<h1 style="text-align:center;">RENEW to Help Launch Season 2 of Chigign ‘Tobiya</h1>Season 1 of Chigign ‘Tobiya was a success culminating in the show’s angel investors choosing three companies to invest in, pending they pass due diligence. On September 11, 2018, just after the Ethiopian New Year’s Day, in a premium slot on national television, the show broadcasted the final episode of Season 1 during which the following three entrepreneurs were chosen by the panel of local angel investors for investment:<ul><li>Rohobot - A provider of home care nursing and training</li><li>YenePay - A mobile payment platform</li><li>BAMA Coffee - A mobile coffee-to-go business</li></ul>The transactions are in process, pending due diligence, and in the meantime, RENEW is helping to launch Season 2 of the TV series which will appear on Fana TV, Fridays at 8:30 PM. Girmay Haile Gebreselassie, the visionary behind the show, will return to produce Season 2. He has written and directed two movies, three plays and has a solid career in IT.Chigign is a reality TV show dedicated to elevating entrepreneurship and angel investing, with a special focus this season on female entrepreneurship. The show aims to encourage and educate youth and society at large about the importance of innovation, entrepreneurship, private equity, angel investing and the private sector in general in Ethiopia. RENEW is proud to be a sponsor, to be represented on the panel by our own Laura Davis, and also to invest in winning entrepreneurs who pass our due diligence process.Visit <a href="https://www.youtube.com/watch?v=GyovqM8acCY&amp;feature=youtu.be">YouTube</a> to view a short program clip or <a href="http://www.tonetormultimedia.com/">HERE</a> to see the advertisement.Show Name - Chigign 'Tobiya (Roughly translated to “Ethiopia Emerges”)The Concept - Chigign 'Tobiya is a platform for entrepreneurs to gain access to potential capital, contracts and coaching. Entrepreneurs appear and pitch in a venue that combines the American TV programs “Shark Tank” and “American Idol”. Entrepreneurs who move on through the competition receive coaching from the Chigign team and, in some cases, the judges with a focus on enhancing the entrepreneurs’ business concepts. The top contestants who make it to the final round will be considered for an investment from the panel's fund.Get Involved:Pitch Your Company or Idea - The Chigign 'Tobiya team will choose more than 30 entrepreneurs each season and have them pitch their company or idea for a chance to appear on the show.Be an Investor - Be a permanent or rotating investor on Chigign 'Tobiya. Hear pitches, mentor entrepreneurs and vote with the panel to allocate the fund to finalist entrepreneurs. Not interested in appearing on the show? There are still options to be involved. Reach out via email to learn more (contact information is below).Be a Sponsor - The Chigign 'Tobiya team is looking for sponsors interested in promoting entrepreneurship and innovation among Ethiopian youth and the society at large. We offer sponsors options to be featured in Chigign Tobiya events and programming, among a variety of benefits. Contact us to learn more (contact information is below).Ecosystem Partner - Do you work with Ethiopian entrepreneurs? We'd love to add value to your program by having your entrepreneurs pitch on Chigign 'Tobiya.Contact- Interested in being involved? Email us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or visit <a href="http://chigign.com">www.chigign.com </a>for more information.

Edutainment uses mass media as a platform to educate the public and elevate the concept of entrepreneurship and angel investing across East Africa. In Ethiopia, Renew Capital helped to build Chigign, a reality TV show dedicated to elevating entrepreneurship and angel investing. Future programs will aim to extend this educational work across Africa.

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For Youth Entrepreneurs and Local Angel Investors

Elevating Entrepreneurship and Angel Investing in Ethiopia

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RENEW to Help Launch Season 2 of Chigign ‘Tobiya

<h1 style="text-align:center;">A Look Back at 2018: Words and Pictures</h1>As we stand in the early days of a new year, it’s one of our traditions at RENEW to look back at the milestones we accomplished during the last 12 months. The work is not just happening in Ethiopia, but it's happening around the world. At RENEW, we are trying to tap into the enormous potential of making impact investing possible for 'not just the big funds' but for individual investors - angels. Here are some of the highlights for RENEW in 2018.<figure class="image image_resized" style="width:100%;"><img src="/uploads/year1_animation_6cd0459816.gif"></figure><ul><li>January – We started the year with our annual partners planning session in Colorado. It was a snowy and productive time in the mountains. We then packed our bags and headed to Texas, Georgia and New York to meet with people interested in our work in Ethiopia.</li><li>February – We rolled out our second round of the <a href="https://www.renewcapital.com/companies">CFO100</a> and <a href="https://www.renewcapital.com/companies">The Exec’s Program</a>. We also had IAN Member, Jeff Turi, join us for a month in Ethiopia to learn the ropes about what we do here at RENEW.</li><li>March – We held our second <a href="../2018/second-women-finance-event.html">Women in Finance</a> event in partnership with Enat Bank. We also traveled to Toronto, Canada to meet with a number of our Canadian IAN Members and we held two events in the city.</li><li>April – We traveled to Ottawa to visit our friends at Global Affairs Canada! We had several meetings and had the chance to host a brown bag lunch to report our success.</li><li>May – We helped launch Season 1 of <a href="../2018/ethiopia-emerges-chigign-tobiya.html">Chigign ‘Tobiya</a>! This show proudly works to build Ethiopia’s entrepreneurship and angel ecosystem. We also closed our 10th investment in FC Speciality.</li><li>June – We traveled to <a href="https://renewcapital.com/blog/2018/june-investor-trip">Minneapolis and Chicago</a> to meet with investors and other people interested in the work RENEW is currently doing. We also released our <a href="../2018/third-annual-impact-report.html">Third Annual Impact Report</a>. Several members of RENEW’s international team got their feet wet working on the ground in Ethiopia.</li><li>August – We finished the Exec’s Program with three intensive sessions where we invited the executives from both cohorts to participate. We are very excited that the results from this program are exceeding benchmarks!</li><li>September – We expanded into our second country, <a href="../2018/press-release-renew-enter-uganda-market.html">Uganda</a>! We also traveled to Wilmington DE and Charlottesville, VA to meet with members and others who were interested in learning more about our work.</li><li>November – We closed our <a href="../2018/press-release-renews-impact-angel-network-closes-eleventh-investment-east-africa.html">11th investment</a> in Ethiopia! RENEW and the IAN invested in ET Fresh, LLC, a company focused on increasing the branding, value and market reach of Ethiopian products into the Middle East and other markets.</li><li>December – We helped launch Season 2 of <a href="../2018/renew-help-launch-season-2-chigign-tobiya.html">Chigign ‘Tobiya</a>! We also finished the year the way we started it, with a planning session, but this time in Virginia. We are planning for 2019 to be a big year.</li></ul>Overall, we saw growth in our portfolio, and our companies supported more than 2,280 jobs. Throughout the year, we enjoyed connecting with members of the Impact Angel Network in Ethiopia and around the world. We are grateful to our partners in Ethiopia and the Government of Canada who make our work in Ethiopia possible and to the inspirational entrepreneurs leading our <a href="../../marketplace/portfolio.html">companies</a>.As we take on 2019, we raise a toast to our investors, our partners, our entrepreneurs, our team…and to our vision where people see Africa as a land of opportunities (not problems). Here's to a good 2019!!<a href="https://www.linkedin.com/in/matthew-davis-a948772/">Matthew Davis</a>, <a href="https://www.linkedin.com/in/tom-scriven-cfa-1b61767/">Tom Scriven</a>, <a href="https://www.linkedin.com/in/laura-davis-25764430/">Laura Davis</a>, <a href="https://www.linkedin.com/in/justin-reesor-019a942a/">Justin Reesor</a>, <a href="https://www.linkedin.com/in/erinhoconnor/">Erin O’Connor</a>, <a href="https://www.linkedin.com/in/eziethen/">Emily Ziethen</a>, <a href="https://www.linkedin.com/in/neetesh-dohare-2906b978/">Neteesh Dohare</a>, <a href="https://www.linkedin.com/in/praghuwanshi/">Prasoon Raghuwanshi</a>, Lulit Negash, <a href="https://www.linkedin.com/in/renatamakhoul/">Renata Makhoul</a>, <a href="https://www.linkedin.com/in/yoseph-getachew-98184366/">Yoseph Getachew</a>, <a href="https://www.linkedin.com/in/tsegamlak-solomon-921175a2/">Tsegamlak Solomon</a>, <a href="https://www.linkedin.com/in/kirsten-newman-10301aa7/">Kirsten Newman</a>, Teddy Fantahun, <a href="https://www.linkedin.com/in/dagmawit-shiferaw-8665943b/">Dagmawit Shiferaw</a>, <a href="https://www.linkedin.com/in/filseta-asrat-4b5615158/">Filseta Asrat</a>, <a href="https://www.linkedin.com/in/mary-adoi-0317b0b8/">Mary Adoi</a> &nbsp;

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A Look Back at 2018: Words and Pictures

<h1 style="text-align:center;">An Angel Investor's Tour to Ethiopia, Uganda and Rwanda</h1>At the end of January, a longtime member and IAN investor, Dr. Andrew Umhau, joined Matt, Laura and Brooklyn on a regional trip across East Africa to see how the Ethiopia <a href="../../marketplace/portfolio.html">portfolio</a> was doing, meet new companies in Ethiopia and Uganda, and explore Rwanda. It was Dr. Umhau’s first trip back to Addis in over 7 years and a lot has changed since he last visited, including the amount of growth the country has undergone.<figure class="image image_resized" style="width:100%;"><img src="/uploads/img_5912_2_2673dc655f.jpg"></figure>Over the course of the week with RENEW, Andrew was able to visit over 20 different businesses. This included a number of site visits, as well as meetings with partners and entrepreneurs. It was a unique opportunity for him to see some of the businesses his family had invested in, as well as other companies in the RENEW portfolio and in the current pipeline. Visiting RENEW in-country is always a valuable trip and provides a first-hand experience seeing the companies that are discussed on our Monthly Members’ Calls.After a few days in Addis, Andrew and the RENEW partners took off for Kampala, Uganda. Joined by our team member in-country, Mary Adoi, the group had the opportunity to visit with 16 different businesses currently interested in receiving financing. The entrepreneurs in Uganda were eager and excited for the prospect of working with RENEW.<figure class="image image_resized" style="width:100%;"><img src="/uploads/img_6039_2_20d69849ab.jpg"></figure>The last leg of the journey was a stop in Rwanda: an exciting, young country vibrant with businesses. The team agreed there was a lot of growth potential in the country, and were excited by the people and the city of Kigali.Overall, Dr. Umhau experienced first-hand how RENEW works in-country. He had the chance to meet our team on the ground as well as a number of businesses, and he was able to witness some of the training and vibrant community that has been built at the Exchange.<figure class="image"><img src="/uploads/img_6140_3d45539148.jpg"></figure>

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An Angel Investor's Tour to Ethiopia, Uganda and Rwanda

<h1 style="text-align:center;">Press Release: Official Launch of KROTAJ Tahini Manufacturers PLC’s Processing Factory</h1><a href="https://renewcapital.com/sites/default/files/02.11.2019_-_press_release_-_krotaj_launch_final_1.pdf">Download the Full Press Release.</a>Addis Ababa, Ethiopia February 11, 2019 -- On February 12, 2019, KROTAJ Tahini Manufacturers PLC (KROTAJ), will host a formal launch event to celebrate the opening of its tahini factory in Addis Ababa. Visitors will witness the production of tahini at the newly certified factory and sample the product.Date: February 12, 2019 Time: 3 PM in the afternoon Location: Nifas Silk Lafto Sub City Woreda 12 (Lebu, Mebrat hayel behind Haile Garment)KROTAJ is an international partnership of sesame experts and investment professionals formed to produce world-class tahini close to the source of some of the world’s finest sesame from the Humera region of Ethiopia. The company’s mission is to become the leading provider of tahini to the international food processing industry.<figure class="image"><img src="/uploads/img_5956_40fb42729f.jpg"></figure>Sesame is one of the leading agricultural products exported by Ethiopia, generating a significant amount of foreign currency revenue for the country. Value addition to sesame in Ethiopia has so far been limited, but has the potential to both increase overall revenue for Ethiopian sesame producers and open up new markets worldwide.The company, by sourcing sesame locally, will support thousands of smallholder farmers and strengthen the sesame industry in Ethiopia. The new factory plans to produce 3,758 tons of tahini per year and directly employ more than 40 staff at full capacity. KROTAJ is anticipated to have a significant impact on the local economy and its shareholders and managers are excited to celebrate this milestone of opening a state-of-the-art tahini processing factory in the home of the some of the world’s best sesame. “We are grateful for our Ethiopian, Israeli and U.S. partners who have helped us get to this stage of launching a tahini factory in Ethiopia,” CEO, Dr. Mulugeta Kidanemariam, recently said.<figure class="image image_resized" style="width:100%;"><img src="/uploads/tahini_fotor_2_0_a31a796afd.jpg"></figure>“Our partners include Wegagen Bank, many Government partners, and several U.S. investors, including RENEW and the Impact Angel Network,” said Meseret Kidanemariam, sister to Dr. Mulugeta and a co-founder. “Each group has been integral in helping us get to this key stage. Now it’s time to produce and export exceptional tahini to the world market,” she continued.As a key stakeholder, RENEW and the Impact Angel Network (IAN) are proud to partner with KROTAJ Tahini Manufacturers PLC.&nbsp;###

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Press Release: Official Launch of KROTAJ Tahini Manufacturers PLC’s Processing Factory

<h1 style="text-align:center;">Press Release: RENEW and the IAN Make Second Investment in Logistics and E-Commerce Company in Ethiopia</h1>Denver CO and Addis Ababa, February 19, 2019 -- Members of RENEW’s <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> (IAN) have funded a second investment in Roadrunner Technology Solutions LLC (Roadrunner), which partners with Universal Courier Services PLC (<a href="https://deliveraddis.com/">Deliver Addis</a>) to expand the burgeoning logistics and e-commerce industries in Ethiopia. Deliver Addis is a technology enabled, online food delivery company based in Addis Ababa, Ethiopia, launched in October 2015. Deliver Addis has succeeded in building a loyal customer base by offering meal delivery services from select restaurants around Addis Ababa. Since the IAN’s initial investment in 2017, the company has focused on three main service areas: logistics, B2C focused e-commerce and technology.<figure class="image"><img src="/uploads/roadrunner_almost_done_887f39dc57.jpg"></figure>Roadrunner and Deliver Addis utilized the IAN’s initial investment to enhance and expand its restaurant delivery services for consumers in Addis Ababa. Roadrunner developed a technology platform for Deliver Addis which has enabled the courier company to significantly reduce average delivery times, handle higher volumes and add additional service offerings. In addition, Roadrunner launched a new website for Deliver Addis with additional features, including a loyalty program and credit card payment options, as well as new restaurant offerings. With the IAN’s second investment, Deliver Addis intends to expand its service offering, allowing customers to order deliveries from a wider range of restaurants, as well as a soon-to-be-launched menu of retail products. The company also aims to expand its offering into new markets, making deliveries accessible to a wider segment of the Ethiopian population.“RENEW and the IAN exist to invest in smaller companies like Roadrunner and Deliver Addis, which are creating jobs for Ethiopian men and women by supporting local businesses and which can deliver strong performance following an investment,” said Matthew Davis, RENEW’s CEO. “We are pleased to be investing a follow-on round at a time when Roadrunner and Deliver Addis are positioning themselves as leaders in the nascent e-commerce industry in Ethiopia. We could not invest in companies like Roadrunner if it were not for Global Affairs Canada and USAID, and we are grateful for our partnerships with them.”<figure class="image"><img src="/uploads/deliveraddis2_0_80bacb826e.jpg"></figure>“RENEW and the IAN have been incredible partners during our growth since their first investment last year and we're glad to see that they are as optimistic about Ethiopia as we are,” said Feleg Tsegaye. “Since their first investment, we've been able to generate significant value for our partner restaurants as well as expand and optimize our driver fleet to ensure we're satisfying the needs of an ever-growing customer base. We're looking forward to our next chapter of growth and our continued relationship with RENEW's support.”About the Impact Angel Network and RENEW The Impact Angel Network is one of the most active private equity investors in Ethiopia. Its members seek to make both social impacts and financial returns through investments in small and medium enterprises (SMEs); a proven engine of economic growth and job creation, but lacking capital in Africa due to their size. They believe that targeting employment through SMEs, dollar-for-dollar, can help reduce poverty in a more sustainable way than charity.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims at sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.&nbsp;###

The IAN's second investment in Roadrunner.

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Press Release: RENEW and the IAN Make Second Investment in Logistics and E-Commerce Company in Ethiopia

<h1 style="text-align:center;">Being an Intrapreneur</h1>Intrapreneur: “an employee within a large company who takes direct responsibility for turning an idea into a profitable new product, service, business” (<a href="https://dictionary.cambridge.org/dictionary/english/intrapreneur">The Cambridge Dictionary</a>)As an economist passionate about the economy and driven to make a change, I joined one of the biggest government enterprises a few years ago while it was undergoing a huge transformation. While I worked there, I was able to experience all the excitement and challenges of this transformation. After five years, equipped with the different techniques and methods I learned in this position, I decided I wanted to share this experience with companies going through other minor or major transformations, which led me to a consultancy firm.At the same time, my father decided to embark on a new venture of opening a business. Through his eyes, I was able to see the challenges and opportunities of being an entrepreneur, even though I was providing professional support from the outside. I didn’t fully join his company until they expanded to water well drilling, at which point I spent 3 years fully devoted to developing the business and building the market integration.<figure class="image"><img src="/uploads/teamphoto_0_b811d80023.jpg"></figure>However, after a few years, my father knew I was not content with just supporting his small company grow. He knew I had a lot more to give to other companies and that was when I decided to look for other opportunities and other companies I could support and transform.I decided to look for a new job and during my very first search, I found RENEW and its portfolio of companies. I saw it as an array of businesses that I could support by providing sales and marketing services and a pool of companies I could help to get an investment. This was exactly the kind of platform I was looking for. Having been on both sides as an entrepreneur and an intrapreneur, I realized I was much more content supporting different businesses and contributing to the general economy of Ethiopia by increasing the role of private equity investments, rather than just getting income from my own business. I realized I was an intrapreneur, not an entrepreneur. I am that person working in the organization that eventually ensures organizational success, progress, competitive edge, and market sustainability.Don’t get me wrong, I am not saying this is an easy job, especially with two kids requiring the same level of attention and devotion the companies require. But with a little balance and the tools that RENEW offers, it becomes manageable.In my 10 years’ experience with both small local businesses and big enterprises that had the support and consultation of international companies, I have never come across the same level of strategic planning that is perfectly aligned with day to day operations as RENEW uses. The Annual Management Plan, the Key Results and the legend linked to each hour in our calendars works wonders. Because of this, every entrepreneur that I meet will get at least a 20-minute talk from me about these tools.My journey to being a great intrapreneur just started, and I will not be done until I fulfil my goal of introducing companies to this private equity world, to help them use the tools available and until I help them become market leaders. I do this because I believe I will be able to leave a better playing ground for my kids, whether they want to be intrapreneurs or entrepreneurs in the future.

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Being an Intrapreneur

<h1 style="text-align:center;">Econ-Tourism Trips: Where Indiana Jones Meets Warren Buffett</h1>Over the years, I have hosted hundreds of investors in Ethiopia. One would think it could get monotonous, but it never does. More and more, high-net-worth individuals and families are signing up to become impact investors and choosing this as a more sustainable strategy for creating impact in Africa over more traditional charity models. Our role is to help them make good decisions and to oversee their investments on the ground. Our strategy is to find, vet and present the best small and medium enterprises (SMEs) in Africa to our growing network of global change agents, called the Impact Angel Network (IAN). Each investor has a fascinating "journey of impact" that brings them to consider the idea of investing in Africa's future. It's amazing to hear their personal stories as we walk through factories, hear pitches from women-led companies, sit with employees of companies our investors have backed, and drive around the bustling cities of Addis and Kampala.Many trip participants have "aha" moments during these visits and take another step forward in developing a new framework around Africa's economic potential for financial returns and social impact. For me, each trip we host and every story I hear brings me back to the moment I realized the future we must be part of on the continent of Africa is building the private sector. Having investors in town also provides a concentrated time for me to have my own "aha" moments over and over again. The private sector needs to keep pace with the millions of youth that are entering the workforce each year. In Sub-Saharan Africa, more than 60% of the population is under the age of 25, and around 15 to 20 million well-educated young people are expected to join the workforce every year for the next three decades (World Economic Forum, 2017). The private sector needs to grow, and grow fast, and everyone needs to take part in making this happen or all of our efforts will be swept away with rising unemployment rates. But to watch hundreds of workers making things like yogurt, bread, shoelaces, toothpicks, tee-shirts, juice...I have hope. One business at a time, we can create thousands of jobs and a thriving economy.<figure class="image"><img src="/uploads/img_e6341_animation_9d2836eddf.gif"></figure>And there is an exciting upside to this story. By 2025, it is projected that almost two-thirds of the 303 million households in Africa will have discretionary income, an addition of almost 90 million consumers in a decade. This growth is expected to push Africa’s GDP growth from 4.9% to 6.2% in the next 10 years, outpacing the global GDP rate of 3.7% (McKinsey, 2015). Smart investors are seeing the "Made in Africa" brand as the next big thing. Indigenous companies, industrious entrepreneurs, creating products with features that appeal to their domestic markets at a price-point that works with the economy; that's a great opportunity. This both gives me hope and gets me excited as an impact investor.As I walk around the companies we have invested in - I am proud to say I have backed ten companies here in Ethiopia - it's with great pride that I observe the women our companies are employing and know that each one likely supports multiple people in her household and that their living conditions are improving. She's hopefully having better access to clean water, healthcare and education because she has a job.We recently had several members of the Impact Angel Network in Addis Ababa and the time was full of good conversations and observations. During the Econ-Tourism Trip, we saw 4 portfolio and 9 pipeline companies. My partner and husband, Matthew Davis, then took several of them on to Uganda where they spent a day meeting several more companies we are considering for investment.Africa's private sector is the future. We all need to get behind it and play a role in supporting local companies grow into big ones and create millions of jobs to absorb the youth that will be entering the workforce. I encourage you all to come see what is happening here in Africa. Think different. See the future. Grow a company, build a nation and leave a legacy. This is the mission statement of the Impact Angel Network. If you are on a journey to witness firsthand and potentially invest in Africa's economic potential, we invite you to join us in Ethiopia for the next Econ-Tourism Trip October 27 - November 2, 2019.****Please note: Specific investment opportunities are made available only to “accredited investors” after completing the Impact Angel Network registration and onboarding process and following a waiting period.<hr>Sources:World Economic Forum (May 2017). The Future of Jobs and Skills in Africa. Retrieved from: <a href="http://www3.weforum.org/docs/WEF_EGW_FOJ_Africa.pdf">http://www3.weforum.org/docs/WEF_EGW_FOJ_Africa.pdf</a>McKinsey &amp; Company (July 2015). Winning in Africa’s Consumer Market. Retrieved from: <a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/winning-in-africas-consumer-market">https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/winning-in-africas-consumer-market</a>

Join us for our next Econ-Tourism Trip from October 27 - November 2, 2019.

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Econ-Tourism Trips: Where Indiana Jones Meets Warren Buffett

<h1 style="text-align:center;">Improving Ethiopia’s Investment Profile</h1>We at RENEW join Ethiopia in celebrating the heightened attention it has received recently within the international investor and business community. The country’s liberalizing reforms are gaining momentum under the fast-moving leadership of Prime Minister Dr. Abiy Ahmed, presenting increased reason and opportunity for the rest of the world to take notice. Many have seen great economic potential in the country’s fast GDP growth, abundant natural resources, growing middle class, political and strategic importance in Sub-Saharan Africa and relative political stability. Yet, the challenges of doing business in Ethiopia have caused many U.S. and other foreign investors to be reluctant to invest in Ethiopia. We applaud the administration’s efforts to change this reality.RENEW is heavily invested in Ethiopia’s success. Our team, based primarily in Addis Ababa, facilitates angel investments into companies in Ethiopia and works with these investee companies to help them become more competitive in both international and domestic markets. We have been operating in Ethiopia since 2012 and, together with the Impact Angel Network (IAN), have become one of the most active private equity firms in the country. Since 2012, RENEW and the IAN have made twelve investments in ten companies supporting nearly 2,200 jobs, generating millions of dollars in export earnings, and supporting more than 5,700 small-holder farmers along multiple agricultural value chains. RENEW has implemented an “accelerating business growth” (ABG) program in Ethiopia in partnership with the Canadian government. We are advised by an ABG advisory group which includes prominent businessmen and government officials from Ethiopia. We have learned a lot about investing in Ethiopia from our local advisors and are very thankful for their support.Recently, we were invited by members of the Ethiopian government to report on the challenges that we are encountering when investing in the country and to suggest areas for improvement. We have had a number of fruitful discussions following up on this invitation as part of the government’s efforts to reform its investment regulatory and administrative framework to align it with recent changes in economic policy priorities. The focus of these discussions has been on the areas and recommendations outlined below:<figure class="image"><img src="/uploads/whitepaper_3c057a6ee8.jpg"><figcaption>Image Source: France 24: <a href="https://www.france24.com/en/20180730-abiy-ahmed-spreads-hope-reform-ethiopia">Abiy Ahmed: Ethiopia's first Oromo PM spreads hope of reform</a></figcaption></figure><ul><li>Restrictions on Investment Structures Commonly Used by Investors in Early Stage Companies: Investors frequently cite a lack of options for structuring their investments, particularly in early-stage companies. We recommend loosening restrictions on lending (including interest rates), considering long-term options to open the debt markets, allowing other entity types (such as a PLC) to issue preferred shares, and providing greater flexibility for small equipment leases.</li><li>Enforceability of Investment Agreements: Oftentimes, investors are nervous that their investment agreements (such as a share purchase agreement or shareholders’ agreement) will not be enforceable. We suggest clearly stating in the law that all investment agreements will be separately enforceable, in addition to companies’ memorandums and articles of association, and clearly outlining any witness or other authentication requirements for such agreements.</li><li>Frequent Regulatory Modifications: Investors express some concern that regulations will be modified unexpectedly or without explanation. To alleviate this concern, we suggest providing additional notice periods for regulatory changes so that investors can plan accordingly and seeking public commentary before final laws are published.</li><li>Delays and Uncertainty in the Process of Registering Capital: Various agencies play a role in registering foreign investments, including the EIC, NBE, MOTI and DARA. Officials at each agency sometimes provide conflicting guidance and the number of agencies can cause delays and uncertainty as to whether an investment will be reliably approved. We recommend enhancing the training of government officials responsible for registering foreign investments, streamlining the number of agencies involved, and restricting notaries’ duties to ensuring the authenticity of documents (rather than performing substantive reviews).</li><li>Repatriating Capital: Investors often fear that they will encounter significant administrative delays when trying to convert currency and repatriate capital. To ease these concerns, we recommend that the NBE publishes its track record of paying remittances and, if possible, provide a platform through which investors can track their place in the queue to repatriate dividends or capital.</li><li>Sector Restrictions on Foreign Investors: We recommend opening up additional sectors to foreign investment. Rather than having a list of defined sectors in which foreign investors can invest, we recommend a narrow list of prohibited sectors, leaving all other sectors open to foreign investment. Certain sectors could first be opened through investment by a joint venture between foreign and domestic investors, to allow for a gradual opening of the sector.</li><li>Treatment of Local Companies with Foreign Minority Shareholders as “International Companies”: Foreign investors often take a minority equity interest in a local company, in an effort to help that company compete with international players. However, we understand some companies have lost certain privileges they had as a local business due to these minority investments. We recommend abolishing any policy that favors 100% locally-owned companies over local companies which merely have a foreign minority shareholder, so as not to harm these companies and undercut the growth that the foreign investment is intending to facilitate.</li><li>Registration of Title: Providing for title registration at the municipal level can oftentimes cause delays in the operation of a company’s business, if the local office is closed or unavailable for any reason. We recommend providing for an alternative to municipal registration in an effort to alleviate delays.</li></ul> &nbsp; &nbsp;

RENEW suggests investment reforms to attract more foreign investment and business

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Improving Ethiopia’s Investment Profile

<h1 style="text-align:center;">Press Release: RENEW &amp; the IAN Commit Capital to an All-Women Fund</h1><a href="https://renewcapital.com/sites/default/files/press_release_-_womens_package_-_final_1.pdf">Download the Full Press Release.</a>Denver, CO and Addis Ababa, Ethiopia, April 23, 2019 --RENEW and the <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> have committed capital to a fund dedicated to investing in women-owned and led companies in Ethiopia and Uganda. RENEW and the IAN, now one of the most active investment groups in East Africa focusing on small and medium enterprises (SMEs), designed the fund to address a pressing need to close the financing gap for women-owned companies in Sub-Saharan Africa.Worldwide, only one-third of SMEs are managed by women (World Bank, 2015). In developing countries in particular, studies have shown that women-owned businesses face higher challenges to business success, especially in the area of financing. It is estimated that 70% of women-owned SMEs in emerging markets are not being properly served by the financial institutions in the area, resulting in a $285 billion financing gap. The World Bank notes that “addressing this financing gap and investing in women-owned enterprises is one of the highest-return opportunities available in emerging markets” (2015).<figure class="image"><img src="/uploads/womenspackage_dc94f294e2.jpg"></figure>The new fund will make investments in 3 to 5 women-owned companies, pending satisfactory completion of due diligence. In creating the fund, RENEW and the IAN used a new approach to address social and financial barriers holding back the private sector in Africa. The fund, which supports the <a href="https://sustainabledevelopment.un.org/?menu=1300">Sustainable Development Goals</a> (SDGs), was oversubscribed by the IAN and will support job creation for women and youth and empower women entrepreneurs in Ethiopia and Uganda."There is data that shows that despite comparative investment outcomes, female entrepreneurs are often overlooked by the business and investment communities,” said Laura Davis, Partner &amp; Head of Investor Relations at RENEW. “We hope the Impact Angel Network can show others that by investing in women-led companies we are not just advancing a social agenda, we are making sound investments.”The inspiration for the fund came after a number of the owners being considered for the fund took and excelled in RENEW’s <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">Exec’s Program</a>, a four-month business program which provides participants with the tools they need to successfully scale their businesses. All the companies currently being considered for the fund have completed or are currently participating in The Exec’s Program. “We've known the women we are planning to work with as part of this fund through our Exec's Program, and we have been impressed with their companies," explained Laura Davis.The all-women investment fund has been made possible because of RENEW’s partnership with <a href="https://www.canada.ca/en.html">Global Affairs Canada</a> (GAC). RENEW’s public-private partnership with GAC aims to support high potential, responsible SMEs in Ethiopia, providing them with the tools, resources and training they need to attract and efficiently use finance to grow, thereby enabling them to play a stronger role in the Ethiopian economy.Several of the entrepreneurs being considered for this fund will be attending RENEW’s Impact Angel Network <a href="https://www.renewcapital.com/resources/blogs/Press%20Release%20%202019%20International%20Gathering">International Gathering</a> on May 17, 2019 in Washington D.C.About the Impact Angel Network and RENEWThe Impact Angel Network is one of the most active private equity investors in Ethiopia. Its members seek to achieve both significant positive social impact and financial returns through investments in small and medium enterprises (SMEs) in Africa, a proven engine of economic growth and job creation which often lacks capital due to their size. RENEW and IAN members believe that targeting employment through SMEs is, dollar-for-dollar, is the most effective and sustainable way to reduce poverty.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims at sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.To find out more, please visit <a href="../../index.html">www.renewcapital.com</a>.&nbsp;###&nbsp;Source: The World Bank, 2015: <a href="http://www.worldbank.org/en/news/feature/2015/11/16/financing-women-entrepreneurs-in-ethiopia">SME Financing: Women Entrepreneurs in Ethiopia</a>&nbsp;###

The Fund will support female entrepreneurs and job creation for women and youth in Sub-Saharan Africa