<h1>Easy Matatu: The Startup Innovating in Africa’s Urban Transportation Sector</h1>Q&amp;A with Lema Carl Andrew, co-founder and CEO of Easy Matatu<figure class="image"><img src="/uploads/Renew_Strategies_Easy_Matatu_14_1bae0eb0cb.jpg"></figure>In most cases, a simple commute in a matatu, the local name for 14-seat public minibuses in Uganda’s capital of Kampala, isn’t actually simple or pleasant. Getting from point A to point B involves long queues and delays which can cost commuters hours of their time. Due to the informality of the transportation sector, matatus in Uganda operate with little regulation. And the same applies to other major cities on the continent. Easy Matatu is one of Renew Capital’s portfolio companies that is working to solve this urban mobility challenge through a tech-enabled solution. The Easy Matatu app allows commuters to book and pay for a seat in advance, reducing wait time and minimizing delays. The company aims to make Uganda’s public transportation system safer and more reliable, improving the lives of all commuters. They also plan to bring their solution to other African cities with similar problems.&nbsp;We spoke to the CEO and co-founder of Easy Matatu,&nbsp;<a href="https://www.linkedin.com/in/carl-lema/?originalSubdomain=ug">Lema Carl Andrew</a>, on the heels of receiving an investment from the Renew Capital Angels network. He shared how the company’s product is more than just a ridesharing app, contributing the necessary infrastructure to support the growing urban transportation sector in Africa.This interview has been shortened for length and clarity.Q. What got you interested in solving the challenges of public transportation in a place like Uganda?&nbsp;Initially, Easy Matatu was started to solve a simple transportation problem. How do I get to work on time? How do I get back home predictably? I live in Entebbe, which is located 34 kilometers from the city, and I have to commute in and out of the city every day. For anyone who lives that far out, traveling is extremely hectic. To get to work on time, you have to be up before the crack of dawn, or you will be late. You also have to contend with long queues and literally have to fight at the bus terminal just to get a seat because there are not enough matatus during rush hours. Entebbe to Kampala is a pretty straightforward route. Easy Matatu started by creating this simple route with a single matatu that would leave in the morning at 6 AM, and arrive in the city just before 7 AM, giving the commuter ample time to do a connecting journey to work. In the evening, you'd have the option for the 5 PM matatu that would get you home at 7 PM at the latest. Soon after we started, we quickly saw that the problem we were solving was not unique to us. It was common to pretty much everyone that lived more than 10 kilometers away from the city. Commuting to work was a hassle, and returning home was even more hectic.Q. What gave you the idea to create a tech-enabled platform to solve these transportation challenges?Before we started Easy Matatu, I had recently traveled to Kigali, Rwanda. Kigali pretty much had transportation like every other African city—chaotic, dangerous and unsafe. But a few months earlier, the government had intervened and partnered with a local tech startup that provided a payment solution that helped to address the problem. Traveling in Kigali became efficient and smooth. Back in Kampala and seated at the back of a matatu at 9 PM, my co-founders and I were reflecting on how difficult it was to get back home from the city. What was supposed to be a half-hour journey took about three hours. It dawned on us that everyone is digitizing different parts of the economy. At the time, there was a company called SafeBoda, that was digitizing boda-bodas. Uber had come into Kampala about three years earlier and had changed the way people used cabs, but still, nothing was being done about the matatus, which were pretty much transporting about 80 percent of all commuters in the city.Having seen what happened in Kigali, and since I am a software engineer and I had worked with a couple of startups in East Africa, we launched Easy Matatu. It’s bigger than just the app. Now our mission is to fix public transport in Africa’s cities, using technology. This looks different in different African cities. In Kampala right now, for example, we’re using 14-seater minibus taxis to provide reliable, safe and clean rides. But if you go to Nairobi, it's a different story. They have 30-seater matatus. In Tanzania, there are dala-dalas, which are even in worse condition than most other African cities. That's the mission we are on. That's what keeps us energized.Q. Who is your target market?Women are our biggest user demographic making up eight in 10 of our repeat customers. This is because of the convenience and safety that our service provides to them. With our service, customers can book a seat and have it waiting for them when they leave work and get to the terminal. With Easy Matatu we vet the drivers, train them and onboard them. The app provides users with the name and phone number of the driver. The second demographic that we are impacting is the matatu drivers themselves, who are primarily male. Prior to working for Easy Matutu, most drivers were undereducated and untrained and operated in an extremely stressful environment with daily targets that they had to meet to be able to get a wage. Our business model aims to flip this as we now engage them as drivers and use our platform to pull customers which makes their jobs easier, especially during peak hours.Q.&nbsp; What are the most significant changes and challenges you've seen in mobility and transport in Africa over the last 10 years?&nbsp;Over the last 10 years, African cities have grown very rapidly. Kampala itself has become increasingly congested. The city is bulging at the seams and the transportation infrastructure cannot sustain that. It’s projected that our cities are going to continue to grow over the next 10 to 20 years while the governmental response in many cases does not look like it will catch up to meet the demand. What I believe is needed are partnerships between the public sector and private players to further develop the transportation infrastructure.&nbsp;Q. What do you think the private sector in Africa, especially as it relates to transportation will look like in 10 years?My hope is that we will have more blended modes of transportation that make it easier for commuters to get to work and get back home and have a well-balanced life. Although informal transit is not ideal, it supports millions of livelihoods. Blended modes of transport that help commuters move about are unique to Africa. It's really unlikely we're going to have subways all over the place in a decade. We'll still have people sharing 14-seater buses, whether they're electric or not. We'll still have people hopping on boda-bodas. There is nothing inherently wrong with these informal modes of transportation as long as they are efficient and they work hand in hand with the more traditional mass transit options.&nbsp;

Q&A with Lema Carl Andrew, co-founder and CEO of Easy Matatu

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Easy Matatu: The Startup Innovating in Africa’s Urban Transportation Sector

<h1>RENEW’s Legal Corner: November 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/097_A2846_254237521f.jpg"></figure>ETHIOPIA&nbsp;Franco-Valuta Beneficiaries Are Expected To Show The Source Of Their Hard Currency Going Forward&nbsp;In April 2021, the Ministry of Finance (MoF) allowed importers to import basic commodities using the Franco-Valuta scheme without any requirement for verification of the source of their hard currency. This decision was made due to the inflation that is impacting the country’s economy. By allowing importers to import basic commodities without complying with the strict banking procedures, it was expected to increase the importation of basic goods into the country. However, in less than a year, the government reversed this decision. Starting from this month, importers are required to show the source of their hard currency to the National Bank of Ethiopia (NBE) to import goods through the Franco-Valuta scheme. The NBE has come up with this decision to control the parallel foreign currency market in the country. According to NBE, beneficiaries of the Franco-Valuta scheme are getting hard currency from the parallel market, and the requirement of verification is expected to alleviate this problem.&nbsp;&nbsp;Ministry of Finance Bans the Issuance of Letters of Credit For 38 Import ItemsThe Ministry of Finance (MoF) has banned the issuance of letters of credit for 38 selected import items. In a circular letter to the National Bank of Ethiopia (NBE), the MoF has ordered the denial of foreign currency issuance for these items, which was made effective on October 17, 2022, and will stay indefinitely. The restriction was imposed on the products as they were not found to be priority items. The prohibition spans a range of items, including processed foods, beverages, artificial jewelry and flowers, bottled water, fruits, carpets, hand and wall watches, human and artificial hair, perfumes, fireworks, bags, umbrellas, seafood, cigarettes, and others. Automobiles imported by private companies are likewise subject to the restriction. This ban will affect the nation both positively and negatively. It will have a detrimental impact on several business communities that are involved in the importation, wholesaling, supermarket business, and retail of the 38 items listed. It also has the potential to increase contraband trade. The prohibition will, however, assist the nation in obtaining foreign currency for imports of high importance, such as medicine and basic commodities, support the expansion of domestic enterprises, and reduce illegal money transfers related to the selected commodities.&nbsp;Trade and Investment Divisional Court Inaugurated in Addis&nbsp;The Federal Court of First Instance officially launched a divisional court solely focused on trade and investment. The court is composed of 11 hearings that deal only with construction, investment, banking, and insurance cases. Five of the hearings under the classification hearing are assigned to commercial matters, and the other five hearings are assigned to banking and insurance matters. The remaining hearing is assigned to deal with construction-related issues. The court is composed of 14 judges and five assistant judges. Although the court was inaugurated this month, the trial was started in June 2022. The bench is anticipated to improve service delivery in issues relating to business, banking, and insurance. Having a separate division court focused solely on trade and investment has a positive impact on enabling businesses in Ethiopia to operate more efficiently and productively by reducing the amount of time and money businesses are required to devote to dispute resolution.&nbsp;<hr>UGANDA<a href="https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166">BLB and FIDA Uganda partnership to prioritize women’s land rights</a>At the recent Legal Aid Open Day held in Luweero, the pertinent issues that arose for discussion during the legal clinics concerning women’s land rights included&nbsp;sensitizing women and youth, who are adversely affected the most during land disputes, about land ownership and offering legal support to these vulnerable groups in order for them to obtain unequivocal rights to their parcels. According to an article in the New Vision, a Memorandum of Understanding between the Buganda Land Board (BLB) and the Uganda Association of Women Lawyers (FIDA Uganda) will purposely be driven towards obtaining justice for women and youth over contested plots of land. Furthermore, emphasis will be placed on securing or registering their tenancies and understanding the different rights that come along with the specific type of tenancy held.&nbsp;This partnership seeks to address pertinent issues such as the certificates of occupancy that are conclusive evidence of ownership and rights to the land. It is also a beneficial partnership with the land board which is entrusted to manage some of the biggest parcels in the Buganda Kingdom. The two parties have a duty to educate the women and youth on their tenancy rights on land which will contribute to the reduction of perennial land disputes in the country.<hr>RWANDARwandan corporate lawyers to play a role in economic growthRwanda is on track to establish itself as a top investment and tourism destination in Africa by providing several incentives and legislative amendments to attract more foreign investments. With that comes a number of transactional agreements and laws that need to be accurately structured in order to ensure compliance with domestic laws and also provide a precedent for other investment agreements. It is essential that the whole entrepreneurial and investment ecosystem realize the role of lawyers in structuring major deals, drawing up laws, amending legislation and facilitating dispute resolution while completing the deal.&nbsp;In a New Times article, Felix Manzi, the Director of the CERTA Center for Law and Innovation, a new initiative with the purpose of blending Rwandan legal expertise with innovation and creation, stated that lawyers play a very pivotal role in Rwanda’s economic prowess. He noted that “the entire African continent is trying to attract FDI” and lawyers should equip themselves with the requisite knowledge to understand certain concepts regarding innovation and creation. He also noted that there may be an evident lack of skilled manpower to deal with legal advice and representation in this field which will consequently lead investors to reallocate their funds to a more equipped jurisdiction like Kenya2.Rwanda needs to train and maintain an efficient and competent legal fraternity that can compete within the East African regional bloc and also handle all the legal related tasks that come along with the rapid rate of growth and development which the country intends to achieve. &nbsp;&nbsp;<hr>1)<a href="https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166">https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166</a>2)https://www.newtimes.co.rw/article/2023/news/business/competent-business-lawyers-crucial-in-rwandas-economic-voyage-experts

Our take on developments in the investment ecosystems of East Africa: November

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RENEW’s Legal Corner: November 2022

<h1>World Cities Day: Growing Sustainable Cities through Impact Investment</h1>Innovations like ridesharing apps improve traffic, safety, time management and the environmentAny public transportation user in Kampala, Uganda has gone through it. They head out for work or a meeting, knowing they must plan ahead for busy traffic and other sprawling city logistics. A broken and outdated transportation system is one of the biggest obstacles to getting anywhere or anything done in an efficient fashion, and sometimes it’s downright dirty and dangerous.&nbsp;It’s common for commuters to walk down a muddy footpath following a massive rainstorm to catch the commonly used Ugandan taxi after hours of waiting inline, a 14-seater ride-sharing minibus, only to find issues such as broken windows letting the wet weather pour onto a seat that was already covered with years of dirt and grime. Nobody wants to show up in their work clothes looking damp, dirty and unkept, and it's even harder for people traveling with children in the tropical germ petri dish this mode of transportation can be.&nbsp;In theory, these kinds of taxis are more efficient than regular buses or individual cabs because they are relatively affordable and they go to many parts of the city. However, in a system where drivers are often undertrained, underpaid and under pressure to meet revenue quotas, they tend to overload the vehicles and drive too fast, ignoring traffic laws. It doesn't help that the vehicles they’re driving are often in dangerous mechanical condition. By the time commuters arrive at their destination, they’re likely to show up tired, tattered, distracted and probably even late to their appointments.&nbsp;To round it off, the threat to one's personal security is always a cause for concern. As with many parts of the world, long-standing misogynistic attitudes make women especially vulnerable to predatory behavior, which is largely unmonitored and unregulated in the transportation network. Before boarding, they often take extra precautions such as writing down the license plates and sending them to loved ones, as well as making a mental note of the driver and every passenger with whom they will travel.&nbsp;<figure class="image image_resized image-style-align-center" style="width:74.28%;"><img src="/uploads/World_Cities_Day_9cd762bc99.png"></figure>As cities grow, the pressure on public transport is evident, especially across East Africa, where much of the road network is still under development. October 31st marks the United Nations’ World Cities Day, which aims to promote and inspire action around sustainable urban planning by advancing international cooperation and addressing the challenges created by the rapid growth of cities. This year’s theme is “Act Local, Go Global.”&nbsp;That’s a concept Renew Capital is embracing in Kampala with a recent investment in&nbsp;<a href="https://easymatatu.com">Easy Matatu</a>, a ridesharing app that connects&nbsp;commuters in Africa to safer, more reliable and cleaner transportation, allowing them to book rides in advance on better-maintained minibuses at their closest pick-up location through a mobile app or offline through a USSD code. Easy Matatu also takes alternate routes to avoid the traffic.&nbsp;Andrew Lema and his co-founders created the company while reflecting on their own struggles getting from Kampala’s outskirts to its city center for work. The team realized that they could digitize this part of the economy not only to solve their own need, but to help other public transport users as well.“Eighty percent of transit rides in Kampala and in most African cities happen in informal transport. In Kampala, that’s two million people every day; in Nairobi, that’s three to four million people a day that are using informal transportation,” Lema told Renew Capital.&nbsp;Through their initial market research, the founders discovered that the drivers want a better system as much as the people they transport.&nbsp;<figure class="image"><img src="/uploads/Easy_Matatu_2x_d0836b4fc5.png"></figure>“Once we started speaking with [minibus drivers], we realized that the whole ecosystem is a mess. They pretty much live hand to mouth and all these things affect how they behave,” Lema explained. “We realized that what we needed to do was beyond just building an app that connects people from point A to point B. Public transportation as a whole in Africa's cities needed to be reformed or disrupted, and technology really presented the best tool to do that.”Easy Matatu’s initial engagement with Renew Capital began in April, advancing to an official investment from the firm in August, and Lema confirms this entire process has helped the ride sharing app plan and scale in a quicker, more efficient manner.&nbsp;“Renew Capital is impact driven, and really understands the impact Easy Matatu can have on Africa’s cities, on millions of people, millions of commuters, millions of drivers,” Lema said.&nbsp;A Popular Alternative for Women Riders&nbsp;Easy Matatu’s data already shows that women are among the most common users, and also the ones experiencing the biggest social impact. Eight out of 10 of their repeat riders are women who have embraced the transportation option for its reliability in providing a safe and more convenient ride at a fixed price.&nbsp;“It just eliminates that whole safety issue for us because now I know that there are people looking out for me,” said Pamela&nbsp;Kaliisa, Easy Matatu’s head of customer experience, noting that safer and greater freedom of movement is just one of the ways her company helps to liberate women.&nbsp;Even though Easy Matatu might carry a higher fare than some public transportation, the fixed prices contribute to its reliability, helping her to budget for what she also considers an investment in time gained from a shorter commute. That appeals to African women who generally carry the bulk of childrearing and household duties alongside their jobs.&nbsp;“I can use that time to be more productive in my work or my personal life because I don’t have to stand by the roadside for two hours to wait for a vehicle to take me where I’m going,” she added.&nbsp;Finally, she says she’s excited to be part of a start-up company that deviates from traditional ones by recognizing the value of offering professional growth to workers who are young, female or both.&nbsp;“They truly empowered me,” she said. “This company is open to creating opportunities for people like me.”The Private Sector as a Tool of Sustainable Public TransportationAs for his hope for the future of the transportation industry in Kampala in the next 10 years, Lema acknowledges that the sector will only be managed once the government creates a partnership with private actors for collaborative solutions. Such solutions will mean merging the current informal methods with modern technology to ensure a more efficient system.According to the Uganda Bureau of Statistics, Kampala has a population of up to two million people in the daytime, owing to commuters coming into the city from surrounding districts for formal and informal business and school, among other reasons. It takes but a glance of Kampala during rush hour to note that the threat of over-pollution is imminent, not only from the number of vehicles and motorbikes, but from their mechanical condition as well.<figure class="image"><img src="/uploads/shutterstock_1017679978_20ba2a3f53.jpg"></figure>Despite the complications the sector is facing, the government is continuously improving to meet the needs - and indeed, complement the work - of current actors in the sector, with the goal of furthering improvement in the sector, one small section at a time. This month, Uganda’s&nbsp;Ministry of Science, Technology and Innovation unveiled a plan to invest massively in electric transport, including buses and motorcycles, aimed at driving down emissions.&nbsp;Cities as densely populated as Kampla would need bigger transit options such as metro and train lines to keep up with their growth, but Renew Capital Senior Consultant Andrew Larsen affirmed that electric motorcycles and ridesharing programs&nbsp;can still reduce greenhouse gas emissions and ease travel both within urban areas and in rural communities.&nbsp;“According to the World Bank, 60% of sub-Saharan Africans live in rural areas, but infrastructure is going to grow from the cities out - that’s why electric motorcycles, small trucks and lighter vehicles, which are agile on unfinished or unpaved roads, are an important component for human mobility, small-scale deliveries and creating strong urban-to-rural market linkages,” he said.&nbsp;Investing in transportation will be a consistent area of focus as Renew Capital expands the scope of its work. The firm currently has a presence in Ethiopia, Uganda, Rwanda and Kenya, and it aims to have a presence in half of Africa’s 54 countries by 2027. Easy Matatu, which also hopes to start services in other African countries, was one of Renew Capital’s first transportation investments.&nbsp;“That includes human mobility as well as tech-enabled logistics,” said Larsen, noting that the firm is developing a range of potential investments in partnership with global development agencies such as USAID.&nbsp;“Whereas Easy Matatu makes getting to work, school or other errands safer and more efficient, much can also be done to improve key supply chain issues like last-mile delivery of fast moving consumer goods (FMCG), business-to-business (B2B) logistics and even first-mile transportation.”According to&nbsp;FAO, in sub-Saharan Africa 200M metric tons of food is wasted annually between farmers and consumers. About 18% of that can be attributed to poor logistics solutions. Reducing these logistics-related losses by just one percentage point has the potential to save an additional 2M metric tons of food annually. For context,&nbsp;USAID’s Bureau of Humanitarian Assistance distributed 1M metric tons of food to sub-Saharan Africa in 2021, according to the agency’s annual report to Congress. Improving logistics is not just about building more efficient commercial linkages, it also has the potential to increase food security throughout the continent.&nbsp;“As the continent grows, logistics and transportation represent one of the biggest impediments to Africa’s economic growth, but they also represent the biggest opportunity for private sector innovation, especially because the governments will likely come up short in the near term in infrastructure development,” Larsen said. “They can’t move fast enough to meet the growing demands of the East African transportation sector. We can’t solve infrastructure problems in 10 years or less. These challenges will be overcome little by little. In the meantime the private sector innovators that can develop solutions without immense infrastructure development will be the medium-term winners.”Looking to Africa’s Future&nbsp;For now, Renew Capital is excited to see where tech platforms like this will take Africa’s growing population. With its upcoming plans for expansion to other African cities, Easy Matatu is already embodying this year’s UN World Cities Day motto of acting locally and thinking globally.&nbsp;“What we are doing in Kampala and what we are working towards in other African cities is a solution that can actually help to resolve everything from pollution and congestion to safety, improved income resulting from the defined fixed prices and a better work-life balance that leaves time for one's larger ambitions,” said Kaliisa.&nbsp;&nbsp;

Innovations like ridesharing apps improve traffic, safety, time management and the environment

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 World Cities Day: Growing Sustainable Cities through Impact Investment

<h1>Press Release: Quest Digital Finance Connects the Unbanked to Formal Credit Systems</h1>Renew Capital Angels invests in the firm’s Akellobanker platform for financial inclusion and agricultural growth&nbsp;<a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Akellobanker_0c77041f0e.pdf">Download the Full Press Release</a>&nbsp; Kampala, Uganda, October 14, 2022 – Uganda is home to 25 commercial banks, four microfinance deposit-taking institutions (MDIs), three credit institutions and more than 300 non-deposit-taking microfinance institutions (MFIs). However, according to the 2018 Finscope Survey, which is published by the think tank&nbsp;Financial Sector Deepening Uganda, an estimated 89% of the adult population is still “unbanked,” meaning that they don’t have an account with a formal banking institution. Not only that, the economic data collection website Trading Economics estimates that 74.45% of Uganda’s 45.7 million inhabitants live in rural areas.<figure class="image"><img src="/uploads/273131299_789512975326040_4991063558167214495_n_715387d09e.jpg"></figure>Lacking access to banks and the credit they offer hinder these populations’ ability to access the basic commodities and resources needed to build successful businesses. And yet, these days smallholder farmers and other entrepreneurs in rural and periurban Uganda are finding it’s not the plow, but rather the smartphone, that goes before the horse. Quest Digital Finance, a Ugandan tech company, is changing that by placing the power of banking and service delivery in the palms of the farmers and entrepreneurs using its digital platforms.&nbsp;The platform enables SACCOS (Savings and Credit Cooperatives) and micro-finance institutions to achieve end-to-end digital transformation and hence, improve reporting and accountability which derisks these entities. Consequently, they are able to access credit from financial institutions. Akellobanker hopes to eventually deliver bundled products and services to farmers and entrepreneurs and other value chain actors on credit.&nbsp;Renew Capital, an impact investment firm growing small and medium-sized businesses in East Africa through its Renew Capital Angels investor network, is now furthering that effort by providing the funds Akellobanker needs to expand its reach to more than 100 cooperatives serving over 100,000 farmers and micro, small, and medium enterprises (MSMEs) in Uganda. Akellobanker will focus on its digitization agenda of integrating over 350,000 farmers and entrepreneurs into the digital economy and using data to deliver desired products and services on credit.&nbsp;“If you look at finance 10 years ago, commercial banks were the owners of financial inclusion. But five years ago, fintech—small financial technology companies—came over and showed banks that we were able to break through places they weren’t reaching,” says Jean Onyait, Akellobanker’s team lead. “That’s breaking a monopoly and creating healthy competition, which goes a long way in reducing prices and making services much more affordable for the local communities.”“The market potential and long-term commercial viability of Akellobanker attracted Renew Capital, particularly as the need to access finance increases,” says Renew Capital Head of Shared Growth Services JC Oelofse. “Developing a digital platform that aggregates financial data generated by the unbanked to provide easy access to credit is a key lever of growth in the informal sector. This credit from financial institutions facilitates sales of inputs to grow the informal economy and brings a well-defined impact case.”&nbsp;&nbsp;About Renew CapitalRenew Capital is an Africa-focused impact investment firm that backs innovative companies with high-growth potential. With a presence in Ethiopia, Rwanda and Uganda, Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact. Since the establishment of the network in 2012, the Angels have been actively investing in the region, mobilizing millions of dollars into Africa's middle market.&nbsp; &nbsp;

Renew Capital Angels invests in the firm’s Akellobanker platform for financial inclusion and agricultural growth 

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Press Release: Quest Digital Finance Connects the Unbanked to Formal Credit Systems

<h1>Press Release: Inputi Receives an Investment to Grow Smart Technology for Food Security</h1>Renew Capital Angels want to see the private sector put more food on African tables.&nbsp;<a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Inputi_00cfaad0fb.pdf">Download the Full Press Release</a>Kampala, Uganda, October 11, 2022 —Food security. It’s a challenge in many parts of the world, especially as global supply chains break down and environmental imbalances leave lands barren. The Ugandan tech company Inputi is improving the odds in its region with funding from Renew Capital, an impact investment firm growing small and medium-sized businesses in East Africa through its network of investors, Renew Capital Angels.&nbsp;Inputi is an online marketplace, aggregator and distributor for farm inputs. Through versatile digital platforms, it delivers quality crop and livestock inputs such as fertilizers and pesticides to 1,000 rural agro shops, 20 dairy cooperatives and 12 meat cooperatives, sending them directly to buyers or to regional agro and vet shops at a fixed transportation cost. Inputi is projecting 50% growth in the coming year and, with the Renew Capital investment, it hopes to profile and aggregate input dealers, farmers and farmer groups to provide linkages in trade and to financial institutions and insurance firms.<figure class="image"><img src="/uploads/INPUTI_IMAGES_24_2000px_f11f0a57a9.jpg" alt="Two farmers offloading fresh agricultural produce from a lorry in Kampala, Uganda, showcasing local farming practices and food distribution."></figure>“We cannot eliminate famine caused by climate change, but we can mitigate that by improving food distribution systems,” says Inputi chief executive officer David Lukwago. “The private sector plays a critical role in building efficient, effective and sustainable means to move food from one point to another point where the food is needed. Sustainability can be achieved if the private sector is fully empowered and brought to the table of food security.”&nbsp;“We are excited about the end-to-end value chain connectivity solution for crop and livestock farmers that Inputi is building. This solution delivers agri inputs to the farmer at an affordable cost while providing farmer-centric training to create a thriving agricultural ecosystem sustainably,” says Renew Capital Head of Shared Growth Services JC Oelofse.

Renew Capital invests in Inputi, a Ugandan agritech startup enhancing food security by connecting farmers with vital agricultural inputs through an innovative online marketplace.

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Press Release: Inputi Receives an Investment to Grow Smart Technology for Food Security

<h1>RENEW’s Legal Corner: October 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/LWN_6417_94da49e087.jpg"></figure>ETHIOPIAEthiopia Positions to Open The Banking Sector To Foreign Investors&nbsp;The Ethiopian Council of Ministers approved the draft policy on opening the banking sector to foreign investors. In Ethiopia, the finance sector, which includes banking, insurance, and microfinance, has been among the protected areas closed to foreign companies. The government of Ethiopia has decided to amend laws to allow foreign investments in the country’s banking sector. Once the new policy is published, the preparation of other legal frameworks like proclamations, regulations, and directives will follow. The NBE is already revising the existing banking business proclamation, and the long-lasting Banking Service Code is also expected to be amended accordingly.&nbsp; The newly approved policy allows foreign banks to enter using four commercial modalities. Foreign banks can open subsidiary arms in Ethiopia, open branches in Ethiopia, and will also be allowed to acquire shares in existing local banks. Based on this policy, foreign banks can acquire up to a 30% direct stake in local banks. Foreign individuals are allowed to acquire up to 5% and foreign non-bank investors are allowed to acquire up to 5% in any local bank. However, the policy excludes insurance and microfinance from the scope of activities open to foreign investors. The change Ethiopia is making in opening up the sector to foreign investors will enable it to support the sector’s services with technology, enhance the networking of the country’s economy with the international market, improve the forex shortage, and strengthen the competitiveness and efficiency of the finance sector.&nbsp;A New Limit On Birr And Forex Holdings Is Introduced&nbsp;The National Bank of Ethiopia (NBE) has issued a directive to limit the amount of birr and foreign currency held in the territory of Ethiopia. The Directive FXD/81/2022, entered into force on September 5, 2022, states that it has become necessary to limit the Birr holding amount for a person entering into and departing from Ethiopia, and sets conditions, limitations, and circumstances under which an Ethiopian, a resident of Ethiopia, and a non-resident or any other person may process and utilize foreign currency. According to the Directive, a person entering into and departing from Ethiopia may hold up to a maximum of Birr 3,000.00 (Birr Three Thousand) per trip to and from Ethiopia, and a person residing in Ethiopia entering the territory of Ethiopia shall convert all foreign currency he/she is carrying at an authorized forex bureau for the equivalent sum in Birr, or deposit to his/her foreign currency account within 30 days of entry to the territory. The directive also sets a time limit for holding and conversion of foreign currency for foreign nationals of Ethiopian origin or Ethiopian nationals not residing in Ethiopia who enter into the territory carrying foreign currency.The Government Has Introduced A New Directive For Imported Personal AppliancesThe Ministry of Finance has introduced a new Directive regarding taxation of personal appliances (i.e.,&nbsp;<a href="http://www.ecc.gov.et/web/guest/%E1%88%98%E1%88%98%E1%88%AA%E1%8B%AB%E1%8B%8E%E1%89%BD/-/document_library/iqHSSioaLJqF/view_file/911902?_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_iqHSSioaLJqF_redirect=http%3A%2F%2Fwww.ecc.gov.et%2Fweb%2Fguest%2F%25E1%2588%2598%25E1%2588%2598%25E1%2588%25AA%25E1%258B%25AB%25E1%258B%258E%25E1%2589%25BD%3Fp_p_id%3Dcom_liferay_document_library_web_portlet_DLPortlet_INSTANCE_iqHSSioaLJqF%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview">Personal Appliances Import Directive No. 923/2022</a>, hereinafter the “Directive”) this month. This directive is more restrictive on importation of personal appliance goods compared to the previous law. The categories of goods which have duty and tax-free privilege are reduced from 102 categories to 16 categories under the new law. In addition, persons who accept a personal appliance as a gift shall pay a 30% income tax if they do not have a tax identification number. Furthermore, individuals are not allowed to receive a personal appliance product more than two times in a year. The Directive mentions the main purpose for the amendment is to fight illegal activities which are impacting the import trade negatively and the introduction of this Directive is expected to alleviate this problem.&nbsp;NBE Has Come Up With A New Insurance Directive&nbsp;&nbsp;The Ethiopian government is introducing big changes to the financial sector.&nbsp; Recently, the fintech and banking sectors have opened for the private sector and foreign investors. In September, the National Bank of Ethiopia (NBE) came up with another big move which greatly impacted one of the financial sectors in the country, the insurance sector. NBE introduced a new directive for insurance companies. Under&nbsp;<a href="https://nbebank.com/wp-content/uploads/pdf/directives/insurancebusiness/scan0054.pdf">Minimum Paid-Up Capital for an Insurance Company Directive No. SIB 57/2022</a> (hereinafter the “Directive”), the minimum paid up capital for new insurance companies has increased to ETB 400 million from the previous ETB 60 million amount. In addition, the Directive introduced provisions which impact the current operating insurance companies and new businesses which will join the sector. Increasing competition in the sector and enhancing the retention capacity of insurance companies are mentioned as the key rationales for introducing the new Directive.&nbsp;&nbsp;&nbsp;The Agricultural Sector Is Expected To Benefit From The Supplier Credit Scheme&nbsp; The agricultural sector contributes the lion’s share to the Ethiopian economy. However, investors engaged in this sector used to complain about its neglect from access to finance and credit for a longer period. To their satisfaction, NBE has introduced a new&nbsp;<a href="https://nbebank.com/wp-content/uploads/pdf/directives/insurancebusiness/scan0054.pdf">Minimum Paid-Up Capital for an Insurance Company Directive No. SIB/57/2022</a> which allows supplier credit for importers of agricultural machines/inputs. In addition, liquefied petroleum gas importers are also mentioned as the beneficiary of the supplier credit under the directive.&nbsp; However, the directive sets a maximum cap on the borrowing capacity of the importers. The debt-to-equity ratio of the company may not exceed 60:40 of the registered capital in the business license. If the importers fulfill the rest of the document requirements stipulated under the directive, they can benefit from the supplier credit scheme. The introduction of this directive is expected to increase agricultural productivity and to modernize the agricultural sector.&nbsp;&nbsp;<hr>UGANDAEU Resolution on EACOP Causes Stir Amid Progress on Oil PipelineAn emergency resolution passed last month by the EU parliament has come under heavy scrutiny by the citizens of Uganda at large. The resolution passed by a majority of the house in essence seeks to halt operations of Uganda's oil projects in particular the East African Crude Oil Pipeline (EACOP) and Tilenga.&nbsp;The legislative body of the European Union bases this decision on the insistence that there should be a feasibility study for the span of 12 months to ‘identify an alternative route that would preserve the environment and consider other projects based on renewable energy,’ as mentioned in an article by the Independent Uganda. The body has gone ahead to request that&nbsp; drilling activities should not commence around protected green areas such as the Murchison Falls National Park. They also requested that human rights violations such as arbitrary arrests of activists and inadequate compensation for those expropriated from their land by EACOP be remedied.This decision was met with a lot of dismay by the Uganda government who have said it is rooted in hearsay and misinformation about the realities of Uganda’s pipeline projects. The Minister of State for Energy and Mineral Development stated this month in regard to the route that ‘the Hoima- Tanga route was selected as the best route&nbsp; for Uganda after careful evaluation based on the best pipeline routing principles. In addition, Uganda has up-to-date stringent laws on the environment and protected areas, which are strictly followed in developing oil and gas projects.’While addressing the concerns on human rights violations and compensation for Projected Affected Persons (PAPs), the minister stated that ‘a specific Human Rights Impact Assessment (HRIA) was undertaken and measures were put in place to address any potential adverse effects on land-based livelihoods.’ He also added that EACOP in Uganda affected 3,648 PAPs as opposed to the alleged 100,000 that the EU parliament had projected and 2,662 have already signed compensation agreements with 1,977 fully paid already.3<hr>RWANDANew Land Law To Outline Different Avenues For Dispute ResolutionMatters of land conflicts related to boundaries and systematic land registrations under the new&nbsp; Law n° 27/2021 of 10/06/2021 governing land will now be handled by the National Land Authority and Districts or the City of Kigali. This was an evident switch from the earlier mass land registration from 2008 to 2013 where over 12M parcels were registered in the Land Administration Information System (LAIS). The new land law outlines the process of handling land disputes and enables the National Land Authority and local government institutions to make decisions on disputes related to boundaries and systematic land registration only.According to an article in The New Times, ‘Disputes outside of that scope do not fall under the powers of the National Land Authority. For example, land transfer disputes are not included in the new law because the transfer contract is signed between individuals and does not directly engage the institution. To implement this provision, Ministerial Order No 004/MoE/22 of 15/02/2022 determining modalities and procedures for resolution of disputes related to land boundaries and systematic land registration was published to set procedures to be followed when a person is filling the land case.’The new law emphasizes alternative dispute resolution as an effective remedy to these disputes but also gives the parties the option to pursue court proceedings as is their constitutional right. It has also enabled the courts to reduce the backlog of land disputes appearing before them which had proven to be a deterrent to effective and fair justice earlier in the year.Merits Of The ACFTA For Women And Youth In TradeThe African Continental Free Trade Area (AfCFTA)’s Protocol on women and the youth is a significant step in the right direction towards Intracontinental trade having included the two most dominant demographics in the trade industry. The protocol is being mulled over by the body’s Secretariat putting into account the immense contribution of youth and women to the continent’s economic growth. According to the Secretary-General of the AfCFTA Secretariat, Mr. Wamkele Mene, ‘they are the drivers of the African economy. SMEs run by women account for close to 60 percent of Africa's GDP, creating about 450 million jobs.’&nbsp;He also stated, in response to what the AfCFTA offers women who contribute to 70 percent of informal trade in Africa, that ‘we offer scale. Women will now be able to expand their market and have access to new markets in East Africa, in Southern Africa, in Central Africa. We offer an opportunity to expand into a market of 1.3 billion people with a combined GDP of $3.4 trillion.’Despite this protocol still being in the negotiation stage, the studies conducted to create inclusive legal provisions for youth and women within this protocol will offer a myriad of opportunities for young Africans developing cutting edge technological solutions for everyday problems and deviate from the traditional trade agreements that seemingly benefited mainly larger corporations. &nbsp;&nbsp;<hr>&nbsp;<a href="https://www.independent.co.ug/eu-resolution-on-eacop/">1) https://www.independent.co.ug/eu-resolution-on-eacop/</a>2) &nbsp;<a href="https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/">https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/</a>3) &nbsp;<a href="https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/">https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/</a>4) <a href="https://www.newtimes.co.rw/article/1494/news/business/land-disputes-now-resolved-differently-pursuant-to-new-land-law-in-rwanda">https://www.newtimes.co.rw/article/1494/news/business/land-disputes-now-resolved-differently-pursuant-to-new-land-law-in-rwanda</a>5) https://www.un.org/osaa/news/what-afcfta-holds-women-and-youths-20226) https://www.newtimes.co.rw/article/1329/news/business/why-the-afcfta-protocol-on-women-and-youth-in-trade-is-indispensable&nbsp;

Our take on developments in the investment ecosystems of East Africa: October

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RENEW’s Legal Corner: October 2022

<h1>Renew Capital’s East Africa Investment Survey Results</h1>At Renew Capital, we believe that Africa's economic potential hinges on its ability to develop and expand its small and medium enterprises (SMEs), especially as it rolls out its African Continental Free Trade Area.&nbsp;In an effort to confirm gaps and needs for entrepreneurs, Renew Capital launched an&nbsp; East Africa Investment Survey recently. The responses from more than 300 companies across the region confirmed that Renew Capital’s gender-smart ecosystem-building work remains crucial and is helping us further refine our capacity building efforts.&nbsp;The top three findings from the survey are:<ul><li>Women-owned Company Growth Lags Behind -&nbsp;The survey showed that female entrepreneurs continued to lag behind their male counterparts in building high revenue companies.&nbsp;Male-owned companies in the sample were able to hire more employees and began experiencing higher revenues at an earlier phase. While majority female-owned companies appeared to catch up as they grew, they fell behind in revenue again by the time they reached maturity.&nbsp;</li><li>Companies are Missing Regional Trade Opportunities&nbsp;-&nbsp;Approximately half of the companies in the sample have yet to take advantage of the broader regional market through cross-border trade. In addition, SMEs reported difficulty accessing capital and&nbsp;consistently reported access to markets as one of the most significant barriers to growth. Infrastructure issues and skilled management were also frequently reported as primary barriers to growth.&nbsp;</li></ul><figure class="image"><img src="/uploads/Regional_Trade_by_Country_fa0255669d.png"></figure><figure class="image"><img src="/uploads/Barriers_to_Growth_0c47a7fb64.png"></figure><ul><li>No Surprise, Entrepreneurs are Optimistic&nbsp;-&nbsp;Despite these barriers, entrepreneurs remained optimistic about the economic outlook. Most companies expressed a basic level of security about economic prospects within their countries as well as across the region. Even politically, few companies predicted that the economic situation in their country or region would deteriorate.</li></ul><figure class="image"><img src="/uploads/Regional_Economic_Outlook_444d1991db.png"></figure>&nbsp;Survey respondents were asked questions along six dimensions: Access to Capital; Growth and Trade; Gender Equality; Climate/Environmental Sustainability; Management Capacity; and Outlook on the Future. Respondents include 323 unique companies that have headquarters in Ethiopia, Kenya, Rwanda,&nbsp;Tanzania, Uganda and Zambia. The full results are available&nbsp;<a href="https://renew-new-api.madtechet.com/uploads/Investment_Survey_Report_Aug_2022_34abc5dac8.pdf" target="_blank" rel="noopener noreferrer">here.</a>“Surveys like this are integral to Renew Capital’s decade-long effort to refine our management capacity building offerings, support ecosystems and grow the missing middle of the African economies,” said Renew Capital Managing Partner Laura Davis.&nbsp;This blog post and the August 2022 East Africa Investment Survey report were authored by Raisa Chowdhury, senior consultant and monitoring and evaluation lead.&nbsp;

Survey Results  confirm need for capacity building, additional support for women entrepreneurs and an opportunity for regional trade.


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Renew Capital’s East Africa Investment Survey Results

<h1 style="text-align:center;">Press Release: Easy Matatu Expands its Ridesharing Minibus Services in Uganda</h1>Renew Capital Angels invest in Easy Matatu's vision to disrupt Ugandan transport.<a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Easy_Matatu_881ec88bbe.pdf" download="download">Download the Full Press Release</a><hr>Kampala, Uganda, October 4, 2022 – In Kampala, a bustling city of 3.6 million people, commuting can be fraught with challenges. An estimated 80% of Kampala's transportation system is matatus—local minibuses which are often dirty, overcrowded, poorly maintained and a major contributor to the city's carbon monoxide pollution. Many matatu drivers are also underpaid, lack formal training and operate congested and time-consuming routes.But Easy Matatu, a minibus ridesharing service, is leading the charge to reform such conditions with an investment from Renew Capital, an impact investment firm growing small and medium-sized businesses in Africa through its network of investors, the Renew Capital Angels. The investment will help Easy Matatu to grow its already successful end-to-end technological platform in which riders reserve a seat on a well-maintained and refurbished matatu through a smart phone app, and once aboard, their highly trained, competitively paid drivers take them on a faster, safer and more comfortable commute. Some of the matatus even come with refreshments and Wi-Fi.&nbsp;<figure class="image"><img src="/uploads/Renew_Strategies_Easy_Matatu_6_0ae6f34755.jpg" alt="An Easy Matatu-branded public transportation bus navigating a busy street in Kampala, Uganda, filled with commuters."></figure>“We realized that beyond just building an app that connects people from Point A to Point B, public transportation in African cities needed to be reformed or disrupted, and technology really presented the best tool to do that,” says Easy Matatu co-founder Carl Andrew Lema.Thanks to this investment, Easy Matatu will grow its fleet of vehicles and increase its capacity to handle more than 200,000 monthly rides. Moving forward, Easy Matatu hopes to scale its platform to provide safe, clean and reliable transportation in other African cities.“Public transport in Africa is broken. Every day, 50 million commuters on the continent struggle to get to work, home or move around. We want to be part of the solution that fixes that,” Lema added.&nbsp;"Commuters in Kampala, where I live, and many cities across the region, face huge challenges simply getting to and from work. The current mobility solutions are not sufficient. The problem is even more acute for women commuters,” says Renew Capital Senior Investment Manager for Uganda, Diana Njuguna. “Easy Matatu is not only revolutionizing the transport sector by making it safer for commuters, but also by using data and analytics to create optimized routes that increase efficiency. In addition, Easy Matatu offers a properly serviced fleet, cutting down on emissions and pollution. It's a great company for these many reasons, and for the fact that it’s playing a pivotal role in driving infrastructure development. We're proud to add them to our expanding Uganda portfolio."For more information on Renew Capital visit&nbsp;<a href="http://www.renewcapital.com/">www.renewcapital.com</a>.About Renew CapitalRenew Capital is an Africa-focused impact investment firm that backs innovative companies with high-growth potential. With a presence in Ethiopia, Rwanda and Uganda, Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact. Since the establishment of the network in 2012, the Angels have been actively investing in the region, mobilizing millions of dollars into Africa's middle market.

Easy Matatu enhances transport in Kampala with innovative ridesharing solutions backed by Renew Capital, providing safer and more efficient commuting options.

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Press Release: Easy Matatu Expands its Ridesharing Minibus Services in Uganda

<h1 style="text-align:center;">RENEW’s Legal Corner: September 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/LWN_4362_7b576fe01c.jpg"></figure>ETHIOPIANew Tax Regulation Exempts Share Premium Tax on Newly Issued SharesThe Ethiopian Council of Ministers has approved an amended income tax regulation (“Amendment Regulation'') which exempts resident companies from payment of tax on share premium income obtained from newly issued shares. Investors have been disputing the implementation of the 2016/2017 <a href="http://www.mor.gov.et/web/guest/regulations/-/document_library/Yy5kLMTyMZt7/view_file/173104?_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7_redirect=http%3A%2F%2Fwww.mor.gov.et%2Fweb%2Fguest%2Fregulations%2F-%2Fdocument_library%2FYy5kLMTyMZt7%2Fview%2F172549%3F_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7_redirect%3Dhttp%253A%252F%252Fwww.mor.gov.et%252Fweb%252Fguest%252Fregulations%253Fp_p_id%253Dcom_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7%2526p_p_lifecycle%253D0%2526p_p_state%253Dnormal%2526p_p_mode%253Dview">Income Tax Proclamation</a> and <a href="https://www.mofed.gov.et/media/filer_public/c0/31/c0319984-501a-4eab-bf5b-98c15fa7985c/income_tax_regulation_english_clean.pdf">Regulation</a> by the Ministry of Revenues. The Ministry of Revenues used to apply capital gains tax on the share premium of a company under Schedule D of the Income Tax Proclamation. Although different circulars and directives were issued by the Ministry of Finance directed toward alleviating the gaps in the application, the efforts remained on paper and only moved the tax on premiums from Schedule D (capital gains tax) to Schedule C (tax on profit). The Council of Ministers per the Amendment Regulation and the explanatory note issued therewith stressed the wrongful implementation of the provisions of the Income Tax Proclamation and Regulation and its impact on the country’s effort to attract foreign private equity investors. The Council of Ministers in its explanatory note emphasized that taxing investment discourages investors, especially foreign private equity investors, from investing in Ethiopia. The Amendment Regulation resolved this long-lasting issue between investors and the tax authority by specifically classifying share premiums on newly issued shares as exempt incomes. However, the Amendment Regulation still faced some criticism from domestic investors for specifically exempting share premiums by foreing investors (non-residents).Introduction of Social Welfare Levy on Imported Products&nbsp;Ethiopia is ranked among the top countries that tax imports heavily. In principle, there are five different taxes applicable on imported goods in Ethiopia. These are custom duty, excise tax, value added tax, surtax and withholding tax. In addition to this, the Ethiopian government has introduced a new tax on imported products. According to the regulation which introduced this levy the main reason for the introduction of this tax is to support the rehabilitation and construction of schools and medical facilities and the expansion of other social services in the country. The tax rate will be three percent (3%) on imported products and imposed on the Cost, Freight and Insurance (CIF) value of the imported goods. Goods that are exempted from surtax are required to pay the social welfare levies. For instance, petroleum and lubricants were exempted from surtax under the surtax proclamation. However, importers are now expected to pay a social welfare levy on imported petroleum and lubricants. The imposition of a new tax on petroleum and lubricants is expected to fuel the existing inflation in the country.&nbsp;Opening of the Financial Sector to Foreign InvestorsIn Ethiopia, the financial sector has been a forbidden fruit for foreign investors. However, on August 6, 2022, the Council of Ministers approved the amendment of <a href="https://nbebank.com/wp-content/uploads/2019/04/nationalpaymentsystem.pdf">Proclamation No. 718/2011 A Proclamation to Provide for National Payment System</a>, the purpose of this amendment is to open the sector for foreign fintech companies. The National Bank of Ethiopia (NBE) recently licensed Ethio-telecom and Kacha Digital Financial Services to engage in the country’s financial sector. Now, the opening of the sector to foreign investors is expected to contribute to the development of the country. Safaricom and other international companies had communicated their interest to engage in the financial sector and the amendment of this Proclamation will give them the right to operate in Ethiopia.&nbsp;<hr>UGANDAUSD 2.7M fund to benefit over 10,000 youth and womenThe Challenge Fund for Youth Employment, a Netherlands government funded program, will look to create several job opportunities for women and youth in Uganda during a six year time frame. The fund is partnering with the likes of Palladium and Randstad, Voluntary Service Overseas (VSO), and Marula Agribusiness B.V. to scope out viable solutions that will create favorable employment opportunities for the participants. According to an article in the New Vision, the fund has an estimated portfolio of 10 projects worth over EUR 5.85M and plans to create and match over 25,000 jobs for women and youth, through its implementing partners. According to macrotrends.net, as of 2021, the&nbsp; unemployment rate in Uganda stood at 2.94%, a 0.17% increase from 2020 while the youth unemployment rate was at&nbsp; 4.33%, a 0.33% increase from 2020. This program will create better job opportunities in a country that has one of the youngest populations but has exceedingly struggled with unemployment over the years.<hr>RWANDAEnhanced Public Finance Management Assured with New LegislationA new law passed by the Rwandan senate earlier this month gives the Auditor General more powers to audit institutions that his office didn’t usually audit. Specialized entities such as the National Bank of Rwanda, which the AG’s office was not previously auditing, will now fall under the category of public organs which will be audited. According to an article in the New Times Rwanda, the Chairperson of the Committee on National Budget and Patrimony, Omar Munyaneza, stated that though such organs were not drawing finances directly from the national budget, they were using public funds. The new change is meant to ensure that, though they are not allocated funds from the approved national budget, their finances be audited to know how they manage public funds. The new law shall encompass all public organs including those that were originally being audited by auditing firms such as KPMG but under the supervision of the Office of the Auditor General. Under the new law, the Auditor General shall also have access to the audited financial statements of public organs a month earlier than in the previous law. This new legislation will go a long way in managing public funds and maintaining accountability within these institutions. Rwanda continues to maintain a zero tolerance towards corruption with such legislations in order to set a precedent for all public organs and citizens alike.&nbsp;&nbsp;<hr>&nbsp;1) <a href="https://www.newvision.co.ug/category/business/10000-to-benefit-from-youth-employment-fund-141663">https://www.newvision.co.ug/category/business/10000-to-benefit-from-youth-employment-fund-141663</a>2) https://www.newtimes.co.rw/article/388/news/finance/how-new-law-could-improve-public-finance-management