENEW’s portfolio consists of <a href="http://www.mama-fresh.com/">Mama Fresh</a>, a commercial manufacturer and exporter of injera and Ethiopian food products, <a href="http://metadplc.com/">METAD</a>, an Ethiopian specialty coffee producer and exporter, and <a href="http://www.dventus.com/">dVentus</a>, a clean energy company. RENEW is proud of the social impact and financial growth that each of its portfolio companies have achieved to date, and is excited to provide an update on those accomplishments.&nbsp;<figure class="image image-style-align-right image_resized" style="width:22.63%;"><img src="/uploads/img_9920_0_1a41ac55fe.jpg"></figure>Mama Fresh recently won an award as the #1 micro and small enterprise exporter from the Addis Ababa Ministry of Urban Development, Housing and Construction. Prime Minister Haliemariam Desalegn presented the award to Mama Fresh’s Hailu Tesema at a national ceremony. Mama Fresh also just finished transitioning its operations from a traditional injera manufacturing facility to a modern commercial injera and Ethiopian cuisine production facility. As a result, the company has doubled its capacity over what it was able to produce prior to the investment made by the IAN.&nbsp;&nbsp;&nbsp;The company has also achieved many other milestones since receiving the IAN’s investment, including:<ol><li>More than 300 smallholder farmers or marginal producers have supplied raw materials to Mama Fresh or received training or other support, post investment</li><li>Generating more than $1.5M in export revenue</li><li>Establishing a strategic partnership with a Fortune 500 food company</li></ol>&nbsp;<figure class="image"><img src="/uploads/collage_mama_fresh_portfolio_update_64752845d6.jpg"></figure>These accomplishments come as no surprise. They have been brought about by Mama Fresh’s hard work and dedication to the quality of its products, its commitment to the wellbeing of its staff, and its mission to see more people around the world “dance with their fingers, and eat Ethiopian”.We are proud to be a part of the Mama Fresh story.

Read about Mama Fresh's wonderful achievements to date...

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Portfolio Accomplishments: Part One

<figure class="image"><img src="/uploads/dventus_logo_1_8b93607161.png"></figure><h1 style="text-align:center;">dVentus Technologies: Creating a Brighter Future for Ethiopia</h1>To continue with our Q&amp;A series with the employees of RENEW’s portfolio companies, I recently had the pleasure to speak with one of <a href="http://www.dventus.com/">dVentus Technologies PLC’s</a> engineers.Daniel Gizaw founded dVentus with the idea of promoting sustainable energy solutions, which he and a local team would manufacture at facilities in Ethiopia. Since the IAN’s initial investment in 2013, dVentus has been making strides in building local capacity and in new product development. The company has successfully designed and built a prototype and system for smart meters to improve the reliability, security and efficiency of African and Middle Eastern power grids, and is now working on certifying the prototype to customers' specifications. dVentus’ expansion has enabled the company to increase its staff by approximately 25%, as it has brought on engineers and other highly skilled local professionals since the close of the IAN’s investment. The company is also developing other exciting new products, such as energy efficient generators and other components of smart grid solutions.dVentus’ headquarters are truly a site to behold. The building is a beacon of hope that glints silver and green in the sunlight, signifying the sustainable, green energy technologies and products that Daniel and his team of engineers work on everyday. By pursuing this focus today, engineers like Abisa Girma Yigezu are helping to ensure a brighter and cleaner future for generations to come.Abisa was born in Addis Ababa, Ethiopia and has never lived outside of the city, but this has never stopped him from dreaming big and creating an impact in his local community and beyond.<figure class="image"><img src="/uploads/dventus_1_50d27c401d.jpg"></figure>When you were a child, what did you dream of doing for work or as a career, and how did this influence your decision to become an engineer? I liked making things as a child. I was very curious child; I have always been fascinated to know how things are made and how they work. I have attempted to make small motors, a homemade battery and even crude photo paper in my high school years. I have that curiosity even today. I was sure, somehow, that I would be in the business of creating things early on. I like studying both mechanical and electrical engineering design and developing products.How did you hear about dVentus? I first heard of dVentus through a vacancy announcement poster at Addis Ababa University Technology Faculty, now Addis Ababa Institute of Technology (AAIT), where I was studying for my BSc in electrical engineering. Back then, dVentus went by the name Danotek Motion Technologies LLC. I had always wanted to work in a place where electro-mechanical products are made. In the subsequent years, I closely followed Danotek (now dVentus). After I earned my BSc in electrical engineering in 2011, I got the opportunity to be a recruit engineer at dVentus. I started working at dVentus beginning July 2011.How did you become an engineer, and what education / training have you received to date? In Ethiopia, the Ministry of Education (MoE) assigns students to various universities after they graduate high school through its countrywide field and university assignment program. So when I graduated high school, the MoE assigned me to study electrical engineering at Addis Ababa University Technology Faculty. In later years, I majored in control engineering. After working for three years at dVentus, I began studying my MSc in microelectronics. I am now in my second year. I’ve taken many on the job trainings while working at dVentus, including: ISO9001: 2008 QMS auditing, project management, design reliability, electronics circuit design, test and other technical trainings.What is your position title at dVentus, and what are your responsibilities? I am an electrical engineer at dVentus. My responsibilities are designing electronic circuits, building prototypes, testing, reviewing other designs, training new recruits, and I (am) also involved in ISO9001: 2008 QMS related tasks.In your own words, tell us what is means to work at dVentus? dVentus is a technology company that is on the rise. Working at dVentus for me is looking at different opportunities that are not found in many places. I get to work on products from conception to end of manufacturing and so much more.How has working for dVentus changed your life? I like working for dVentus. I have gained lots of experience, knowledge and skills both from (a) technical and business aspect. I am still learning a lot. I am more confident in my craft than ever.Do you have a family that you provide for (children, spouse, parents, extended family), and what does your family / friends think about your work at dVentus? I live with my family - parents and siblings - and I contribute my share. I am sure my family is happy for me working at dVentus. I like what I do, so I am pleased with where I am.Has your job at dVentus made you feel empowered as an individual? Definitely. I see more solutions and things that can be done in Ethiopia. There are many untapped opportunities in the energy sector.What is your favorite part about working for dVentus as an engineer? Working on new proof of concept tests in electronics lab and peer learning with colleagues, especially with my seniors.Where do you see yourself in 5 years? 10 years? In the years coming, I see myself working on new products, involving in manufacturing products at dVentus. I would like to learn more and do more at dVentus.How has your job at dVentus inspired you to pursue your own dreams? I am very much inspired to have my own company one day that designs products. I am building an edge both in the business and technical aspects.

RENEW has a Q&A session with a dVentus engineer to talk about green technology.

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dVentus Technologies: Creating a Brighter Future for Ethiopia

<h1 style="text-align:center;">#askRENEW: Live Google+ Hangout with CEO Matt Davis</h1>Want to Learn More About Impact Investing, Ethiopia and a New Strategy for Africa?Join the RENEW team on August 22 at 2pm EST for a <a href="https://plus.google.com/u/0/events/ch7glv1ifdp2g7kjf7munusjk5o">Google+ Hangout</a> with our CEO Matt Davis. Listen as Matt shares RENEW's recent impact investing activity in Ethiopia and answers your questions via Google+, Twitter and Facebook using #askRENEW.Here's How to Join Us:1. RSVP to the hangout <a href="http://ow.ly/nNeHH">here.</a>2. Use #askRENEW to ask Matt all your impact investing questions from now until Wednesday August 21 on the <a href="http://ow.ly/nNeHH">Google+ event page</a>, Twitter or Facebook.3. We’ll pick seven people who ask questions using the hashtag #askRENEW to join Matt in the hangout, and they’ll get to ask Matt their questions live on air!4. On Thursday August 22 at 2pm EST, be sure to check out our <a href="http://ow.ly/nTNAn">YouTube Channel</a> to join in the conversation and watch the hangout live!Have Questions? Tweet <a href="https://twitter.com/RENEWLLC">@RENEWLLC!</a>

Join RENEW's CEO Matt Davis for a Google+ Hangout August 22.

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#askRENEW: Live Google+ Hangout with CEO Matt Davis

<h1>Portfolio Accomplishments: Part Two</h1><figure class="image image-style-align-right"><img src="/uploads/dventus_a2d2621877.jpg"></figure>Daniel Gizaw founded <a href="http://www.dventus.com/">dVentus</a> with the idea of promoting sustainable energy solutions, which he and a team of local engineers would manufacture at facilities in Ethiopia. Since then, the company has focused on developing system integration and energy efficient solutions for renewable energy applications. By pursuing this focus today, dVentus is helping to ensure a brighter and cleaner future for generations to come.&nbsp;<figure class="image image-style-align-left image_resized" style="width:25.28%;"><img src="/uploads/dv_970ee77295.jpg"></figure> &nbsp;Since the IAN’s initial investment in 2013, dVentus has been making strides in building local capacity and in new product development. The company has successfully designed and built a prototype for smart meters to improve the reliability, security and efficiency of Ethiopia’s and other African and Middle Eastern power grids. The company is developing other exciting new products, such as energy efficient generators and other components of smart grid solutions.&nbsp;&nbsp;&nbsp;&nbsp;dVentus’ expansion has enabled the company increase its staff by 25%, as it has brought on engineers and other highly skilled local professionals since the close of the IAN’s investment. The company also<figure class="image image-style-align-right image_resized" style="width:52.86%;"><img src="/uploads/dv2_b5a83e9a12.jpg"></figure> won a grant from the African Development Bank, through its Sustainable Energy Fund for Africa, and has been working on creating strategic partnerships with multiple organizations both in Ethiopia and the United States.We are proud to be a part of the dVentus story.

Read about dVentus' wonderful achievements to date...

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Portfolio Accomplishments: Part Two

<h1 style="text-align:center;">Portfolio Accomplishments: Part Three</h1><figure class="image image-style-align-left image_resized" style="width:37.16%;"><img src="/uploads/metad_logo_rgb_d1f33c42a5.jpg"></figure>To conclude our blog series about our portfolio companies' accomplishments, we move on to <a href="http://metadplc.com/">METAD</a>, an Ethiopian specialty coffee producer and exporter. Over the past month, METAD has been completing work on its new brand (see the sleek new leaf logo above!) and redesigning its website. The company recently launched the <a href="http://metadplc.com/">new website</a>, which highlights METAD’s specialty arabica coffee and notable accomplishments aimed at building Ethiopia’s coffee sectors. Aman Adinew, founder of METAD, has a vision of discerning coffee drinkers around the world enjoying Ethiopian specialty coffee, and of Ethiopia achieving the worldwide brand recognition its coffee deserves. METAD’s new website and brand are key resources the company will use to make this vision a reality.Meanwhile, METAD also is making strides in expanding its operations. The company recently expanded to a new site in Gedeb, where it operates a washing system, dry mill and drying beds. The company continues to operate a 200-hectare original specialty coffee farm in Hambela. Aman is overseeing both sites to ensure the same quality of coffee bean is produced at both sites.<figure class="image"><img src="/uploads/metad_farmsite_ab61dd1576.jpg"></figure>In the process of expanding, METAD has created 545 jobs within the community and has increased sales by 402% since the IAN initially invested in 2013. METAD has come a long way since that investment, and RENEW is excited about the company’s future with Aman at the helm.<figure class="image image-style-align-right image_resized" style="width:22.26%;"><img src="/uploads/kids_8df5424b85.jpg"></figure>Another thing we love about METAD is the company’s dedication to giving back to the local community. Since 2013, METAD has adopted an elementary school with 408 students near its Hambela farm, purchasing benches and tables for the school and subsidizing teachers’ salaries to incentivize them to stay rather than take higher paying jobs in bigger towns and cities.We are proud to be a part of the METAD story.

Read about METAD's wonderful achievements to date...

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Portfolio Accomplishments: Part Three

<h1 style="text-align:center;">Power Africa: Any case studies yet? Maybe...</h1>What is Power Africa? First, let me direct you to the <a href="http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa">White House Fact Sheet on Power Africa</a>. Great, quick read. Next, I’ll explain it in my own words.Simply put, I think Power Africa is a major shift in how our country views Africa…. and I like it! For a number of years the U.S. government’s focus has been on an initiative called Feed the Future, which, given the amount of arable land that has not been touched on this continent, is a good thing. In Fiscal Year 2012 (FY2012), the initiative focused on 19 countries and helped more than 7 million food producers make improvements, improved the cultivation of 4 million hectares of land, and helped increase the value of exports of targeted commodities by $84 million.With the world population rising, we need more food – it made sense to direct USAID in that direction. What I have observed is that much of the effort of FtF has been focused on helping smallholder farmers. Good? Yes. But, is that really keeping up with where Africa is today, and more importantly, where Africa is going?Well... here comes Power Africa. From what I observe looking out my office window here in Addis Ababa, Ethiopia, Africa is booming! I saw it in Uganda in 2008, Mozambique in 2010, Senegal, Zambia, Zimbabwe in 2011 and now in Ethiopia. The cities are alive. Addis is a great example. This growing metropolis has cranes scattered across the skyline, carrying bags of cement, wires, sheetrock, bricks and blocks to the tops of large buildings. Up they rise. I have weekly meetings with construction companies, block factories, sheetrock companies, cable companies...the list goes on. They are growing and yet starving for capital. According to research conducted by the IFC and McKinsey Global Institute, the total financing gap for SMEs in Africa is between $140 billion and $170 billion.This country - this continent - is industrializing. Of course Africa has its share of problems and aid is still playing a role in helping the least served. But the hungry engine of capitalism is in fifth gear. And what does industry need a lot of? Power! That’s right. So, what is Power Africa? In my very non-jargony, sophomoric words it means “Wow. I think I am getting that Africa is changing, growing, industrializing, and maybe the U.S. needs an initiative to get in, get involved and start participating with her private sector! Because everyone else is.”What does it mean for Africa? What I hope it means is that, instead of seeing just Chinese, Indian, Turkish and (fill in the country’s name other than the U.S.) doing all of the nation-building in the cities, we’ll start seeing some U.S. flags waving, painted on trucks, rigs and machines. I also hope it means that investors will see this great continent as an investment destination they can do business with. Come on over. There are amazing companies in these cities, some even working in the power sectors that could be great partners, clients and collaborators with U.S. companies. So, what does this mean for Africa? I hope it means more U.S. private-sector partners and investors knocking on their door.What does it mean for the United States? See above. America – it’s time.Any case studies? Actually, yes, there are a few. Here’s the 30-second rundown of one. In 2012, RENEW met a great entrepreneur who had lived in the United States, but, after starting a successful engineering company in Michigan, decided to come back to Ethiopia – his homeland – and start a clean energy company here. We introduced him to a group of impact angels from Charlotte, North Carolina in March of 2013 and, after a lot of work, due diligence, structuring, etc., the Charlotte angels closed an investment in dVentus. The investment is allowing the company to develop technology for a smart grid power transmission system in the country. The savings these little circuit boards will have are astonishing. The story goes on. Because of this angel investment the company is now attracting the interest of much larger financiers, and U.S. companies that want to be their partner. Success? Well, that remains to be seen. After all, this is business on the frontier.I know there are more of these stories out there waiting to happen. Investors are ready. Businesses are ready. Africa is ready. Thank you Power Africa for providing the phrase that will help transform this industrializing continent into an economic success story – one smart grid meter at a time.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

A closer look at the new Power Africa initiative.

Power Africa: Any case studies yet? Maybe...

<h1 style="text-align:center;">RENEW's Fellows Program: A View from Inside</h1>This is a guest post by Ryan Musser, who participated in RENEW's Fellows Program from May - August 2013. Ryan lives and works in Washington, D.C.I first learned about RENEW a year ago and was instantly drawn to its mission. As a student and practitioner of international development, I’m always interested in new and better ways to facilitate and encourage development. What attracted me to RENEW is its public-private partnership approach of impact investment that puts the investor and entrepreneur on the same level, rather than the typical donor-recipient relationship in traditional development models. If I were to make a prediction about the future of economic development, I would predict that the way of donor-based economic development projects are on their way out. Impact investment is on its way in.In the upcoming years, <a href="http://www.huffingtonpost.com/randall-kempner/entrepreneurs-are-transfo_b_825105.html">business creation, entrepreneurship, and investment</a> are bound to play an integral role in poverty alleviation around the world. China and India have proven that millions of people can be lifted out of poverty through the market-led economic growth of investment and business creation. Impact investment is an <a href="http://www.forbes.com/sites/skollworldforum/2013/07/30/why-impact-investing-is-an-emerging-paradigm-shift-in-philanthropy/">exciting opportunity </a>for philanthropists and development practitioners seeking to alleviate poverty.But impact investment isn’t just an opportunity for the charity-minded. We now see in Africa in general – and Ethiopia specifically – a situation that is ripe for investment with huge returns. Out of the 10 fastest growing economies in the world in the past decade, six are from Africa. From 2011-2015, seven African countries are set to be among the 10 fastest growing countries in the world, with only China and India being ahead of Ethiopia at 8.1% annual average GDP growth. Already from 2005 - 2009, Ethiopia recorded higher growth than China, averaging 11% growth. From 2003 to 2011, <a href="http://www.consultancyafrica.com/index.php?option=com_content&amp;view=article&amp;id=1325:a-subtle-engagement-ethiopia-and-india&amp;catid=58:asia-dimension-discussion-papers&amp;Itemid=264">Ethiopians have seen their income double</a> from $527 per capita to over $1,100. In the next five years, <a href="http://www.ey.com/Publication/vwLUAssets/The_East_Africa_Boom:_Dont_be_left_behind/$FILE/130219_SGF_TL_East_email_version.pdf">East Africa is expected to attract $6.8 billion of annual foreign direct investment</a>. And investing in this growth in the developing world is profitable. According to WhyDev, forty percent of impact investment funds that focus on emerging markets target a return between 16-20% after fees, carry, and currency conversion.Impact investment is a <a href="http://blogs.hbr.org/2013/01/social-impact-investing-will-b/f">win-win</a> for everyone: investors, entrepreneurs, and the poor. Investors are making money, entrepreneurs are growing their businesses, and the poor are seeing their incomes rise and their quality of life improve. This past summer I participated in a fellowship with RENEW because I want in on this action. I believe that <a href="http://www.economist.com/news/finance-and-economics/21575769-strategies-putting-money-work-fast-growing-continent-hottest">Africa is the future frontier for investment</a> and impact investment is a key tool in the fight to alleviate poverty. If the US wants to stay competitive globally, we need to be investing in Africa, and if international development practitioners want to stay competitive, we need to get involved in impact investing. During my fellowship with RENEW, I had the opportunity to familiarize myself with the impact investing field, gaining insight into the players, the opportunities, and the obstacles faced in impact investing. During this time and through my research with RENEW, my hunch has been confirmed: impact investing is a disruptive innovation here to stay. Whether you’re seeking a financial return or a social return with your money, you can’t ignore impact investing. It’s a crucial tool for the investment world, as well as the philanthropic and aid world, and it’s only just beginning to show its impact in these circles.&nbsp;

Read a guest post by RENEW's fellow, Ryan Musser.

RENEW's Fellows Program: A View from Inside

<h1 style="text-align:center;">Angels in Addis</h1>November has been a busy month for RENEW with two angel groups from the U.S. visiting Addis for Econ-Tourism trips. This was the first trip to Ethiopia for most of the angels, who came from Washington, D.C., Delaware and Oregon.The groups met with countless Ethiopian entrepreneurs and visited a number of businesses spanning a variety of sectors - from healthcare to coffee to injera. All of the angels expressed their surprise and excitement about the incredible potential for growth they saw throughout the trips.<figure class="image"><img src="/uploads/2013_november_angels_3ac8cab271.jpg"></figure><figure class="image"><img src="/uploads/collage_2013_november_angels_oregon_0cc2ddd951.jpg"></figure>RENEW is gearing up for a busy 2014, with several trips already scheduled. Contact us to learn more about scheduling your own Econ-Tourism trip! Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.