<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>On World Food Day, Renew Capital Reflects on Famine Mitigation</h1>At the intersection of academia, technology and investing, ag experts and companies come together to address shortfalls in food production and distribution, as well as potential growth. Whether she’s comparing satellite imagery to the crops she's traversing with farmers by foot as she heads up the Africa section of NASA's food and agriculture program, talking to her restaurateur-turned-farmer mother about her yields in Uganda, or teaching classes at University of Maryland, in the United States, 2020 Africa Food Prize winner <a href="https://geog.umd.edu/facultyprofile/nakalembe/catherine">Dr. Catherine Nakalembe</a> is constantly thinking about how civil conflicts, the war in Ukraine, trade barriers, disruptions to last-mile delivery and climate change are contributing to a looming famine which could become the worst East Africa has seen in decades. She’s also thinking about the communities behind the related data she’s analyzing.&nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_10_19_at_5_12_42_PM_1_2ec373e657.jpeg"></figure>“These are actual people who have worked so hard, and everything gets completely scorched by the sun or washed away by the rain,” she told Renew Capital. “There are these tools that you could use to predict, to give some sort of guidance, some sort of early warning— two weeks, four weeks, six weeks before.”&nbsp;Used in consultation with government agricultural divisions and farming cooperatives across Africa, her team’s research and tools do precisely that. She applauds the efforts of other African researchers, scientists, and organizations in building out solutions that leverage the insights from satellite data and feed into the goal of greater food production and access.&nbsp;<figure class="image"><img src="/uploads/291146909_huge_a9fb009976.jpg"></figure>On Sunday, the United Nations Food and Agriculture organization will observe World Food Day 2022 with the motto “No One Left Behind.” Renew Capital is taking that day to reflect on how its own work as an Africa-focused impact investment firm can contribute. Renew Capital operates on the premise that the private sector can spark innovation and competition; create more sustainable jobs; lower consumer costs; drive policy change and greater trade; and ultimately have positive, more equitable impacts on the lives of diverse communities. Last month, the firm closed a package of tech and tech enabled companies that included investments in <a href="https://inputi.market/">Inputi</a> and Quest Digital Finance’s <a href="http://akellobanker.com/">Akellobanker</a>, two digital platforms from Uganda embracing and implementing the kind of innovation &nbsp;Nakalembe wants more people to be able to access.&nbsp;Investing in Small Farmers and Rural EntrepreneursInputi 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 investment from Renew Capital, it hopes to profile and aggregate input dealers, farmers and farmer groups to provide linkages in trade and to financial institutions and insurance firms.&nbsp;<figure class="image"><img src="/uploads/Inputi_5_d6607c024c.jpg"></figure>“We cannot eliminate famine caused by climate change, but we can mitigate that by improving food distribution systems,” Inputi chief executive officer David Lukwago told Renew Capital. “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;Nakalembe believes an input platform like this one can be faster and more efficient than systems coming from the government because they are less encumbered by bureaucratic red tape and are driven by consumer demands.&nbsp;“You could explore one thing and try it for a few months, and if this doesn't actually turn out to be working really well, a company has that flexibility to reevaluate their model,” she said, noting that regular outreach into the communities through organizations such as farming cooperatives can be key to building trust and setting up a system where both sides inform each other of latest trends and best practices in their business models. In fact, she noticed in her own in-person field visits that farmers thrive on opportunities to share with each other about what crops are proving to produce the highest yields or offer the most nutrition.&nbsp;Eventually, Inputi hopes to do exactly that. As it stands, farmers are essentially telling suppliers what fertilizers or pesticides they need by what they end up requesting, something that in time could lead to higher quantities of organic inputs, Lukwago says. At the same time, they’re trusting that the platform will give them reliable information about when those inputs will hit the agri shop closest to them so that they don’t waste precious time and fuel trying to get there, only to come up empty-handed. Early warning sign data is also on the horizon, and that could be instrumental in helping farmers shift what to grow or how much to store, versus how much to send into the broader market.&nbsp;Over the coming 10 to 20 years, the next one billion people will be on the African continent, said Lukwago, referencing the region’s rapidly growing population. “Demand for food is going up but food productivity is actually declining. The only way to solve this problem is to bring technology onto smallholder farms to help us leapfrog all these other broken pieces along the value chains.”&nbsp;<figure class="image"><img src="/uploads/273131299_789512975326040_4991063558167214495_n_06e58c53b4.jpg"></figure>But it’s impossible to move forward with buying many inputs without the credit to do so. That’s where products like Akellobanker come in. Run by Ugandan tech company Quest Digital Finance, this platform helps&nbsp;savings and credit cooperatives (SACCOS) and micro-finance institutions to digitize reporting and accountability records that de-risk small farmers, making it easier for them to obtain formal bank accounts and the larger options for credit that come with them.&nbsp;Akellobanker hopes to eventually deliver bundled products and services to farmers and entrepreneurs and other value chain actors on credit. Renew Capital’s investment will help Akellobanker expand its reach to more than 100 cooperatives serving over 100,000 farmers and micro, small and medium enterprises (MSMEs) in Uganda. Akellobanker hopes to integrate over 350,000 farmers and entrepreneurs into the digital economy and use data to deliver desired products and services on credit.Breaking with traditional banking and lending, which has a high barrier to entry throughout Sub-Saharan Africa, Akellobanker team lead Jean Onyait says this platform makes the financial sector more accountable to consumers.&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 Onyait. “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.”Partnering Up for Greater Training and Information SharingOne of the ways Renew Capital sets itself apart from other investment firms is that it blends money from its Renew Capital Angels network with funding from multilateral institutions and government agencies, such as the U.S. Agency for International Development (USAID) and the Government of Canada, to test different strategies for better business; mobilize capital for SMEs and the missing middle; and ultimately shift policy making toward investment in SMEs as the agents of change in advancing international development goals. At the same time, Renew Capital bolsters this effort by partnering with non-governmental agencies to develop and deliver robust executive business training, private equity training and one-on-one coaching sessions to prepare SMEs to receive financing and grow into market leaders.&nbsp;The non-profit organization the Alliance for Green Revolution in Africa (AGRA) partners with Renew Capital to provide the firm’s executive training to African women in farming. The upcoming Enhanced Accelerated Women Exec’s Training, to be facilitated in partnership with Renew Capital and AGRA, begins on October 17 and ends on October 21. The five-day training aims to help female agri-business owners learn how to create a disciplined accounting and financing function; how to generate, read and analyze financial statements; and how to manage a 13-week cash flow. It will also help them understand the core components of and the differences between topics such as marketing and sales functions.AGRA’s Head of Partnership Jennifer Baarn, who works in Africa and represents the diaspora by way the Caribbean nation of Suriname, manages the AGRA Africa’s premium Food Systems Forum. She says these trainings are key to helping entrepreneurs not only navigate their businesses but the entire agri-investment ecosystem in which they are trying to produce and distribute their food products.&nbsp;Part of her job is to help AGRA stakeholders be they government agencies, multilateral institutions, non-governmental organizations and impact investment firms recognize that private enterprise encompasses a wide array of activities.“When it comes to private sector, we often think about big multinationals and well-established retail chains. But in essence, everybody who puts their own capital and equity at risk is in the private sector, isn’t it?” she says. “So our small smallholder farmers, small traders and transporters -&nbsp; the middle men, small-skill processors or even vendors on the side of the road with their frying pans full of mandazi (fry bread).”&nbsp;Investing for Immediate and Long-term ImpactBaarn’s colleague,&nbsp;<a href="https://agra.org/zt_team/dr-jean-jacques-mbonigaba-muhinda/">Jean Jacque Muhinda</a>, a Rwandan agricultural engineer and soil scientist who serves as AGRA’s East Africa regional head, says investments in areas like food production and distribution cancontribute to stabilizing regions even as they are facing internal conflicts.&nbsp;“Some of these local conflicts emerge because of a lack of opportunity, such as a lack of employment opportunities for young people, a lack of resources and a lack of equity and inclusivity,” said Muhinda. &nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_10_14_at_9_49_38_AM_6949fb74f5.jpeg"></figure>And while one country in a geographic region or one area within a country may be facing a food shortage, another country or region might have a food surplus. Investments in the right planning tools and last-mile delivery services can help to balance those scenarios. This month, for example, the news media has been reporting on famine in Somalia and parts of Uganda, but the United States Department of Agriculture reported that Ethiopia is now the second largest producer of wheat on the continent, after Egypt.&nbsp;“I've been reflecting with my organization and my colleagues trying to understand really why we Africans and African countries, especially in East Africa, are affected by a conflict that's taking place 7,000 kilometers away,” said Muhinda, referring to a shortage in grain and wheat imports due to the conflict in Ukraine, one of the world’s largest wheat exporters. “This is a wake up call. In the next four or five years, Ethiopia can be self-sufficient in terms of wheat, rice and oil seed production. It also has the potential for feeding the rest of the countries in the region in a value chain where they have comparative advantage.”<figure class="image"><img src="/uploads/INPUTI_IMAGES_29_e0fe6e4a83.jpg"></figure>All of these advances align with Renew Capital’s ambitious goal of promoting growth in small and medium enterprises across half of Africa’s 54 countries by 2027.“With blended finance commitments in place to fund Renew Capital for the next seven years, the timing is right for the firm to make a big push forward,” Renew Capital co-founder and chief executive Matthew Davis said.&nbsp;“We strongly believe Africa’s private sector is the future of the continent, and we are more committed to our mission to grow companies, build nations and leave a legacy than ever,” managing partner Laura Davis said.&nbsp;– Don’t miss the upcoming&nbsp;<a href="https://agra-org.zoom.us/meeting/register/tZEpdOGgrTMoH90mY1F3qvShTQW-UhzrO_UY">Enhanced Accelerated Women Exec’s Training</a>, to be facilitated in partnership with Renew Capital and AGRA October 17 to October 21. &nbsp;

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On World Food Day, Renew Capital Reflects on Famine Mitigation

<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 style="text-align:justify;">Ethiopia to Open Up the Banking Sector for Foreign Investors: Here's What We Know</h1>For a long time, Ethiopia’s banking sector had a reputation of being traditional and out of reach to most citizens, including many entrepreneurs who needed credit to run or set up their businesses. The credit provision system was believed to favor the large corporations and affluent people with enough collateral and longtime relationships with the banks.&nbsp;One of the biggest problems was the lack of market competition. The banking sector had been off limits to foreign investors since 1974, and as a result, the market was only served by domestic service providers, which have been criticized for being static. But that dynamic is about to change.&nbsp; On September 3, the Council of Ministers adopted a policy presented by the National Bank of Ethiopia to open the banking sector to foreign investors.&nbsp;&nbsp;<figure class="image"><img src="/uploads/Money_bfe7a95e65.png"></figure>What Do We Know About the Policy?The move affirmed rumors that had been circulating for several years, and even though the full policy details have not been made public, some information about it was disseminated through a&nbsp; Council of Ministers press release.&nbsp;The government expects this policy to improve the quality of the service provision in the sector with knowledge and technology, establish links with the global market, increase the competitiveness, effectiveness and efficiency of the financial sector, ensure a sufficient supply of finance and foreign currency, increase the number of job opportunities created and improve economic efficiency.During a state television interview held the same day as the decision, NBE Banking Supervision Director Frezer Ayalew said foreign banks will be allowed to enter into the Ethiopian market in four modalities:&nbsp; a subsidiary model, branch model, joint venture with existing banks or through a commercial representative office. And according to a news story by&nbsp;<a href="https://www.thereporterethiopia.com/26647/">The Reporter Ethiopia</a>, an NBE official speaking on the basis of anonymity told the publication that this policy allows foreign investors to buy up to a 40% equity stake in existing Ethiopian banks, with a maximum of 5% allowed for individual foreign investors, 5% for non-bank investors and 30% for foreign banks.What’s in It for the Private Sector?Small and medium enterprises are expected to reap some of the biggest benefits of this decision since foreign banks will likely offer innovative credit facilities that promote greater competition among commercial banks and thus attract an influx of foreign currency.What Needs to be Done?The arrival of foreign banks is no guarantee of anticipated benefits. A dramatic forex inflow will largely hinge on the liberalization of the country’s capital accounts and floating the currency.&nbsp;What is Next?Following the policy’s full approval, the government will pass different legislation to carry it out. This includes amending the country’s banking and investment laws which currently prohibit foreign investors from participating in the financial sector. Multiple stakeholder consultations are anticipated to occur in the interim, which could alter some of our perceptions of the mechanics. Whatever the case, we will soon see foreign banks operating in Ethiopia.&nbsp;

Small and medium enterprises are expected to reap some of the biggest benefits.

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 Ethiopia to Open Up the Banking Sector for Foreign Investors: Here's What We Know

<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 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>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 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.