<h1 style="text-align:center;">The Third Annual Impact Report</h1><a href="https://latest-api.renewcapital.com/uploads/RENEW_Impact_Report_2017_c0d6c8251c.pdf">Read our 2017 Impact Report</a>RENEW announces the Impact Angel Network’s (IAN) third annual impact report. We hope it will give you key insights into RENEW’s business model, and the Impact Angel Network’s (IAN) portfolio in Ethiopia to see how they complement and intrinsically support the United Nations 17 Sustainable Development Goals.With nine investments in eight companies as of the end of December 2017, RENEW and the IAN now supports 2,280 jobs and 5,700 smallholder farmers. Our portfolio companies cover sectors including clean energy, coffee, teff, sesame, juice, textile, emergency care and logistics.Read our Impact Reports:<ul><li><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Third Annual Impact Report (June 2018)</a></li><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_Impact_Report_2017_c0d6c8251c.pdf">Second Annual Impact Report (June 2017)</a></li><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_Impact_Report_2016_d7bb848962.pdf">First Annual Impact Report (June 2016</a>)</li></ul><figure class="image"><img src="/uploads/screen_shot_2018_06_05_at_2_12_11_pm_e0a653f65b.png"></figure>

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The Third Annual Impact Report

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.

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

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"></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"> &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.

Ethiopia’s fintech infrastructure is improving with the soft launch of Safaricom Ethiopia’s mobile financial service M-PESA.

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M-PESA Launches in Ethiopia

Renew Capital welcomed a dynamic team of 11 exceptional young professionals ranging from units in Project Management, Investment, Human Resources and Marketing and Communications.<h1 style="text-align:justify;"> Turning Pages and Chasing Dreams</h1>11 Interns Share Their Career Aspirations and Book Recommendations<figure class="image"><img src="/uploads/Meet_the_team_325b170a67.png"></figure>Renew Capital internship is an opportunity for recent graduates based in Africa to embark on a quest to unearth their professional goals, bring innovation to the table and invest in their future success.&nbsp;During the internship, the young professionals will work on various investment and private sector development projects that will enhance their professional skills and gain work experience in an international firm operating across eight African countries. Get to know them as they share books that have influenced and inspired them.&nbsp;1. Agnes Mbuvi- Investment Intern. Kenya.a) What are your professional goals?&nbsp; To become a top financial analyst in Kenya and Africa as well. I also hope to start my own investment firm in the future. where I will be able to offer investment solutions that work for the African context.b) What book would you recommend?The Mountain Is You: Transforming Self-Sabotage Into Self-Mastery by Brianna Wiest. This self-help book helped me overcome self-sabotaging tendencies. The author encourages individuals to break free from self-destructive patterns, cultivate self-compassion and build resilience to live a fulfilling life. 2. Eden Hailemariam- Investment Intern. Ethiopia.a) What are your professional goals?&nbsp;To become an exceptional investment consultant. I pursued this career path to help people make informed investment decisions which in turn will have positive micro as well as macroeconomic and social effects.b) What book would you recommend?To Kill a Mockingbird written by Harper Lee. It narrates the childhood of Scout and Jem Atticus. I love the extent Atticus goes to defend what he believes is right, regardless of the challenges he faces. It explores themes of racial injustice, mistreatment of innocent people and social prejudice. 3. Jordan Karenzi- Investment Intern. Rwanda.a) What are your professional goals?&nbsp;I would like to learn how to conduct sound market research and map out the right investments. Also, I would like to improve my communication skills and ability to relay information relating to the investment practice.b) What book would you recommend?The Third Door by Alex Banayan. This is a story of a young man with a dream of interviewing the most successful people in the world from different fields and different walks of life to understand the secret to their success. When Alex was at his highest, he got knocked down but he found a way to get up and push through. I applied the general message to keep a positive mindset and consider small steps as progress. 4. Nahomi Kassahun- Investment Intern. Ethiopia.a) What are your professional goals?&nbsp;Currently, I am working towards improving my communication skills, especially public speaking. I hope to explore diverse career paths, build a network and develop my leadership abilities.b) What book would you recommend?Divergent Trilogy by Veronica Roth is an extremely thought-provoking book that is set in the future. It made me question the meaning behind their nickname. The characters are based on important values: Abnegation (selflessness), Amity (kindness), Candor (honesty), Erudite (intelligence) and Dauntless (bravery).&nbsp;5. Ruth Ayalew- Project Intern. Ethiopia.a) What are your professional goals?&nbsp;To become a visionary policy maker. I am driven by a deep desire to bring about transformative and systematic change in Ethiopia's current landscape. I firmly believe that by implementing innovative and sustainable policies, we can overcome the obstacles that hinder progress and unlock the true potential of this remarkable nation.b) What book would you recommend?7 Habits of Highly Effective People&nbsp;by Stephen Covey. During my stay at the Young African Leaders Initiative (YALI), I was encouraged to read the book to understand how to live well with others and the dynamics of a great team. I learned that people have various behavioral styles.&nbsp;6. Heran Getaneh- Project Intern. Ethiopia.a) What are your professional goals?&nbsp;To become a detail-oriented manager and acquire a well-rounded skill set in project management. I hope to not only focus on my role but explore various aspects within the work environment and become a stellar collaborator that achieves success working with cross-functional teams.b) What book would you recommend?Educated by Tara Westover left an unforgettable impact on my spirit. The author's brilliance resides in her ability to challenge cultural standards while also appreciating the power of education. It has taught me to value any chance for personal development and learning that comes my way.&nbsp;7. Uwera Kamuhangire Myriam- Project Intern. Rwanda. a) What are your professional goals?&nbsp;To be an illustrious project manager or consultant in Rwanda. I also want to be an entrepreneur in the near future because I enjoy working in dynamic and flexible environments.b) What book would you recommend?The Secret by Rhonda Byrne. It talks about the law of attraction and how our mind is the greatest weapon that can be used to work for or against us. It teaches how positive thoughts can manifest positive outcomes and we can use this to achieve personal growth and success.&nbsp;8. Hiwot Endale- Project Intern. Ethiopia.a) What are your professional goals?&nbsp;In the next five years, I want to identify the career path that I want to follow, build my professional network, perfect my skills and learn more about the entrepreneurial and investment sector.b) What book would you recommend?12 Rules for Life&nbsp;by Jordan B. Peterson. In this remarkable read, the renowned clinical psychologist narrates unique and well thought rules to help us maintain order, improve our interpersonal interactions and establish strong bonds with others.&nbsp;9. Shaynerose Magabi- Marketing and Communications Intern. Kenya.a) What are your professional goals?&nbsp;To hold a leadership position soon and make data-driven decisions by improving my skills in data analysis and implementing effective marketing campaigns and conducting market research. I aim to excel in public speaking and confidently communicate my ideas with a diverse audience.b) What book would you recommend?The Art of Happiness by the Dalai Lama and Howard C. Cutler. This transformative guide sheds light on how individuals postpone their happiness and forget to live in the present.&nbsp;It implies if you aren't happy in the present, you'll never be happy in the future. Sadly, people fail to show compassion towards themselves by equating their self-worth to their success.&nbsp; 10. Joy Mburu- People Operations and Development Intern. Kenya.a) What are your professional goals?&nbsp;I am looking forward to helping with the implementation of company policies and providing essential support to the People Operations and Development unit while learning its purpose.&nbsp;My career aspiration is to get a Human Resource Management certification that will enable me to grow and take on leadership roles soon.b) What book would you recommend?The Winner by David Baldacci. This book takes you on a journey of trust and betrayal. “What decisions would you make in the face of intense desperation?" Characters within the plot are forced to make challenging decisions. It explores the devastating impact of betrayal from close friends and will make you shift alliances throughout the whole novel.&nbsp;11. Mediatrice Kampire- Data Science and Analytics Intern. Rwanda.a) What are your professional goals?&nbsp;To become a senior data analyst and project manager within the next three years by completing relevant training courses and gaining practical experience.b) What book would you recommend?Who Moved My Cheese by Dr. Spencer Johnson is a motivational business fable that explores the challenges of change and adaptation. The book emphasizes the importance of embracing change, being flexible and proactively seeking new opportunities.

11 Interns Share Their Career Aspirations and Book Recommendations

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 Turning Pages and Chasing Dreams 

<h1>Unpacking Ethiopia's Startup Landscape: Join the NINJA Acceleration Program Graduation</h1>An opportunity to explore and understand Ethiopia’s startup ecosystem.The entrepreneurial spirit is alive and thriving in Ethiopia and the upcoming "Ethiopia NINJA Acceleration Program Graduation" offers a thoughtful look into this growing landscape.&nbsp;Presented by the Japanese International Cooperation Agency (JICA) and the Ethiopian Ministry of Innovation and Technology (MInT), this hybrid event is poised to provide valuable insights on Ethiopia's startup ecosystem while celebrating six startups graduating from the intensive NINJA Acceleration Program.<figure class="image"><img src="/uploads/Six_S_Us_9ffeae5b81.jpg"></figure><h3>&nbsp;Participate In-Person or Online</h3>&nbsp;The "Ethiopia NINJA Acceleration Program Graduation" is designed for both&nbsp;<a href="https://docs.google.com/forms/d/e/1FAIpQLSea41uEyMTNm1f7jjPetIRec30rRqH-QlFtykldl40MwAlzow/viewform">in-person</a> and<a href="https://us02web.zoom.us/webinar/register/WN_AMqimTxuTvGestrZCoHabQ#/registration">&nbsp;online attendance</a>.<ul><li>Date: August 15, 2023</li><li>Time: 10:00 AM - 12:15 PM (East Africa Time)&nbsp;</li><li>Location: Sapphire Hotel, Addis Ababa, Ethiopia, or<a href="https://us02web.zoom.us/webinar/register/WN_AMqimTxuTvGestrZCoHabQ#/registration">&nbsp;follow online</a></li></ul>The event includes the presentation of a landscape survey by JICA, a panel discussion and the celebration of six startups that have completed&nbsp;the intensive NINJA Acceleration Program.<h3>Meet the Panelists</h3><ul><li>Mr. Selamyhun Adefris: Director General Innovation and Research at MInT&nbsp;</li><li>Mr. Pazion Cherinet: HealthTech entrepreneur and CEO of Orbit Innovation Hub</li><li>Mr. Tigabu Haile: Founder of Eshi Express and MERI Podcast</li><li>JC Oelofse: Investment Lead at Renew Capital</li></ul><h3>&nbsp;Graduation of Six Startups</h3>This event marks a significant milestone for the six finalist startups that were nurtured under the "Ethiopia NINJA Acceleration Program." These innovative companies are eager to share their journeys and insights.<h3>The Six Graduating Startups</h3><ol><li>Guzo Technologies PLC (Guzotech): Creating immersive Internet of Things and XR experiences for businesses and government.</li><li>WeCare Digital Health: Offering virtual health consultation services, connecting healthcare professionals with clients from their homes.</li><li>Gebeta Maps: Providing software solutions to facilitate logistics, routing, and more, at cost-effective rates.</li><li>Shemach: A digital marketplace linking retailers and FMCG manufacturers, enhancing supply chain efficiency.</li><li>Fibermart Trading: Solar-powered kiosks to provide financial access and connectivity for frontier markets.</li><li>Taywan: A B2B E-commerce platform empowering trade and restocking for retailers across Ethiopia.</li></ol>&nbsp;<a href="https://us02web.zoom.us/webinar/register/WN_AMqimTxuTvGestrZCoHabQ#/registration">Join us</a> on August 15!&nbsp;&nbsp;

An opportunity to explore and understand Ethiopia’s startup ecosystem.

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Unpacking Ethiopia's Startup Landscape: Join the NINJA Acceleration Program Graduation

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa.&nbsp;<h1>Top 5 Skills For Aspiring Investment Analysts In Ethiopia</h1><figure class="image"><img src="/uploads/IMG_20230623_WA_0001_43931c8652.jpg"></figure>As the Ethiopian startup ecosystem grows and the investment scene opens up, it's an exciting time for aspiring investment analysts. To capitalize on emerging opportunities, it's essential to develop the following skills:Technical Knowledge&nbsp;As an investment analyst, you need a deep understanding of subjects such as statistics, finance, and economics. Developing multidisciplinary knowledge will be advantageous in the investment field.&nbsp;Data analysisData analysis is a crucial part of an investment analyst’s job. This skill enables you to add value to raw data, providing reasoning and suggestions based on the information gathered. Additionally, mastering tools like Excel, which is commonly used by companies, will prove beneficial.Time ManagementEffective time management is vital for investment analysts. It involves planning and organizing tasks, estimating their duration, and setting deadlines. Utilizing a calendar and mapping out weekly priorities can help you visually track time and ensure that you are meeting deadlines.CommunicationThe ability to convey information cohesively, both verbally and in writing, is essential for investment analysts. It's crucial to tell a compelling story that resonates with your audience. Understanding your audience is key to effective communication.ResearchThe internet is a valuable resource for developing technical knowledge and finding answers to questions, especially when access to education and information is limited. Leveraging the internet effectively will enhance your skills and understanding in the investment field.Developing these skills will help you get started in the investment sector. However, continually honing and combining these skills throughout your career will maximize your potential. For example, blending research with technical knowledge and communication skills can help you create high-value presentations. Remember that these skills require rigorous practice, passion, and discipline. By developing these skills, aspiring investment analysts can contribute to the growth of the Ethiopian investment sector.

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa. 


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Top 5 Skills For Aspiring Investment Analysts In Ethiopia

On World Refugee Day, join us in celebrating resilience, as we explore the transformative power of investing in refugees and their host communities, driving integration, and building a more inclusive and prosperous future together.<h1>Refugee Lens Investing: Empowering Refugees in Ethiopia&nbsp;</h1>Celebrating World Refugee Day<img src="https://lh4.googleusercontent.com/sHWxhw4wWeiaC9R3o8UcqXfxSM_NwGomieviSeGASh9qRd_dcny9jeX35nbSSDh2vgeKpVeIrUosf_l2NotwHLYTgMQyf5TknQHihHCl24mqJ3irmpqq1wsGpkyEHrO7dGY1ztx33x53GdSgqtC_mCw">Garment worker at a factory near Debre Birhan, Ethiopia. The factory serves international clients supports vulnerable women, including IDPs, refugees and disabled people through training, employment, housing and other benefits. Photo courtesy of Mariah Grubb.Today is World Refugee Day, a day to celebrate the resilience and strength of refugees around the world. It is also a day to raise awareness of the challenges that refugees face and encourage commitment to supporting their long-term integration. Ethiopia is a country that has been welcoming refugees for centuries. While the exact numbers are challenging to ascertain, as of February 2023, Ethiopia was estimated to have&nbsp;<a href="https://reliefweb.int/report/ethiopia/ethiopia-humanitarian-response-plan-2023-february-2023">4.6 million</a> internally displaced people (IDPs). Furthermore, according to UNHCR, there are 916,436 registered&nbsp;<a href="https://data.unhcr.org/en/country/eth">refugees</a> in the country.Refugees in Ethiopia face many challenges, including poverty, lack of access to education and healthcare, and discrimination. However, there are also many opportunities for refugees to rebuild their lives and contribute to their host communities. One way to support refugees is through refugee lens investing (RLI). RLI is a type of impact investing that focuses on investing in businesses that support both refugees and their host communities to enhance integration and improve the overall economic well-being of the community.&nbsp;Additional information about the RLI framework and criteria can be found on the&nbsp;<a href="https://refugeeinvestments.org/resources/refugee-lens/">Refugee Investment Network</a>’s (RIN) website.With Renew Capital’s signature ‘Invest+Impact’ model, we are constantly exploring new and innovative impact investment frameworks and models. This resulted in a recent collaboration with RIN to conduct a landscape analysis and develop a&nbsp;<a href="https://refugeeinvestments.org/resources/creating-a-roadmap-for-refugee-lens-investing-in-ethiopia/">road map for RLI in Ethiopia</a>.&nbsp;Despite concerns that refugees are seen as burdens, Renew Capital's research supports the evidence that they bring significant benefits to host communities. Refugees are hardworking, committed individuals who bring new knowledge, skills, and dedication to the workforce. Integration of refugees fosters inclusive economic growth, cohesion, and stabilization. Cultural exchange and knowledge sharing enrich societies, promoting innovation, understanding, and tolerance.&nbsp;On World Refugee Day, join us in learning more about refugee lens investing and how we can collectively create a more inclusive and prosperous world for all, where refugees are empowered to rebuild their lives and contribute to the growth and well-being of their host communities.

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Refugee Lens Investing: Empowering Refugees in Ethiopia

<h1>Fueling the Growth of Ethiopia's LogiTech Startup Ecosystem</h1>USAID’s Bureau of Humanitarian Assistance seeks to strengthen the trucking, transportation and logistics sector through technology innovation<figure class="image"><img src="/uploads/W_Ith_credit_27033b5754.png"></figure>From late 2020 through February 2021, USAID’s Bureau of Humanitarian Assistance (BHA) conducted a&nbsp;<a href="https://pdf.usaid.gov/pdf_docs/PA00XFMD.pdf">Private Sector Landscape Assessment</a> (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:<ol><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></ol>In support of these recommendations, USAID BHA started 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 teams have been working to strengthen urban to rural linkages and enhance the trucking, transportation, and logistics sector in Ethiopia. This collaboration has resulted in market and ecosystem research and culminated in a 12-week, intensive training program focused on 10 logistics and technology (or “LogiTech”) startups in Ethiopia. Key takeaways from project activities include:<ul><li>There are several persisting challenges that undermine the growth and modernization of Ethiopia's trucking, transportation and logistics sector.</li><li>Trucking and transportation companies are not tech-enabled, and most companies still operate with manual processes.</li><li>Macroeconomic conditions and regulatory barriers continue to undermine the Ethiopian startup ecosystem.</li><li>Only 0.07% of capital invested in logistics and transport startups in Africa was raised by Ethiopian companies from 2019 to January 2023.</li><li>The average deal size for Ethiopian logistics companies was $170K, significantly lower than other African countries from 2019 to January 2023.&nbsp;</li><li>Ethiopian startups only raised 5.82% of total capital raised by startups in Africa from 2019 to January 2023.</li></ul>&nbsp;Percentage of Capital Invested in Logistics by Country (USD, Millions, 2019 - January 2023)<figure class="image"><img src="/uploads/Screenshot_2023_05_18_at_11_18_47_AM_a31b08b385.png"></figure>(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)In other words, trucking and transportation companies are not tech-enabled, and most companies still operate with manual processes. According to interviews with SMEs throughout the SHARP-SEE project, trucking and logistics companies are interested in implementing technological solutions to address challenges associated with financial forecasting, accounting and operational efficiency. At the same time, while many companies have implemented solutions that allow them to track vehicle driving data, like location, speed, and fuel levels, the technologies in current use do not include logistics applications that support in the completion of tasks in the following key areas:<ul><li>Fleet Management Systems</li><li>Cargo Tracking and Matching Technologies</li><li>Last Mile Communications</li><li>Digital Work Orders &amp; Digital Truck Tasking</li><li>Efficient Unloading &amp; Loading&nbsp;</li><li>Digital Bidding and Tendering</li><li>Digital Warehouse Management Systems</li><li>Vehicle Space and Route Optimization</li><li>Public Transportation (Bus Fleet Management, E-Ticketing for Intercity Travel)</li><li>B2B Logistics between Urban and Rural Areas</li></ul>Furthermore, macroeconomic conditions and prohibitive government regulations undermine investment in the sector:<ul><li>Government directives on priority goods and quotas curtail the capacity of the private transportation, trucking and logistics sector.&nbsp;</li><li>49/51 percent company ownership in freight forwarding and shipping agency services discourages foreign investment and multinational innovations.&nbsp;</li><li>Investment Proclamation Number 1180/2020 requires that foreign direct investments must be no less than $200,000, undermining foreign investors’ ability to invest in startups and pre-seed companies.</li><li>Forex shortages, capital controls and the high cost of spare parts undermine investment and the growth of Ethiopia’s fleet.</li><li>Finally, the Ethiopian Shipping Line monopolizes approximately 85% of cargo that travels on the Djibouti corridor, leaving only 15% open for private contracts. The majority of this is humanitarian cargo, which receives an ESL waiver. At the same time, Investment Regulation 474 (2020), prohibits foreign ownership of inland trucking operations for loads under 25 tons, which constricts an estimated 15% of the total Ethiopian trucking market open to foreign investors and foreign companies, valued at approximately $350M, according to a trucking market size model developed by Renew Capital.</li></ul>As a result, private investment in logistics in Ethiopia lags behind regional counterparts and the country lacks an investable pipeline of tech-enabled logistics startups.&nbsp;The average deal size for Ethiopian logistics companies from 2019 to January 20230 was $170K, significantly lower than other African countries.&nbsp;Average Ticket Sizes for Logistics Deals in Africa (USD Millions, 2019 - January 2023) <img src="/uploads/image_4b78c20e06.png">(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)More broadly, Ethiopia’s startup technology ecosystem also remains underdeveloped with a limited pipeline of investable companies:&nbsp;Limited investment in Ethiopia is not just isolated to the logistics sector. For context, across sectors, Ethiopia only attracted 5.82% of capital invested in African startups from 2019 to Q1 2023. When adjusting for only tech startups, this number drops even more significantly, as Ethiopia’s largest startup deal in recent years was a $26M deal in a beverage startup, which dramatically skews these numbers.&nbsp;This is due to two primary reasons. First, as discussed, the limited pipeline undermines investor interest in the country. Second, high foreign investment investments ($200K) and the inability of foreign investment entities to provide debt financing undermines the ability of foreign investors to provide investment in smaller rounds, which is typically more appropriate for asset-light tech startups.&nbsp;Ethiopian startups only raised 5.82% of total capital raised by startups in Africa since 2019.Breakdown of investment funding by sector in Ethiopia as a percentage of total capital invested across the African continent by sector (2019 to Q1 2023).&nbsp;Capital Invested in Ethiopia By Sector as a Percentage of Total Invested Capital in Africa (2019 - Q1 2023)<figure class="image"><img src="/uploads/Screenshot_2023_05_18_at_11_18_56_AM_852882f800.png"></figure>(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)The LogiTech Investment Sprint Aims to Mitigate These Persisting Challenges: As such, the USAID BHA SHARP-SEE project team’s approach and solution to these persisting problems has been focused on helping build a pipeline of investment ready LogiTech startups with the ability to attract funding to Ethiopia’s Logistics sector. The 12-week training program focused on foundational business topics including strategic planning, organizational structures, managing business finances and investment preparation.&nbsp;The program also worked with startups to re-evaluate the effectiveness of their existing minimum viable products and seek true product market fit. Product development activities included in-depth customer interviews, the development of primary growth targets and KPIs, and continual target versus actual analysis and accountability.&nbsp;Participating startups’ products range in focus including, intercity logistics, intraregional public transportation, commuting, last mile delivery, business to business logistics and a digital solution for truck operators participating in import and export operations.Combined, these developing solutions fit well into Ethiopia’s modernizing digital economy and pave the way for a more tech-enabled future for Ethiopia’s logistics sector. At the same time, while in their infancy, some of these solutions are laying the foundation for improving the delivery of humanitarian aid by introducing digital tools to a traditionally undigitized sector. Furthermore, urban to rural linkages, between manufacturers and suppliers and retailers and between agricultural producers and export and local markets can be strengthened through the provision of tech-enabled logistics services. Finally, while still largely manual, busing and public transportation is moving towards digitization with two of the pitching companies focusing on improving the flow of people both within cities and between cities. In turn, these innovations can supercharge technology for logistics and continue to work towards more efficient delivery of humanitarian aid and the strengthening of urban to rural market linkages.Join us on May 31, 2023 as the final six companies from the LogiTech Innovation Sprint pitch their startups. Register&nbsp;<a href="https://us02web.zoom.us/meeting/register/tZYkce2rqj8jHdWZWTHs6i27mYpAyfU2Jbf4#/registration">here</a>.

USAID’s Bureau of Humanitarian Assistance seeks to strengthen the trucking, transportation and logistics sector through technology innovation


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Fueling the Growth of Ethiopia's LogiTech Startup Ecosystem

In this blog, Bezawit Wondwosen shares her typical day as a Renew Capital intern. Interested in being part of the next internship program? Applications are now open!&nbsp;&nbsp;<h1>A Day in the Life of a Renew Capital Intern</h1>Everyday opportunities for gaining professional experience in private sector development and investment&nbsp;Have you ever wondered what an average day for an intern at Renew Capital looks like? I joined the Renew Capital internship program in Ethiopia after I graduated with my economics degree from Addis Ababa University. During my time at Renew Capital, I’ve learned a lot about the working world, met many kind and inspiring people, received mentorship from great leaders and have been involved with very interesting projects, events and tasks.<figure class="image"><img src="/uploads/Whats_App_Image_2023_05_19_at_12_13_18_eb998b70fa.jpeg"></figure>No day is exactly like the other in an internship. It can be exciting, bustling, unexpected and unplanned, but when you’re working to make the best of your experience, it’s extremely rewarding.&nbsp;Here’s what my typical day looks like:My alarm goes off at 7:00 am. It's time to get up and get ready for work. After a couple of snoozes, then anxiously thinking about what I have scheduled for the day, I’m up and excited to get busy. I need to get to work by 8:30 am, so I put on a nice pair of black pants, a blouse and sweater, and a pair of cute boots and I've got a stylish semi-casual outfit for the day. Then, I’m out the door and driving to work while listening to my current favorite podcast, "How I Built This by Guy Raz?" which was recommended by Matt Davis, our CEO, in one of the exec’s sessions.&nbsp;Our office is not far from where I live, so I get there within 30 minutes on a good day. The office is beautiful with windows all around. Around 8:30 am, I arrive at the office and head to my desk. My desk space essentials are usually coffee or tea, water, a notepad for notes and to-do lists, my AirPods and lipgloss. After unpacking, I open my laptop and check my email and calendar. I look over my calendar and see what the priorities are for the day and if I have free time, I try to assist anyone and support any project. A tip I try to remind myself is to ask whether my manager or another employee in any department needs help. Everyone always appreciates a helping hand and sometimes they can get too busy to delegate work.&nbsp;I have meetings with various departments throughout the day where I can learn more about them, find out what's coming up and find out if there are any prospective projects or events I can assist with. When meetings are completed, I return to my daily activities, which mostly involve training sessions and in-depth research on various topics. I enjoy researching different subjects since it takes me down unexpected rabbit holes and teaches me new information. When it’s finally lunchtime, I heat up the lunch I packed and sit with my colleagues. We are a group of people with different cultures and backgrounds so the conversations we have are always interesting which makes lunchtime so much fun.&nbsp;When lunch is over and I go back to work, I try to keep myself energized by drinking some coffee. My most productive hours are in the morning so I try to finish my harder tasks at that time.&nbsp; In the afternoon, I do the tasks that seem easier to me. When the day is finally over, I pack up my things and say, “Good night and see you tomorrow” to my colleagues for yet another work day. I usually finish my day by going to the gym, reading a book and spending time with my friends and family. And who knows what the next thing I will be assisting with tomorrow which makes it the best part of my internship experience. Renew Capital’s internships offer recent graduates based in Africa the opportunity to work on various investment and private sector development projects that will enhance their professional skills and gain work experience in an international firm operating across six African countries. Apply&nbsp;<a href="https://www.renewcapital.com/careers">here</a>!

Everyday opportunities for gaining professional experience in private sector development and investment 

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A Day in the Life of a Renew Capital Intern

Only about 2.83% of capital invested in climate-related startups in Africa from 2019 through Q1 2023 went into logistics companies, including electric vehicle startups. This logistics brief focuses on EVs as part of Renew Capital's series on climate tech in Africa.&nbsp;<h1>Insights on the EV Sector Across Africa</h1>Making electric vehicles a viable solution for the African market<figure class="image"><img src="/uploads/shutterstock_1445301932_91b00cf41f.jpg"></figure>Approximately $2.15B was invested in climate deals in Africa from 2019 to Q1 2023. Only 2.83% of that capital went into logistics and transport, which includes electric vehicles.<img src="/uploads/A1_A19392_6_D70_4_BDA_8_EC_6_871416_DC_5_D64_1_201_a_30404271a5.jpeg">(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)&nbsp;Investors closed 22 startup EV deals from 2019 to Q1 2023. Kenyan companies accounted for 36% of these funding rounds.<img src="/uploads/image_3f0cd094f7_338ceb127b.png">(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)&nbsp;While EV investments peaked in Africa in 2022, we are not aware of any EV deals that have been reported in Africa to date in 2023.&nbsp;<img src="/uploads/image_59ceb483ba_f9ac76d932.png"> &nbsp;(Source: Renew Capital analysis of publicly reported deals tracked in “Africa: The Big Deal - Startup Deals Database”)EV Initiatives by the Government of&nbsp;RwandaAn earlier&nbsp;<a href="https://www.renewcapital.com/newsroom/africa-e-commerce-struggles-to-scale-while-tech-logistics-companies-attract-capital#:~:text=Rwanda%27s%20EV%20and%20E%2DMobility%20Solutions%20Struggle%20Despite%20Government%20Push%C2%A0">logistics brief</a> highlighted challenges associated with scaling EVs in Africa using Rwanda as a case study. The Rwandan government has invested heavily in sustainable infrastructure and e-mobility. While private investments have been made to grow e-mobility solutions throughout Rwanda, the government has created a slate of incentives to promote investment in e-mobility solutions:<ul><li>Low charging costs, especially between the off-peak hours of&nbsp; 11 pm to 8 am. Tax breaks on imports of any e-vehicles, equipment, or materials required to develop charging infrastructure</li><li>Public land allocated to companies setting up charging stations for no cost/rent-free</li></ul>Despite these government initiatives and private sector investments, the current challenges EVs face in Rwanda underscore challenges that will likely prevent the proliferation of EVs throughout sub-Saharan Africa in the near term. High entry cost to purchase, inadequate charging infrastructure and poor road infrastructure are key pieces missing that will potentially limit the possibility of EVs taking over the African market.&nbsp;While larger EVs including Volkswagen’s ID.4 will likely be imported to Rwanda and are already being sold in Ethiopia to deal with the problem of poor infrastructure, the majority of Rwandans and sub-Saharan Africans cannot afford to own these expensive vehicles.&nbsp;Interestingly though, given rising fuel costs in Ethiopia and the relatively low cost of electricity in East Africa’s largest economy, EVs may be able to make a splash.&nbsp;An Ethiopian EV Cost Comparison ExperimentAn in-house experiment conducted by some of Renew Capital's Ethiopian team members determined that the current gas cost of operating a fuel Peugeot 6 Seater SUV (at 62 ETB/KM) was four times more expensive than the comparable EV Volkswagen ID6 in the Ethiopia market.&nbsp;The purchase price of both vehicles is comparable at 5.5M ETB (approximately $105K). This is despite recent incentives placed on EV purchases by the Ethiopian government which only require a 15% import tax for fully assembled imported vehicles. This example underscores that while upper-class individuals in Ethiopia can afford the $105K price tag, many Ethiopians will not be able to access them over the long term.Therefore, the future of EVs in Ethiopia depends on the ability of car manufacturers to create a smaller-sized EV more comparable to the Toyota Vitz or Platz, commonly driven vehicles by middle to upper-class individuals in Ethiopia. Still, with a Toyota Platz and Vitz priced at 1.6M ETB ($30K) and 1.2M ETB ($23K) respectively, even these vehicles in the current Ethiopian economy are considered a luxury. At the same time, electric motorcycles are making headway in Ethiopia’s neighboring countries including Kenya, Rwanda and Uganda.For example, electric motorbikes could cost around $1,500, which is far cheaper than the cost to buy a smaller-engine-sized car like the Toyota Vitz or&nbsp; Platz.At the same time, the transition to EVs in Ethiopia will not be without its challenges. One of the key barriers to adoption is the lack of charging infrastructure. Currently, there are only a handful of charging stations in Ethiopia, which limits the practicality of EVs for many people. In addition, high upfront costs and limited availability of EV models in Ethiopia are other obstacles to widespread adoption.Despite these challenges, there is a reason for optimism. At least two Ethiopian organizations, including private companies, are working on installing the infrastructure required for charging widespread adoption of EVs. For example, in 2021, Ethiopian automotive company&nbsp;<a href="https://ethiopianmonitor.com/2021/12/28/first-electric-vehicle-charging-station-opens-in-addis-ababa/">Marathon Motors</a> partnered with Nissan to launch an electric vehicle pilot program in Ethiopia. As part of the program, Marathon has installed charging stations at its dealerships and service centers. Likewise, at the beginning of 2023, Cardinal Industrial PLC&nbsp;<a href="https://www.eep.com.et/en/it-is-planned-to-build-500-electric-vehicle-charging-stations-in-one-year/">announced its plans</a> to build 500 EV charging stations across Ethiopia over the next year.&nbsp;&nbsp;Moreover, as part of its 10-year economic development plan, the Ethiopian government intends to import 4,800 electric buses and 148,000&nbsp;<a href="https://www.globaltimes.cn/page/202207/1271799.shtml">electric cars&nbsp;</a>by 2030.&nbsp;Bottom LineEVs have not historically received adequate investment in the African market. At the same time, the EV market needs meaningful innovation in order to make electric vehicles a viable solution for Africa. Aside from motorcycles, very few sub-Saharan Africans have the ability to purchase and use EVs due to their high entry cost and limited charging infrastructure. Importantly, EVs in public transportation could be a more durable solution for EVs in Africa than personal vehicles.

Making electric vehicles a viable solution for the African market