<h1 style="text-align:center;">Back to the Source: Teff</h1>In January 2014, members of the Impact Angel Network closed an investment in Mama Fresh Injera, a family-owned company that has been in operation since 2003. Mama Fresh is a commercial manufacturer and exporter of fresh-baked injera, spices and other Ethiopian food products.Mama Fresh works with more than 300 smallholder farmers who grow the teff and spices that the company’s chefs and bakers use in the company’s high-quality products. The company also employs more than 90 hardworking men and women in the kitchens and bakeries of Mama Fresh, the main output being Ethiopia’s famous injera.<figure class="image"><img src="/uploads/back_to_the_source_mftc11_18d1c934a4.jpg"></figure>Injera is traditionally made from teff; a gluten-free grain that can be traced back thousands of years to the ancient civilizations of Abyssinia in the highlands of Ethiopia. The grain is similar in size to that of a poppy seed and comes in a variety of colors, from white and red to dark brown. It has a very mild, nutty flavor, and it packs a nutrient-rich punch - high in iron, calcium and protein, and has an excellent balance of essential amino acids.Around 3.78 million metric tons of teff is grown in Ethiopia each year. One hectare yields a little more than 1 metric ton of teff, on average, though agriculture initiatives currently underway in Ethiopia are working to increase yields.*Teff, though small in size, plays a large role in both the country’s economy and diet. The agriculture sector is the largest employer of Ethiopia’s 90 million plus population, with grain production constituting the primary share. In fact, cereals (teff, wheat, maize, sorghum, etc.) account for roughly 80% of total cultivated land and 60% of rural employment.* And, it is small landholder farmers who produce around 98% of the country’s cereals, with only 2% produced by commercial farms.*Teff is a versatile grain that can be processed in a variety of ways and is eaten at almost every Ethiopian meal, in the form of injera. Due to its nutritious nature and cultural significance, teff is considered to be one of the country’s most important crops for economic and food security. It is because of this that the country enacted a ban of all teff grain exports in 2006. Teff grain is almost exclusively consumed at the domestic level, and the rest of the world can only legally consume Ethiopian grown teff if it’s a finished product, like Mama Fresh’s world-renowned injera.<figure class="image"><img src="/uploads/back_to_the_source_mftc13_955a1cc99e.jpg"></figure>To make injera, teff grain must first be separated from the stalk, whether it is by traditional cleaning and sieving methods or automated processes. Once the grain is cleaned, it is then ground into flour and combined with water to make dough. This dough is allowed to ferment for 3 to 4 days, until it reaches a specific pH level and is ready for baking.Injera is traditionally baked in an oven called a “metad,” which is a flat circular hot plate with a cover. After preparing the hot metad's surface for baking, the Mama Fresh baker then pours the dough in a circular motion, ensuring that it is evenly distributed across the oven’s surface. Each baker has their own technique that they have perfected from years of practice. Injera usually bakes for 3 to 5 minutes and is then taken out by the baker for cooling.On average, a Mama Fresh baker can bake up to 600 pieces of injera during a shift. Once injera finishes cooling, it is then packed into airtight plastic for shipment to the many countries across the world where Mama Fresh sells its products, including the United States. This unique, spongy, sourdough-like flatbread can be enjoyed at room temperature with meats, sauces and spices, including Mama Fresh's delicious Berbere.<figure class="image"><img src="/uploads/back_to_the_source_mftc12_2e1bbe4b83.jpg"></figure>So, the next time you’re at a specialty foods store and spot a package of Mama Fresh injera, you’ll now understand the transformative journey this small grain has taken from the highlands of Ethiopia to the shelf of your supermarket and the lives it has positively impacted along the way.<a href="http://gain.fas.usda.gov/Recent GAIN Publications/Grain and Feed Annual_Addis Ababa_Ethiopia_3-25-2014.pdf">*USDA Foreign Agricultural Service, Global Agriculture Information Network, Ethiopia: Grain and Feed Annual Report, March 31, 2014.</a>&nbsp;&nbsp;&nbsp;

RENEW takes a closer look at the key ingredient of Mama Fresh's injera; a small but important super grain.

teff_growing_0.jpg

Back to the Source: Teff

<h1 style="text-align:center;">Ready for an Adventure?</h1>RENEW strives to provide members of the Impact Angel Network (IAN) with an unforgettable investment experience. One such element of the investor experience is the opportunity to travel to Ethiopia and participate on an Econ-Tourism trip. What is an Econ-Tourism trip? Each trip is unique, but the following information provides a general overview of the adventure.WHAT:RENEW encourages all members of the IAN to travel to Ethiopia and participate on an Econ-Tourism trip, during which they meet with entrepreneurs, tour their facilities, see the current state of the businesses first-hand, and help choose the next set of investment opportunities for the IAN.WHERE:Addis Ababa, Ethiopia.WHEN:RENEW hosts trips for members several times throughout the year.AGENDA:Econ-Tourism trip participants usually arrive on a Sunday to rest, relax, and sightsee around Addis. The team will plan several meetings with various prospective businesses from Monday to Wednesday, and many participants will leave on Thursday for a cultural trip around Ethiopia. Participants also enjoy one-on-one meetings with the entrepreneurs of RENEW's portfolio companies to learn more about their experiences building successful businesses in Ethiopia.OUTCOME:Econ-Tourism trip participants are usually surprised to see so much development, growth and opportunity in Ethiopia. They notice signs of a rising middle class and are encouraged by the people they meet who want to work and build their country into an economic powerhouse. Our investors see first-hand the desires of Ethiopians to work and partner with U.S. investors, and the wide range of sectors in which to invest, from manual labor to technology.As Econ-Tourism trip participants speak with Ethiopian entrepreneurs, they often comment about the positive attitudes and drive of the management teams they meet, the signs pointing to growth in the agriculture, healthcare, energy, and technology sectors, and the work of the companies to improve the lives of employees.DETAILS:The RENEW team prepares members for the trip by suggesting flight and hotel options, planing side trips to exciting destinations around Ethiopia, advising on cultural and business customs, and creating an agenda filled with meeting entrepreneurs, seeing business opportunities and getting to know the unique culture of Ethiopia.SIDE TRIPS:Trip participants can also take side trips to beautiful and historic spots around Ethiopia, such as the monolithic rock-cut churches of <a href="http://whc.unesco.org/en/list/18">Lalibela</a>, the lake district of <a href="https://en.wikipedia.org/wiki/Lake_Awasa">Awassa</a> in the Great Rift Valley, or <a href="https://en.wikipedia.org/wiki/Bishoftu">Debre Zeit</a>, a resort town known for its crater lakes. Our in-country team takes care of all of the logistics and planning for these side trips.UPCOMING TRIPS:The RENEW team will be hosting an Econ-Tourism trip from February 18 to 24, 2017. If you have any questions regarding the IAN, Econ-Tourism trips in general, or about the upcoming trip in February, please feel free to reach out. &nbsp;

Participate on a RENEW Econ-Tourism trip and visit the unique and exciting country of Ethiopia.

solomon_collage.jpg

Ready for an Adventure?

<h1>METAD PLC: A Force of Innovation in Ethiopia's Coffee Industry</h1><figure class="image image-style-align-left image_resized" style="width:28.87%;"><img src="/uploads/metad_logo_w_tag_rgb_2_24d4122529.jpg" alt="A Graphic of METAD, an organization committed to producing, processing and exporting premium Ethiopian coffee from seed to cup, sharing Ethiopia's rich coffee heritage with the world."></figure>Partners of RENEW, Matt and Laura Davis, recently visited one of METAD Agricultural Development PLC’s farm sites to check on the coffee pre-harvest preparation. 75 kilometers beyond Yirgacheffe, deep in the heart of some of Ethiopia’s best coffee country, METAD’s 200 hectare Hambela farm includes a washing station, dry mill, beds for sun drying, a large warehouse and guest bungalows. Altogether, METAD employs 28 permanent staff and 700 seasonal staff, 70% or more of which are women, and they partner with more than 700 out growers to provide best practices on growing, harvesting and selling coffee.One such permanent METAD employee is Solomon Teklemariam. A native of Addis Ababa, Solomon studied agriculture at Hawassa University, which prepared him for his role as METAD’s coffee quality manager. During Matt and Laura’s visit to the Hambela farm, Solomon was their capable guide, providing detailed and informed answers to all of the questions they had about the farm’s pre-harvest activities. The RENEW team and several IAN members who have visited the METAD laboratory in Addis have met Solomon and learned from his cupping expertise.<figure class="image"><img src="/uploads/solomon_collage_a1295fed11.jpg" alt="Renew Capital Team members engaged in a discussion with Solomon about his significant contributions to METAD and the Ethiopian coffee value chain."></figure>The RENEW team sat down with Solomon to learn more about his important role at METAD and his contribution to one of Ethiopia’s most prized value chains - coffee.When did you start working at METAD? I started working at METAD less than a year ago (maybe eight months), but I used to work as a consultant before joining the company full time. Back when the Ethiopian Commodity Exchange (ECX) was first established, I used to work there with Aman Adinew, the CEO of METAD. So, I have known Aman long before METAD was even started when I used to work as a cupper at the ECX.What coffee related education and/or training have you received to date? I studied agriculture science in college, and after graduating I immediately joined the ECX as a coffee cupper, where I gained ample experience in the coffee industry. Prior to joining METAD I took several trainings on coffee cupping and quality grading. At the ECX I used to work as a Q-Grader (quality grader of specialty coffee). Around five or six years ago, I took a coffee quality training course facilitated by the Ethiopian government and received a certificate. I also took a training course from Coffee Quality Institute (CQI) on coffee tasting and quality grading from the seed to the final tasting stages. I received a certificate from CQI, which is upgraded every three years. Then, I received a basic training certificate from the Haron Agronomy Department on coffee processing from the nursery to cupping. I have also received training from the Jimma University research center on coffee disease control.What is your position title at METAD, and what are your responsibilities? I am the coffee quality manager at METAD. My main responsibilities are: training and supervising farm managers, as well as quality control from the nursery to the final production stage - picking, sorting, washing, processing, drying, heat/moisture control, controlling coffee parchment. The process of quality control continues until the coffee reaches the warehouse and is shipped to its export destination. I also tag the coffee for customers until the export is done, test and control coffee, including cupping and sample storing and registering works.In your own words, what is METAD’s philosophy or outlook on Ethiopian coffee? What is METAD trying to achieve at the local and international levels? METAD aims to provide specialty coffee for customers that is geographically traceable. Any customer looking to see the origin of the coffee they buy can easily track its origins from seed to cup. Quality and traceability are the two important components of coffee processing that have not been done in Ethiopia before. METAD is one of the pioneers in this section. As the international specialty coffee market requires the best quality coffee, METAD aims to sell this kind of coffee to clients. We also provide trainings to the farmers we buy coffee from on various issues to help them produce high quality coffee. The company aims to serve the world the best quality Ethiopian coffee, which helps METAD obtain its organic coffee certification and helps the farmers that the company buys from receive a premium price for their crop.What kind of social impact has METAD created in the local community around the farm? METAD has provided various trainings for the farmers in the Hambela and Gedeb area, where both METAD’s farms are located. The farmers also benefit from the out growers program with METAD, as they will get premium prices for their coffee due to the company’s organic certifications. METAD also supports the farmers and their families by building schools and providing learning equipment for them, building town halls for holding meetings and is currently working on providing clean water for the farmers.Has working for METAD changed your life for the better? Definitely, I have worked with Aman before, and I have enjoyed his mentorship. Working at METAD has changed my life because I am able to gain experience and improve my skills, and I also earn a better salary than I did from my previous jobs. My family is very happy because I enjoy what I do.What is your favorite part about working for METAD as the coffee quality manager? I enjoy working at the laboratory because it is less tiring, but when it comes to the actual work and testing the quality of the coffee, spending time at the farm is important. My job is not limited to one place, so I enjoy both farm work and office (laboratory) work. The most satisfactory part is working at the farm and controlling the quality and agronomy.Have you tried METAD coffee, and if so what do you think? Yes, I have tried it many times. In fact, I only drink METAD coffee - both at the farm and at the office. It is one of the best coffees in Ethiopia and this is one of the reasons I joined the company. METAD provides a high quality coffee, and in my opinion as a cupper, has a unique future and is ranked above 90% for specialty coffee - especially the coffee from Hambela.How has your position at METAD inspired you? It has inspired me to be one of the best coffee quality graders in Ethiopia. I believe working at METAD is a good opportunity for me because it is one of the top coffee producing companies in the country. In 5 to 10 years, I want to be a well-known coffee cupper and quality grader in Ethiopia. I want to improve my skills in agronomy, coffee trade and the overall process from seed to cup. I want to be an expert on coffee. I also want to improve economically, to provide a better life for my family and myself. This all depends on the performance of METAD, which I plan to contribute my best effort to.

RENEW has a Q&A session with METAD's coffee quality manager to discuss this important sector.

dsc_0057_1.jpg

METAD PLC: A Force of Innovation in Ethiopia's Coffee Industry

<h1 style="text-align:center;">Ethiopia: Then &amp; Now</h1>Matt and I often reflect on how we would like to better document and share the changes we have seen in Ethiopia since we first arrived to open our office in February 2012. The changes are almost beyond comprehension, and we often wish we had installed time-lapse cameras at various points around Addis Ababa to capture the exceptional growth this city has experienced over the past few years.I was part of the “advance team” in January 2012, coming several days before Matt and a group of brave investors arrived in Addis Ababa. Now, we have six investments and will soon be the largest private equity (PE) investor in Ethiopia by volume of deals. Since then, RENEW has come a long way, as has the country in which we reside. We are thrilled to participate in and observe the incredible story that is Ethiopia’s growth.<figure class="image"><img src="/uploads/then_now_855e40e184.jpg"></figure>Infrastructure – Trains, planes and automobiles Matt knows a time before there was even a ring road in Addis Ababa. Now, there is not only a ring road (a highway of sorts), there are also stoplights throughout the city, a six-lane highway connecting Addis Ababa to Adama (the busiest corridor for transporting goods), a light rail system to transport city residents, and a railway will soon be commissioned to take containers from Addis Ababa to the Port of Djibouti. We still become concerned when we see people walking their livestock on the ring road, but then again, change takes time.Private Equity – They said it was impossible When we first came to the country, RENEW was the second foreign PE group to open an office in Ethiopia. Now, there are several additional firms working alongside RENEW. We still receive the occasional question from investors about whether private equity is really possible here, but in general, viewpoints have evolved and investments are being made. As more investors come, desk officers at related government organizations are starting to understand the needs and terminology of the private equity community. We do our part to educate businesses, banks and other stakeholders in the investment community about private equity through seminars and one-on-one conversations. Shark Tank Addis anyone?Real Estate Development – Scaffolding, scaffolding and more scaffolding If you leave Addis Ababa for even a couple of days, you’ll likely come back to a new building (or ten) going up. Every day, it seems like a new hotel or apartment building or corporate office is constructed and opens its doors. I would never pretend to be an expert on the real estate industry in Ethiopia, where the government owns the land and leases it for residential and commercial use. But, by all accounts, there has been incredible growth since we arrived four years ago, and it does not seem like it will be slowing down anytime soon. One of our investors recently commented that she thinks we should start a scaffolding business. Not a bad idea!Quality of Life: On the up and up The quality of life becomes better each month we are here. Last month, we spent some time in the rural coffee region of southern Ethiopia, and I was astonished to find that there was an operational 3G cellphone network throughout the area. Even a year ago, this wouldn’t have been the case. Ericsson has done an incredible job of implementing said networks in locations where they’ve been asked to do so by the government of Ethiopia. Other areas we see progress in include the addition of upscale restaurants and infrastructure present in cosmopolitan cities around the world.As 2015 comes to a close, I'm sure that we will see even more exciting development and change in the coming year - Matt and I can't wait to see what's in store.

RENEW's Laura Davis reflects on the tremendous change Ethiopia has experienced since first arriving in 2012.

done_use_2-1.jpg

Ethiopia: Then & Now

<h1 style="text-align:center;">Innovation in the Healthcare Industry, One Ambulance Ride at a Time</h1><figure class="image image-style-align-left image_resized" style="width:31.92%;"><img src="/uploads/logo_eaes_3_52c969544c.png"></figure>To continue our Q&amp;A series with the employees of RENEW’s portfolio companies, I recently had the pleasure to speak with one of the emergency medical nurses from Tebita Ambulance and Pre-Hospital Emergency Medical Service PLC (TEBITA), a partner of <a href="http://www.eastafricaems.com/">East Africa Emergency Services, LTD</a> (EAES).Haile Aseged, born in Northern Shoa, has lived in Ethiopia’s capital Addis Ababa since he was 6 years old. Haile sat down with me to talk about how TEBITA and EAES are transforming Ethiopia’s healthcare industry.<figure class="image"><img src="/uploads/blog_collage_0_d872174cba.jpg"></figure>As a child, what was your dream career? As a child, I dreamed of being a doctor. I was good at my studies and have always wanted to work in the medical industry. I had good grades when I was a student. But, by the time I finished high school, I was not assigned by the government to study medicine due to the super competitive environment of being assigned to a medical college. So, after graduating high school, I immediately began working at Ethio Telecom as a daily laborer. While working there, I never stopped trying to pursue my dream of studying medicine. I applied to Ethiopian Military Health Science College to study nursing and passed the entrance exam. I studied nursing there and became a first aid caregiver. After graduating college, I worked as a first aid caregiver at the Ethio-Eritrea War for a year, and then joined several hospitals throughout Ethiopia to serve in my profession.How did you hear about TEBITA? I have known Kibret Abebe (the founder of TEBITA) long before joining the company. While I was working at the Ethiopian Fire and Emergency Services, Kibret was one of our clients. I also met him while taking emergency medical service training courses at Addis Ababa University Medical College (Black Lion Campus), where he used to work before founding TEBITA. Ever since Kibret established TEBITA, I’ve been very fascinated with his work and his dream of becoming one of the top emergency caregivers in Ethiopia and the region. I used to tell Kibret that I was interested in working with him, and when I heard there was an opening, I immediately applied for the position of ambulance crew head.In your own words, what are TEBITA and EAES trying to achieve at the local and national levels? I believe TEBITA is making enormous changes to the healthcare industry in Ethiopia. It is known that Ethiopia is one of the countries with the highest rate of car accidents and deaths associated with accidents. But, this is mainly due to the lack of pre-hospital caregivers in Ethiopia. I believe Kibret opened this company with the aim to minimize the death rate that happens during the pre-hospital handling. TEBITA is revolutionizing the healthcare industry by addressing the service gap that occurs between the scene of an accident and the hospital, and minimizing death rates in the process. Although the government is trying to reduce the rate of car accidents occurring in the country, reducing the death rate during pre-hospital handling has been difficult. But, when emergency responders like TEBITA join the market, this problem will be fixed, and we finally will be able to start reducing the death rate. Most patients travel to hospitals in taxis, which makes saving their lives difficult once they reach the hospital. At TEBITA, we provide first aid services in our ambulances, which greatly improves the likelihood of the patient surviving. With this, we are minimizing the burden on the government and at the same time saving lives.What makes TEBITA and EAES unique from their competitors? At the moment there is very little competition in the emergency services sector in Ethiopia, as compared to other countries. Our main competitors are hospitals giving diagnostic services and providing ambulance services to patients. Not all nurses can be caregivers, and here at TEBITA anyone who is joining our company has to go through additional training to become an emergency responder. We give pre-hospital care to clients while transporting them to nearby hospitals, which makes the hospital’s job much easier. In addition to providing emergency services, we give first aid trainings and sell first aid kits.What kind of social impact has TEBITA and EAES created in the local community? Here at TEBITA, we believe that patients should not have to come to hospitals to get emergency health services, rather providers should go to them. Ambulance service does not simply mean transporting people from the scene of the accident to a nearby hospital, it is much more than that. An ambulance possesses care-providing equipment, such as: oxygen, face masks, nasal catheters, and emergency medicine. Every paramedic at TEBITA has this equipment in a kit so they can reach patients located in places where the ambulances cannot go. In addition to the emergency care services we give to clients, we also give services to elderly citizens traveling to hospitals regularly; we transport them in a safe way. All these services were not available before TEBITA, so this has positively impacted individuals needing such services. We see the impact everyday, we hear people’s feedback, and it is encouraging us to do more. We have changed the whole picture of the industry.How has working for TEBITA changed your life? I love what I do; I see the impact on the people everyday. This gives me a mental satisfaction to know I have saved someone’s life, even more than the money I get. Even financially, working at TEBITA has improved my life so much. And while my family does not like that I am busy all the time, they can always see the pleasure I get from doing what I do. They also understand that I do not want to disappoint my patients. Seeing me happy doing my job makes them very happy. My son even talks about TEBITA at home and gets very excited when he hears the ambulance siren.Has your job at TEBITA empowered you as an individual? Yes, it has empowered me a lot. I have always wanted to work in the medical sector. But working at TEBITA makes me realize everyday that I am doing what I love, which is saving lives.What education / training have you received to date that prepared you for your role at TEBITA? In addition to the nursing courses I took at the Ethiopian Military Health Science College, I have taken several trainings on emergency medical services from places such as: Addis Ababa University Medical College (Black Lion Campus), Fire and Emergency Services, and I have also worked in OPD (Outpatient Department) in several private clinics for 16 years throughout Ethiopia. After completing my trainings at the Black Lion Hospital, I also worked as a paramedic nurse and as a first aid caregiver at government hospitals in Addis Ababa and other cities. My experience in the sector has equipped me to become ambulance crew head at TEBITA and to give trainings on fire and emergency response.What is your favorite part about working for TEBITA as an Emergency Medicine Nurse? I love interacting with the clients and getting positive feedback. And getting ready for dispatch and rushing to save lives - this is the best part of my job. Also working at the stadium where major soccer games are taking place is one of the highlights of the job.Where do you see yourself in 5 years? 10 years? In the next 5 to 10 years, I see myself helping to grow TEBITA as a company. Because I am involved in the core business of the company, I feel like an owner of the company. Our company has plans to expand to air ambulance services, and growing the company from an emergency care provider in just Ethiopia to other East Africa countries. I dream of having dispatch centers all over Ethiopia to reach patients quickly, and growing our services in the region in the long term.

RENEW continues our Q&A series by profiling an employee of TEBITA, a service partner of EAES.

img_5649_0.jpg

Innovation in the Healthcare Industry, One Ambulance Ride at a Time

<h1 style="text-align:center;">We Used to Give to Africa?</h1>Recently, RENEW’s own Matt Davis sat down with <a href="http://www.forbes.com/sites/devinthorpe/2016/01/13/impact-investor-in-ethiopia-fills-financing-gap/#6836aaf850b3">Forbes contributor Devin Thorpe</a> to discuss how RENEW and the Impact Angel Network (IAN), one of the largest U.S.-based angel networks for Africa, are “filing the financing gap” in East Africa. The following is a summary of some of the topics covered during Matt and Devin's live chat, so be sure to watch the entire interview below.Since 2012, the IAN has invested in seven small to medium-sized enterprises (SMEs) in East Africa, making it one of the largest investors in Ethiopia on a deal volume basis. In doing so, RENEW and the IAN are not only addressing a development challenge, but a market challenge as well.Considered too large for micro-financial institutions, and too small for larger venture capital firms, SMEs make up what is commonly known as the “missing middle” of emerging economies. Investing in SMEs addresses the serious financial constraints these types of companies face in developing countries. It also addresses a market challenge commonly experienced by private equity firms - sourcing a pipeline of quality companies. By mentoring and shaping the SMEs of today into the market leaders of tomorrow, RENEW is able to provide larger venture capital firms with a steady stream of companies that are run by ethical and vigilant leaders.So, what is the ultimate goal of RENEW and the IAN’s work in Ethiopia? That one day our grandchildren will look back and ask us in bewilderment, "we used to GIVE to Africa?”<figure class="media"><oembed url="https://youtu.be/4olNft2kudM"></oembed></figure>

RENEW’s Matt Davis sits down with Forbes contributor Devin Thorpe to discuss filling the financing gap in Ethiopia.

forbes_logo_1.jpg

We Used to Give to Africa?

<h1 style="text-align:center;">Ethiopia and the Entrepreneurial Dream</h1><figure class="image image-style-align-left image_resized" style="width:37.99%;"><img src="/uploads/sadura_temp_logo_0_dea9ed0c09.png"></figure>The latest installment in our Q&amp;A series with the employees of RENEW’s portfolio companies takes a closer look at the entrepreneur who is behind the Impact Angel Network’s sixth investment in East Africa - an Ethiopian food and beverage company.Isaias Lemma was born in Addis Ababa and has lived in this city for almost his entire life, except for a brief interlude in London during his college years. Isaias sat down with me to talk about how his experiences and education to date have inspired him to pursue his dreams of running his own business in Ethiopia.When you were a child, what did you dream of doing for work or as a career, and how did this influence your decision to become an entrepreneur? As a child, I was always guided to follow the conventional career routes (like doctor, engineer, etc.) However, I was always fascinated by the entrepreneurial history of my grandfather and the transformation of my parents (particularly my mother) from professionals to business people. The accomplishments gained from creating a business from inception to fruition, the creation of job opportunities at different ranges and the freedom to make my own decisions are the main reasons I wanted to pursue entrepreneurship.What education and/or training have you received to date, and how has it helped you with your career? I have an MBA and have taken several entrepreneurial and management courses. My education has helped me to view business in a structural and conceptual method and that my business needs to be developed through a standardized system. Some of my trainings have also helped me understand my stakeholders and my environment more intimately.<figure class="image image_resized" style="width:99.68%;"><img src="/uploads/sadura_qa_2015_0_82895d31cd.jpg"></figure>Could you provide the background story of your family’s company - The Twins PLC? The Twins PLC started as a small business and has grown into a medium-sized business consortium in Ethiopia. It started with a small children’s shop and had expanded into the supermarket business, import and distribution, and now has a paper production factory. Our steady growth in the business environment has helped us become a successful production and distribution business here in Ethiopia, with a significant market share in our selected business sectors.As an entrepreneur, what inspired you to go out and create an entirely new business venture? It is evident that Ethiopia is one of the fastest-growing economies in Africa and that growth is creating a society with increasing disposable income. The manufacturing business environment here is at an infant stage and most products are imported. Thus, I am constantly inspired to create quality products that add value to raw materials available here and reduce the dependency on imported goods. Additionally, I believe through a new venture we can create jobs for the youth and directly contribute to the growth of the nation.What is your new Ethiopian Food and Beverage Company trying to achieve at the local, regional and international levels? My new business venture will focus on the production of food and beverage products. We will aspire to produce superior products for the local market, with potential growth in the East African region. Gradually, we would like our new business venture to become the leading fast moving consumer goods (FMCG) products company in Ethiopia and Africa.What will your new role be at the Ethiopian Food and Beverage Company? And, what life experiences have prepared you to take on this new role? I will be the General Manager of the company and will be managing the overall business, and guiding the company to achieve its goals and objectives. Since this project was one of my ambitions, I believe I have the passion, drive and experience to achieve the success I had envisioned.Why do you feel that the Ethiopian Food and Beverage Company will be a successful business venture? My family’s prior experience at The Twins PLC in importing related products, our current experience in the manufacturing process, our efficient distribution network, our close relationship with large and small local distributors and strategy to produce superior products gives me the confidence that our business venture will be successful.What do you hope to accomplish in partnering with RENEW LLC and working with members of the Impact Angel Network (IAN)? By partnering with RENEW LLC and the IAN, we hope to gradually grow our business and accomplish our goal of becoming one of the leading FMCG producing companies in Ethiopia. We also seek to vertically integrate into the supply chain to source our own raw materials through local farms, diversify into other products beyond the food and beverage industry sector, achieve major market share with our products, and export our products to neighboring African countries. With our experience in the local business environment and IAN’s support we believe we will accomplish these goals.

RENEW continues our Q&A series by speaking with the entrepreneur behind the IAN’s sixth investment.

102-2.jpg

Ethiopia and the Entrepreneurial Dream

<h1 style="text-align:center;">Accelerating Business Growth Project</h1>As many of you know, RENEW operates under an innovative public-private partnership that allows us to do smaller investments than traditional private equity investors on the continent of Africa. This model helps bridge the financing gap and addresses the economic "missing middle" that stalls economic growth in most frontier markets. Under this type of partnership, the development community covers some of RENEW's operating expenses so RENEW can provide members of the IAN high-quality investment management services without charging exorbitant fees relative to the size of the investments being considered. Starting in 2013, RENEW began testing this business model with the U.S. Government, which resulted in seven investments and 1,100 jobs supported by the IAN's portfolio. But, that was just the start - investments take years to develop and nurture. So, thanks to the Canadian Government through Global Affairs Canada (GAC), RENEW will be able to scale up our support for the IAN and continue providing high-quality investment services in Ethiopia for the next five years under the Accelerating Business Growth (ABG) program.The goal if this partnership is to ultimately increase awareness and understanding of private equity investing in Ethiopia, increase the number of investments being made in Ethiopian SMEs by addressing the current financing gap, and create sustainable job growth.THE EXCHANGE:RENEW is pleased to officially announce the launch of a vital investment and business acceleration project. The project, formally called Accelerating Business Growth (ABG), is made possible through the public-private partnership between RENEW and Global Affairs Canada (GAC). ABG includes a number of strategic components including a national Investment Challenge, Finance Incubators and The Angel Investment Exchange (also referred to as “The Exchange”). The Exchange will be the focal point of the project and the goal of the Investment Challenge. The Exchange will bring high potential companies, called small and medium enterprises (SMEs), through an intensive executive management-training program and help them connect with international investors and markets. The goal is for businesses to scale into market leaders enabling them to play a stronger role in the Ethiopian economy.<figure class="image"><img src="/uploads/training_26f9c8d0ca.jpg"></figure>The Exchange aims to support 50 companies, which will be selected during the Investment Challenge, over the course of the next 5 years. The Exchange will focus on building financial management, environmental social and governance best practices, legal, operations and marketing strategies. “Most companies in Ethiopia, even large companies, agree that they would benefit from additional management disciplines and training to compete in the international market. After years of working with companies in Ethiopia and making our share of mistakes, we’ve found some of the secrets to success for companies. The Exchange will be the place where we work with companies to understand these secrets. For those willing to do the hard work, success is almost guaranteed,” says Matthew Davis, partner at RENEW. These “secrets” will help companies transform into market leaders and ultimately lead to sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.WHY RENEW:RENEW is an experienced facilitator of an innovative investment model that brings the development community, the host government, foreign investors, and local companies together around a shared common interest: to grow the private sector in African economies while creating lasting change for its communities through job creation and positive social impact. RENEW’s public-private partnership model lowers the transaction costs, which normally prevent foreign investors from investing in SMEs located in frontier markets. RENEW organizes and supports medium-sized investments made by the Impact Angel Network (IAN), the largest North American-based impact angel network for Africa. RENEW acts as the IAN’s in-country support team and provides consulting and investment services that span across all aspects of the investment process. RENEW’s model seeks to reduce the costs and risks foreign investors experience when investing in developing countries, and to increase the local awareness and strength of the business community in an effort to attract larger equity investments for its companies.<figure class="image"><img src="/uploads/canadian_crew_5ac4b431f7.jpg"><figcaption>Photographed: Ambassador Philip Baker, Parliament Secretary Karina Gould, members of their team, as well as members of the Mama Fresh and RENEW teams.</figcaption></figure>BLENDED FINANCE:A growing school of thought proposes that SMEs in developing countries are key drivers of long-term stability and growth. By providing jobs, paying taxes, and producing, buying and selling local goods and services, SMEs act as the backbone or engine of an economy. Unfortunately, SMEs struggle to grow in many developing countries, and as a result, microbusinesses and large conglomerates dominate the country’s economic pyramid. While the excitement for SMEs is there, both from public and private sector actors, many aid-centric projects are underperforming and few investments are being made into SMEs in developing countries by private investors - leading to a financing gap or what is commonly referred to as a “missing middle”. RENEW is pioneering an innovative public-private partnership model that stimulates direct investments into promising SMEs. RENEW recently partnered with the Canadian Government to implement a novel approach that leverages the private sector to create sustainable economic development.The public-private partnership model (where the interests of the development community so clearly align with the local private sector and the investment community) represents a new field of development that is rapidly growing. The type of financing RENEW and GAC are helping mobilize – broadly called <a href="https://renewcapital.com/blog/2016/blended-finance">blended finance</a> – offers investors the opportunity to create sustainable social impact and financial returns through investments in companies that operate in high impact and fast growing countries, such as Ethiopia. These trends, along with Ethiopia's rapidly expanding private sector, could help position ABG to be a flagship project in the development sector.Our investment strategy closely aligns with the goal and targets in the Ethiopian Government’s Growth and Transformation Plan II and the government's overall desire to help Ethiopia industrialize and become a middle-income country by 2025.

RENEW to work with Global Affairs Canada in Ethiopia under new public-private partnership.

canada.png

Accelerating Business Growth Project

<h1 style="text-align:center;">RENEW Celebrates Four Years of Investing in Ethiopia</h1>This February, RENEW celebrates four years of investing in Ethiopia! While this number may seem small, the company that you see before you today is actually 10 years in the making. Matt Davis, RENEW’s CEO and one of the founding members of the Impact Angel Network, stepped onto the continent of Africa in 2005 and set in motion the gears that would eventually turn an idea of impact investing into reality.From 2006 to 2008, Matt took several trips to Uganda, where he saw incredible business opportunities overlooked by Westerners who were instead focusing on the region’s problems. Returning to the States, Matt brought together a team of individuals who began to formulate a new kind of investment model that could help U.S. investors become more involved in Africa’s growing private sector. RENEW LLC was established in 2007 and over the next several years, Matt and Laura Davis (who joined the team in 2008) continued to refine RENEW’s business model and strengthen our sourcing, due diligence, structuring, closing and investment management processes.<figure class="image image_resized" style="width:98.07%;"><img src="/uploads/4th_anniversary_d20e444f30.jpg"></figure>In 2011, RENEW launched its first public private partnership (PPP) model with the U.S. government in Afghanistan. RENEW then headed back to East Africa in February 2012, opened our Addis Ababa office. Seven investments later, RENEW is now the largest private equity investor in the country on a deal-volume basis.Quite a bit has changed since RENEW first opened its doors in Ethiopia. To talk about the progress that both RENEW and the country have experienced since 2012, I connected with Matt and Laura and asked them to share their candid thoughts:Out of the many countries that make up the continent of Africa, why did you decide to open up the office in Addis Ababa, Ethiopia? Initially, it was overlooked. But back in 2012, it had excellent fundamentals and was poised for growth. In fact, Ethiopia is now considered to be one of the top ten fastest-growing economies in the world.Over the last four years, how has the investment environment of the country changed? In step with the impressive change that we see out our office window every day, the government has made strides to improve the investment environment. While private equity still is confused with more familiar forms of foreign investing, such as joint ventures and greenfield, the various government agencies, local banks and entrepreneurs are learning the benefits of private equity and how it can help drive the growth of their country.What makes RENEW unique from other impact investing firms? RENEW is very similar to a traditional venture capital firm, in the sense that we do many of the same activities (sourcing, vetting, due diligence, etc.), but we have this other unique component to our model - the Impact Angel Network (IAN). Having the IAN gives us a huge competitive edge over other investment models. While we may lose the advantage of having a ready available pool of capital to draw from, we do have: 1) time, 2) flexibility, and 3) the wisdom of our investors. Time, because our capital deployment is not constrained by a set period, rather we can take our time, which is required to be a successful and patient investor in the region. Flexibility, because we can do smaller deals and we are not locked into rigid investment parameters. And most importantly, we are able to leverage the collective wisdom of the network. We currently have more than 70 bank executives, business men and women, and entrepreneurs who help us select the best investments for the network.How has RENEW grown as a company? Every year our team becomes sharper. We are committed to the continent – RENEW will be here 30 years from now. Every day our team grows smarter. We are not immune to mistakes, but we see them as the best type of learning opportunity that we can have, because investing in this part of the world is largely uncharted territory.What have been the company’s largest challenges so far and how has RENEW faced them? Learning what it means to be a successful business in a country like Ethiopia is, in some aspects, the same as it would be anywhere else. But, there is a good 30% that takes a unique skill-set and mindset that cannot be learned quickly. It took us a while to understand how valuable that 30% is, and how our understanding of the current economic and business environment of the country is always adapting and evolving.In your own words, what are RENEW and the IAN trying to achieve at the local, national and international levels? It's simple: find, invest in and grow amazing companies, and in the process, make a good return and a positive impact in the country.Over the last several years, has RENEW seen any noteworthy trends in the fields of angel and impact investing? Angel investing has definitely become popularized with shows like Shark Tank. Impact investing is clearly on a major growth trend. In fact, we are on the verge of history’s largest transfer of wealth between generations. Recent studies have indicated that an estimated $59 trillion will be transferred between generations in the U.S. over the coming decades. As younger generations and millennials take control of this wealth, we believe impact investing will continue to grow in prominence.Where do you see RENEW and the IAN going in the next five to 10 years? 500 members, five countries and 50 investments in five years. You can do the math for 10 years!

Matt and Laura Davis discuss the changes that RENEW and Ethiopia have experienced since 2012.