<h1 style="text-align:center;">Press Release: RENEW &amp; the IAN Commit Capital to an All-Women Fund</h1><a href="https://renewcapital.com/sites/default/files/press_release_-_womens_package_-_final_1.pdf">Download the Full Press Release.</a>Denver, CO and Addis Ababa, Ethiopia, April 23, 2019 --RENEW and the <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> have committed capital to a fund dedicated to investing in women-owned and led companies in Ethiopia and Uganda. RENEW and the IAN, now one of the most active investment groups in East Africa focusing on small and medium enterprises (SMEs), designed the fund to address a pressing need to close the financing gap for women-owned companies in Sub-Saharan Africa.Worldwide, only one-third of SMEs are managed by women (World Bank, 2015). In developing countries in particular, studies have shown that women-owned businesses face higher challenges to business success, especially in the area of financing. It is estimated that 70% of women-owned SMEs in emerging markets are not being properly served by the financial institutions in the area, resulting in a $285 billion financing gap. The World Bank notes that “addressing this financing gap and investing in women-owned enterprises is one of the highest-return opportunities available in emerging markets” (2015).<figure class="image"><img src="/uploads/womenspackage_dc94f294e2.jpg"></figure>The new fund will make investments in 3 to 5 women-owned companies, pending satisfactory completion of due diligence. In creating the fund, RENEW and the IAN used a new approach to address social and financial barriers holding back the private sector in Africa. The fund, which supports the <a href="https://sustainabledevelopment.un.org/?menu=1300">Sustainable Development Goals</a> (SDGs), was oversubscribed by the IAN and will support job creation for women and youth and empower women entrepreneurs in Ethiopia and Uganda."There is data that shows that despite comparative investment outcomes, female entrepreneurs are often overlooked by the business and investment communities,” said Laura Davis, Partner &amp; Head of Investor Relations at RENEW. “We hope the Impact Angel Network can show others that by investing in women-led companies we are not just advancing a social agenda, we are making sound investments.”The inspiration for the fund came after a number of the owners being considered for the fund took and excelled in RENEW’s <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">Exec’s Program</a>, a four-month business program which provides participants with the tools they need to successfully scale their businesses. All the companies currently being considered for the fund have completed or are currently participating in The Exec’s Program. “We've known the women we are planning to work with as part of this fund through our Exec's Program, and we have been impressed with their companies," explained Laura Davis.The all-women investment fund has been made possible because of RENEW’s partnership with <a href="https://www.canada.ca/en.html">Global Affairs Canada</a> (GAC). RENEW’s public-private partnership with GAC aims to support high potential, responsible SMEs in Ethiopia, providing them with the tools, resources and training they need to attract and efficiently use finance to grow, thereby enabling them to play a stronger role in the Ethiopian economy.Several of the entrepreneurs being considered for this fund will be attending RENEW’s Impact Angel Network <a href="https://www.renewcapital.com/resources/blogs/Press%20Release%20%202019%20International%20Gathering">International Gathering</a> on May 17, 2019 in Washington D.C.About the Impact Angel Network and RENEWThe Impact Angel Network is one of the most active private equity investors in Ethiopia. Its members seek to achieve both significant positive social impact and financial returns through investments in small and medium enterprises (SMEs) in Africa, a proven engine of economic growth and job creation which often lacks capital due to their size. RENEW and IAN members believe that targeting employment through SMEs is, dollar-for-dollar, is the most effective and sustainable way to reduce poverty.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims at sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.To find out more, please visit <a href="../../index.html">www.renewcapital.com</a>.&nbsp;###&nbsp;Source: The World Bank, 2015: <a href="http://www.worldbank.org/en/news/feature/2015/11/16/financing-women-entrepreneurs-in-ethiopia">SME Financing: Women Entrepreneurs in Ethiopia</a>&nbsp;###

The Fund will support female entrepreneurs and job creation for women and youth in Sub-Saharan Africa

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Press Release: RENEW & the IAN Commit Capital to an All-Women Fund

<h1 style="text-align:center;">Visiting Ethiopia: How Traveling to Addis Deepened my Understanding of RENEW</h1>After working for RENEW for almost 6 months, I finally had the chance in early March to travel to Ethiopia to meet our team and see the office. Prior to this point, I thought I understood RENEW – I had finally mastered the names, industries and investment structures of each of our portfolio companies, and I had worked (remotely) with most of the team and had the chance to negotiate with a few of our entrepreneurs. I could recite RENEW’s mission statement and values, and I thought I had a grasp of the various challenges we faced in the work that we do. I still had a few questions, like: what do our portfolio companies actually look like? does the internet actually go out that much? and is the coffee actually that good? But I felt confident I already had a firm grasp of all things RENEW.<figure class="image"><img src="/uploads/img_6904_2_1_0_77e0e78191.jpg"></figure>It only took a few hours in Addis to rid me of that notion. Addis was much like what I expected, except for the sheer number of pedestrians and the traffic. I’ve never seen driving like I saw in Addis (and I live in NYC!). Shortly after landing, I joined our investors on their site visits as part of the <a href="../../impact-angel-network/econ-tourism-trips.html">Econ-Tourism Trip</a>. Upon stepping inside Desta’s factory, it quickly hit me: the work we are doing is even more significant than I had thought. It’s one thing to know, on paper, the number of investments we have and the number of jobs those support, but it’s another thing to witness it firsthand. The scale and volume of production at Desta was inspiring, not to mention the impressive new factories at KROTAJ and Sadura and the state-of-the-art ambulances at Tebita. All of it was remarkable to see in person and to know that our work helped to build it.On the third day of my trip, I arrived at the office bright and early to sit in on a session of The Exec’s Program. This was my first real day in the office. As the session wrapped up, many of the entrepreneurs stayed around to visit with each other, catch up with the RENEW team, or have coaching sessions with Matt. This is when I realized: we are doing so much more than I had appreciated. We had a new cohort of entrepreneurs participating in The Exec’s Program on Thursday morning, a new group of finance professionals attending the CFO100 on Tuesday night, and countless meetings, coaching sessions, and planning and strategy sessions in between. On top of that, we were hosting investors and GAC representatives, prepping for filming Chigign ‘Tobiya and sourcing new investments for our all-women investment package. It was hard to keep track of the number of people that came in and out of The Exchange during my two weeks there. The office is a constant flurry of activity and really does serve as a platform to share ideas and fuel growth.<figure class="image"><img src="/uploads/img_6899_2_6b61e6d5d8.jpg"></figure>That same afternoon, we hosted representatives from GAC. By sharing war stories with them over lunch and hearing more about their viewpoint as our development partner, it became clear: the work we are doing is much more challenging than I had realized. There are challenges here I had never even contemplated. Of course, we face the typical challenges of finding investments, negotiating deals and running a business. But we are simultaneously educating the entrepreneurs about private equity, financial and accounting practices, and good corporate governance. We are working across cultures, between our North American and European investors, our international RENEW team and our Ethiopian and Ugandan entrepreneurs. And we are working at a cross-section of ideas and investment philosophies, where private capital meets the public sector meets the philanthropic sector. Take all of these competing ideas and viewpoints, sprinkle in some Addis traffic, power and internet outages, and the muddy road to The Exchange when the rains come, and our RENEW team faces daily challenges, big and small.Which leads me to my last and most important realization from the trip: just how fantastic of a team RENEW has and how great the RENEW team works together, to overcome these challenges, persevere and excel. (And, yes, the internet often does go out that much, and the coffee really is that good!) &nbsp;

Observations from Kirsten's first trip to Addis

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Visiting Ethiopia: How Traveling to Addis Deepened my Understanding of RENEW

<h1 style="text-align:center;">Press Release: RENEW’s IAN Exits Two Investments that Financed Ethiopian SME</h1>Download the Full Press ReleaseWashington, D.C. and Addis Ababa, Ethiopia, May 23, 2019 -- RENEW’s <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> (IAN), one of the most active equity investors in Ethiopia with an expanding presence in East Africa, have successfully exited two investments to a regional private equity fund and a family office. RENEW and the IAN provided two rounds of angel financing to support the launch of an Ethiopian production company that exports to international markets. With the recent buyout of these positions, these investments realized gross internal rates of return (IRR) of 26.70% and 17.58%,* respectively.The IAN’s investments helped a start-up company become a leader in its industry in Ethiopia. The company has received international awards and certifications on account of a superior product and exceptional processes. It now purchases from thousands of smallholder farmers and employs hundreds of Ethiopians in permanent and temporary positions. The company’s success can be attributed to the strong leadership and disciplined management of a visionary entrepreneur and committed contributor to the well-being of the communities in which he operates.“At RENEW,” says CEO Matt Davis, “we aim to back companies with strong leadership and good market position or potential. The companies we invest in are often overlooked due to their size as SMEs and their location in countries in East Africa that are promising but not yet seeing significant inflows of capital. We cannot expect all investments to follow the trajectory of the two exits we are announcing. Today, though, I celebrate these wins for the IAN, for Ethiopia and for SMEs providing good jobs to a lot of people.”About the Impact Angel Network and RENEWMembers of the Impact Angel Network seek to realize both social impact and financial returns through investments in small and medium enterprises (SMEs) that are engines of economic growth and job creation in Africa but that often lack capital due to their size. IAN members believe that targeting employment through SMEs, dollar-for-dollar, can help reduce poverty in a more sustainable way than charity.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada for a project entitled Accelerating Business Growth (ABG). This project targets sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.<figure class="image"><img src="/uploads/exit_image_0_1_3a49ed4e5c.png"></figure>To find out more, please visit <a href="../../index.html">www.renewcapital.com</a>.Legal Disclaimer *We maintain documents in our files supporting the IRRs stated above. The IRRs were realized for the two investments discussed in this press release and does not represent results achieved by other IAN portfolio companies or the portfolio as a whole. There is no guarantee that such results will be achieved by other IAN investments or those of other investments managed by RENEW.

RENEW’s IAN have exited two investments to a regional private equity fund and a family office.

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Press Release: RENEW’s IAN Exits Two Investments that Financed Ethiopian SME

<h1 style="text-align:center;">The Fourth Annual Impact Report</h1><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Read our 2018 Impact Report</a>RENEW announces the Impact Angel Network’s (IAN) 2018 Impact Report. This edition of RENEW’s Impact Report is entitled “A Journey of Impact” and for good reason. Yes, we will give you an overview of the impact of our entire portfolio, but in the report’s pages, we will also do a deep dive into one company, Desta PLC, a garments manufacturing facility. This edition explores various aspects of the impact of the company from the perspective of several stakeholders. Join us through the following pages as we hear stories from Laura Davis (partner at RENEW), Eyob Bekele (owner and general manager at Desta), Lulit Negash (RENEW’s portfolio manager for Desta), Beth Marquette (an Impact Angel Network investor), and Tadelech Buto (a Desta employee). Everyone’s story is different, but each individual plays a key role in the growth and impact of this company that is a leader in the fast-growing textile industry in Ethiopia.With 11 investments in 10 companies as of the end of December 2018, RENEW and the IAN now support 2,193 jobs (71% are held by women) and 5,700 smallholder farmers.Read our past Impact Reports:<ul><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_Impact_Report_2017_c0d6c8251c.pdf">2017 Impact Report</a></li><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_Impact_Report_2016_d7bb848962.pdf">2016 Impact Report</a></li><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_2015_Impact_Report_70af8f917c.pdf">2015 Impact Report</a></li></ul><figure class="image"><img src="/uploads/impact_report_3_40a378673c.png"></figure>Note: The information included in the Impact Report relating to the performance of Impact Angel Network (IAN) portfolio companies is preliminary and has not been audited. Information about any one company in the portfolio, such as Desta PLC, is provided as a recounting of the IAN’s interactions with one company its members have invested in and happenings at that company. Such information is not intended as performance data related to the IAN’s investment in the company described. Information about one or more IAN portfolio companies pertains only to the company/ies described and may not be indicative of other companies in the IAN’s portfolio or the performance of investments in them. Any discussion of the performance of companies or investments or their social impact is no guarantee that such performance or impact will be realized by other IAN portfolio companies or investments or in the future.

RENEW’s 2018 Impact Report, “A Journey of Impact”

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The Fourth Annual Impact Report

<h1 style="text-align:center;">Desta: Building Sustainability</h1><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Read our 2018 Impact Report</a>An Interview with Eyob Bekele (Desta Owner and General Manager). This blog is an excerpt from our 2018 Impact Report.According to Eyob Bekele, the General Manager of Desta PLC, “The Impact Angel Network’s investment keeps us on our toes and helps us stay focused to achieve the direction we want to go.”What direction is that? The family’s vision is for Desta to compete internationally and that vision is coming alive as part of a company expansion in a town called Butajira, outside of Addis. “Our current factory was never designed to be a garments facility, but Butajira is,” Eyob continued. “To increase our ability to compete with any company worldwide, we need a proper setup and Butajira is the answer. The first shed is completed, training workers have started and, in the factory, we have set up four lines.”<figure class="image"><img src="/uploads/pg_12_eyob_ad3289a373.jpg"></figure>The Bekele story is a classic story of transition. “My family wanted to enter into manufacturing after many years of trading. Our father has always wanted us to be internationally competitive and to do so, we knew we needed to move beyond trading,” Eyob said recently.“We were initially importers of plastic shoe soles from Italy, among other things, and we decided to start manufacturing plastic shoes and shoe soles in 1993. We slowly added new elements to our manufacturing including laces and cords. Then in 2010, the plastic shoe market was saturated, and we decided as a family that it was time to move on to a new market. At the time, the Ethiopian Government was encouraging people into horticulture and textiles because of the competitive labor market we have here. Because we already had the cord business we chose textile and garment and moved into knitting cotton fabric. Initially, we shipped the greige, raw cloth we knitted at Desta to Italy, but that market quickly closed as the Italians found they could get competitive, fully dyed fabric in Eastern Europe. Thankfully, at the time, we started getting orders for garments. We would make the fabric, outsource the dying, cutting and sewing and then ship the finished products to Italy. But that business had its challenges including really long lead time and in some cases compromised quality from all the outsourcing. Since we were already getting orders, we decided to enter the garments business fully in 2012. In 2013, we set up a few lines, began training workers and started to take more orders. We quickly realized when we made the garments, the knitting we could do did not justify the machines, because much of the finished fabric still needed to be imported. So we closed the knitting department and focused on garment production only. Then we started to expand. American and European buyers came and the more they came, the more we expanded. Our customers thankfully love us. They know we are committed to delivering no matter what.”<figure class="image"><img src="/uploads/pg_13_desta_0_4a1d890c1f.jpg"></figure>Eyob believes that sustainability must be the backbone of Desta. “We will not achieve our plans without sustainability. Whatever Desta does should have a profound impact to support the social and environmental ecosystem”. I want all stakeholders from investors to buyers to employees to our neighbors to feel like Desta is the right choice. Our workers have to feel like it is their company. When we are fully operational at Butajira, we will be able to achieve that including zero liquid discharge. We may even be the first to implement wastewater treatments related to garment production in Ethiopia. We will even have zero discharge related to human waste, and we will have rainwater collection at the new facility.”There are many things Desta does to help employees know they are part of a family including visiting their workers at home. “Their social problems are our social problems. We try to go and have a discussion with each worker. If they have a problem, we support them as much as we can. We provide a sustainable income so they can support their families. We work to create a friendly, family environment. Our workforce is typically ages 18-25 so, I believe we should be seen as parents or older siblings to them. We do a lot of soft skills training including, in some cases, training people to use a toilet, and how to avoid unwanted pregnancies and sexually transmitted diseases”.“We are committed to hiring people with disabilities including the deaf. We have a family member who has a disability, and we feel like just because you are disabled doesn’t mean you cannot work productively. We aim to employ 30-50 workers with a disability at any one time which is about 5-10% of our labor force.”“The women in Desta’s workforce play a significant role from the bottom to the top of the organization. About 90% of our workforce are women. A few have started as a cleaner and are now in management. We take women empowerment seriously and invest in soft skills,” Eyob said.

An Interview with Eyob Bekele (Desta Owner and General Manager).

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Desta: Building Sustainability

<h1 style="text-align:center;">An Angel Investor’s Perspective</h1><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Read our 2018 Impact Report</a>A blog by <a href="https://www.linkedin.com/in/elizabeth-marquette-4a16862/">Beth Marqeutte</a> (IAN Investor, Laura Davis’ sister). This blog is an excerpt from our 2018 Impact Report.&nbsp;We didn’t have the opportunity to visit Desta during the period in 2014 when I lived in Ethiopia with my husband, Joel, and our four children, but I do remember seeing pictures of the site from the early days when they were first getting started before the IAN invested. We chose to invest in Desta because it aligned with our commitment to impact investing in Ethiopia and our philosophy to build a diverse portfolio. We’ve been participants in a number of different investment opportunities with RENEW and the Impact Angel Network over the years, and we saw Desta as a company with a solid growth opportunity that we could get behind.With a professional background in human resources, I really like to visit manufacturing sites where things are physically made. Each time I visit a factory or a processing site, it connects me to the people that create the things that I use for my life; the clothes that I wear and the food that I consume. I appreciate the everyday things more when I consider the resources and talent involved to make these things.<figure class="image"><img src="/uploads/001_401_f913c50bb6.jpg"></figure>Walking onto the Desta manufacturing floor during the Econ-Tourism Trip in 2016, I recall seeing a workforce made up primarily of women engaging in the process of creating textile goods. We went through the cutting room with its large rolls of multi-colored fabric. We spent the majority of our time in the sewing assembly area watching hundreds of women at work in their sewing stations, assembling uniform shirts. The workspace was clean, well-lit and the employees seemed to be highly engaged in their work. I was able to talk with the production manager about training for employees, turnover, production goals, and the compensation and benefits. We concluded our visit in the finishing room where quality checks were completed and clothes were labeled and tagged for distribution and shipping. I left with a sense that Desta was creating decent jobs for many people, especially women, in an economy that struggles with substantial underemployment and unemployment.The textile industry worldwide has historically had a negative reputation for working conditions and human rights, so initially, we had to trust the RENEW team’s due diligence on Desta to make an assessment of the working conditions and the leadership team’s commitment to the international work standards for the industry. Hearing about some of the international brands and customers that Desta serves and knowing their commitment to their workers and standards helped convince me of the investment. Later, having the experience of walking through the production area myself to observe the operations and to talk with the employees, I felt very comfortable with the investment we had made, despite the industry’s reputations. Ultimately, my husband and I are fairly practical in our approach to opportunities like Desta. Sure, there have been issues in the industry, but clothes need to be manufactured somewhere and many people are employed in the textile industry. If we can be a part of a company that cares for its employees and provides, in the words of the Sustainable Development Goals, “decent work” then, in our assessment, this is a winwin in terms of an investment.&nbsp;

A blog by Beth Marquette (IAN Investor, Laura Davis’ sister)

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An Angel Investor’s Perspective

<h1>Made in Ethiopia</h1><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Read our 2018 Impact Report</a>A blog by <a href="https://www.linkedin.com/in/lulit-negash-b0186975/">Lulit Negash</a> (RENEW Portfolio Manager). This blog is an excerpt from our 2018 Impact Report.I started my career at RENEW as a portfolio manager five years ago. My major responsibility focuses on supporting the post investment work at our portfolio companies. Prior to RENEW, I had worked as a consultant helping research and write business plans for companies, but I wanted more. I wanted to get in deeper and experience the power of the private sector, and I believed that working at an investment firm would give me that experience. As a portfolio manager, my job is to help the companies generate a return on investment while also creating an impact. One of our key measurements for impact is the number of jobs created, which is the backbone of any developing country.RENEW strives to help grow SMEs and turn them into a market leader by focusing on four elements, which we firmly believe are the keys to success: Governance, Financial Management, Sales and Marketing and Recruitment.<figure class="image"><img src="/uploads/pg_14_lulit_need_to_crop_0_e9b7f0295c.jpg"></figure>According to research done by the International Labor Organization, SMEs play a key role in job creation, providing two-thirds of all formal jobs in developing countries and up to 80% in low-income countries*.There are many instances when someone asks us why we invest in SMEs since they are riskier and take a lot of energy when you can just invest in larger, more established companies. Our response to this is even though investing in SMEs is a lot riskier and takes a lot of energy and patience, if it is done well, the end result is significantly more rewarding. Personally, seeing the companies at the pre-investment stage and the changes during post-investment is the exciting part of my work. Knowing the money that came through the IAN coupled with the work we do has the capacity to change a company’s reality is something I enjoy seeing.Growing up in Addis, the capital of Ethiopia, I have experienced the recent changes and the shift of the labor force from rural areas to urban cities in search of a better life. Currently, there is a large number of youth migrating from the rural areas to the city to work in the construction, textile, and other manufacturing industries.<figure class="image"><img src="/uploads/img_1833_desta_780238c18e.jpg"></figure>Being Desta’s portfolio manager, I get to have a first-hand look at how one SME can impact the lives of more than 650 employees. The factory workers are mostly women who are from the outskirts of Addis or rural areas. Desta provides job opportunities for these women, but they also engage in soft and hard skills training to help them become experts in what they do and to improve their lives. For an outside customer, the main concern might be the quality of the garment and timely completion of orders or price of an order. But when you visit the factory, there is much more than a quality shirt with an affordable price tag. You see each and every individual working away to be able to support their family. Many have come a long way from their original homes to be able to experience the city life and improve their family’s livelihood. The Desta team helps them realize their dreams and support them as much as possible. They do this by providing transportation service to work and back and on the job training that can help them improve their skills. Desta also provides the opportunity for growth. We have seen several of the factory workers who joined the company at entry level grow and get promoted to become line supervisors at the factory. These are loyal and driven employees who are inspirations to other women.Although my role as the portfolio manager of the company limits me to high-level activities related to finance, governance, and management support, once in a while after our Board meetings, I take a sneak peek around the factory to see the workers and products. That is when I experience a deep feeling of contentment and accomplishment. Although my work might not directly impact individual workers, I know I am a part of the story. I see the quality of the products and know these are the type of clothes we normally import from abroad, but we have the capability to make them in Ethiopia, and my heart swells with pride. I am proud to see the “Made in Ethiopia” tags on the garments and to know that RENEW and the IAN is part of one of the largest indigenous garment factories in Ethiopia.

A blog by Lulit Negash (RENEW Portfolio Manager)

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Made in Ethiopia

<h1 style="text-align:center;">A Tour Worth Giving</h1><a href="https://latest-api.renewcapital.com/uploads/Final_Impact_Report_2018_1b12d67377.pdf">Read our 2018 Impact Report</a>A blog by <a href="https://www.linkedin.com/in/laura-davis-25764430/">Laura Davis</a> (RENEW Partner &amp; Co-Founder of the IAN). This blog is an excerpt from our 2018 Impact Report.I am a natural born tour guide. But not every tour brings me as much joy as the one I regularly get to give at Desta for RENEW’s Ethiopia visitors. Why? There are a few reasons. 1) The company is always a beehive of activity. 2) There’s always something new to see or some new factory configuration in an effort to squeeze a bit more efficiency out of a workspace that is bursting at the seams with more than 650 employees. 3) I can’t recall one of literally 100’s of people I’ve taken to Desta who hasn’t been impressed with the dynamic company and the impact that grows alongside it. I like the smiles on the women’s faces. I like the beat of the music playing in the background. I like the energy of the place, and I am proud of the small role that I have played on the RENEW team and as an investor alongside a family of hardworking, ethical, caring, incredible people, who have built one of the largest domestically owned and managed garment facilities in Ethiopia.<figure class="image"><img src="/uploads/pg_16_laura_96bc300944.jpg"></figure>My involvement with the company started a long time ago. From our apartment balcony in 2012 in Addis, Matt (my husband and partner) and I could see this busy factory, and we wondered who owned it, and what they were making behind the walls. A few months later, we unknowingly ran across the same family while searching for a place to work out. They owned the Life Fitness franchise for Addis and all of East Africa and operated a large gym in our neighborhood.We introduced ourselves and years later after many coffees and meals together, we entered into a partnership, bringing the Impact Angel Network along to invest in their growing garment factory.I remember delivering injera from another of our portfolio companies, Mama Fresh, to the Ethiopia Heritage and Culture Camp typically held in Virginia each summer. I sat purposefully beside Mr. Bekele, the father of the family and the Chairman of the Board, in a very obvious effort to build a relationship with the family. His English was somewhat limited, and my Amharic was even worse. That day he turned to me and said two words: “joint venture?”. And rather than correct him with the nuances of private equity, I just nodded my head.<figure class="image"><img src="/uploads/img_1833_desta_0_e803d0932b.jpg"></figure>The family doesn’t need a ton of handholding, but we lend our support where we can with marketing and branding, governance and financial management.In my opinion, the company is a dream related to the SDGs. Textiles in Africa are, and will continue to be, an increasing employer. When I first visited Desta, there were less than 200 employees; now they employ more than 650 and we expect that to grow to well over 1,000 in 2019.While to some of us sewing a t-shirt or polo shirt isn’t the sexiest of jobs, research shows that every job held by a female supports several household members. Each member of the household likely has better access to clean water, health care and education.Desta is a storybook investment, and we need 1,000’s of SME investments like it to meet Africa’s job gap. Yes, 652 jobs is a drop in the bucket, but it’s a start. It’s my start; it’s the Impact Angel Network’s start; it’s the Bekele family’s start.

A blog by Laura Davis (RENEW Partner & Co-Founder of the IAN)

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A Tour Worth Giving

<h1 style="text-align:center;">Desta is Like Family</h1><a href="https://latest-api.renewcapital.com/uploads/RENE_Ws_2019_2020_Impact_Report_7f2975da8d.pdf">Impact Report - 2019</a>Tadelech Buto's story (Desta Manager). This blog is an excerpt from our 2018 Impact Report.Tadelech Buto has been working at Desta in Ethiopia for several years. With previous experience in the textile industry in Ethiopia, she started as a supervisor at the company, controlling one line with 48 workers. Now two children and five years later, she manages all the garment production at the company which means overseeing 350 employees and the entire sewing process. She is also responsible for the key role of training new employees.Tadelech originally heard about Desta through a friend who was working with the company at the time. Now looking back, she believes that the company excels in several areas including quality production, competitive salaries and good employee working conditions. She recently commented, “Desta is like a school for all of us. Most of us came without the knowledge that we have now.” In particular, she likes the consistency of the work, citing that in other companies the production regularly starts and stops.Like many women, her children are a key part of her life. Now 4 years old and 18 months, respectively, she is grateful she was able to take maternity leave with both of her children’s arrivals and come back to work at Desta after. In the most recent case, her return to the company also came with a promotion to production manager.When asked about why working at Desta has been important, Tadelech commented, “Developing my self confidence makes me happy. Before working for Desta, I was living with my parents. However, now I have my own home with my husband and children.”<figure class="image image_resized" style="width:100%;"><img src="/uploads/4_0_b7bee1218f.jpg"></figure>