<h1>Renew Capital Legal Brief - October 2024</h1>The latest changes in Africa's regulatory environment<figure class="image"><img src="/uploads/Newsletters_and_Legal_Brief_3e57dfff40.png" alt="Photo of Renew Capital's October 2024 Legal Brief document."></figure>Renew Capital monitors Africa’s evolving legal landscape, sharing key insights with investors, entrepreneurs and policymakers in Africa’s dynamic business environment. Explore our curated&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">snapshots</a> for a closer look at African startup ecosystems.Ethiopia:<ul><li>The National Bank of Ethiopia (NBE) Reviews FX Trading Fees - NBE now requires banks to clearly separate foreign exchange (FX) trading spreads and disclose FX fees to clients, effective October 15, enhancing transparency in Ethiopia’s FX market.</li></ul>Ghana:<ul><li>The Ghana Investment Promotion Centre (Amendment) Bill (GIPC Bill) Goes Public -&nbsp;The GIPC Bill, under public review until October 31, aims to reduce barriers for foreign investors by potentially removing share capital requirements for foreign-owned businesses and reserved activities for locals.</li></ul>Kenya:<ul><li>Court Strikes Down Derivatives Tax, New Horticulture Bill Introduced -&nbsp;The High Court deemed the 2023 Income Tax regulations on derivatives unconstitutional, promoting the adoption of these financial products. Additionally, a new Horticulture Crops Authority Bill proposes stricter regulations and penalties for the horticulture sector.</li></ul>Nigeria:<ul><li>The Central Bank of Nigeria (CBN) Establishes FX Market Principles - CBN released a draft Foreign Exchange Code, modeled on the FX Global Code to ensure transparency and fairness in the FX market, encouraging foreign investment.</li></ul>Rwanda:<ul><li>Contracts for the International Sale of Goods (CISG) Accession Effective October 1, 2024 -&nbsp;Rwanda’s accession to the UN Convention on Contracts for the International Sale of Goods (CISG) took effect on October 1, 2024, impacting international sales contracts.</li></ul>South Africa:<ul><li>New Dividend Tax for Kuwaiti, Dutch and Swedish Shareholders -&nbsp;New tax protocols require Kuwaiti, Swedish and Dutch shareholders to pay a 5% to 10% dividend tax, potentially affecting foreign investments.</li></ul>Tanzania:<ul><li>The Bank of Tanzania (BoT) Launches Domestic Gold Purchase Program - BoT now buys gold domestically, offering competitive prices and incentives, including zero-rated VAT and reduced fees. This strategy aims to bolster the nation's gold reserves while strengthening the local currency, the Tanzanian shilling.</li></ul>Uganda:<ul><li>Parliament Dissolves NITA-U -&nbsp;Uganda’s Parliament passed a bill to dissolve the National Information Technology Authority Uganda (NITA-U), integrating it into the&nbsp;Ministry of Information, Communication Technology (ICT), aligning with the government’s rationalization policy.</li></ul>Pan-African:<ul><li>Regional Competition Authority Becomes Operational -&nbsp;ECOWAS Regional Competition Authority (ERCA) became operational on October 3, 2024, overseeing cross-border transactions within ECOWAS that meet merger notification thresholds.</li></ul>Visit our blog for insights on&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a>, or contact us at renew@renewcapital.com Stay tuned for more updates!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.

The latest changes in Africa's regulatory environment.

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Renew Capital Legal Brief - October 2024

<h1>Renew Capital Legal Brief - September 2024</h1>The latest changes in Africa's regulatory environment<figure class="image"><img src="/uploads/Sept_Legal_Brief_Ld_08dcd450d9.png" alt="Photo of Renew Capital's September 2024 Legal Brief document."></figure>With a growing presence in Africa’s top startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;Egypt:&nbsp;<ul><li>Non-Resident Foreigners Can Now Own Egyptian Bank Accounts Freely -&nbsp;The Central Bank of Egypt has, via a circular dated August 7, 2024, directed all Egyptian banks to open non-resident bank accounts for foreign customers not residing in Egypt and to grant them access to available banking services. The aim is to expand access by foreigners to a range of banking services while ensuring compliance with account opening regulations, Know Your Customer (KYC) requirements and anti-money laundering laws and regulations.</li></ul>Ethiopia:&nbsp;<ul><li>Capital Market Regulatory Sandbox Launch&nbsp;-&nbsp;The Ethiopian Capital Markets Authority (ECMA) launched the sandbox on August 29, 2024. The sandbox provides a controlled environment for testing new capital market products or services with consumers under temporary regulatory flexibility.&nbsp;This is in line with similar approaches adopted by Nigeria, Rwanda and Kenya which have seen a lot of benefits for startups.</li></ul>Ghana:&nbsp;<ul><li>Ghana is Set to Lift Cryptocurrency Ban, Issues Draft Guidelines on Digital Assets - Draft Guidelines on Digital Assets were issued by the Bank of Ghana (BoG) in August 2024. The Guidelines contemplate the existence of a regulatory framework for digital assets and Virtual Asset Service Providers (VASPs) in Ghana and the licensing duties of both the BoG and the Securities and Exchange Commission. Similar to Nigeria, this should eventually lead to a certain regulatory framework for digital assets and inspire investor confidence in VASPs which were largely neglected in the past because of a lack of regulation and licensing options.</li></ul>Kenya:&nbsp;<ul><li>The Constitutionality of the 2023 Finance Act Remains on the Fence&nbsp;– The 2023 Finance Act was ruled unconstitutional by the Court of Appeal in Kenya in July 2024 due to the National Assembly’s failure to justify its decisions on public proposals and provide revenue estimates. However, the Supreme Court has stayed the lower court’s order pending the outcome of appeals filed on the matter.</li></ul>Nigeria:&nbsp;<ul><li>Tax Holiday for Basic Food Items&nbsp; -&nbsp;From July 15 to December 31, entities can import food items like maize, husked brown rice and wheat with a zero percent customs duty rate and sell them on commodity exchanges without charging value-added tax (VAT). This tax holiday aims to encourage food imports, reduce food inflation and address the food crisis in the country.</li><li>Busha and Quidax Receive Go Ahead to Commence Operations -&nbsp;The Securities and Exchange Commission (SEC) has issued its first approvals-in-principle to digital asset exchanges Busha and Quidax. Full registration will follow as the SEC reviews other participants in its Accelerated Regulatory Incubation Program. This groundbreaking move is expected to set a precedent for other digital asset exchanges to operate in one of Africa’s largest digital assets markets by volume.</li></ul>Rwanda:<ul><li>New Intellectual Property Regime Emerges&nbsp;- The 2024 Law on the Protection of Intellectual Property took effect on July 31, 2024, introducing several changes. These changes include the creation of an independent Intellectual Property Office and the introduction of provisional patent applications for ongoing inventions.</li></ul>South Africa:&nbsp;<ul><li>Satellite Service Operators Prepare for Licensing Framework -&nbsp;The Independent Communications Authority (ICA) has set up an inquiry to establish a licensing framework for satellite services in South Africa, particularly fixed, mobile and broadcasting satellite services. Stakeholders have until November 12, 2024, to submit suggestions to the ICA. This inquiry is a crucial step towards creating a transparent and efficient process for satellite operators, enhancing the delivery of satellite services across the country.&nbsp;</li></ul>Tanzania:&nbsp;<ul><li>Tanzanian Parliament Raises Market Dominance Threshold -&nbsp;&nbsp;The Parliament has endorsed a bill proposing to raise the market dominance threshold from 35% to 40%. Therefore, a single entity will be allowed to control up to 40% of the market it specializes in. This also means that when two or more entities consider a merger, they will not be restricted to the 35% market dominance rule. This is expected to encourage foreign investments whilst also imposing restrictions on the misuse of market holdings by multiple individuals.</li></ul>Uganda:&nbsp;<ul><li>ICT and Communications Laws Face a Likely Merger -&nbsp;The Uganda Communications Commission has declared its intentions to consolidate all ICT and communications laws for better regulation of all media platforms and the media industry.</li></ul>Zambia:&nbsp;<ul><li>Zambia Opens Access to Energy Transmission -&nbsp;Independent power producers can now bypass state-owned Zambia Electricity Supply Corporation Limited (ZESCO) Ltd as the transmission entity and transmit power directly to consumers. This is expected to improve access to power, reduce losses and promote efficient metering.</li></ul>Regulatory&nbsp;<ul><li>More African Governments Gear Towards&nbsp;Artificial Intelligence (AI) Regulation&nbsp;- In August, Nigeria and South Africa joined the growing number of African countries with national AI policy frameworks. Like Kenya and Egypt, they're developing policies to foster AI innovation and growth within their borders.&nbsp;</li></ul>Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.

Renew Capital’s September 2024 Legal Brief highlights key regulatory updates in Africa, including banking reforms in Egypt, cryptocurrency guidelines in Ghana and new market regulations in Ethiopia, Kenya and more.

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Renew Capital Legal Brief - September 2024

<h1>Renew Capital Legal Brief - August 2024</h1>The Latest Changes in Africa's Regulatory EnvironmentWith a growing presence in Africa’s top startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and to provide insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;<figure class="image"><img src="/uploads/Legal_1_a4c7d7c64b.jpg" alt="Photo of Renew Capital's August 2024 Legal Brief document."></figure><hr>Egypt:&nbsp;<ul><li>Egypt Privatizes Health Sector – Egyptian and foreign investors can now operate and manage public health facilities for profit. This presents a huge opportunity for investors!&nbsp;</li></ul>Ethiopia:&nbsp;<ul><li>Market-Based Exchange Rate Introduced – On July 29, 2024, the National Bank of Ethiopia (NBE) adopted a market-driven exchange rate system, ending its direct control. Key changes include abolishing surrender requirements to NBE, liberalizing import restrictions, improving retention rules for exporters, removing interest rate caps on foreign borrowing and allowing residents to open foreign currency accounts. Read the&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2024/07/FXD012024-FOREIGN-EXCHANGE-1-1.pdf">directive</a>.&nbsp;</li><li>Banking Sector to Open Foreign Investment – A draft proclamation allows foreign banks to acquire up to 49% of local banks, with potential for full ownership subject to NBE approval. Foreign entities can also establish banks, create subsidiaries or set up branches or representative offices with distinct legal liabilities. This is a long contested area of deregulation and it is currently not clear when the draft proclamation will become law.&nbsp;</li><li>New VAT Proclamation Passed – The VAT base now includes transportation services, portable water, electricity supply and digital transactions, while capital goods for production remain exempt to encourage investment.</li></ul>Ghana:&nbsp;<ul><li>Court Clarifies Termination Without Cause – Ghana’s Supreme Court ruled that employers and employees can end their relationship without providing a reason, affirming that neither can be forced to retain or continue employment. This is a big step forward for employers in Ghana!&nbsp;</li></ul>Kenya:&nbsp;<ul><li>New Income Tax Rules for Charitable Donations – The 2024 rules outline procedures for determining donation allowability and set administrative procedures for tax exemptions. They also restrict surplus retention by charitable organizations and limit tax deductions on donations exceeding 50% of total annual donations by a taxpayer.</li></ul>Nigeria:&nbsp;<ul><li>National Digital Economy &amp; E-Governance Bill Introduced – The National Assembly proposed a bill to regulate the digital economy and mandate electronic records and contracts within government bodies. It is not clear how long it will take for the bill to be enacted, but startup founders are watching it closely to identify opportunities to innovate and provide solutions for these agencies.</li><li>Single Shareholder Structure Approved – The Federal High Court ruled that companies incorporated before CAMA 2020 can now adopt single shareholder structures. This means that founders and investors who are looking to adopt a true holding company structure can now restructure their companies such that it is solely owned by one offshore entity.</li></ul>South Africa:&nbsp;<ul><li>Companies Amendment Act Brings Corporate Reforms – As of July 30, 2024, new laws require listed and state-owned companies to disclose pay gaps and mandate remuneration policies for public and state-owned companies.</li><li>Climate Change Act Enacted – Signed in July 2024, the law establishes a legal framework to regulate climate change impacts, reinforcing South Africa’s commitment to international agreements.</li></ul>Tanzania:&nbsp;<ul><li>Finance Act 2024 Enacted – Effective July 1, 2024, the Finance Act introduces major tax law amendments, enhancing public revenue management and aligning with broader African trends. It remains to be seen how this will impact foreign investments in the country.</li><li>Diaspora Gains Land Ownership Rights – The new legislation allows foreigners and companies with majority foreign shareholders to own land in Tanzania via the Diaspora Tanzanite Card and special non-citizen diaspora status.</li></ul>Uganda:&nbsp;<ul><li>Central Bank’s Immunity Partially Lifted – A new instrument from the Minister of Finance permits execution orders against the assets of the Central Bank of Uganda, reducing its blanket immunity.</li></ul>Zambia:&nbsp;<ul><li>VAT E-Invoicing Implemented – Zambia Revenue Authority’s Smart Invoice system for VAT collections launched on July 1, 2024. This is expected to improve transparency and improve efficiency in tax collection.&nbsp;</li></ul>Regulatory:&nbsp;<ul><li>US Bank Restricts Accounts for Certain African Residents – Historically, African founders who set up holding companies in Delaware typically open bank accounts for their startups with Mercury Bank. In a rather unfortunate turn of events, Mercury Bank has restricted account access for founders residing in Mozambique, Nigeria and 35 other countries, with closures effective by August 22. This means that many founders from these countries will have to move their foreign accounts to new banks in an already restrictive banking system in the US.</li></ul>Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in his blog does not constitute legal advice. Consumers should consult their legal advisors.

Ghana’s Supreme Court ruled that employers and employees can end their relationship without providing a reason.

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Renew Capital Legal Brief - August 2024

<h1>Renew Capital Legal Brief - July 2024</h1>The Latest Changes in Africa's Regulatory Environment<figure class="image"><img src="/uploads/Linkedin_Templates_21_eb566a2aff.png" alt="Photo of Renew Capital's July 2024 Legal Brief document."></figure>With a growing presence in Africa’s top startup ecosystems, the Renew Capital team works hard to stay on top of the legal landscapes shaping the venture capital and investment space. For the next few months, we will be publishing a monthly piece highlighting the significant legal and regulatory developments across Africa. We hope this offers insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment. If you like it, let us know at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> and it may become a permanent offering. &nbsp;Key Legal and Regulatory UpdatesEgypt:&nbsp;<ul><li>New Fast-Track M&amp;A Notifications - Starting June 1, 2024, companies involved in mergers and acquisitions can notify the Egyptian Competition Authority (ECA) using a&nbsp;<a href="https://eca.org.eg/en-us/%D8%AC%D9%87%D8%A7%D8%B2-%D8%AD%D9%85%D8%A7%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D9%86%D8%A7%D9%81%D8%B3%D8%A9/economic-concentrations/notification-file-simplified-procedures">fast-track procedure</a> with a 20-business day timeline and simplified forms for specific transactions. This procedure applies only to specific transactions detailed in the&nbsp;<a href="https://eca.org.eg/getattachment/793b7930-dee1-4815-bc27-c73d2cf632a6/Notification-File-Economic-Concentrations-subject-to-Simplified-Procedures.docx">simplified notification file</a>.</li></ul>Ethiopia:&nbsp;<ul><li>Data Protection Law - The Ethiopian Parliament passed the Personal Data Protection Proclamation in April 2024, aligning with international standards. It empowers individuals with control over their data and enforceable rights against data processors and controllers.&nbsp;</li><li>Foreign Investment Expansion - The Ethiopian Investment Board (EIB) now allows foreign participation in export, import, wholesale and retail trade sectors, previously reserved for domestic investors. Conditions include relevant experience, market linkages, capital thresholds, procurement levels, and contractual commitments. Read the&nbsp;<a href="https://investethiopia.gov.et/wp-content/uploads/2024/04/Ethiopian-Investment-Board-Directive-to-Regulate-Foreign-Investors-Participation-in-Restricted-Export-Import-Wholesale-and-Retail-Trade-Investments-No.1001_2024.pdf">directive</a>.&nbsp;</li></ul>Ghana:&nbsp;<ul><li>Crowdfunding Guidelines - In June 2024, Ghana’s SEC launched regulations for crowdfunding, establishing a licensing framework for platforms and intermediaries. These guidelines exclude rewards-based or donations-based activities.</li></ul>Kenya:&nbsp;<ul><li>Carbon Project Regulations - The Climate Change (Carbon Markets) Regulations 2024 create a regulatory framework for carbon projects. The Designated National Authority (DNA) will oversee implementation, with a two-year compliance period for existing projects.</li></ul>Mozambique:&nbsp;<ul><li>Leniency Regime Proposal - The Competition Regulatory Authority (CRA) is consulting on draft regulations for a leniency regime. This regime offers reduced fines for companies or individuals who report anti-competitive practices and provide evidence against other offenders.</li></ul>Nigeria:&nbsp;<ul><li>Debt Capital for Private Companies - The Nigerian SEC proposed rules allowing private companies to issue debt securities to the public, subject to SEC restrictions. The proposed rules can be found&nbsp;<a href="https://sec.gov.ng/wp-content/uploads/2024/05/Rules-for-Exposure-Issuance-and-Allotment-of-Private-Companies-Securities.pdf">here</a>.</li><li>New Measures for Remittances - The Central Bank of Nigeria (CBN) introduced measures to ease foreign exchange pressures. These include same-day Naira settlement for diaspora remittances using the Nigerian Autonomous Foreign Exchange Market (NAFEM) rate.</li></ul>Rwanda:&nbsp;<ul><li>Digital Currency Plans - The National Bank of Rwanda (NBR) aims to issue a Central Bank Digital Currency (CBDC) by 2026. The NBR is currently conducting public consultations and feasibility studies. The report on the feasibility study is available&nbsp;<a href="https://www.bnr.rw/payment-systems/cbdc/">here</a>.</li></ul>South Africa:&nbsp;<ul><li>Deposit Insurance Operational - The Corporation for Deposit Insurance, a subsidiary of the South African Reserve Bank, began operations on April 1, 2024. It manages the Deposit Insurance Fund, covering up to R100,000 per qualifying depositor per bank.</li><li>Spectrum Hoarding Policy - South Africa’s new Spectrum Policy promotes spectrum trading, sharing, and pooling among licensees to prevent capacity hoarding.</li></ul>Tanzania:&nbsp;<ul><li>Mining Act Amendments - Proposed changes to Tanzania’s mining sector include increasing the minimum capital investment for a mining license to $5,000,000, introducing penalties for false data and delayed payments, and clarifying royalty payments on imported minerals.</li></ul>Tunisia:&nbsp;<ul><li>Startup Ecosystem Watch - Tunisia's pioneering Startup Act continues to influence tech investment and startup growth in the region. We are monitoring developments closely.</li></ul>Uganda:&nbsp;<ul><li>Stamp Duty Exemptions - The Stamp Duty (Amendment) Bill 2024 introduces exemptions for investments in electric vehicles and private equity funds, effective July 1, 2024.</li></ul>Zambia:&nbsp;<ul><li>E-Hailing Platform Regulation - New regulations require road licenses for all e-hailing drivers and set guidelines for operators, with fines for non-compliance.</li></ul>Contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystem! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.&nbsp;

The Corporation for Deposit Insurance, a subsidiary of the South African Reserve Bank, began operations on April 1, 2024. 

Renew Capital Legal Brief - July 2024

<h1>Press Release: Renew Capital Angels Invest in Jamii.one, a Micro Insurance Platform</h1>Supporting solutions to expand financial inclusion across Ethiopia, Renew Capital partners with Jamii.one<a href="https://latest-api.renewcapital.com/uploads/FINAL_Jamii_One_Press_Release_e2a1650a7b.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release</a>Ethiopia, September 28, 2023&nbsp;—&nbsp;Driving towards financial inclusion for communities across Ethiopia, Renew Capital Angels has partnered with Jamii.one, a trailblazer micro-insurance platform for the African landscape.The company has begun services in Ethiopia, where there are few insurance options for rural communities and only 42% of mobile phone owners own smartphones.<figure class="image"><img src="/uploads/unnamed_96ad0f588d.jpg" alt="A happy team photo of Jamii.one members posing together in Addis Ababa, Ethiopia, showcasing their commitment to enhancing financial inclusion through micro-insurance solutions."></figure>Jamii.one’s growth has come from self-organized Ethiopian community groups called "Iddirs" that bring on average around 50 people together making monthly contributions for informal cooperative-like insurance for funerals and other significant life events.&nbsp;More than 30% of Ethiopians participate in Iddir groups, which often face operational difficulties due to manual data tracking and management, preventing them from fully meeting their members' financial needs. Jamii.one provides an app-based data registration tool for Iddirs and connects them to affordable, reliable insurance options. “When we entered the market it didn't take us long to introduce the Iddir community to Jamii.one. After we tailored our product for Iddir and enabled access to affordable group micro life insurance it was amazing to see the power of technology with the power of community,” says <a href="https://www.linkedin.com/in/tigist-bezu-928519158" target="_blank" rel="noopener noreferrer">Tigist Bezu</a>, co-founder.&nbsp;Importantly, the app is designed to accommodate low literacy levels, offline functionality and limited smartphone usage, making it accessible to a wider segment of the population. This initiative aims to enhance financial inclusions across Ethiopia and beyond.

Renew Capital Angels invests in Jamii.one, a micro-insurance platform enhancing financial inclusion in Ethiopia. By leveraging community groups, Jamii.one offers affordable insurance solutions to rural populations, improving access to essential services.

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Press Release: Renew Capital Angels Invest in Jamii.one, a Micro Insurance Platform

<h1 style="margin-left:0px;">Press Release: Renew Capital Angels Invest in Kenyan Fintech FlexPay</h1>FlexPay is reshaping the financial services landscape in Africa with its flexible and affordable payment alternatives<a href="https://latest-api.renewcapital.com/uploads/FINAL_Flex_Pay_Press_Release_c41e2406d2.pdf " target="_blank" rel="noopener noreferrer">Download the Full Press Release&nbsp;</a>Nairobi, Kenya, September 5, 2023 —- Renew Capital Angels have invested in an innovative Kenyan fintech,&nbsp;<a href="https://www.flexpay.co.ke/">FlexPay</a>. FlexPay’s"save now, buy later" platform allows customers to purchase products over time, interest-free, by setting personal savings goals. They provide customers with greater financial flexibility and purchasing power by collaborating with merchants to facilitate flexible payment options for high-value goods and services.&nbsp;<figure class="image"><img src="/uploads/Flex_Pay_e4b9cbfb07.png" alt="Senior Investment Manager of Renew Capital with FlexPay founders in their Nairobi, Kenya office, showcasing partnership in innovative fintech solutions."></figure>“Our “save now, buy later” model represents an important evolution of “buy now, pay later”. It's an affordable, scalable, and sustainable model, particularly in Africa. We are looking forward to the future and plan to move quickly in the next three months to partner with merchants and blaze a new trail in the banking space,” said <a href="https://www.linkedin.com/in/richard-machomba-618b697a?miniProfileUrn=urn%3Ali%3Afs_miniProfile%3AACoAABDmyjQBkhBCNptBuO2vD_RO8NeUDZ-3uSI&amp;lipi=urn%3Ali%3Apage%3Ad_flagship3_search_srp_all%3BZZ2IaXumQsSzgSvDlaN8LA%3D%3D" target="_blank" rel="noopener noreferrer">Richard Machomba</a>, CEO of FlexPay.&nbsp;FlexPay is one of the innovative financial service products that has emerged from Kenya, the home of Africa's first mobile money service, MPESA. FlexPay aims to bridge the affordability gap with practical and affordable financial services thus protecting customers from the dangers of debt."The youngest and fastest-growing populations in the world are generating massive demand for effective and affordable financial services. This is Africa’s great challenge and opportunity. FlexPay is leveraging exciting technology to power an empowering new model: “Save now, buy later,” said Matt Davis, CEO of Renew Capital.The investment aligns with Renew Capital's mission to support groundbreaking ventures across Africa.

Renew Capital Angels invests in FlexPay, a Kenyan fintech offering flexible 'save now, buy later' payment solutions.

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Press Release: Renew Capital Angels Invest in Kenyan Fintech FlexPay

<h1>NINJA Program Creating Champions for the Startup Ecosystem of Ethiopia&nbsp;</h1>Launching the NINJA Acceleration ProgramThe first industrial revolution used water and steam power to mechanize production. The second used electric power to create mass production. The third used electronics and information technology to automate production. Now, a fourth “digital” industrial revolution is underway, building on the technological advancements of the last century and characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.&nbsp;Ethiopia is no exception - as stated in the country’s most recent Ten Year Development Plan (2020/21-2029/30) published by FDRE Planning and Development Commission, “technological capability and digital economy” is one of the ten key strategic pillars that are set to help attain the development goals of Ethiopia. In support of this work, the Government of Ethiopia (GoE) has committed to “build the human resources capacity to increase the potential workforce in the innovation, technology and research subsectors”.&nbsp;<figure class="image"><img src="/uploads/2_S4_A3486_2f6e583bcb.jpg"></figure>In its current state, Ethiopia has to play catch up with the rest of the world when it comes to fully integrating the fruits of the third industrial revolution into its key economic sectors. Materializing this and fully entering into the fourth industrial revolution can likely be attained by promoting the nascent startup ecosystem that is just developing in the country’s economy, something that the GoE recognizes and supports.&nbsp;&nbsp;&nbsp;The Ethiopian Ministry of Innovation and Technology (MinT) is giving due attention to entrepreneurship and its immense potential to contribute to the growth of the economy. Working alongside the Japan International Cooperation Agency (JICA), MinT and JICA are seeking to encourage startup innovation that has the potential to solve persisting sectoral problems through the use of emerging technologies as part of the Next Innovation With Japan (NINJA) Acceleration Program.&nbsp;After the launch of the 2022 NINJA Acceleration Program in Ethiopia, the program accepted nearly 100 applications from startups all over Ethiopia in December to compete in a multi-stage and multi-month acceleration competition. The program’s three-phased selection process resulted in six trailblazing, technology startup finalists that have the potential to revitalize the country’s economy through driving sectors such as agriculture, tourism, logistics and digitalization and ICT.Following the selection of the six startups that fit the objectives of NINJA Acceleration Program, JICA and MinT, in collaboration with the implementing partner Renew Capital, will be hosting a Kickoff Conference on April 7, 2023 that will serve as the formal launch of a curated, four-month intensive training program for the six startups. The NINJA Acceleration program will lay the foundation for the selected startups to appropriately scale and build a world-class business through practical training, coaching and mentorship. It will also provide the six startups with a disbursement amount of ETB 500K and a trip to Japan for further training and networking.&nbsp;The Kickoff Conference will host a panel discussion by key stakeholders and the final business pitches of the winning six startups. This Kickoff Conference will also serve as a platform from which the finalists and their products are widely publicized to local and international stakeholders, such as enabling bodies, entrepreneurial support organizations, capital providers and potential customers.&nbsp;<a href="https://us06web.zoom.us/webinar/register/WN_Rfyt508jSRGMg1NmLbKmrA">[Please register here]&nbsp;</a>----------------------------------------1)Schuab, Klaus. World Economic Forum. 2016.&nbsp;<a href="https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/">Link</a>

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NINJA Program Creating Champions for the Startup Ecosystem of Ethiopia 

<h1>Press Release: Renew Capital Angels Invest in Kenyan Smartphone Recommerce Startup, Badili</h1>Badili and Renew Capital Angels partner to enhance the African recommerce experience<a href="https://latest-api.renewcapital.com/uploads/FINAL_Badili_Press_Release_9711c51e8d.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release</a>&nbsp;Nairobi, Kenya, March 7, 2023&nbsp;—&nbsp;The number of smartphone connections in sub-Saharan Africa is expected to rise to nearly 700 million by 2025 but even then the adoption rate still remains at modest levels across the continent.&nbsp;Kenya-based startup Badili is on a mission to change this and put a smartphone in the hands of every African through its recommerce platform.&nbsp;<figure class="image"><img src="/uploads/Badili_1_a1c3a51b3d.jpeg" alt="Photo of Badili's founder showcasing refurbished smartphones in his Nairobi, Kenya office."></figure>“We are providing an alternative platform where people can buy used and refurbished smartphones safely and affordably,” says Badili’s CEO Rishabh Lawania. “Most of our devices cost less than half their original price, and all come with a 12-month warranty.”Badili was founded in 2021 by Rishabh Lawania and Keshu Dubey with the aim of providing a credible platform for buying and selling pre-owned smartphones in Kenya. Lawania saw a need for the platform after a colleague was arrested after buying a stolen phone.To safeguard buyers, Badili requires its sellers to provide ID and headshots and to sign an affidavit stating that they are the rightful owners of the devices. This system provides extra protection for buyers and helps to ensure the authenticity of the products."We are thrilled to have Renew Capital Angels as partners in our journey to create a better recommerce experience for everyone in Africa. We want to make it easy, safe and affordable for people to buy and sell pre-owned devices. This investment will help take us one step closer to achieving that goal," Lawania says.“Badili is on a mission to create a standardized and affordable parallel economy for consumer electronics across Africa,” says Esther Mwikali, Renew Capital Investment and Project Manager. “Renew Capital Angels are proud to help support this journey.”&nbsp;

Renew Capital Angels invest in Kenyan startup Badili to enhance smartphone recommerce, making used and refurbished devices safe and affordable for consumers across Africa.

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Press Release: Renew Capital Angels Invest in Kenyan Smartphone Recommerce Startup, Badili

<h1>Press Release: Renew Capital Invests in BuuPass, a Kenyan Tech Transport Company</h1>Digital infrastructure will streamline long-distance transportation in East Africa<a href="https://latest-api.renewcapital.com/uploads/FINAL_Buu_Pass_Press_Release_e31c1ade91.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release</a>&nbsp;Nairobi, Kenya, February 14, 2023 - Transportation systems in sub-Saharan Africa are challenged and underfunded. More than 30 million Africans rely on inter-city transportation daily, and the domestic transport industry accounts for $40B in yearly spending. And yet, streamlined transportation systems in the region are a challenge due to lack of funds and technology for mass digitization.&nbsp;Renew Capital is helping to address this gap through its recent investment in BuuPass,&nbsp;a Kenya-based tech company with a web-based travel solution and a mission to make long-distance transport more accessible and seamless.BuuPass founders, Wyclife Omondi of Kenya and Sonia Kabra of India, met at Earlham College (Indiana, U.S.)&nbsp;in 2013. Their common interests in entrepreneurship and solving social concerns led them to co-found the college’s first entrepreneurship club and BuuPass, an idea that won them a 2016&nbsp;<a href="https://www.hultprize.org">Hult Prize</a> and the award of a $1M grant. The Hult Prize challenges young people across the globe to solve the world’s most pressing issues through social entrepreneurship.&nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_10_12_at_10_43_05_aa7c115a2f.jpeg" alt="Team photo of BuuPass co-founders, showcasing gender diversity, alongside team members in the Nairobi, Kenya office, highlighting a gender balance in the startup environment."></figure>“We both had experiences with not having accessible transportation,” says Kabra, noting that mass transit was in high demand in their respective home countries but hard to plan. Before BuuPass, most bus users in East Africa had to go to a bus station to purchase their tickets, which were still being processed on pen and paper. The BuuPass platform allows them to buy tickets online in real time.&nbsp;Registered in Delaware, U.S., with subsidiaries in Kenya, Tanzania and Uganda, BuuPass’ B2C platform now processes more than 10,000 bookings per day for bus, flight and train transportation for travelers. It recently added personal and business parcel distribution through its bus network. BuuPass aims to build the digital infrastructure for transport across Africa and capture market share in Eastern, Western and Southern Africa by 2030.&nbsp;&nbsp;The deal was signed as part of a Renew Capital Angels women’s investment package aimed at making East African SMEs more gender-balanced in staffing and services. “We&nbsp;wanted to make sure that we build a company that is true to our values as well as de-risking ourselves by creating the right policies and culture,” said Kabra.“BuuPass has proven to be a pivotal company in the transport industry in East Africa,” said&nbsp;Renew Capital Investment and Project Manager for Kenya, Esther Mwikali. “Renew Capital is proud to be part of this journey with BuuPass, kicking off our Kenyan portfolio.”

Renew Capital invests in BuuPass, a Kenyan startup enhancing long-distance travel in East Africa with innovative online ticketing solutions for long-distance travel.