<h1 style="text-align:center;">Count Down to Uganda</h1> RENEW’s Matt Davis will deploy to Kampala, Uganda in late October, 2008 as the next step in establishing RENEW’s long term presence in East Africa. Over the next months, he will continue to build RENEW’s network in Africa, provide information services to the IAN abroad, establish and test impact investment metrics, source and coordinate opportunities, help grow investments, and work to increase the efficiency with which impact investment capital is deployed to East Africa

RENEW’s Matt Davis will deploy to Kampala, Uganda in late October, 2008...

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Count Down to Uganda

<h1>Meet the Women Behind the Inclusive Eyewear Brand Wazi Vision</h1>Q&amp;A with Wazi co-founders <a href="https://www.linkedin.com/in/geogette-ndabukiye/" target="_blank" rel="noopener noreferrer">Geogette Ochieng Ndabukiye</a> and <a href="https://www.linkedin.com/in/bkatwesigye/" target="_blank" rel="noopener noreferrer">Brenda Katwesigye Baganzi</a><a href="https://wazivision.com/">Wazi Vision&nbsp;</a>is a woman-owned eyewear brand known for its stylish designs that are made with African features in mind. Leaving behind a career in management consulting and risk advisory, Brenda Katwesigye Baganzi launched Wazi to fill a gap for high-quality, customizable and affordable prescription eyeglasses and sunglasses in the region. Together with her co-founder, Geogette Ochieng Ndabukiye, they shared with Renew Capital more about their manufacturing and design processes and their plans to disrupt the future of the eyewear industry to make high-quality glasses accessible across East Africa.This interview has been edited for length and clarity.<figure class="image"><img src="/uploads/NJJ_4642_3e50ea9c69.jpg"></figure>Q. How do you ensure your glasses are comfortable for all face shapes and are of the highest quality?When we initially started Wazi Vision, the idea was to provide low-cost eyewear. From talking to customers we started to see an opportunity to also provide a solution for glasses that are designed for African facial features. Wazi offers a gallery of eyewear designed for different face shapes, nose shapes and nose bridges, to ensure that our frames fit well and are comfortable. We also offer custom-made eyewear for customers who prefer bespoke design and fitting. The glasses are made with high-grade acetate (a type of nylon-based plastic) to ensure the best quality frames. We are also currently testing the use of locally-sourced materials including bamboo and cow horn which we hope to put on the market soon.Q. What are some of the challenges you have faced while running your business and how have you been able to overcome them?We are faced with the challenge that potential customers don't believe that Ugandan-made frames can be as high-quality as Wazi’s are. One of the ways that we have been able to overcome this perception is by getting recognized by people who are seen as thought leaders to wear the brand and vouch for the quality. This has been successful and our research shows that referrals contribute to a large portion of our customer base. Another challenge has been the investment required to pioneer the eyewear manufacturing process. Research and development can be tedious and time-consuming and also requires capital—but it is a necessity to ensure that we are delivering a high-quality product to the market.&nbsp;Q. What are some exciting initiatives you have planned for the future of Wazi?We are excited about making the Wazi brand more visible through partnerships with insurance companies, corporate organizations, optometrists and ophthalmologists. And we are also very excited about continued opportunities to give back to low-income communities. Last year alone we were able to go out to low-income communities and hard-to-reach areas in different parts of Uganda and distribute hundreds sets of Wazi frames to people who would otherwise not be able to access eyeglasses.Q. What do you think the future holds for the eyewear industry in East Africa?Some aspects of East Africa’s eyewear industry are already starting to change. Brands like Warby Parker have attempted to make some changes in terms of style and cost, but there's still plenty of room for disruption in terms of how people actually access eyeglasses—especially in Africa. We know we must constantly evolve to stay ahead when it comes to innovation, both in our brand and type of designs and also the ways in which people can access and finance eyewear.&nbsp;

Q&A with Wazi co-founders Geogette Ochieng Ndabukiye and Brenda Katwesigye Baganzi

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Meet the Women Behind the Inclusive Eyewear Brand Wazi Vision

<h1>Press Release: Renew Capital Angels Invest in Ugandan Digital Payment Platform Xente</h1>Digital payments made easy for African businesses&nbsp;<a href="https://latest-api.renewcapital.com///uploads/FINAL_Xente_Press_Release_dfdc3697ca.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release&nbsp;</a>Kampala, Uganda, 29 March 2023 — Renew Capital Angels have invested in Ugandan digital payment platform <a href="https://www.xente.co/" target="_blank" rel="noopener noreferrer">Xente</a>. Xente makes it easier for businesses to make payments and track and manage their finances in a single easy-to-use digital platform.<img src="/uploads/IMG_9631_e68e4877b5.jpg">Xente, a business neo-bank, is helping to drive the agenda of digital transformation in the region where the majority of payments are done manually. Only 5%–7% of all payment transactions in Africa were made via electronic or digital channels (Mckinsey, 2022). In addition, banks reported the proportion of SMEs that use digital banking to be less than that of retail customers (Backbase, 2022).&nbsp;“The scale of the problem Xente is solving and the market opportunity that exists for their offering is impressive. We are proud to be on this journey with Xente as it expands its business across the region,” says Renew Capital Senior Investment Manager Diana Njuguna.&nbsp;“We are excited that Renew Capital Angels has invested in Xente. This investment serves as a validation of our commitment to transforming Africa from underdeveloped to developed through our digital finance solution for businesses,” says Xente CEO <a href="https://www.linkedin.com/in/allan-rwakatungu-865650159/" target="_blank" rel="noopener noreferrer">Allan Rwakatungu</a>. “Our focus remains on diligently executing our mission and addressing the real problems faced by our customers.”&nbsp;Businesses can use Xente to make payments using cards, mobile money, domestic and international bank transfers, as well as to pay bills and send airtime and data. Furthermore, the platform allows them to efficiently manage their petty cash expenses to ease the complexity of accounting and finance.&nbsp;In 2022, Xente acquired a license from the Bank of Uganda and also partnered with Visa to launch one of the first physical and virtual corporate cards by a fintech in East and Central Africa. Xente hopes to expand its user base with the investment from the Renew Capital Angels and continue enhancing its product offering.&nbsp;

Digital payments made easy for African businesses 

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Press Release: Renew Capital Angels Invest in Ugandan Digital Payment Platform Xente

<h1>Press Release: Renew Capital Angels Invest in Ugandan Eyewear Company, Wazi&nbsp;</h1>Eyewear Made by Africans for Africans<a href="https://latest-api.renewcapital.com/uploads/FINAL_Wazi_Press_Release_78c26ef19a.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release</a>&nbsp;Kampala, Uganda, March 16, 2023&nbsp;—&nbsp;The Renew Capital Angels have invested in Wazi Vision, a women-founded Ugandan company with a vision to change the eyewear industry in Africa.&nbsp;Founders Brenda Katwesigye Baganzi and Geogette Ochieng Ndabukiye launched Wazi in response to a gap in Uganda’s eyewear market.&nbsp;“Accessing high-quality eyewear in Africa is often prohibitively expensive and unattainable for the majority of the population. However, available alternatives are of subpar quality and fail to offer adequate value to customers.” Baganzi explains.&nbsp;<figure class="image"><img src="/uploads/Wazi_Image_1_0da10c24da.png"></figure>Baganzi and Ndabukiye built Wazi to address these pain points for the African eyewear consumer.“We provide eyewear that is both high-quality and affordable, relatively accessible for the mass market and designed to be comfortable for African faces,” Baganzi says.Wazi glasses are made by a skilled African team who consider various facial features to ensure each pair of frames is fashionable and comfortable. Wazi also allows customers to design frames that capture their individual personality and choice of material including acetate and sustainable eco materials like cow horn, bamboo and denim.Wazi glasses are becoming popular with the youth for their wide selection of chic styles and unique and trendy brand persona. Wazi plans to open a new store in one of the busiest suburbs in Kampala to cater to demand.“And because making eyewear accessible to everyone is part of our mission, we also partner with corporates to give back to low-income communities,” says Ndabukiye.With the help of an investment from the Renew Capital Angels, Wazi plans to expand its product line and enhance its distribution capacity in Kampala and beyond.“Innovation within the eyewear sector is at a nascent stage in sub-Saharan Africa. We like the fact that Wazi is a homegrown technology-driven business looking to improve the accessibility of unique and affordable eyewear. We look forward to working with Geogette and team in creating an eyewear brand by Africans, for Africans, in Africa,” said Diana Njuguna, Renew Capital, Senior Investment Manager.&nbsp;###

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Press Release: Renew Capital Angels Invest in Ugandan Eyewear Company, Wazi 

<h1>Inputi: Using Technology to Boost Agricultural Productivity</h1>Q&amp;A with Inputi’s founder and CEO, David Lukwago&nbsp;Renew Capital Angels invested in Inputi in October 2022. <a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Inputi_00cfaad0fb.pdf" target="_blank" rel="noopener noreferrer">Read more.</a>Food security is one of the most pressing challenges of our time. According to the International Committee of the Red Cross (ICRC),&nbsp;<a href="https://www.icrc.org/en/document/food-crisis-soaring-across-africa">close to 346 million people are currently affected by the food crisis</a>&nbsp;in Africa&nbsp;as a result of conflict, a changing climate and unproductive farming. In Uganda, agri-tech company Inputi, is helping farmers to increase productivity by providing a digital marketplace to improve B2B and B2BC sourcing of farm inputs, ultimately allowing farmers to access quality and genuine products downstream at affordable prices.&nbsp;The idea of Inputi was sparked during the COVID-19 pandemic as countries like Uganda imposed strict lockdowns that led to significant disruptions in the supply chain. David Lukwago, a graduate of Harvard University Kennedy School, saw an opportunity to fill a gap in the market to provide access to farm inputs and boost agricultural productivity using digital technology.&nbsp;–This interview has been edited for length and clarity<figure class="image"><img src="/uploads/INPUTI_IMAGES_36_c46673517e.jpg"></figure>What is Inputi?&nbsp;Inputi is a digital marketplace for the agriculture sector. We connect manufacturers and suppliers of quality and genuine farm inputs with agro-dealers and cooperatives that can hardly access them.&nbsp;In the long term, we intend to grow our digital platform to include a produce-trading platform that links smallholder farmers to buyers. Vendors upload e-catalogs of their products, which are then accessible to our agents or farmers. This transparent pricing approach makes farm inputs more affordable to farmers.What is your background that led you to Inputi? Were you involved in farming?For a long time, I was on the market side. I used to buy maize from farmers and sell it to the World Food Programme. Our biggest challenge was that even when there was a demand from the market, the farmers struggled to meet the demand because their production was very little and there were problems with quality control.&nbsp;After living in the United States for a while, I came back to Uganda and opened a non-profit with the intent to help farmers improve their practices and link them to markets. I have a lot of experience with setting up demonstration gardens and farming in general, and right now, we have nine demonstration gardens in different communities where we bring farmers together to learn the best farming practices and methods.How is Inputi currently aggregating the demand for inputs?One of our goals is to aggregate demand based on location. We are working to make the pickup of farm inputs as convenient as possible for farmers by delivering inputs to the nearest agro shop. For livestock farmers who have more mature and organized value chains, we deliver inputs through cooperatives.&nbsp;Customers are also able to order through our call center, website, WhatsApp or through their agents.&nbsp;We are also testing the use of the USSD code for users that do not have a smartphone or internet connection.What challenges have you encountered in the two years that Inputi has been operating?&nbsp;Most farmers know that they need to use quality and genuine farm inputs to increase productivity, but uptake is usually hindered by the high costs of inputs. For example, a farmer may want to use quality fertilizer on his or her farm, but the cost of fertilizer is too high, so they resort to their old planting methods. This often leads to a decline in productivity. Inputi is solving the distribution headache for manufacturers while providing farmers with a diverse array of inputs and pricing transparency. Today, we have farmers walking into an agro shop knowing how much a bag of fertilizer costs.&nbsp;Also, as a result of increased demand we are starting to see young women and men opening up agro shops closer to the farmers. It is still a bit early for us to draw substantive conclusions but I would imagine we are playing a part in youth empowerment and food security.We also have farmers who have been growing the same type of crop on a small piece of land for years. The soils are exhausted and are no longer productive. While some argue that using inorganic fertilizers is not a solution due to potential environmental damage, the reality is that we don't have an adequate supply of organic fertilizers, and when it is available, it is often too expensive for many farmers. This leaves us in a difficult position to choose between rendering farmers unproductive or providing them with the technology they need to increase productivity. In my opinion, the key issue is not the use of fertilizers or pesticides, but rather the wrong application of these inputs. By teaching farmers how to apply these inputs properly we can minimize the negative impact on the environment while still increasing yields.&nbsp;<figure class="image"><img src="/uploads/INPUTI_IMAGES_22_0281dd24fe.jpg"></figure>There is a looming famine in places like Sudan. What are your concerns right now as you look at the next few months?Famine is sometimes a consequence of dysfunctional food systems. This can be seen in the Karamoja region of Northeastern Uganda where a significant number of people have died of hunger. In contrast, in the southwest region of the country, people have an abundance of food to the point of excess, leading to food wastage and loss.We cannot eliminate famine caused by climate change, but we can mitigate it by improving food distribution systems which cannot be fixed by donors or governments alone. The private sector plays an extremely critical role in building efficient, effective and sustainable means to move food to where it is needed. The private sector should be fully empowered and should have a seat at the table wherever food security discussions are had.What’s on your wishlist for the next 10 years?My wish for the next 10 years is that everything shifts to organic and that we allow the market to dictate the products that consumers want. Widespread use of organic fertilizer is not yet a feasible alternative but I believe that promoting its use and making it more accessible to farmers is an essential step toward achieving long-term sustainability in agriculture.Are there any additional points that you would like potential investors in Africa to understand?&nbsp;The next one billion people born in the next 30 years are going to be on the African continent. This alone is going to pose a food security challenge. Demand is going up and currently, there's enough data to show that food production is declining. One of the ways to solve this problem is to bring technology onto smallholder farms. Digital technology is going to help us leapfrog all these other broken pieces along the value chains.Connect with&nbsp;<a href="https://www.linkedin.com/in/david-lukwago-723677168/">David Lukwago</a> on LinkedIn and follow&nbsp;<a href="https://inputi.market/">Inputi</a> on&nbsp;<a href="https://www.linkedin.com/company/inputi/">LinkedIn</a>,&nbsp;<a href="https://twitter.com/InputiINC">Twitter</a>,&nbsp;<a href="https://www.instagram.com/inputilimited/">Instagram</a> and&nbsp;<a href="https://www.facebook.com/inputiINC">Facebook</a>.

Q&A with Inputi’s founder and CEO, David Lukwago 


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Inputi: Using Technology to Boost Agricultural Productivity

<h1>Financial Inclusion and Market Linkages Transform Lives</h1>Q&amp;A with Quest Digital Finance founder Jean Antony Onyait <img class="image_resized" style="width:100%;" src="/uploads/20210518_112053_889a1e0b0d.jpg">Since 2016, Ugandan fintech startup Quest Digital Finance has been bringing financial inclusion and market linkages to the “unbanked” through its fintech products&nbsp;<a href="https://akellobanker.com/#">Akellobanker</a> and&nbsp;<a href="https://www.questbanker.com/index.php#welcome">Quest Banker</a>.&nbsp;&nbsp;Quest Banker was created to help address the needs of 65% of adults in Uganda with no access to formal credit institutions (World Bank, 2017). By enabling end-to-end digital transformation for financial institutions, Quest Banker de-risks facilitating credit to these underserved populations.&nbsp;The Akellobanker platform serves the other side of the market, enabling smallholder farmers and traders to access loans from financial institutions, primarily SACCOS (Savings and Credit Cooperatives) and microfinance institutions. By providing underserved farmers, their biggest user segment, with access to finance, the fintech company is also helping to bolster food security. A 2022 Renew Capital Angels&nbsp;<a href="https://www.renewcapital.com/newsroom/quest-digital-finance-connects-the-unbanked-to-formal-credit-systems">investment</a> in Quest Digital Finance is helping to fund the growth of the Akellobanker platform user base.Founder,&nbsp;<a href="https://ug.linkedin.com/in/jonyait">Jean Antony Onyait</a> shares his startup journey in an interview with Renew Capital.&nbsp;This interview has been edited for length and clarityQ. What changes and challenges have you seen in entrepreneurship in your country over the past 10 years?&nbsp;Cash flow challenges are the reason most businesses in Uganda die. However, that is changing. The appetite for investment is definitely growing. The government is showing more interest in investing in companies that are locally born. Development partners have also realized the need to support local solutions which have been contextualized to address local problems.Q. What do you think the private sector in Uganda might look like in the next 10 years?In the next 10 years, I think the private sector in Uganda will play a critical role in influencing public policy. For example, if you look at finance 10 years ago, commercial banks were the owners of financial inclusion. Five years ago, financial technology companies came over and showed banks that they could break through to places they weren’t reaching—breaking monopolies and creating healthy competition. This competition goes a long way in reducing prices and making services more affordable for local communities. I foresee many partnerships being created because governments will want to use locally existing solutions to deliver services to the local communities. Already, these public-private partnerships have become common in the agriculture, finance and healthcare sectors.&nbsp;Q. Why is private sector innovation important to bolster agricultural production in Uganda?Uganda’s population is growing fast, but the land mass, especially that which can be used for agriculture remains the same, so there need to be new ways of catalyzing production for agriculture. At the same time, industrialization is increasing, and most of the raw materials will come from agriculture. The only way we can meet this demand is to educate the millions of people working in agriculture and provide access to financial linkages, quality traceable inputs, buyers, equipment and insurance. Today, decisions need to be made with data, which is best leveraged with a traceable, end-to-end digital ecosystem or economy. That’s what our business is helping to build.&nbsp;Q. Can you tell us a bit about your future plans for the business?Demand for our line of work grew as a result of COVID-19 which reaffirmed the importance of helping businesses through digitalization. Unfortunately, the cost of infrastructure can be prohibitive. As such, we need to think about how to bundle more products and services so that we can eventually build a premium product that helps us recoup our money from the transactions and services we deliver. That's why it’s so important and strategic for us to get as many clients as we can now. With the investment from the Renew Capital Angels, we are able to sign on a lot of rural cooperatives and financial service providers as we integrate or link them to relevant products and service bundles that will transform the lives of millions of smallholders.&nbsp;

Q&A with Quest Digital Finance founder Jean Antony Onyait 

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Financial Inclusion and Market Linkages Transform Lives

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

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

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

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

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

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RENEW’s Legal Corner: November 2022

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

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

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 World Cities Day: Growing Sustainable Cities through Impact Investment

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

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