<h1 style="text-align:center;">Angels Descend on Addis!</h1>2017 has already proven to be a busy year, with RENEW hosting an Econ-Tourism Trip for members of the Impact Angel Network from Delaware, Colorado and the United Kingdom this past week. The group met with Ethiopian entrepreneurs, from both RENEW’s portfolio and investment pipeline, and visited a number of businesses in and around Addis Ababa.The investors were introduced to companies spanning multiple sectors – from commodities and food manufacturing to textiles and consumer goods several of which are being considered for upcoming investments. The group also visited current <a href="../../marketplace/portfolio.html">portfolio investments</a> of the IAN, including Desta, Mama Fresh, METAD and our Ethiopian sesame company.<figure class="image"><img src="/uploads/econ_tourism_feb_20172_582382b4de.jpg"></figure>One of the many highlights of the trip was the first ever SME pitch session hosted by RENEW at <a href="https://www.renewcapital.com/companies">The Exchange,</a> wherein carefully selected entrepreneurs presented their companies to the participating angel investors. This event made the company visits that occurred later in the week by the investors more productive and provided them with them background required to ask the right questions. This, in turn, engendered interest and confidence in investors’ minds regarding the potential financial and social impact of the opportunities. The pitch event was followed by a happy hour and networking event at the Exchange with development partners and members of the Addis Ababa business community.<figure class="image"><img src="/uploads/econ_tourism_feb_20171_6f33f487d4.jpg"></figure>Throughout the trip, the group experienced Ethiopia’s rich history, culture and delicious cuisine. During the first day, the entire group went on a sightseeing tour of Addis Ababa, took a look back in history with a stop at the National Museum of Ethiopia, home of the infamous <a href="https://en.wikipedia.org/wiki/Lucy_(Australopithecus)">Lucy skeleton</a>, and went on a food and drink tour with local food guides from <a href="http://goaddistours.com/">Go Addis Tours</a>. Later in the week, Mama Fresh hosted the investors for lunch at their visitor’s center and several members also spent some time exploring <a href="http://whc.unesco.org/en/list/18">Lalibela’s</a> famous 11 monolithic rock-hewn churches.<figure class="image"><img src="/uploads/econ_tourism_feb_2017_f040b8e0a3.jpg"></figure>RENEW is in the midst of planning the next Econ-Tourism Trip, which is slated for September 17-22, 2017. Contact us to learn more about participating in an upcoming Econ-Tourism Trip!

Members of RENEW’s Impact Angel Network visit Ethiopia to review investment opportunities.

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Angels Descend on Addis!

<h1 style="text-align:center;">Practicing Business with Future Legends</h1>“I’ve worked for large international companies and done my MBA, and this is the first time I’ve realized that what’s missing in my business – and it holds me back from growing – are systems.” – Program participant“As a runner, I am disciplined and have a training schedule that I follow rigorously. It just clicked with me. Why haven’t I been applying that same discipline to my business?” – Program participant“No one’s tied it all together before, like RENEW’s Executives’ Program is doing.” – Program participant<figure class="image"><img src="/uploads/img_5915_0_483eaff48f.jpg"></figure>In May 2017, RENEW launched<a href="https://www.renewcapital.com/companies" target="_blank" rel="noopener noreferrer"> The Executive's Program</a>, a 12-week, mini-MBA to show entrepreneurs in our pipeline and portfolio what good looks like. Over the past month, we’ve heard similar words out of the mouths of many of the 12 entrepreneurs participating in this year’s cohort. The consensus around the room has been that no one has made the “practice” of business as practical as this program is doing.What makes a business successful isn’t rocket science, but the statistics aren’t good: 96% of companies fail within 10 years. Why? All the experts say the same thing: poor management, insufficient capital, lack of planning. In summary, most companies lack disciplined management.<figure class="image"><img src="/uploads/fullsizerender_3_3e1f005971.jpg"></figure>Our approach is to teach the habits and tools used by top-performing executives. The good news is that performance can be taught! Our program focus is governance, finance, strategy, operations, HR, marketing and sales and corporate stewardship, with strong encouragement to practice and apply, in-between the sessions. Nothing new about those topic areas, but it’s amazing how a program that ties together how strategic plans, annual plans and budgets right down to using your calendar to carve out time to write standard operating procedures and plan meetings can be the kick in the butt entrepreneurs need, myself included.The outcome we are aiming for is to graduate top performing executive with disciplined management teams that become legends of Ethiopia’s economic growth. Will the disciplines we are trying to instill yield the growth we hope for? Time will tell, but as we see sparks of understanding light the eyes of the entrepreneurs that are diligently coming, we are full of hope for our companies and for Ethiopia.

Teaching the habits of top performing executives

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Practicing Business with Future Legends

<h1 style="text-align:center;">The Lessons I’ve Learned Working at RENEW</h1>It’s not always easy to pinpoint what you’ve learned at a company, or the takeaways that can come from doing a job. As a portfolio manager and the Ethiopia operations manager, I’m always looking for ways to improve, and for ways that I can improve the company. However, it’s also important to know and realize, the lessons I’ve learned after working here for four years.Coming to RENEW, I had a background in operations. I knew from my previous experiences, that in order to get things done, you can never give up. Working at RENEW continues to teach me the importance of this. On any given day, I can be dealing with government and other business connections who don’t always have the same objective that I do. It’s important not to take no for an answer, to do your due diligence and to be respectful. I’ve learned over the years that it’s important to do your research before heading out, so you’re armed with the proper knowledge and protocols to get items complete. It has allowed me to articulate issues, and has taught me different ways to accomplish tasks. I’ve learned that just because you get a no today, does not mean you’ll get the same answer tomorrow. Sometimes, it comes down to reading the person you’re dealing with. Do they look stressed out, are they having a hard time? Sometimes, I must make the decision to come back at a later point, and be respectful of where they are and understand their point of view. I’ve found that effectively communicating and respecting the people I’m dealing with really helps get the job done.Working at RENEW has also taught me how to work with different cultures. Prior to joining the team, I had only worked with other people from Ethiopia. I was used to dealing with customs and values that Ethiopians hold dear and that are ingrained into their workers. Joining a team that had connections to North America, opened a whole new way of doing business. North American culture is very different to Ethiopian work culture; the work hours are sometimes longer, and value is placed more heavily on different outputs. Spending my days with Matt and Laura and learning about their circumstances and experiences, has taught me how to work with different cultures. It has been a learning experience to see how different our cultures are, but to also find the overlaps to work together successfully as a team.<figure class="image"><img src="/uploads/dsc_0589_fotor_c0242e075a.jpg"></figure>Another lesson I’ve picked up is how to work with partner businesses. Being in the investment sector, I’ve had the opportunity to work first-hand with our portfolio companies. I’ve learned that it can be very difficult to manage other companies and the people that work for them, and I’ve found different ways to navigate the boundaries on how far you can push and pull to get things done. At times, I find I’m waiting on information to be delivered to me, and I’ve had to learn when it is time for me to push a little harder to get the information I need in order to provide timely and accurate information to our investors. Sometimes, this part of the job can be challenging and difficult, but it can also be very rewarding. When a company is successful, and when you can see that you’ve had something to do with their success, it’s a testament to the work that is being done here and it makes the process seem worth it.The last big take away that I’ve realized to date, is how important internal business tools are. At RENEW, we’re constantly being pushed to use these tools to their full potential. One tool that has proven to be invaluable is the development and use of SOP’s (Standard Operating Procedures). When I first started, all the tricks, and minute details of the job we’re stored in my head, nothing was written down. By creating, and actively using SOP’s, I now have the freedom to think of more important, big ticket items, rather than the nitty gritty details of my job, that I would need to remember. Now, when I need to do these tasks, I know I have an SOP to turn to, if I need a refresher. I can honestly say that I use SOP’s religiously, and they have made my life easier. Another tool that has improved my work life, is the calendar. A simple tool, however, using it daily has helped me to lay out my days, and blocks off time for items I need to get done. Using these tools, and learning their use, has made me an effective portfolio and operations manager.Overall, working at RENEW has taught me a lot about the industry, and how to be effective in my role. Before coming to this job, I had never had the chance to learn about private equity. It has been a great learning experience to see how this company and industry work within Ethiopia, and on a broader playing field. Working in Ethiopia, and working in a professional business setting, always has its challenges, but noticing the successes, and the takeaways from the job, make it a constant learning experience.

RENEW’s Ethiopia operations manager shares what he’s learned from four years at RENEW

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The Lessons I’ve Learned Working at RENEW

<h1 style="text-align:center;">The Economic Outlook of Ethiopia: An Overview</h1>Working in Ethiopia, we experience firsthand the economic challenges and opportunities faced by the country. Recently, two reports were published which outline the current economic state of Ethiopia and Sub-Saharan Africa. These reports give a great snapshot of the economic stability in Ethiopia, and the current outlook for opportunities and risks going forward in 2017 and beyond.The World Bank Group took a holistic view of Sub-Saharan Africa and found that growth within this region is recovering due to “rising commodity prices, strengthening external demand, and the end of drought in a number of countries” (World Bank, 2017). In the coming year, it is expected that growth within Sub-Saharan Africa will increase to “2.6 percent in 2017 and 3.2 percent in 2018” due to rising commodity prices and improvements to macroeconomic imbalances. Growth on output over the next three years is projected to be at 0.7%, a level where we are not likely to meet the poverty reduction goals within the region.When focusing on Ethiopia specifically, however, the report was more positive. The World Bank Group claims that countries which are non-resource intensive should have positive growth due to support from “infrastructure investment, resilient service sectors, and the recovery of agricultural production” (2017). Ethiopia particularly is slated to expand by 8.3% in 2017, 8.0% in 2018 and 7.9% in 2019, largely due to public investments. The country somehow maintains its position with the fastest and highest growth rate forecasted for any African country, followed by Tanzania and the Ivory Coast.UNDP takes a slightly more negative stance on the economic outlook over the next year, due to continued drought in parts of the country (as a result of the El Niño) and increased fuel prices which put added “pressures on inflation and foreign exchange reserves” (UNDP, 2017). UNDP found that Ethiopia’s economic growth in 2015/16 slowed down to 8%, compared to previous years where growth was around 10%. Currently, the service sectors and government expenditures are the primary reasons for the continued growth for the country.<figure class="image image_resized" style="width:99.22%;"><img src="/uploads/screen_shot_2017_06_30_at_6_35_34_pm_0_1987176991.png"></figure>One major growth driver on the demand side was government expenditures. In 2015/16 these expenditures grew to 27.2%, “gross domestic savings grew by 21.4 percent and savings as percent of GDP reached 22.4 percent and gross capital formation was 28.4 percent” (UNDP, 2017). These indicators show an investment and saving gap of 16.1% of GDP. One of the main sectors affecting the country’s export earnings is the agricultural sector. In Ethiopia, this sector accounts for 73% of current workforce and generates 70% of export earnings.During the first quarter of 2016/17, inflation appears to have been contained. There has been general increases to the price of goods at 8.5%, price of food is up 9.8%, and other items by 7.3% (UNDP, 2017). These food increases include Ethiopian staples such as wheat, teff and sorghum. Inflation price of food is usually due to the “seasonality in agricultural production” (UNDP, 2017). Interestingly, inflation usually occurs during May to October and deflates after the main harvest in November.The Ethiopian Birr is still slowly deprecating at a rate of 6.4%. When the UNDP published the report, the Birr was exchanging at 22.81 Birr to 1 USD. The Real Effective Exchange Rate however shows the Birr appreciating in the second quarter 0f 2016/17. Money supply growth was also up during this period by 25.1% on an annual basis, compared to the same time last year, where it was at 21.7%. The main contributor to this increase was the growth in credit over the past year.During the second quarter, exports of merchandise totalled USD 575 million, which is 20.5% lower than the same time as last year. This is due to international prices of goods declining and supply constraints affecting items such as: oilseeds, gold, flower, and leather. Imports into the country also decreased by 6% to USD 3.9 billion. This decrease, alongside rising fuel costs, indicates a lack of available foreign currency.“Export performance remains to be the challenge of the Ethiopian economy” (UNDP, 2017). The diversification is low since agricultural exports account for 70% of items exported, and manufactured products at 4%. In order to increase performance in this area, a heavier emphasis needs to be placed on exporting processed items such as leathers and textiles.These two recent economic reports paint an outlook for Ethiopia that identifies the challenges but is still hopeful. Despite the country’s slowed economic growth, it is still ahead of all other countries in the region. Upcoming challenges, including extended droughts for parts of Ethiopia, will continue to challenge the economic outlook and will add to the pressure “on domestic prices (inflation) and trade balance as import of food will be required” (UNDP, 2017).For more in-depth information on Ethiopia, the two economic briefs can be found here: <a href="http://pubdocs.worldbank.org/en/710231493655506452/Global-Economic-Prospects-June-2017-Regional-Overview-SSA.pdf">A Fragile Recovery Jun3 2017 World Bank Group</a> <a href="https://www.dropbox.com/s/g15sllurj3hrv27/Quarterly Economic brief 2017-1 (3).pdf?dl=0">United Nations Development Programme Ethiopia Volume 1 2017</a>

A look at the UNDP Quarterly Brief on Ethiopia and WBG’s Global Economic Prospects

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The Economic Outlook of Ethiopia: An Overview

<h1 style="text-align:center;">From India to Ethiopia</h1>Travelling has always excited me, even when it’s an hour-long drive to an unexplored territory. In May, I had the opportunity to go to Ethiopia; it was my first international trip, and I was quite excited. It was the longest flight I’ve ever been on – about 8 hours long.For me, being in Addis was like travelling to India fifteen years ago. The growing construction activity, booming fashion trends, busy traffic and street food, reminded me of India a little more than a decade back. Moreover, I witnessed people celebrating their weddings with car parades, which reminded me of the weddings in India.There were many things that I loved about Ethiopia, but there were two things that stood out: the weather and the exotic cuisine. The weather was pleasant and slightly chilly which made the entire journey enjoyable. Weather in India varies across the country and my hometown usually has high temperatures (about 42 degrees) in summer and low temperatures (about 0 degrees) in winter. While I was in Addis, the temperature was a comfortable 25 degrees most days. I have always preferred cold areas to hot or humid areas. Cold and pleasant weather always keeps my mind and my body going.<figure class="image image_resized" style="width:98.3%;"><img src="/uploads/unnamed_4_0_d7c735e249.jpg"></figure>Having a passion for cooking, I am always up for exploring new food cuisines. Trying out food in different food joints in Addis made the entire stay memorable. My favorite dish was grilled chicken, which my colleagues and I enjoyed at a food joint near our office.Another thing that I loved while I was in Addis was the specialty coffee. In India, instant coffee is quite popular. My favorite coffee was Robera coffee, and I bought sufficient amounts for my personal consumption back home. I bought about five different kinds of coffees while in Addis as I was quite excited to taste as many as I could.<figure class="image"><img src="/uploads/2017_07_05_d36eae898f.jpg"></figure>Weekdays were busy with getting to know my colleagues and understanding more about the organization. Whereas the weekends were mostly occupied with a city tour and other fun activities. An interesting aspect of the city tour was the visit to the market – vegetables, spices, clothing and utensils, were all available in one place. It seemed ironic how such narrow lanes were equipped with all your needs.Overall, I loved my trip to Ethiopia especially because of the pleasant weather, exotic food and awesome coffee. Above all, spending quality time with my colleagues made the entire journey memorable.

Neetesh’s first trip out of India to Ethiopia

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From India to Ethiopia

<h1 style="text-align:center;">Back to the Source: Cotton</h1>In December 2015, members of the Impact Angel Network closed an investment in a family-owned textile and apparel manufacturing facility, Desta PLC. Established in 1992, Desta PLC is a multi-faceted company that oversees several production lines, including embroidery, knitting, cut-and-sew, fabric and garment manufacturing. The company’s dedication to quality and timely service has garnered trust and confidence from domestic and international customers.One could say, though, that this dedication is not only applied to Desta’s customers but its employees as well. At any given time, Desta employs more than 550 individuals, mostly young men and women, and ensure that each day they have access to a healthy subsidized meal, a fair wage, a medical nurse, team trainings and opportunities for advancement. Desta is committed to the fair treatment of its employees and adherence to guiding principles of sustainability, setting it apart from the trajectory this industry has taken in many other low and middle-income countries. Desta is accredited by international standard and compliance organizations. It passed an audit by BSCI (Business Social Compliance Initiative), proof that Desta has created suitable working conditions and takes care of employees. In addition, Desta undergoes a social audit twice a year by SGS, a leading inspection and certification company headquartered in Switzerland. Worldwide Response Accredited Production has also certified the company.<figure class="image"><img src="/uploads/cotton_blog5_216389c621.jpg"></figure>The company’s commitment to sustainability and corporate responsibility is assisting Desta in becoming a market leader in an industry that is just now starting to take hold in Ethiopia and the East Africa region. While the first textile mill in Ethiopia was established nearly 80 years ago, the entire cotton-textile-apparel (CTA) value-chain has been one of the country’s least developed industries, only marginally contributing to the country’s GDP. The reasons for this are many, but two significant causes are lower cotton cultivation rates and a lack of vertical integration across the value chain (1).If you know anything about Ethiopia and the important role that agriculture plays in its GDP, this may actually come as a surprise. While cotton has long been considered a “cash crop” that is grown by commercial and smallholder farmers alike, cotton cultivation has yet to reach its full potential. Ethiopia currently cultivates only 3% of the total 2.6 million hectares that are suitable for cotton production, and out of 84,000 hectares of land that are under cotton cultivation, only 35,000 hectares are irrigated while the remaining is rain-fed (2). This translates directly into the country’s export figures. In 2012, total CTA exports amounted to roughly $27.2M, of which only $4.7M was directly from cotton production (1) - as a comparison point, coffee exports for the same year amounted to $694.6M (3). In addition to lower cultivation rates, up to 70% of cotton that is grown in Ethiopia and the East Africa region is exported to other countries (1). To date, only a handful of textile and garment manufacturers are vertically integrated from “dirt to shirt,” leaving the remaining facilities to import costly raw materials from other countries and stunting the overall textile industry (1).Bringing this point closer to home, 60-70% of what Desta produces is made from 100% cotton or a cotton blend. Of these cotton products, only about 20% is actually made from locally grown Ethiopian cotton, while the remaining 80% is made from imported cotton or polyester-cotton blends. However, this reliance on expensive imports may not be for long. Global sourcing for apparel is currently undergoing a significant realignment due to a rise in labor wages in China, the world’s largest textile exporter; buyers are now looking elsewhere to source apparel (1). So, where might these buyers be looking? You guessed it - Ethiopia.<figure class="image"><img src="/uploads/dsc_0159_10ddd9e6bc.jpg"></figure> To put this in context, the East Africa region currently produces approximately $1B in cotton products (cotton fiber through apparel) on an annual basis, whereas China exported $159.6B in garments alone in 2012 (1). “If one-half of one percent of China’s current garment exports were to relocate, this would represent a near doubling in the value of all CTA exports from East Africa” (1). And Ethiopia is well positioned to take advantage of this shift. The country is rapidly becoming a top destination for textile manufacturing on account of competitive labor costs, government incentives, and low energy costs. Companies such as H&amp;M, Tesco, Gap, Belk, and Walmart, among others, are now sourcing textile products from the country (4).In light of these global shifts, the government of Ethiopia has recently taken steps to further ensure the future success of the sector in naming the CTA industry, across the entire value chain, as a priority sector under the Growth and Transformation Plan II (GTP II). According to <a href="http://allafrica.com/stories/201607151027.html">AllAfrica</a>, the country plans to “increase cotton output from the land productivity level of 15 quintals/ha in 2015 to 28 quintals/ha by 2020. In the long-term, Ethiopia has set out to become self-sufficient in lint cotton supply” by the completion of GTP II. The country is also taking advantage of initiatives such as the Africa Growth and Opportunity Act (AGOA), Common Markets of East Africa (COMESA) and other bilateral trade agreements with Western countries that offer free trade benefits and access to the global and regional markets. And to ensure that facilities are taking full advantage of these agreements, the Ethiopian government has established a National AGOA Center under the Ministry of Trade to help companies better utilize AGOA.In strengthening the cotton cultivation segment of the CTA value chain, Ethiopia will not only support full integration of the important textile industry (one that is expected to significantly contribute towards Ethiopia’s future GDP), but it will also positively affect food and income security for rural populations. “In addition to production for the value chain, by-products include cotton oil and cotton seedcake for home use and cattle feed. Cotton production for smallholder farmers has a strongly positive impact on food security through raising rural incomes. It is highly suitable to be grown in rotation with other staple crops and provides the cash necessary for the farmer to invest more heavily in food crops” (1)All in all, the continued development of the CTA value-chain not only positively affects textile manufacturers, like Desta PLC, but it will also economically benefit the country and the lives of the farmers who are involved in cotton cultivation.

The RENEW team takes a closer look at the cotton, textile, apparel value chain and its role in Ethiopia’s economy.

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Back to the Source: Cotton

<h1 style="text-align:center;">Building Up the Angel Investing Ecosystem in Ethiopia</h1>A big thank you to the <a href="http://addischamber.com/">Addis Ababa Chamber of Commerce and Sectoral Associations</a>! Yesterday, on July 26th, RENEW and the Addis Ababa Chamber, one of our City Partners, hosted a Private Equity seminar as part of the Investment Challenge. We had a full house at the event and were joined by over 50 entrepreneurs, mainly in Addis Ababa’s manufacturing sector.<figure class="image image_resized" style="width:99.54%;"><img src="/uploads/screen_shot_2017_07_27_at_12_17_31_pm_747101acc8.png"></figure>As one of the pioneers of equity investing in Ethiopia, our investment workshops helps participants understand private equity, why it exists and how it can help their business. Our goal is to help build and strengthen the investment ecosystem through targeted trainings, making good investments and growing great companies, in turn leading to financial returns and creation of jobs in Ethiopia.Want to learn more about the Investment Workshops offered by RENEW? <a href="https://www.renewcapital.com/contact">Contact us</a> today for more information and upcoming events.The Investment Challenge, a part of RENEW’s Accelerating Business Growth (ABG) project, is undertaken with financial support of the Government of Canada provided through Global Affairs Canada. Please see the following&nbsp;press release&nbsp;on the ABG project for more details. To find out more about RENEW or the Impact Angel Network, contact us at&nbsp;renew@renewcapital.com, follow us on Twitter <a href="https://twitter.com/Renew_Capital">@Renew_Capital</a> or find us on Instagram <a href="https://www.instagram.com/renewcapital/">@renewcapital.</a>

RENEW hosted a PE Seminar with the Addis Ababa Chamber of Commerce and Sectoral Association

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Building Up the Angel Investing Ecosystem in Ethiopia

<h1 style="text-align:center;">The Big Long Table</h1>Five weeks ago, in February 2017, I ditched my heels for flats, joined RENEW in its impact investment work, and moved to Ethiopia - the land of award-winning long distance runners, out-of-this-world coffee and vibrant, multilingual people. No two days have been the same ever since. The transition has had its highs and lows, for sure, but five weeks later, I am still here in Ethiopia and loving every moment of it. And I have the “Big Long Table” (BLT) to thank for it.The BLT: Just so we are clear, I am not talking about the sandwich here (although I could do with one right now). At RENEW, the entire team sits and works together around a BLT. It might look odd to you at first, but it’s actually quite brilliant. By having managers and staff all sitting within speaking distance from one another, we are extremely efficient and timely in exchanging information, facilitating quick discussions to advance work and problem solve, and become up-to-speed with the progress of our projects. The BLT has one added benefit for a newbie like me: I get to watch my team work and learn in real-time how the best in the industry do what they do, successfully. The BLT has allowed me to see things.<figure class="image"><img src="/uploads/dsc_0113_1_9d99a14263.jpg"></figure>What I Saw: In the beginning, to be honest, I was seeing what I expected to see - the challenges that come with the territory of operating an investment firm in a frontier market. The portfolio companies were slow to respond to my emails and inquiries, I had difficulty validating the information I received, government regulations were unclear and, at times, absent. It was all seemingly bad news.But then, sitting at the BLT day after day, I began to notice something. The portfolio managers visited the portfolio companies in person and took the entrepreneurs through the reasons for our inquiries and the benefits that they would ultimately reap if they replied with accurate and up to date information. The analysts called the portfolio companies’ accountants and worked with them to verify the financials; they even spent half a day in their offices to get things done. Management in both Ethiopia and North America worked tirelessly with the Ethiopian government to clear the path for investment approvals.Every member of the team found creative ways to remove roadblocks, one after another. It was hard work and not all the activities would have been necessarily deemed “efficient” by developed countries’ standards. But the RENEW team showed me that there’s always a successful way to navigate the complex Ethiopian business and cultural context, which in turns would allow the team and our portfolio companies to get the right things done and grow into market leaders.Lessons Learned from the BLT: Through their actions, the team reminded me that the challenges I saw are really not that different from the ones I had experienced in Canada and the U.S. The important thing was to stay disciplined and to focus on the opportunities and not on the problems. And above all things, the team taught me that the most important aspect about working and living in Ethiopia is the importance of being a great relationship manager.Ethiopia, as in any developing nation, can be bit separated from the rest of the world and has a singularly unique history, culture, and national identity. And while the people embody different values and cultures, they will be open and respectful if I truly take the time to ask questions and understand where they come from.It does not mean that I cannot bring change nor be disruptive. In fact, new ideas are welcomed. What the team taught me was that, in this environment, trust and relationship among the team members, portfolio companies, and community at large are not just greatly valued, they are indispensable.Fve Weeks Later: I find that the people in Ethiopia are warm and generous, and the work we are doing is meaningful. I now have better clarity and a roadmap of how to approach and achieve RENEW and the portfolio companies’ business objectives, thanks to the team and the BLT.Moreover, there’s something about the rawness of the environment, the extremes of climate and the intense humanity that strips you down to the essence of who you are. And while that may sound crazy to some of you, I kind of like it.

Valuable lessons learned from living and working in Ethiopia.

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The Big Long Table

<h1 style="text-align:center;">Back to the Source: Emergency Care</h1>Members of the IAN closed an investment in East Africa Emergency Services, Ltd (EAES) in May 2015. EAES serves providers of emergency medical services and training in East Africa, Ethiopia in particular, in order to ensure that international and domestic clients have access to reliable, high-quality emergency care. EAES works in partnership with local firms, such as Tebita Ambulance and Pre-Hospital Emergency Care (Tebita), by offering business development, procurement, and administrative support. This support drives medical service companies to operate more efficiently and thus, frees them up to focus on their core functions; providing quality medical care for patients in crisis.<figure class="image"><img src="/uploads/bts_tebita_8dc88e984a.jpg"></figure>EAES and Tebita, together, aim to improve the quality of and access to emergency healthcare services across Ethiopia and beyond. Kibret Abebe founded Tebita in 2008 as the first private sector ambulance and emergency medical services company in Ethiopia. Kibret is a licensed nurse anesthetist with more than 25 years’ experience. Tebita provides 24-hour ambulance service in Addis Ababa, remote medical assistance to multinational companies (MNCs) operating in Ethiopia, and ground evacuation services throughout the country. Tebita also offers safety and life support trainings for healthcare and non-healthcare professionals in partnership with <a href="https://www.weber.edu/">Weber State University.</a>Kibret, who previously worked as a nurse anesthetist at a major Addis Ababa hospital, founded Tebita after witnessing the poor conditions of traffic accident victims and other emergency medical patients when they arrived at hospitals. In Ethiopia, very few patients are transported to hospitals via ambulance, while the majority travel by public transportation, taxis, or by walking. In fact, one study of the Tikur Anbessa Specialized Hospital found that during 2012 to 2013, 78.1% of the 9,956 patients that came into the emergency department arrived by means other than emergency transport.(1) In fact, in these instances, minimal to no emergency or pre-hospital treatment was provided to the victims either at the scene or during transit.<figure class="image"><img src="/uploads/bts_tebita1_e2c65004f3.jpg"></figure>Road traffic incidents pose enormous challenges across the world. “Globally 1.3 million fatal and up to 50 million non-fatal injuries are reported… it is the second most common cause of death among the most economically active population group (15–44 year-old).”(2) According the World Health Organization (WHO), Ethiopia is considered one of the worst countries in the world where road transportation kills and injures a large number of road users every year.(2)From June 2012 to May 2013, one WHO report, in particular, took a closer look at a major highway connecting two of the country’s largest cities: Addis Ababa and Hawassa. The report found that an estimated 224 deaths and 1,046 injuries/billion vehicle kilometers occurred on this one road alone over the course of a year.(2) And the key word here is “estimated” because vehicular related deaths and accidents are grossly underreported in Ethiopia and other developing countries. Again, from 2012 to 2013, the WHO records a total of 3,362 traffic fatalities for the country of Ethiopia, but estimates that real figure to have actually been anywhere from 18,528 to 29,146 deaths.(3) And with a population of more than 90 million people that is increasingly urbanizing and becoming more motorized, this number will likely continue to rise.<figure class="image"><img src="/uploads/bts_tebita2_dcdf4f780e.jpg"></figure>It is Kibret’s belief that many of these victims could have been saved if given proper emergency, pre-hospital care by trained health professionals. This critical need to improve patient transportation and pre-hospital care spurred Kibret to take action. After traveling to England to experience a professional ambulance and pre-hospital care system, Kibret returned to Ethiopia with the vision to establish Tebita. He proposed a concept to the Ministry of Health and helped craft the government regulatory standards for the industry. Shortly after, he received the first ambulance license and established Tebita. Because banks were not willing to offer loans for an ambulance service provider, Kibret sold his house, bought three ambulances and began operating in 2008.To date, Tebita has provided ambulance services to more than 40,000 clients and emergency training to more than 25,000 trainees. They remain the only licensed, private, for-profit company providing pre-hospital, emergency care in Ethiopia. Tebita has grown its fleet to eleven ambulances and employs 57 full time staff members. “Tebita” is Amharic for “drop,” a message to force every citizen to think about his or her drop of contribution to humanity. Recently, the Ethiopian government named Kibret as an Ambassador of Health and Social Service and honored the company with the “Extraordinary Award For Dedication and Exceptional Contribution On Health And Social Service in Ethiopia”.But, Kibret is nowhere close to calling it quits. Together with EAES, Kibret has a vision to grow Tebita into the premier first response provider and training company in Ethiopia. He also envisions building a home-based healthcare practice and, eventually, developing an air ambulance evacuation service. The sky is truly the limit when you have such a dedicated and passionate entrepreneur behind the wheel.RENEW is proud to be a part of EAES and Tebita’s story of saving lives.(1) <a href="https://bmcresnotes.biomedcentral.com/articles/10.1186/s13104-015-1592-z">Patterns and predictors of early mortality among emergency department patients in Addis Ababa, Ethiopia</a> (2) <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4108419/">Road Traffic Deaths and Injuries Are Under-Reported in Ethiopia: A Capture-Recapture Method</a> (3) <a href="https://www.afro.who.int/publications/global-status-report-road-safety-2015#:~:text=The%20Global%20status%20report%20on,rates%20in%20low%2Dincome%20countries." target="_blank" rel="noopener noreferrer">Global status report on road safety 2015: Ethiopia</a>

RENEW explores five important resources that will help companies take their game to the next level.