Renew Capital is at the forefront of Africa's startup revolution. We're gearing up for our most significant venture yet—an investment in up to 20 African startups sourced from 10 countries and 8 sectors. If you are an accredited investor and interested in learning more, take 2 minutes to <a href="https://www.renewcapital.com/apply" target="_blank" rel="noopener noreferrer">apply to Renew Capital Angels™</a> and be part of the transformation.<h1>Embracing Africa's Startup Revolution</h1>Our Journey Through 8 Countries Meeting 50 Startups in 60 Days<div class="raw-html-embed"><style>
 .video-container {
 position: relative;
 width: 100%;
 padding-bottom: 56.25%; /* 16:9 aspect ratio */
 overflow: hidden;
 max-width: 1000px; /* Set your desired maximum width */
 margin: 0 auto; /* Center the video */
 }

 .video-container iframe {
 position: absolute;
 top: 0;
 left: 0;
 width: 100%;
 height: 100%;
 }

 /* Media query for smaller screens */
 @media (max-width: 767px) {
 .video-container {
 max-width: 100%;
 padding-bottom: 75%; /* Adjust aspect ratio for smaller screens if needed */
 }
 }
</style>

<div class="video-container">
 <iframe width="1000" height="562" src="https://www.youtube.com/embed/fMGWYfXyMyw?si=mIgmRYAfHvA1mn-h" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="">
 </iframe>
</div>
</div>Across the continent in 60 days: snapshots from a few of the countries on Matt and Laura’s whirlwind tour. Photos courtesy of Renew Capital.After living and investing in Africa for more than a decade, we've embarked on what could only be described as an extraordinary adventure. Through the highs and lows, successes and setbacks, we've been building what we envision to become one of the region's premier investment firms.Our story is one of true entrepreneurship, marked by the same trials and triumphs faced by those we invest in. From our base in Ethiopia, the "sleeping giant" of the African investment landscape, we've expanded across nine countries. Our recent marathon journey through 8 countries, meeting 50 startups, has reaffirmed a few things:<h2>Africa’s Moment Is Now</h2>The Western perspective on Africa is due for a paradigm shift. The era of simply giving is being outpaced by a more impactful strategy: investing in Africa’s future. The continent is not looking for handouts; it is seeking partners in progress. Partners who understand that the future is being written in the code of startups, in the strategies of entrepreneurs who are as visionary as they are relentless.At Renew Capital, we're not just observers; we're active participants in this transformation. Our history on the continent has shown us the undeniable: Africa is not just rising - it's thriving, innovating and redefining what's possible.<h2>Calling All Angels: Rise to the Investment Challenge</h2>We stand at a pivotal moment. To those on the outside looking in, this is your call to action. Renew Capital is backing startups and becoming part of a revolution that’s redefining supply chains and creating jobs. We are investing in the innovators who are shaping Africa’s tomorrow.It’s time to transcend the old ways of nepotism and cronyism. To those successful African entrepreneurs and investors, investing in innovation is investing in a legacy that will endure. Political leaders and decision-makers, the resources at your disposal have the power to ignite change or stifle potential. The choices you make today will echo through the annals of history.<h2>Our Pledge: Renew Capital’s Largest Investment Offering</h2>In the coming weeks, Renew Capital will unveil its most diverse and comprehensive investment package to date. We are selecting up to 20 tech-enabled startups from a pool of talent that spans 10 countries and 8 sectors. These startups are not just businesses; they are beacons of hope and progress.Our commitment goes beyond capital. We provide a scaffold of training and coaching that prepares these startups for the journey ahead. We’re calling on investors who are ready to be part of something transformative. Join us. Invest with intention. Let’s write history together.If you’re ready to rise to this challenge and back the next generation of African entrepreneurs,&nbsp;<a href="https://www.renewcapital.com/apply">apply now to Renew Capital Angels™.</a> After submitting the 2-minutes application, accredited investors will have access to our largest investment opportunity to date. We will be sharing more in our Renew Capital Angels Members’ Call on Wednesday, November 15, so be sure to submit your application before then.The time to act is now. Be a part of this landmark shift in how the world engages Africa. Your involvement is not just an investment in a company; it’s an investment in the future of a continent on the rise.<h2>The Future Awaits. Let’s Build It Together</h2><img src="https://lh7-us.googleusercontent.com/Uv9vJEC-PzrRb-zP5GZzBD6OS08lpKlXjf8QRer6mFYHMoAPcA2-xMvOojQGTgef_n0kF9YAcsfuCK8CcZzUigHHJbm6f3j3eutEQs1d26RHPMbs-JAUFSfdUxfN2N39fSxnRbNmZncMch6qz5oaUZo" alt="Renew Capital's upcoming investment package featuring up to 20 early-stage companies from 10 countries and eight sectors, highlighting the firm's commitment to investing in Africa. "><h2>Here are some interesting facts about Africa:</h2><ul><li>Venture Capital Funding: In 2022, Africa raised $5.2 billion in venture capital across 786 deals, accounting for 3% of the total volume and 1.2% of the total value of global venture funding. Despite a global downturn in venture capital,&nbsp;<a href="https://www.avca.africa/data-intelligence/research-publications/2022-venture-capital-in-africa-report/#:~:text=Africa%20raised%20US%245,US%2450%20million%20compared%20to%202021">Africa's market remained relatively stable</a>, with only a slight decrease in funding compared to the previous year​​. However, it is important to note that the majority of these transactions were relatively small, with&nbsp;<a href="https://www.brookings.edu/articles/figures-of-the-week-venture-capital-trends-in-africa/#:~:text=However%2C%20the%20majority%20of%20VC,in%20the%20United%20States">65% of VC deals attracting less than $5 million</a> in investments​​.</li><li>Urbanization Trends: Africa is experiencing a significant urbanization trend. While its population has been largely rural, the continent is now driving urbanization at&nbsp;<a href="https://www.dw.com/en/africa-drives-global-urbanization/a-65653428#:~:text=05%2F17%2F2023,This%20is">a pace similar to Asia's in previous decades</a>​​. Sub-Saharan Africa, in particular, has seen a consistent increase in its urban population, with a&nbsp;<a href="https://www.macrotrends.net/countries/SSF/sub-saharan-africa-/urban-population#:~:text=Sub,as%20defined%20by%20national">3.92% rise from 2020 to 2021</a>​​. This urbanization is significant as it often correlates with increased economic activity and can provide a fertile ground for startups and investors.</li><li>Projected Growth in VC Investment: There was an expectation that VC investment in Africa would sharply increase to between $3.8 billion and $4.7 billion in 2022, with projections reaching up to&nbsp;<a href="https://www.statista.com/chart/24911/vc-investment-by-country-in-africa/#:~:text=In%202022%2C%20VC%20investment%20is,investment%20in%20Africa%20is">$6.8 billion by 2023</a>​​. However,&nbsp;<a href="https://restofworld.org/2023/african-startups-vc-funding-decline/">a decline in venture capital funding</a> in the African tech startup ecosystem has been observed in 2023, which has raised concerns among entrepreneurs and investors about the potential stagnation of the sector if the funding does not meet the needs of growing companies​​.</li><li>Emerging Opportunities and Sectors: The technology sector in Africa is burgeoning, and there is a growing acknowledgment that venture capital can support the expansion and innovation of tech startups on the continent. Moreover, the agriculture technology sector is seen as a&nbsp;<a href="https://www.caban.co.za/venture-capital-opportunities-in-africa-in-2023/#:~:text=Top%2010%20Venture%20Capital%20Opportunities,improve%20agricultural%20productivity%20in%20Africa">promising area</a> where venture capital can address food security issues and improve agricultural productivity​.</li><li>Unicorn Status Achievements: The rise of significant startups is underscored by achievements such as unicorn status, with MNT-Halan becoming Africa's first unicorn of 2023 and Egypt's first unicorn after raising&nbsp;<a href="https://techpoint.africa/2023/03/15/african-venture-capital-funding-in-february-2023/#:~:text=Egypt%20was%20by%20far%20the%20country%20that%20got%20the%20most%20funding%20%E2%80%94%20%24437%20million%20%E2%80%94%20due%20to%20MNT%2DHalan%27s%20%24400%20million%20raise.%20South%20Africa%20followed%20in%20second%20place%20with%20%24173.7%20million%2C%20while%20Nigeria%20(%2436%20million)%20and%20Kenya%20(%2415.8%20million)%20rounded%20up%20the%20top%20four.">$400 million</a>​.</li></ul>This summary is intended for informational purposes only, is subject to change, and does not constitute investment advice or a recommendation to you. This summary is not intended as an offer to sell or a solicitation of an offer to buy an interest in any company (a “Company”) managed by Renew Capital or its affiliates. Such an offer to sell or solicitation to buy an interest in a Company may be made only by the delivery of subscription agreements relating to such Company and specifically delivered by Renew Capital to the recipient thereof. Investment in a Company is open solely to “accredited investors” (as defined by the SEC under the Securities Act of 1933, as amended) and, in addition, is intended only for sophisticated investors who meet the investor suitability requirements described in the subscription agreements and who can bear the risk of investment losses, including the potential loss of their entire investment.Investments with Renew Capital are speculative in nature and involve a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries and include the risk of total loss of an investor’s entire investment.

After living and investing in Africa for more than a decade, co-founders Matt and Laura Davis believe we stand at a pivotal moment. 

Uganda.JPG

Embracing Africa's Startup Revolution

Renew Capital's operations have expanded to nine African countries, spanning four regions. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our team on the ground. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges</h1>Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam, Tanzania.&nbsp;<figure class="image"><img src="/uploads/TZ_Linked_In_fd3d58377e.png" alt="Q&amp;A session with Renew Capital's Investment and Project Manager in Dar es Salaam, Tanzania, discussing insights on Tanzania’s entrepreneurial scene and addressing local challenges."></figure><figure class="image"><img></figure>Tanzania has a population of over 67 million people, making it one of the most populous countries in Africa. This vibrant and youthful nation is also one of the continent's fastest-growing economies. ML Kidaha, Renew Capital investment and project manager for Tanzania sheds light on the startup scene in the country, citing that the community-oriented culture of Tanzania, embodied by the Umoja spirit of togetherness, drives the success of the business community.What unique characteristics and advantages does Tanzania's startup scene offer?Tanzania has a lot of untapped opportunities to take advantage of especially since it is under the radar of the global startup community. The country's population of over 67 million people, rapidly growing cities like Dar es Salaam and its strategic location bordered by the Indian Ocean, as well as the vast&nbsp;<a href="https://globalsiasar.org/pt-br/node/249">freshwater</a> resources of Lake Victoria to the north, Lake Tanganyika to the west and Lake Nyasa (Lake Malawi) to the southwest, make it an attractive place to do business. These features also make Tanzania a suitable market to test validation for both product-to-market fit and scalable market opportunities for adaptation across multiple African countries with similar characteristics.&nbsp;Tanzania’s young population is eager to learn and adapt and this contributes to the vibrant, moldable, startup ecosystem we’re seeing. Success in the Tanzanian context is tied to understanding and aligning with the local culture and people. For example, thriving businesses can be found in a wide variety of locations, catering to a wide range of income brackets. Due to Tanzania's background as a socialist state and its community-focused culture, business requires a collaborative, courteous approach. Understanding the local demographics and building partnerships with them is key.&nbsp;Tanzania is known for its safety and peaceful environment, which can provide a secure foundation for startups to operate.&nbsp;What are the most common obstacles that Tanzanian startups face?Funding is a major obstacle for Tanzanian founders as well as the lack of systems to support business growth and help entrepreneurs scale their businesses. Despite ongoing capacity-building efforts, there is a shortage of technical assistance and systems in place to assist entrepreneurs in becoming investor-ready or taking their businesses to the next level. Additionally, there are bureaucratic processes and red tape that can slow down progress.&nbsp;Entrepreneurs often rely on cash injections from friends and family rather than formal institutions to address funding challenges. However, they lack guidance on how to optimize these resources and are not able to use their funds wisely to achieve business growth.&nbsp;In the context of Tanzania's startup ecosystem, what role do young people – and young women in particular – play in shaping the future of the country's entrepreneurship and innovation landscape?The youth, comprising over 60% of Tanzania's population, have a significant role in shaping the economic future of the country. With rapidly growing cities and a tech-savvy mindset, young people are at the forefront of digital adaptation. The increasing number of internet users reflects this positive trend. This shift towards digital adaptation highlights the need for more tech-enabled businesses.&nbsp;Women contribute significantly to nurturing businesses and play a crucial role in decision-making processes. Moreover, with over 50% of the population being women, there will be a growing demand for products and services that cater to their specific needs.&nbsp;Could you please provide us insight into your journey in the investment sector?I majored in finance in the U.S. where I developed a strong interest in the field. I started my career in financial services, focusing on financing small businesses, entrepreneurs and investment properties, especially in commercial real estate. Later, I worked at Goldman Sachs in their private wealth management division. After that, I gained valuable experience in management consulting at one of the Big 4 accounting firms in Tanzania, across various industries. This gave me a comprehensive understanding of the Tanzanian landscape and reinforced my desire to work in investments.&nbsp;

Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam.

DSC_4884.finaljpg 3.jpg

How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges

Laura Davis, Co-CEO of Renew Capital, visited Accra for the first time in over 12 years. She shares her experience of one of Africa's bustling metropolises and what has changed since her last visit. We’re hiring in Ghana! Apply for our Investment Ecosystem Development Manager role&nbsp;<a href="https://renewcapital.bamboohr.com/careers/58">here</a>.&nbsp;<h1>Ghana's Entrepreneurial Pulse: My Perspective</h1>Rediscovering Ghana's lively capital city and entrepreneurial landscape&nbsp;Ghana.&nbsp;It was my second time to visit (the last time was more than 12 years ago), and after a few days, I finally started to get a decent feel for the capital, Accra. It’s a sprawling region of 5.4 million according to&nbsp;<a href="https://www.statsghana.gov.gh/regionalpopulation.php?population=MTM0NTk2MjQzOS4yMDE1&amp;&amp;Greater%20Accra&amp;regid=3">Ghana Statistical Service</a> and somehow without much of a bell curve shaping the skyline.&nbsp;The city’s business center seems to have shifted&nbsp;over the years, according to some, from the original city center near the chaotic Makola Market neighborhood to the Airport neighborhood and increasingly towards an area called Cantonments/Labone.<ul><li>Perhaps it's not really that different from many other African capitals where there are various pockets of modernity and innovation, but generally the density of such elements seems to be low.&nbsp;</li></ul><figure class="image"><img src="/uploads/Accra_eed3a4bf74.png" alt="Highlights from an ecotourism trip in Accra, Ghana, showcasing the vibrant startup ecosystem, local culture, and key attractions like Makola Market and Independence Arch."></figure><figure class="image"><img></figure>Our four-year-old Brooklyn says the difference between Ghana and Ethiopia where we’ve been living for almost 12 years, is the lady head porters (called kayayei locally) carrying everything imaginable with unparalleled strength and grace in the sweltering weather. And she currently loves talking about her disappointment with the trash she encountered on the beaches we visited. But of course, there are lots of other things to mention, both good and challenging from my perspective.&nbsp;<ul><li>The start-up scene is fragmented and nascent - There are definitely&nbsp;good things happening in pockets around the city, and good energy, but it’s not a compact ecosystem and there’s a fair amount of congestion and traffic in between these pockets of start-up energy.</li><li>There are lots of eager donors&nbsp;- But not too many massive entrepreneurial successes to point to yet. At least not that many that I heard of.&nbsp;</li><li>The Impact Hub Ghana has a great vibe.&nbsp;It’s located in the Osu neighborhood and has attracted several international companies like Glovo to HQ there.</li><li>The government is prioritizing entrepreneurship&nbsp;with various efforts underway to provide a legal framework for startups and support through various organizations such as the Venture Capital Trust Fund and the&nbsp;<a href="https://neip.gov.gh/">National Entrepreneurship and Innovation Programme (NEIP)</a>, among others.&nbsp;</li></ul>If you have the pleasure of a visit to Accra, Ghana, here are a few tourist recommendations that will give you a sense of the country's great history and vibe<ul><li>The Green Butterfly Market opens every first and third Saturday of the month at the Department of Parks and Gardens and features food and products from local artisans.&nbsp;</li><li>The Ghana National Mosque Complex hosts an impressive replica of Turkey’s Blue Mosque, a gift from the people of Turkey.</li><li>The West Hills Mall,&nbsp;supposedly one of the biggest malls in Accra was honestly a bit low on energy but could be interesting for anyone who wants to take a short drive (on a Sunday) outside the city center.</li><li>Makola Market&nbsp;- Beautiful, colorful, amazing chaos. My takeaway - this country has hustle! Need I say more?&nbsp;</li><li>Independence Arch is a beautiful piece of art that’s part of the&nbsp;<a href="https://visitghana.com/attractions/independence-square-1/">Independence Square</a> which memorializes Ghana’s independence struggle.&nbsp;</li><li>Osu Castle&nbsp;and the fishing villages nearby. Its history as a slave outpost among many others like it in Ghana is beyond hard to swallow, but also part of the story that must be acknowledged.&nbsp;</li><li>Oxford Street&nbsp;- Of course, there’s an “I Love Accra” sign that makes for great pictures, but also the street captures the dynamic hustle of the city’s residents and has plenty of shops and restaurants to enjoy.</li></ul>&nbsp;<div class="raw-html-embed"><div style="text-align: center;">
 <iframe width="1000" height="562" src="https://www.youtube.com/embed/2WrbHDVJ-9I?si=9yGfvOxFP0aZ5IJV" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen=""></iframe>
</div></div>&nbsp;Overall, looking forward I wish for more success stories in Accra. I see its great potential, and I believe there’s a future for Renew Capital and our Angels in beautiful Ghana. If you are interested in a role with us, we are currently inviting passionate and qualified candidates to apply to join our team as an&nbsp;<a href="https://renewcapital.bamboohr.com/careers/58">Investment Ecosystem Development Manager</a> in Ghana.&nbsp;

If you have the pleasure of a visit to Accra, Ghana, here are a few tourist recommendations that will give you a sense of the country's great history and vibe

DSC_0202.JPG

Ghana's Entrepreneurial Pulse: My Perspective

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

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

unnamed.jpg

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

In a significant move to support the growth of Ethiopian exports and reduce the inflation rate, the National Bank of Ethiopia (NBE) has taken a decisive step to amend the foreign currency retention limit.&nbsp;&nbsp;<h1>Ethiopia Doubles Foreign Currency Retention Limit for Exporters</h1>Tracing Policy Evolution and Economic Implications as the National Bank of Ethiopia Made Significant Changes<figure class="image"><img src="/uploads/unnamed_3f52256ebf.jpg" alt="Close-up of Ethiopian Birr banknotes showcasing design and features of Ethiopian currency."></figure>On August 11, 2023, the National Bank of Ethiopia (NBE) announced an amendment to&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2023/04/fxd-79-2022.pdf" target="_blank" rel="noopener noreferrer">Directive No. FXD/79/2022&nbsp;</a> governing the Retention and Utilization of Export Earnings and Inward Remittances (the “Amended Directive”). This amendment was effected via the Directive for Amendment of the Retention and Utilization of Export Earning and Inward Remittance&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2023/09/fxd-84-23.pdf" target="_blank" rel="noopener noreferrer">Directive No. FXD/84/2023</a> (the “New Directive”). The New Directive effectively doubles the percentage of foreign currency that exporters are permitted to retain from their forex earnings. In the official announcement, the Governor of the National Bank highlighted that this move is geared toward alleviating Ethiopia's inflation rate, which had surged past 30% during the previous two years, before registering a slight decline to&nbsp;<a href="https://tradingeconomics.com/ethiopia/inflation-cpi#:~:text=The%20annual%20inflation%20rate%20in%20Ethiopia%20eased%20for%20a%20third,slowed%20for%20almost%20all%20components.">28.8% in August 2023</a>.&nbsp;&nbsp;The announcement that came last month from the NBE permits exporters to retain 40% of their export proceeds in foreign currency, twice the amount allowed under the Amended Directive. However, the retention amount for inward remittances remains unchanged at 20%. The New Directive could encourage exports by introducing positive incentives.&nbsp;<h2 style="text-align:justify;">Tracing the Evolution</h2>The journey towards allowing exporters to retain their forex proceeds found its origins in August 1996, when NBE introduced Directive No. FXD/02/1996:Directive No. FXD/02/1996:<ul><li>Granted exporters the privilege of retaining a designated portion of their export proceeds in foreign currency.</li><li>First round of amendments in October 1996 focused on expanding the permissible amount of foreign currency (FCY) retention.</li></ul>Directive FXD/11/1998:<ul><li>Allowed exporters to retain 100% of their export earnings.</li><li>Distributed it between accounts A and B in a 10:90 ratio.</li><li>Account A: exporters were allowed to retain 10% of the FCY for an unlimited period of time.</li><li>Account B: exporters retained 90% of the FCY for 28 days, after which it would automatically convert to the local currency.</li></ul>Directive No. FXD/48/2017:<ul><li>Adjusted the FCY retention ratios to a 30:70 distribution across the two accounts.</li><li>Account A: exporters were allowed to retain 30% of the FCY for an unlimited period of time.</li><li>Account B: exporters retained 70% of the FCY for 28 days, after which it would automatically convert to the local currency.</li></ul>Policy adjustment in 2021:<ul><li>Retained FCY amount for exporters increased to 45%.</li><li>Retention accounts A and B were combined into one account with no imposed time frame for conversion.</li></ul>Directive No. FXD/79/2022:<ul><li>Implemented due to an urgent need for currency stability.</li><li>Required businesses to surrender 80% of their forex earnings.</li><li>The surrendered amount was automatically converted into Ethiopian Birr.</li><li>This marked a more stringent turn in the policy evolution.</li></ul><h2 style="text-align:justify;">Possible Economic Implications</h2>While assessing the impact of the most recent directive, it's essential to consider two potential outcomes. On the one hand, the directive introduces positive incentives to encourage exports. The Amended Directive, which required exporters from various industries, including meat processing, grain, coffee, sesame, and leather, to surrender up to 80% of their foreign currency earnings, has been a major concern. As a result, export earnings are on the decline, with&nbsp;<a href="https://www.thereporterethiopia.com/35709/">coffee exports</a>, for instance, dropping by nearly $80M USD since 2022. Furthermore, the&nbsp;<a href="https://www.thereporterethiopia.com/35235/">leather industry,</a> where the high cost of chemical inputs, driven by limited foreign currency access, has escalated production expenses, is also suffering. This has resulted in reduced production capacity, factory closures, and job losses, impacting not only individual producers but also the broader Ethiopian economy.On the other hand, another consequence of the new directive could involve concerns about a reduction in the government's concentration of FCY, which could be mitigated through strategic measures. For instance, ensuring that exporters actively participate in the FCY market by legally providing FCY to importers and businesses would alleviate the burden on the National Bank. Attracting increased Foreign Direct Investment (FDI) through a robust legal framework and favorable business conditions can also counter any potential decrease in the government's foreign currency holdings. Lastly, ensuring government-owned enterprises like Ethiopian Airlines can contribute more effectively to foreign exchange reserves could be another way to reduce the impact.&nbsp;

On August 11, 2023, the National Bank of Ethiopia (NBE) announced an amendment to Directive No. FXD/79/2022  governing the Retention and Utilization of Export Earnings and Inward Remittances (the “Amended Directive”).

Ethiopia Doubles Foreign Currency Retention Limit for Exporters

Join us on&nbsp;<a href="https://us02web.zoom.us/webinar/register/WN_AFBoc_tJSx6ed1tPklSOEQ">October 3, 2023,</a> from 9 AM (4 PM EAT) to 10 AM (5 PM EAT) for a learning webinar in which we will dive deeper into key lessons learned from both pilot projects and discuss what could be next for Ethiopia’s private sector and startup ecosystem.&nbsp;&nbsp;<h1>Strengthening Urban to Rural Linkages and the Trucking, Transportation and Logistics Sector in Ethiopia</h1><figure class="image"><img src="/uploads/Photo_Credit_Renew_Capital_1_e95d6264f9.png"></figure>From late 2020 through February 2021, USAID’s Bureau of Humanitarian Assistance (BHA) conducted a Private Sector Landscape Assessment (PSLA) for Ethiopia that identified and prioritized concrete opportunities to integrate high-impact private sector engagement (PSE) initiatives into USAID BHA’s emergency and non-emergency programming for Ethiopia. Ultimately, the PSLA recommended focusing on two thematic areas for new PSE opportunities:<ul><li>Expanding businesses to rural areas in support of the Mission’s Resilience Food Security Activities (RFSAs); and&nbsp;</li><li>Strengthening the trucking sector within Ethiopia through improving standardizations, planning requirements, utilization of new technologies and improving driver requirements to both improve the delivery and reduce the costs of providing food assistance.</li></ul>In support of these recommendations, USAID BHA launched the Strengthening Humanitarian Assistance and Resilience Private Sector Engagement in Ethiopia (SHARP-SEE) Project in partnership with Renew Capital in March 2022, during which the project team worked to strengthen urban-to-rural linkages and enhance the trucking, transportation and logistics sector in Ethiopia. This collaboration resulted in robust market and ecosystem research, pipeline formation, micro-testing of solutions, as well as the implementation of two pilot projects between February 2023 and July 15, 2023, in Ethiopia.THE LOGITECH INVESTMENT SPRINTThe first pilot project was a 12-week, intensive training program focused on 10 logistics and technology (or “LogiTech”) startups in Ethiopia. Key takeaways from the pilot project included:<ul><li>Renew Capital estimates that the Ethiopian economy needs nearly $1B in investment to overcome its funding gap in the trucking sector and be on par with Kenya’s fleet size per capita.</li><li>Trucking and transportation companies are not tech-enabled; most companies still operate with manual processes.</li><li>Tech-enabled startups have the potential to provide the much-needed innovation to optimize Ethiopia’s trucking and logistics sector.</li></ul>However, Ethiopia’s startup ecosystem remains nascent and un-activated:<ul><li>Ethiopian startups only attracted 0.07% of capital invested in logistics and transport startups in Africa from 2019 to January 2023.</li><li>The average deal size for Ethiopian logistics startups was $170K, significantly lower than other African countries from 2019 to January 2023.&nbsp;</li><li>Ethiopian startups only raised 5.82% of the total capital raised by startups in Africa from 2019 to January 2023.</li></ul>From the project team’s perspective, the lack of easily accessible startup and growth capital is not the problem in it of itself, but it is a symptom of a nascent startup ecosystem within Ethiopia. In general, startup founders need support to scale in key skill areas, including product development and customer engagement, operations (especially cash management), as well as pitching and investment readiness.The SHARP-SEE project team aimed to address these challenges through the key project activities addressed in the next section.<img><img src="/uploads/Photo_Credit_Renew_Capital_2_6098f5a73c.png">ACTIVITIES &amp; KEY OUTCOMES:The LogiTech Investment Sprint aimed to address persistent challenges in Ethiopia's logistics sector by training and coaching LogiTech startups over a 12-week program that covered essential business skills, such as strategic planning, organizational structure, financial management, product development, customer engagement and investment readiness.The program also assisted startups in refining their minimum viable products through customer interviews, setting growth targets and KPIs and continuous performance analysis. Participating startups focused on various areas within logistics, including intercity logistics, public transportation, last-mile delivery, B2B logistics and digital tools for truck operators involved in import and export.These innovations align with Ethiopia's modernizing digital economy, paving the way for a more tech-enabled logistics sector. Additionally, they have the potential to enhance humanitarian aid delivery by introducing digital solutions to a traditionally un-digitized sector. Furthermore, tech-enabled logistics services can strengthen urban-to-rural linkages, improve relationships between manufacturers, suppliers, and retailers, and enhance urban and intercity transportation and improve the efficiency of humanitarian aid deliveries over the long term as processes become optimized by technological processes. Overall, these initiatives aim to make logistics more efficient and contribute to the development of Ethiopia's digital economy.CHECK OUT THIS&nbsp;<a href="https://drive.google.com/file/d/1BuMIySXmVo8XEqNUs8YNWOvXzMkWXWD2/view?usp=drive_link">VIDEO</a>&nbsp;HIGHLIGHTING THE PROJECT’S FINAL PITCH EVENT.&nbsp;THE AGRICULTURAL INPUT SUPPLY CHAIN OPTIMIZATION (AGISCO)&nbsp;In terms of urban-to-rural linkages, the project team learned the following as part of Phase I and Phase II research:<ul><li>The agricultural input supply chain is broken throughout Ethiopia.&nbsp;</li><li>Smallholder farmers lack access to reliable and steady supplies of inputs.</li><li>Smallholder farmers and agrodealers alike lack access to capital, preventing them from scaling.</li><li>Agrodealers are unable to receive timely deliveries of high-quality inputs at a reasonable price.&nbsp;</li><li>Typically, agrodealers travel long distances to purchase inputs and arrange their own logistics, resulting in high costs.</li></ul>In light of these findings, the project team launched the Agricultural Input Supply Chain Optimization (AGISCO) project in partnership with a local Ethiopian agritech startup. This Ethiopian technology startup provides a digital marketplace for smallholder farmers to access inputs, mechanization services, climate advisory content and tailored credit products. AGISCO’s objective was to de-risk the expansion of this product into one of USAID BHA’s target resilience and food security (RFSA) project areas, specifically five woredas in Eastern Hararghe.&nbsp;&nbsp;The AGISCO project engaged a local Ethiopian agritech company to support its growth and sustainability in Eastern Hararghe through a KPI-focused approach. The project’s objectives included enhancing agricultural input distribution, increasing digital adoption, improving supply chain efficiency and expanding access to credit.The project was divided into three phases:<ul><li>Phase I: Landscape Mapping, Agent Training and Platform Optimization</li><li>Phase II: Recruiting and Training Additional Agents</li><li>Phase III: Deployment of Agents and Platform Services into Additional Woredas</li></ul>Top-line objectives of the pilot project included:<ul><li>Train 24 New Agents Onboarded</li><li>Onboard at least 12,000 new farmers onto the platform</li><li>Provide access to inputs, mechanization services, finance and climate advisory to onboarded farmers</li><li>Reduce costs of logistics incurred by smallholders</li></ul>As part of AGISCO, the project team also provided strategic advice and recommendations to the local agritech partner throughout the project during weekly check-in calls.TO DATE (SEPTEMBER 13, 2023), THE AGISCO PROJECT HAS ACHIEVED THE FOLLOWING KEY OUTCOMES:In achieving these project outcomes, the project team has learned the following key lessons and identified key opportunities:<figure class="image"><img src="/uploads/Screenshot_2023_09_13_at_5_28_40_PM_b37d48eb2c.png"></figure>Growth of Fintech Could Increase Access to Finance: The current situation in Ethiopia is a critical moment for the growth of access to finance and fintech services. The introduction of M-PESA and competition among local providers like Telebirr marks a significant change in the market dynamics. Fintech companies in Ethiopia are competing for market share and expanding their service offerings. This competitive environment could drive innovation and the development of tailored financial products to meet the needs of different customer segments, including smallholder farmers. However, the market is still largely not tech-enabled, creating challenges that may impede scaling on the ground in the near future.Coordination for Resource Optimization:Efficient coordination between orders and suppliers is crucial for maximizing the utilization of limited logistics and transportation resources. As observed in the pilot project, technology can play a pivotal role in enhancing the capacity utilization of existing transport resources.Technology as a Solution: Platform-driven technological approaches can facilitate the dissemination of multiple services, such as financial services, logistics provisions, input distribution, and educational and climate-related materials, through a single platform. The flexibility of these services, if done correctly, could dramatically expand the ability of smallholders to access crucial services, increasing incomes and overall food security in the long term.

image.png

Strengthening Urban to Rural Linkages and the Trucking, Transportation and Logistics Sector in Ethiopia

The blog explores Zambia's potential as an emerging tech hub in Africa, focusing on regulatory advancements, political commitment, deal flow and private sector engagement.<h1>How I See My Ecosystem: Zambia’s Growing Tech Scene</h1>How policies and the private sector are driving the ecosystem forwardIn the heart of Southern Africa, a nation is paving the way for technological advances that could reshape its future. Zambia, known for its rich cultural heritage and abundant natural resources, is gaining&nbsp;<a href="https://techcabal.com/2023/06/02/zambia-ecosystem-feature/">recognition</a> for its ambitious drive to position itself as an emerging technology hub within the African continent. With an increasing focus on innovation, entrepreneurship and regulatory reforms, Zambia is setting the stage to redefine its economy and empower its citizens. Delve into some of the reasons and learn more about Zambia’s growing tech scene in this Q&amp;A with Calvin Chitangala, Renew Capital’s investment and project manager in Zambia.&nbsp;<figure class="image"><img src="/uploads/Start_Up_Converse_Event_c946fbee8f.jpeg" alt="Entrepreneurs and tech enthusiasts posing for a group photo at Startup Converse in Zambia, celebrating innovation and collaboration in the growing tech ecosystem."></figure>Photo: Startup Converse - NyamukAfricaQ. How is Zambia positioning itself to be a leading technology hub in Africa?A. In terms of regulations and political will, Zambia's presidential cabinet is making significant strides in&nbsp;<a href="https://www.mots.gov.zm/?p=2030">formulating a startup bill</a>, aligning with market trends regarding startup acts. Over&nbsp;<a href="https://www.icr-facility.eu/fileadmin/files/downloads/icreports/icreport_startupacts.pdf">16 African nations</a> have been diligently advancing this initiative, with a noteworthy milestone being the enactment of the&nbsp;<a href="https://nigeriastartupact.ng/">Nigerian Startup Act</a> into law&nbsp;<a href="https://www.mazars.com.ng/Home/Insights/Mazars-Insights/Start-Up-Act-2022">last year</a>. Zambia being on this trajectory sets the tone for clear definitions of startups and SMEs, aiding regulatory interactions and fostering a favorable environment for startups. Switching focus to deal flow, Zambia ranks second in Southern Africa, following South Africa, in generating startup deals in the last decade. South Africa led with&nbsp;<a href="https://www.avca.africa/data-intelligence/">536 deals</a>, while Zambia recorded 50, suggesting a nascent ecosystem in Zambia. Among Entrepreneurship Support Organisations (ESOs), I am aware of about 30+ meetups/events that promote the startup ecosystem throughout the year, notably, the&nbsp;<a href="https://zban.org.zm/">Zambia Business Angels Network</a> which conducts frequent demo days that showcase pre-seed and seed deals. Additionally, NyamukAfrica/ITC has&nbsp;<a href="https://en.nyamukafrica.com/#">monthly startup converse events</a> that demystify technical startup conversations. There are more ESOs backed by donor communities and corporations which add to the support of the ecosystem's growth. Considering these facets — regulatory advancements, political will, increasing deal flow, private sector-led initiatives for tech-enabled startups and an attractive macroeconomic environment — it's plausible that Zambia could emerge as a noteworthy African tech hub.Q. What is one noteworthy tech sector emerging in the country?&nbsp;A.&nbsp;We are seeing exciting trends in fintech in Zambia. A 2022 UNCDF study identified 57 companies in Zambia that identify as fintechs, compared to their 2018 study that identified 25. African fintech unicorns also are entering the Zambian market through various means, such as acquiring a local fintech or entering directly while going through the regulatory system. One example is&nbsp;<a href="https://www.crunchbase.com/acquisition/chipper-cash-acquires-zoona--266c4483">Chipper Cash's acquisition</a> of the local Zambia entity Zoona. However, regulatory risk tends to be the biggest hurdle for most fintechs in Africa and Zambia is no exception. Tech-enabled startups that have achieved product-market fit are providing solutions to fundamental African problems.Q. What are some of the challenges you’ve witnessed in the ecosystem?A. Internet penetration rate among our African population is still relatively low, however, growing steadily. As of 2021 individuals<a href="https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=ZM"> using the internet (% of the population) stood at about 21%</a>. The Zambia Information and Communications Technology Authority (ZICTA) has provided an in-depth<a href="https://www.zicta.zm/storage/posts/attachments/JE2Uc1d98h9rZKvL7IqnRLSl8WpIBbqK4aND4Xgf.pdf"> understanding of access and usage of ICTs among the Zambian population</a>. Therefore, for most tech-enabled businesses, especially the ones with a B2C business model servicing the mass market, the use of ICTs remains a challenge for customer acquisition and retention. Other than that, among the ESOs, critical information still exists in silos. It would be highly beneficial to implement ESOs that provide comprehensive information and education to entrepreneurs throughout the nation, particularly those who do not have easy access to relevant news. In addition, it almost goes without saying now, that there remains a funding gap for SMEs and startups, especially for female entrepreneurs. The funding gap for SMEs in Africa is estimated to be over&nbsp;<a href="https://www.afreximbank.com/receivables-finance-can-help-close-africas-90-billion-sme-financing-gap-says-kenya-central-bank-governor/#:~:text=Nairobi%2C%2011%20March%202020%20%E2%80%93%20Receivables,Bank%20of%20Kenya%2C%20has%20said.">$90B</a>. Additionally, the funding gap for female entrepreneurs is estimated to be around&nbsp;<a href="https://www.weforum.org/agenda/2022/08/how-female-led-start-ups-can-transform-africa/#:~:text=In%20Sub%2DSaharan%20Africa%2C%20research%20shows%20that%20there%20is%20currently%20a%20%2442%20billion%20funding%20gap%20for%20women%20entrepreneurs.">$42B</a>. Traditional bank debt is generally not suited for the investment needs of early-stage startups seeking pre-seed or seed-stage funding, so most startups in Zambia tend to seek capital partners from outside the country. Lastly, there is a need for mentorship, capacity building and educational programs to help startups navigate the fundraising landscape, especially among young people.&nbsp;Q. With the growing momentum and enthusiasm surrounding technology and innovation, what are your hopes for Zambia’s future?&nbsp;A. Let me begin by discussing Zambia's recent economic history and its outlook for the short and medium term.&nbsp;In the wake of the challenges posed by the COVID-19 pandemic and the 2021 general elections, Zambia's&nbsp;macroeconomic landscape initially displayed unfavorable indicators around 2020. However, a more stable macroeconomic environment was anticipated post-2021, with the annual GDP growth projected to average around 4.5% throughout 2023-2025. This positive economic projection by the World Bank was updated around March 2023, it agrees slightly with the&nbsp;<a href="https://www.boz.zm/MPC_Statement_August_2023.pdf">insights</a> of the Bank of Zambia around mid-August 2023, that is, even though the Bank of Zambia’s Monetary Policy Committee advised that they expect the GDP for 2023 is likely to fall below projections due to contractions in the mining sector and slowdowns in the education and energy sectors, the Central Bank anticipates that the Country’s economic growth will rebound between 2024 and 2025, bolstered by the anticipated recovery in the mining sector and sustained expansion in the information and communications, financial and insurance, as well as wholesale and retail trade sectors. Furthermore, acknowledging inflationary pressures – inflation is projected to&nbsp;<a href="https://www.boz.zm/MPC_Statement_August_2023.pdf">average 10.2% in 2023</a> and 9.3%in both 2024 and H1 2025, the Bank of Zambia Monetary Policy Committee opted to increase the monetary policy rate from 9.5% to 10%, in the immediate term.&nbsp;Regarding investor appetite, the&nbsp;<a href="https://www.nabii.org.zm/reports.php">Zambia Impact Investment Climate Survey Report 2022/23</a> advised that 82% of Zambian impact investors expressed their determination to augment their backing for portfolio companies and actively seek out fresh avenues for growth; this investor enthusiasm and dedication remained steadfast despite the prevailing public apprehensions surrounding Zambia's debt burdens and economic hardships. In addition, regarding investor sentiment, the&nbsp;<a href="https://www.boz.zm/PCF_HIGHLIGHTS_SURVEY_FINDINGS_2022.pdf">2022 Bank of Zambia study</a> unveiled that investor decisions to invest or reinvest in Zambia were primarily influenced by factors such as peace and security, market potential, robust infrastructure, and political stability. Among the government policies and initiatives, those perceived as most effective in promoting investment included the establishment of a favorable governance environment, economic diversification, enhancements to transportation infrastructure and facilitation of business connections.&nbsp;&nbsp;Furthermore, a notable success under the new government is the successful negotiations of the country's national debt restructuring. It is anticipated that this restructuring will lead to&nbsp;<a href="https://www.parliament.gov.zm/sites/default/files/images/publication_docs/Ministerial%20Statements%20-%20Debt%20Restructuring.pdf">benefits of an improved micro-and-macro economic environment,&nbsp;</a>also, the Ministry of Finance anticipates this debt restructuring will generate over US$5.8 B in debt savings between 2023 and 2031, unlocking more resources for Government's developmental programs. Lastly, the startup scene is also looking promising,&nbsp;<a href="https://www.mots.gov.zm/?p=2030">as the Government seeks to set up a Startup Bill,</a> we hope this will lead to fiscal incentives towards startups in Zambia and perhaps more startup deal flow.&nbsp;

We are seeing exciting trends in fintech in Zambia.

StartUp Converse Event .jpeg

How I See My Ecosystem: Zambia’s Growing Tech Scene

Ethiopia’s fintech infrastructure is improving with the soft launch of Safaricom Ethiopia’s mobile financial service M-PESA, which boasts 51 million customers across Africa, in Addis Ababa, on August 16, 2023. The service expects to make a full national launch in September.<h1>M-PESA Launches in Ethiopia</h1><figure class="image"><img src="/uploads/Screenshot_2023_08_20_at_6_41_31_PM_3019bbc216.png" alt="A local M-PESA shop in Ethiopia, symbolizing the growth of fintech infrastructure in the region, as Safaricom Ethiopia's mobile financial services gain momentum"></figure>Photo courtesy of Andrew LarsenEthiopia’s fintech ecosystem has lagged behind its neighbors in recent years as a result of Investment Proclamation 1180’s ban on foreign investment in the sector among other factors. However, in May 2023, this prohibition was waived to allow M-PESA, a mobile money platform with 51 million customers and owned by Kenya’s Safaricom, to operate in Ethiopia for a licensing fee of $150M USD.&nbsp;For context, according to Africa: The Big Deal Database, while Kenyan fintech startups have raised $517.8M since 2019, Ethiopian fintech startups have only raised $17.6M. This disparity results in Kenya having raised 67.6x more capital for fintech on a per capita basis than the Ethiopian market, underscoring the disparity. <img src="/uploads/Screenshot_2023_09_06_at_11_43_27_AM_a01ec577a6.png" alt="A graphical representation of fintech investment trends in East Africa, showing a comparison of capital raised in millions of USD from January 1, 2029, to July 31, 2023, emphasizing the region’s dynamic financial evolution."> &nbsp;Kenyan fintech startups have attracted more than 67x more capital per capita than Ethiopia.Source:&nbsp;Renew Capital's analysis of publicly disclosed deals in startups since 2019 captured in “Africa: The Big Deal Database.”After a three-month pilot test, M-PESA has <a href="https://safaricom.et/index.php/news-insights/97-safaricom-ethiopia-goes-live-with-m-pesa" target="_blank" rel="noopener noreferrer">announced</a> it is launching and joining Ethiopia’s mobile money market as a competitor to the state-owned Ethio Telecom’s flagship financial mobile money service provider, Telebirr. M-PESA is now available for Safaricom Ethiopia’s 4M customers. For context, Safaricom Ethiopia has been expanding its network across 147 towns in Ethiopia over the past 10 months.However, customer acquisition will likely remain challenging for M-PESA. Telebirr, the Ethiopian government-owned mobile money service, had a two-year head start, launching initially in May 2021 and introducing a super-app version in March 2023, which provides users with access to a large assortment of services within the app's single interface. The app now provides eCommerce options, food delivery, entertainment, utility bill payment options and transportation payment options. The Telebirr App currently owns over 20 mini apps and is also providing benefits to the startup ecosystem by allowing local Ethiopian startups access to the app's user base of over 30 million users.&nbsp;Moreover, in April 2023, the Ethiopian government began requiring fuel payments to be completed using Ethiotelecom's Mobile Money app, Telebirr. This further entrenched Telebirr’s position as the market leader in mobile money in Ethiopia just one month before the Ethiopian government awarded M-PESA its license to operate.Similarly, in April 2023, Chapa, one of Ethiopia's leading online payment providers, announced that it would be teaming up with Telegram to enable merchants using Telegram to accept payments from their customers using a Chapa integration. Thousands of businesses throughout Ethiopia are already selling products through the messaging app; this partnership allows those merchants to accept payments from their customers using mobile money, bank transfers, or debit/credit cards without leaving the app.&nbsp;Importantly, as of August 15, 2023, Chapa partnered with&nbsp; COOP Bank to launch the Coop-Chapagram bot integration that operates within Telegram. The feature allows users to access numerous financial services through the Telegram application, according to COOP Bank.&nbsp;Safaricom’s presence in multiple African countries might be the competitive advantage M-PESA brings to the market that has been monopolized by the state-owned service provider, Telebirr. If commerce is facilitated between the countries in which M-PESA has a presence, it could also end up becoming an asset for the AfCFTA.In summary, the entry of M-PESA into Ethiopia is a crucial next step in increasing financial access and inclusion in Ethiopia, where approximately 78% of the population lives in rural areas.&nbsp;For example, according to the World Bank, only 35% of adults in Ethiopia have access to formal bank accounts. Comparatively, in Kenya, 82% of adults have an account, while in Rwanda, 50% of adults reported having a formal bank account. In sub-Saharan Africa overall, 43% of adults have an account.&nbsp;Increasing the number of mobile money payment services can help to increase access to finance for rural populations and others throughout Ethiopia. Finally, the market competition between M-PESA and Telebirr will help to increase the quality of service provision between the two companies as they compete for market share, a generally good free market outcome.

M-PESA is now available for Safaricom Ethiopia’s 4M customers. 

Screenshot 2023-08-20 at 6.41.31 PM.png

M-PESA Launches in Ethiopia

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

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