<h1 style="text-align:center;">A Look at RENEW’s Portfolio</h1>Ever wanted to meet the faces behind RENEW’s portfolio companies? Take a few minutes and watch our video featuring a sampling of RENEW’s entrepreneurs and their companies and hear about the impact being created post-investment. <a href="https://www.youtube.com/watch?v=SlNi1MWQvk0">Link to Youtube Video</a>.<figure class="image"><img src="/uploads/youtube_1_7c58987301.png"></figure>As of December 31, 2018, the Impact Angel Network portfolio is made up of ten incredible companies in East Africa. The portfolio has created 1,452 jobs, and supported more than 5,700 smallholder farmers. Be sure to check out our <a href="https://www.renewcapital.com/portfolio">portfolio page</a> for a snapshot of all our companies.Be sure to also check out RENEW’s <a href="https://latest-api.renewcapital.com/uploads/RENE_Ws_2019_2020_Impact_Report_7f2975da8d.pdf">Annual Impact Report</a>, “A Journey of Impact”, which gives an overview of the impact of our entire portfolio, as well as 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. 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.

A short clip featuring a sampling of RENEW’s portfolio.

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A Look at RENEW’s Portfolio

<h1 style="text-align:center;">Press Release: RENEW &amp; the IAN Close Investment in a Tour and Safari Company</h1><a href="https://renewcapital.com/sites/default/files/final_press_release_-_travel_-_aug_21_2019.pdf">Download the Full Press Release.</a>Denver C.O. and Addis Ababa, Ethiopia, August 21, 2019 -- RENEW’s <a href="../../impact-angel-network/impact-angel-network.html">Impact Angel Network</a> (IAN) have closed their second investment from the recently capitalized <a href="press-release-renew-ian-commit-capital-all-women-fund.html">Women-Owned Business Investment Fund</a>, which was set up to invest in female entrepreneurs in Ethiopia and Uganda. The second investment will be made into a company that supports tourism in Ethiopia, which will partner with Travel Ethiopia PLC (<a href="https://www.travelethiopia.com/">Travel Ethiopia</a>). Travel Ethiopia was founded by Samrawit Moges, who is also the Managing Director.Samrawit Moges graduated from Addis Ababa University in 1983 with a degree in journalism. At that time, Ethiopia was under a socialist regime and it was compulsory to enter a lottery for employment after graduation. Samrawit was assigned to the sole tour company in Ethiopia (the government-owned National Tour Operator (NTO)). Though it was not her intent to work in tourism, once placed there, it became her passion. After the socialist government was overthrown in the early 1990s, Samrawit resigned from the NTO and established Travel Ethiopia in 1994 with her now late husband.Travel Ethiopia is a private, eco-minded tour and safari company which offers a variety of tour packages, with varying experiences, durations and price points, for travelers wishing to explore Ethiopia. The company’s tours are full-service, with multilingual guides, a fleet of vehicles and (where needed) camping gear. Their mission is to provide a high standard of services to its clients while allowing them to enjoy a unique experience and taste of Ethiopia, its culture, history and natural environment.<figure class="image"><img src="/uploads/skyline_f7b9ec9989.png"></figure>As a member of the responsible tourism network, Travel Ethiopia tries to minimize negative social, economic and environmental impact and generate economic benefits for local communities. They’re especially committed to contributing to women’s empowerment in Ethiopia. The company was the first tour agency in the country to hire permanent female guides.“The investment and collaboration with RENEW certainly will take Travel Ethiopia one step up,” said Samrawit Moges.“Samrawit has a rare combination of grit, elegance, and confidence,” says Matt Davis, Partner at RENEW. “Samrawit was front-and-center during The Exec’s Program sessions, and she was extremely determined to implement what she learned. This is exactly the type of owner we’re looking to partner with. And she has an incredible passion for shaping the travel industry in Ethiopia - cleaning it up and making it top-tier. As a woman, it’s hard enough to make it work in Africa, but watching Samrawit in action, if there’s anyone that can make it happen, it’s her.”About the Women-Owned Investment FundRENEW and the IAN committed capital to a fund dedicated to investing in women-owned and led companies in Ethiopia and Uganda. The fund is considering investments in other female entrepreneurs, pending completion of due diligence. The fund was designed by RENEW and the IAN to address social and financial barriers holding back female entrepreneurs in Africa. The fund, which supports the <a href="https://sustainabledevelopment.un.org/?menu=1300">Sustainable Development Goals</a> (SDGs) and will support job creation for women and youth and empower women entrepreneurs in Ethiopia and Uganda, was made possible by RENEW’s partnership with Global Affairs Canada under the Accelerating Business Growth (ABG) project.<a href="press-release-renew-ian-commit-capital-all-women-fund.html">Click here for the full Press Release</a>About the Impact Angel Network and RENEWThe IAN 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 lack 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.&nbsp;###&nbsp;To find out more, please visit <a href="../../index.html">www.renewcapital.com</a>.

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Press Release: RENEW & the IAN Close Investment in a Tour and Safari Company

<h1 style="text-align:center;">Expansion Brings Rural Jobs to Ethiopia</h1>During a recent visit to Butajira, Ethiopia, a small town three hours outside of Addis, I saw the Bekele family’s vision to be a leading Ethiopian owned and led garment manufacturing facility coming alive. Historically, the company, <a href="http://www.desta-garment.com/">Desta Garments PLC</a>, which the Impact Angel Network made an investment into in 2015, has been operating in a relatively small, three story building in Gerji, a sub-city of Addis Ababa. The company has done really well with the space that it has had, employing close to 700 people and producing garments for international brands.“Our current factory was never designed to be a garments facility, but our new Butajira facility is,” stated Eyob Bekele, owner and general manager of Desta. “To increase our ability to compete with any company worldwide, we need a proper setup and Butajira is the answer.”The facility is in the final stages of construction, but production and export has already started from the new location. The company employs around 220 employees at the new site and has already established 5 sewing lines. With a large contract for 1M garments per year already in place for the facility, the company is moving fast to fully utilize the 8,000 square meter space.Further expansion will include a second shed that will have a canteen to serve nutritious food to the staff which is expected to grow to more than 1,000 employees. Further plans include a medical clinic for staff and the community, rainwater collection and a state-of-the-art waste treatment plant.“We are committed to hiring people with disabilities including the deaf,” Eyob continued. “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 current 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.To read more about Desta, download our most recent <a href=" https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d_815a14c8fa.pdf">Impact Report</a>.

The Impact Angel Network’s garments facility, Desta, is expanding to Butajira.

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Expansion Brings Rural Jobs to Ethiopia

<h1 style="text-align:center;">2019 ABG Check-In</h1>In 2016, RENEW signed a collaboration agreement with the development arm of the Canadian federal government, Global Affairs Canada, for a project known as Accelerating Business Growth (ABG). The ABG project aims to support high potential, responsible small and medium enterprises (SMEs) in Ethiopia so they can attract and efficiently use finance to scale up, enabling them to play a stronger role in the Ethiopian economy. The project addresses the gap found in the capital markets in Ethiopia and in many other countries in Africa, called the “missing middle”. This missing middle limits the ability of SMEs to access finance to grow their businesses and create sustainable jobs.The project’s ultimate outcome is to increase employment and generate income opportunities for men, women and young adults from Ethiopia’s small and medium enterprises sector and related value chains. Specifically, RENEW is aiming to support a total of 5,000 jobs and help Ethiopian SMEs attract $52.5M (CAD) of financing to help scale their companies by the time the project concludes in May 2021.<figure class="image image_resized" style="width:100%;"><img src="/uploads/abg2_7d4fbe5c3d.png"></figure>With three years completed, RENEW has made significant progress on both metrics, now supporting 3,944 jobs through the program (79% of target) and having helped Ethiopian SMEs attract $47.5M CAD (91% of target). A sampling of other project targets and current results are as follows:<ul><li>Target: Train 650 SMEs on finance. Current result: 529 (81%).</li><li>Target: Train 100 resource providers (banks, chambers of commerce, accounting and legal firms, financing institutions, etc.) on finance. Current result: 74 (74%).</li><li>Target: Annual sales growth rate increase of 10% achieved by companies who participate in The Exec’s Program. Current result: 13.50% (exceeding target).</li><li>Target: Graduate 50 individuals from The Exec’s Program. Current result: 46** (92%).</li><li>Target: Graduate 100 finance executives from the CFO100 Program. Current result: 51 (51%).</li><li>Target: Grow the Impact Angel Network (IAN) by 175 individuals and families. Current result: 73 (42%).</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/chigign_98d5028b3a.png"></figure>Throughout the project, the team has also developed unique initiatives that directly support the project’s goals and have contributed to the achievements listed above to date, including:Chigign ‘Tobiya: In partnership with Tonetor Multimedia, RENEW launched Chigign ‘Tobiya, a business pitching TV series broadcast on national television (FANA TV) which aims to raise awareness and build interest in entrepreneurship locally in Ethiopia. The initiative also aims to build out a local Ethiopian angel investor network for SMEs. Two seasons have been fully aired attracting a reported 40M viewers, with season three production now in the final stages. Eleven companies that pitched on the show have advanced to the diligence stage, and RENEW anticipates multiple closings in these companies during 2019.Women in Finance: RENEW launched the “The Women in Finance” series in 2017 aimed at empowering and inspiring female finance professionals in Ethiopia. Four sessions have since been held in partnership with local banks and organizations, with glowing reviews and results. Guest speakers have been invited and productive discussions have been held related to the unique challenges that women face in the finance industry in Ethiopia. The 5th edition of the program is scheduled for Q4 of 2019.Women’s Mini-fund: The mini-fund is an investment vehicle that pools funds for investment in multiple (women-owned) companies. The RENEW team wanted to be creative in forming a vehicle that would address the unique constraints faced by women entrepreneurs. More details about the mini-fund can be found in our Press Release from May, as well as in the Press Releases for RENEW’s two new portfolio companies, a company that supports <a href="https://travelethiopia.com/">tourism in Ethiopia</a> and a <a href="https://kijanionline.com/">Ugandan diaper company.</a>For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_1_c404b1a690.png"></figure>The Accelerating Business Growth (ABG) program is undertaken with support from the Government of Canada provided through Global Affairs Canada. The Impact Angel Network (IAN) is one of the largest North American-based angel networks dedicated to investing in Africa. RENEW is an impact investment firm working in Ethiopia that manages the IAN and provides professional investment advisory and consulting services in support of its investments.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

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2019 ABG Check-In

<h1 style="text-align:center;">Having Skin in the Game Can Help with Investment Reform</h1>In 2012, partners of the RENEW team ventured into a country most said would be one of the most challenging places to invest in all of Africa: Ethiopia. At the time, the investment code was extremely restrictive, few knew about private equity, the government was adversarial (at best) with the private sector, and the largest companies were state-owned. Almost eight years later and having become one of the most active investment firms in the country, we’re pleased to say a lot has changed and even more change is on the horizon. But how did all of this come about – what some are calling a private sector renaissance?When we arrived in February 2012, the question everyone asked was, “Can you get your money out?” Most companies didn’t know about private equity; they understood debt and grants and a few that did understand it were cautious, always wary of foreigners coming into their country and their companies. But we were committed to learning about Ethiopia and how to tap into its huge potential.We started by learning the different organizations involved with investing. We interviewed many (many!) lawyers all with different opinions of how something worked – all very confident in their answers. We then started investing and painstakingly mapping out the 100+ steps to investing in a company in Ethiopia. After each deal we’d go back to the file and update the steps. The first few deals were challenging, and then we started to learn the acronyms, learned what to expect when we put forward a document for a stamp at XYZ agency, anticipated the requests, and started to streamline the process. We built systems to collect changes from each government agency on a regular basis and changed our attitudes from frustrated to curious and grateful. Now, in partnership with RENEW’s Impact Angel Network, we have made 13 investments in 11 companies. We recently were invited to weigh-in on the upcoming investment reform agenda and did so in a white paper (<a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_Investment_Law_Reform_White_Paper_3b22c23669.pdf">LINK</a>). We are pleased to learn that a number of our suggestions, along with many other investment actors’ suggestions, are being considered.<figure class="image"><img src="/uploads/skyline_1_019dbfeffb.png"></figure>Had we charged in and demanded changes eight years ago, or come in now offering suggestions about how others do it, we might not have seen this level of change. But by actually investing and putting real skin in the game, we got a much deeper and richer view of investing. We applaud the government of Ethiopia for being open to change and for not just having consultants inform their policy reform, but for reaching out to the private sector – those in the trenches – and asking for their input. We are grateful to be operating in a country where the actors are doing their best to do what’s best for the country, the people and the economy.Here are some of the highlights we have learned are coming with the revised investment law, likely to go in effect later this year:<ul><li>A change from the positive listing of areas open for foreign investors to a negative listing approach, in which only sectors that are not open for foreign investment will be listed. Many sectors are expected to be opened for foreign investors!</li><li>The minimum capital requirement remained the same but may not apply for institutional investors focusing on SMEs. The definition of institutional investors is not fully clear yet, but be on the lookout for this change.</li><li>A private sector representative will have a seat on the Ethiopia Investment Board (EIB) which is chaired by the Prime Minister of Ethiopia, Abiy Ahmed.</li><li>Any grievance between foreign investors and domestic investors can be taken to the arbitration tribunal, a reputable organization with a long history in Ethiopia.</li><li>The different regulations, directives and even board decisions of the EIB will be made available to the public.</li><li>The proposed law includes plans to loosen regulation in relation to investment licensing, suspension and revocation.</li><li>The requirement to have a business proposal for investment registration will no longer apply.</li><li>The one-stop shop service for foreign investors at the EIC will continue to be available after an investor gets a business license. In the past, oversight was turned over to Ministry of Trade causing some service inconsistencies.</li></ul>We look forward to the investment law reforms on the horizon, and we encourage practitioner-led private sector development. We hope we can replicate this story in more countries in East Africa and across the continent.<figure class="image"><img src="/uploads/grow_build_leaveorange_a69d83d8cc.png"></figure>

Playing the long game is paying off in Ethiopia.

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Having Skin in the Game Can Help with Investment Reform

<h1 style="text-align:center;">A Look into The Exec’s Program</h1>In May 2017, RENEW launched <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec’s Program</a>, an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.The reason RENEW started the program is simple: our investment thesis is that with a little planning and disciplined execution, companies in Ethiopia can have a huge competitive advantage over others in the market. Our experience is that poor execution is why most companies fail. Starting at the top, most CEOs, often founders, don’t know or apply some of the most basic fundamental disciplines that have been proven to work around the world. For example, writing down a clear plan for the year; tracking a few key metrics; closing the company’s books each month and analyzing the three financial statements; running effective weekly management meetings; using a sales pipeline; asking for feedback from customers, etc. You’d be shocked at how few companies do the basics.<figure class="image"><img src="/uploads/execs_0_5f0e006bab.png"></figure>We started The Exec’s Program to be different from the flood of donor and consultant offered accelerator programs and boot camps out there. We wanted to have a program focused on tools that could be immediately applied by a CEO to their organization that would move the needle on their performance. The program requires a commitment of time, and like any skill, what is taught must be practiced over and over again until it becomes a habit. The habits that disciplined executives form are those that other top-performing executives attribute to their success.The program is for executives in RENEW’s portfolio and a select few additional executives we believe have the potential to become market leaders. The program focuses on planning, governance, execution, finance, marketing and sales, and corporate stewardship, with a strong focus on teamwork and group implementation.Now for the numbers. Since 2017, we have had three cohorts with a total of 46** executives. Of these 46 executives who were enrolled in the program, 19 have been women. The following table provides a deeper look into the three cohorts:<figure class="image"><img src="/uploads/graph1_8aff448ffb.png"></figure>In the latest annual survey conducted from February to March 2019, RENEW collected data from the companies that attended The Exec's Program, a total of 26 companies. Here are some quick findings based off these surveys:<ul><li>As of December 2018, the total number of employees of all The Exec's Program Alumni was 1,943, which translates into a 16% increase from 2017. Of these 1,943 jobs, 871 were held by women.</li><li>In terms of the number of jobs created over the course of the training program, The Exec’s Program Alumni have added 264 new jobs to the local economy, of which 132 jobs were jobs for women (50%). On average this represents 10 new jobs created per company, five of which were for women.</li><li>From the 26 companies in the Alumni group, 18 companies raised capital in 2018, 69% of the total.</li><li>From the 18 companies that raised capital, five companies raised equity, 10 companies raised debt and three companies raised grants.</li></ul><figure class="image"><img src="/uploads/graph2_f89ce253c1.png"></figure><ul><li>On average, accelerated ventures display greater one-year growth in revenues, employment, and investment;</li><li>USAID’s PACE Program (Partnering to Accelerate Entrepreneurship) report finds that Small and Growing Businesses (SGBs) that receive shorter, less individualized technical assistance, such as cohort-based, time-bound incubators and accelerators, demonstrate an average revenue growth over two times and job growth over one-and-a-half times that of other SGBs.</li></ul>Some comparisons between GALI and The Exec’s Program:<figure class="image"><img src="/uploads/graph3_93b77f1b26.png"></figure>Based on these survey results and through facilitating these sessions, we believe that The Exec’s Program is providing valuable skills and opportunities to the participants. We are constantly aiming to graduate top-performing executives with disciplined management teams that become legends of Ethiopia’s economic growth.For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_ca912bbd10.png"></figure>The Executives’ Program, a part of RENEW’s Accelerating Business Growth (ABG) project, is undertaken with financial support of the Government of Canada provided through Global Affairs Canada. Please see the following press release on the ABG project for more details. To find out more about RENEW or the Impact Angel Network, contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>, follow us on Twitter @RENEWLLC or find us on Instagram @impactangelnetwork.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

The Exec’s Program is an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.

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A Look into The Exec’s Program

<h1 style="text-align:center;">Our Jobs Scorecard, Ethiopia's First Jobs Summit</h1>On October 31, 2019, RENEW was invited to attend the first Jobs Summit in Addis Ababa, hosted by the Jobs Creation Commission of Ethiopia. The Jobs Creation Commission highlights the commitment that the government, the private sector and development partners have in steering Ethiopia towards higher numbers of sustainable jobs, especially those for women and youth. Their goal is to help bridge the unemployment gap in Ethiopia by creating 20 million jobs in the country by 2030.During the Jobs Summit, the Commission presented its <a href="http://jobscommission.gov.et/documents/">Plan of Action for Job Creation</a> and the <a href="http://jobscommission.gov.et/documents/">2019 State of Jobs Report</a>. The presentation recognized the potential that small and medium enterprises (SMEs) have to be huge drivers of job creation and growth, citing an increase of support to those working in that sector.<figure class="image"><img src="/uploads/jobsummit_fotor_0_6b3aeefc9e.jpg"></figure>We can all be proud that as of June 30, 2019, through the investments made by RENEW and the Impact Angel Network, we have created 1,487 jobs and helped sustain an additional 2,229; we have also supported 1,792 jobs through our training to companies in The Exec’s Program, for a total of 5,464 jobs created or sustained through our work in Ethiopia.**RENEW is committed to working with the Jobs Creation Commission, development partners and other stakeholders to help achieve Ethiopia’s goal of 20 million jobs. Be sure to visit the <a href="http://jobscommission.gov.et/">Commission’s website</a> to learn more about their initiatives.Read more about RENEW’s efforts related to job creation:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Desta%20%20Building%20Sustainability">Eyob’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/An%20Angel%20Investor%E2%80%99s%20Perspective">Beth’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/Expansion%20Brings%20Rural%20Jobs%20to%20Ethiopia">Desta Worker’s Blog</a></li></ul>**The data for portfolio jobs is current as of June 30, 2019. Data is preliminary and has not been audited. The data includes figures for investments that were exited during Q2 2019and is based on a high-water mark. The data for The Exec’s Program is current as of September 30, 2019.

Hosted by the Jobs Creation Commission of Ethiopia.

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Our Jobs Scorecard, Ethiopia's First Jobs Summit

<h1 style="text-align:center;">Finding Ways to Inspire and Impact My Community</h1>Since I was young, I was really passionate about the arts and inspiring people through art. As I got older, this passion started to transition to design. I always imagined myself going to a fashion design institute or doing a degree in fashion design. After I graduated from university, I ended up spending a year at fashion school and decided that it was time to start living my dream. It was an exciting life-long vision, and I had so many Ideas. I was thinking BIG. I had plans to create unique and attractive products that could impact the community.Little did I know it was tough to actually get into the business. It was challenging because in this system we are taught the basics, but not how to get our business off the ground. There was a lot to think about from choosing the business structure, to the business plan and the most important thing, the startup costs. There were costs needed for the brand design, the logo, the website, rent for a work location, machines, design tools and many more. Even though I had so many ideas, I learned that I had to focus on one idea at a time and start small.<figure class="image"><img src="/uploads/screen_shot_2019_11_05_at_2_42_32_pm_3fc420b2ed.png"></figure>I started with a few craft pieces and custom traditional clothes for family and friends for holidays and events. I liked sharing my designs and sketches in the hopes of inspiring people. It wasn’t anything big, but I was really happy that I could make something that people could enjoy wearing with confidence. It satisfied me greatly, and it still does. Whether it was a big or small project, I knew I would be happy doing what I love on the side and exploring other things that I could do. That’s when I finally decided that I wanted to have this be a side project, and I started looking for more opportunities to grow professionally.When I started looking for full-time employment, I knew I wanted a way to grow my business skills, and I still wanted to be at a job that was inspiring and that would have an impact on my community. As I began my search, I came across RENEW, a company which was really trying to have a positive impact on the community where I live. I knew I wanted to be a part of that.When I joined RENEW, I was really nervous about my first day. It was my first job, and I didn’t want to mess anything up. It actually took me no time at all to familiarize myself because everyone was really welcoming, and I enjoyed everything I was doing. I was so fascinated by how well-planned and organized everything here at RENEW was. I was in love with all the guiding statements and disciplines, and it made me want to align it with my personal life. I’ve been at RENEW for for about 15 months now, and I know I’m in the right place where I can grow both professionally and as a person.

How Filseta, our Project Coordinator, came to join RENEW.

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Finding Ways to Inspire and Impact My Community

<h1 style="text-align:center;">The Rights of Women Employees Under the New Employment Law</h1>Ethiopia has recently made changes to its employment law, which was in effect for the past 16 years. Proclamation No. 1056/2019, which repealed Proclamation No. 377/2003, came into effect on September 5, 2019. Though the new law has not significantly deviated from the previous one, it has made a notable change in terms of protecting the rights of women employees. These protections are outlined below.<figure class="image"><img src="/uploads/img_9202_fotor_0_86f9d62dc0.jpg"></figure>Sexual Violence and HarassmentOne of the most significant changes is the definition given to ‘Sexual Violence and Harassment’. Surprisingly, the repealed labor proclamation did not define ‘Sexual Violence’ or ‘Harassment’, nor did it provide for any consequences for offenders. This had been a barrier to an employer’s ability to take measures against employees who are caught committing these offenses. Thankfully, the new Labor Proclamation defines ‘Sexual harassment’ as “…an act of persuading or convincing another person through utterance, signs or any other manner, to submit for sexual favor without his/her consent.” Similarly, ‘Sexual Violence’ is defined as “…an act of sexual harassment accompanied by force or an attempt thereof.” The new law doesn’t stop with just the definition, it also specifies the consequences associated with it:<ul><li>An employer will be entitled to terminate an employee’s contract, who is caught committing the above act, without giving notice;</li><li>An employee who is subject to the above acts by his/her employer or managerial employee will be entitled to terminate his/her employment contract without notice. In addition, s/he will be entitled to a severance payment. The same applies if the act is committed by a co-worker and the employer fails to take measures, despite a report being made of the fact; and</li><li>In addition to the severance payment specified above, a victim of sexual harassment and violence will be entitled to compensation equal to three (3) months’ salary.</li></ul>Reduction of the WorkforceThe repealed proclamation had established a retainer arrangement for certain groups of employees during a reduction of the workforce by an employer. The new proclamation expanded the groups protected by this retainer arrangement to include new mothers whose babies are under four months old. This is in addition to expectant mothers, who were also covered under the repealed proclamation.<figure class="image"><img src="/uploads/001_402_fotor_9495138f5e.jpg"></figure>Maternity Leave The repealed proclamation provided for thirty (30) consecutive days pre-natal and sixty (60) consecutive days post-natal leave for expectant mothers. The new proclamation has made adjustments to this. Under the new proclamation, the pre-natal leave remained the same, but the post-natal leave has been expanded to ninety (90) consecutive days.Affirmative ActionBoth the repealed and the current proclamation provide for non-discrimination of women employees against their male counterparts in all respects. However, the new proclamation goes beyond that and provides for affirmative action in order for female employees to be given priority if they score equal results with male employees while competing for employment, promotion or any other employment benefits.Overall, the new labor proclamation did not make a significant change to the already existing labor laws, despite compiling what had been scattered through different amendments and court decisions. However, when it comes to the protection of the rights of women employees, it is considered a huge step forward from where it has been.