<h1 style="text-align:center;">Join us at the Audacious Angels Summit &amp; Future of Impact Summit 2022!</h1>RENEW is thrilled to announce that its founders and other members of the Impact Angel Network will be participating in two online global impact investing summits.During the September 12 to 14 <a href="https://www.jellycorn.io/impact-summit2022">Future of Impact Summit 2022,</a> &nbsp;hosted by <a href="https://www.linkedin.com/company/xoco-unlimited/">XOCO Unlimited</a>, RENEW Managing Partner Laura Davis will serve as a panelist for a plenary session titled Women Entrepreneurs, Debunking Stereotypes through Innovation. The summit brings together hundreds of impact-driven entrepreneurs, investors and ecosystem players from more than 50 countries to connect, learn and inspire action towards an equitable, inclusive and sustainable future on the journey to the SDGs 2030. And, as noted by its title, the plenary session seeks to showcase amid a male-dominated businessworld the unique ways women creatively tackle and solve complex problems.“I appreciate Jessica Espinoza’s approach to change and am happy to lend my perspective on this important topic as a female entrepreneur who works with other female entrepreneurs in East Africa,” said Laura Davis recently.RENEW's CEO Matt Davis, who is also a co-founder of RENEW’s Impact Angel Network, will facilitate a panel of angel investors which includes two of our own IAN members, Aaron White and Maureen O'Shea during the September 15 to 16 <a href="https://www.jellycorn.io/angels-summit2022">Audacious Angels Summit 2022</a>. That summit brings together aspiring and experienced angel investors from around the world to demystify angel investing and “supercharge” the next generation of diverse angels.<figure class="image"><img src="/uploads/Audatious_2x_dce2e59d7d.jpg"></figure><ul><li>Future of Impact Summit - September 13 - Women Entrepreneurs – Debunking Stereotypes through Innovation - 4 PM EST - <a href="https://www.eventbrite.de/e/future-of-impact-summit-2022-tickets-335868400427">Get Ticket&nbsp;</a></li><li>Audacious Angels Summit -&nbsp; September 15 - A Showcase of Renew Capital Angels, 17:00 - 18:00 CET, 11:00 - 12:00 PM EST, 11:00 - 00:00 AM Singapore - <a href="https://www.eventbrite.de/e/audacious-angels-summit-2022-tickets-336000706157">Get Ticket</a>&nbsp; &nbsp;</li></ul>100% of tickets are charitable donations for <a href="https://xocounlimited.org/">XOCO</a> empowering vulnerable girls to escape gender-based violence and leapfrog to digital jobs of the future!&nbsp; <a href="https://xocounlimited.org/empowergirls">Learn more here</a>.&nbsp;

RENEW is thrilled to announce that its founders and other members of the Impact Angel Network will be participating in two online global impact investing summits. 

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Join us at the Audacious Angels Summit & Future of Impact Summit 2022!

<h1>Ethiopia’s Trucking and Logistics Sector is Ripe for Tech Optimization and Disruption</h1>Five reasons why we believe strategic investment in Ethiopia's trucking, transportation and logistics sector could unlock the country for major growth:&nbsp;<ul><li style="text-align:justify;">Implementation of technology has dramatically decreased trucking costs in other East African countries, specifically Kenya.</li><li style="text-align:justify;">Investing in transportation, trucking and logistics in Ethiopia can increase the country’s international competitiveness.</li><li style="text-align:justify;">The sector is ripe for technological optimization with solutions including route optimization, vehicle space optimization, matching supply and demand, price transparency and delivery time predictions.</li><li style="text-align:justify;">The Ethiopian government is interested in engaging private investment in this sector.</li><li style="text-align:justify;">While there is a 49/51 majority Ethiopian ownership requirement for all shipping and freight forwarding agency services, trucking within Ethiopia is 100% open to foreign company ownership for loads over 25 tons.</li></ul><figure class="image image-style-align-center"><img src="/uploads/BHA_Truck_photo_TT_and_L_917cca23b1.jpeg" alt="Image of Two Large Trucks in the Logistics Transportation Sector: Two large trucks parked at a logistics hub in Ethiopia, showcasing the potential for technology integration in the trucking industry."></figure><hr>From late 2020 through February 2021, the <a href="https://www.usaid.gov/who-we-are/organization/bureaus/bureau-humanitarian-assistance">United States Agency for International Development, Bureau of Humanitarian Assistance</a> (USAID BHA) conducted a <a href="https://pdf.usaid.gov/pdf_docs/PA00XFMD.pdf">Private Sector Landscape Assessment (PSLA)</a> to identify areas of aligned interest between USAID BHA priorities and the private sector operating in Ethiopia in order to create more resilient, sustainable, and inclusive programs in Ethiopia. From this research, USAID BHA identified Ethiopia’s trucking, transportation, and logistics sector and the promotion of urban to rural linkages for the country’s rural business ecosystem as high impact opportunities for development and growth.To build on the findings of the PSLA, USAID BHA partnered with RENEW to conduct a three phase project covering a 12-month period. The first phase of the project, which was completed in June 2022 included a market assessment on the current state of Ethiopia’s transportation, trucking and logistics sector, with recommendations for private sector engagement and assistance opportunities. In phase two of the project, which kicks off in Q3 of 2022, RENEW will test and pilot project ideas in the field. Phase three will focus on scaling successful pilot interventions.&nbsp;&nbsp;Below, RENEW has summarized what the project team views as exciting opportunities based on our Phase I market assessment findings regarding Ethiopia’s transportation, trucking and logistics sector.<figure class="image image-style-align-center"><img src="/uploads/Screen_Shot_2022_08_24_at_10_57_16_AM_a741b4327d.png" alt="Image of Ethiopia Map with Comparisons to India, Pakistan, and China: Map of Ethiopia highlighting key transportation routes, with comparative logistics cost statistics against India, Pakistan and China."></figure>In 2016, Ethiopia scored 2.37 out of 5 in the World Bank’s Logistics Performance Index – significantly lower than neighboring and similar countries. The stakeholders most impacted by persisting barriers in the transportation, trucking and logistics sector are local SMEs, exporters, end consumers and humanitarian organizations. For example, while Ethiopia’s textile labor costs have been comparable to labor costs in southeast Asia, the transportation of a 20-foot container of garments from Ethiopia to Germany costs 247% more than from Vietnam and 72% more than from Bangladesh. Similarly, when comparing Ethiopia’s logistics costs with those in other parts of the world, RENEW found that while shipping in Ethiopia costs $0.11 USD per ton per km, it costs just $0.02 USD in India and Pakistan, and $0.05 USD in China. This underscores the untapped potential for Ethiopia’s industries if transportation costs are reduced and optimized. Logistics and transportation costs are similarly high throughout East Africa. Moreover, in a study conducted by the Boston Consulting Group (BCG) in 2021, the cost of moving a product from a factory to the consumer in Africa adds an average of 320% to the manufactured good’s cost, which can lead to a markup as high as 700%.&nbsp;Unlocking Ethiopia’s and Africa’s potential is dependent on the reduction of these costs and provides a significant opportunity for the private sector to invest in technologies that will reduce trucking costs and position East Africa as an international competitor.Overall, research indicated that poor infrastructure, limited applications of technology, and a shortage of vehicles were key barriers to efficiency and growth in the sector. For context, industry experts estimate that Ethiopia currently has 16,000 vehicles, while Kenya (with less than half the population compared to Ethiopia) has over 100,000 vehicles. Moreover, 44.6% of trucks in Ethiopia are more than 10 years old. To make matters worse, 50% of trucks are below their maximum operational capacity.That being said, the Ethiopian government has indicated that it is eager to promote private sector engagement and innovation in the transportation, trucking and logistics sector. For example, Minister of Transport, H.E. Dagmawit Moges indicated in a 2020 op-ed that “the transport and logistics service has for too long been traditional, overly [centralized] and rigidly controlled,” and utilizing innovative technologies to meet the “immediate demands and needs of citizens should be the focus.”Considering these factors, the project team believes the sector is on the cusp of explosive growth that would be hastened with the introduction of emerging logistics technologies, greater transparency and increased competition, all of which could be accomplished through a well-coordinated effort by humanitarian organizations and private sector actors.To inform our strategy, the project team has conceptualized the trucking, transportation, and logistics sector as two separate operating environments as demonstrated by the graphic below:<figure class="image image_resized" style="width:88.27%;"><img src="/uploads/Screen_Shot_2022_08_24_at_10_57_37_AM_ccfa386f97.png" alt="Graphic showing Ethiopia's trucking sector: the monopolized segment by ESLSE and the private sector 'opportunity zone' for innovation."></figure>First, A-B transit, which is controlled by the government-owned Ethiopian Shipping and Logistics Services Enterprise (ESLSE), does not provide a significant opportunity for successful intervention investment. Additionally, non-profit organizations including TradeMark East Africa, have already signed MOUs with the Ethiopian government to address challenges facing this part of the process. Rather, RENEW believes there is a compelling consideration for private sector engagement and investment in technological tools supporting the B-C-D portion of the process. We term this “the opportunity zone.” Currently, truck owners and companies operating in the opportunity zone are not sufficiently tech-enabled and contracts are controlled by middlemen and commission agents, which increase costs for consumers and humanitarian organizations. To sum it up, B-C-D trucking is a de facto “gig economy” controlled by brokers with cell phones, manually distributing jobs amongst their contacts. In our estimation, technological tools could greatly decrease inefficiencies and costs. Through conversations with industry experts, the project team has determined that the below technological interventions are needed in order to optimize B-C-D logistics in Ethiopia:<ul><li>Cargo tracking to predict arrival times</li><li>Price transparency tools</li><li>Route optimization for speed and fuel efficiency</li><li>Vehicle space optimization</li><li>Vehicle supply and cargo owner shipping demand matching to activate idle vehicles</li></ul>Importantly, technological disruptions have been successful in other East African countries. For example, in 2016, a private logi-tech company called Lori Systems, developed a tech-enabled platform to optimize Kenya’s trucking sector. Since 2016, the company has reported that it has reduced trucking costs by up to 20% just by implementing technology. By developing a targeted tech-enabled investment approach, we believe the same could be true for Ethiopia.&nbsp;Just as important, emerging logi-tech companies with visions and ideas for implementing these solutions already exist in Addis Ababa. Given the current context, RENEW believes that private sector engagement and interventions that focus on technology and avoid purchasing and/or financing asset-heavy trucks (due to limited forex to purchase spare parts, high relative cost of fuel, and limited skilled labor to service vehicles) is a strategy worth considering. From here, the project team plans to build on findings of this market assessment and determine if capital can be mobilized to benefit Ethiopia’s trucking, transportation and logistics companies operating in the opportunity zone. In doing so, Ethiopia’s domestic, regional and international trade potential could be unlocked.&nbsp;

Five reasons why we believe strategic investment in Ethiopia's trucking, transportation and logistics sector could unlock the country for major growth

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Ethiopia’s Trucking and Logistics Sector is Ripe for Tech Optimization and Disruption

<h1 style="text-align:center;">10 Years of Blended Finance</h1>This month, we continue our celebration of operating in Ethiopia for 10 years with a special focus on lessons learned from our blended finance model. In case you missed previous posts in the series, you can find them here:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Photo%20Journey%20%20Ethiopia%20Then%20%20%20Now%20%20A%20Tribute%20to%20a%20Cooking%20Pot">Photo Journey: Ethiopia Then &amp; Now. A Tribute to a Cooking Pot </a>(March 2022)</li><li><a href="https://www.renewcapital.com/resources/blogs/10%20Years%20of%20Changes%20in%20Ethiopia%20%20What%20Do%20the%20Numbers%20Tell%20Us%20">10 Years of Changes in Ethiopia. What Do the Numbers Tell Us? </a>(April 2022)</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_05_12_at_10_19_18_AM_de03a9629b.png"></figure>RENEW operates what’s called a blended finance (BF) model, which involves the private sector partnering with donors to address a development challenge that has commercial potential. In RENEW’s case, we aim to accelerate the formation of capital for growth-oriented small and medium enterprises (GO-SMEs) and strengthen the investment ecosystem in Africa. Our partners include groups like Global Affairs Canada (GAC) and USAID among others. In each project we take on, we aim to achieve leverage, which means attracting more private capital than donor funding that was used to support the project. We also aim to strengthen the investment ecosystems by developing pipeline for investors, organizing local capital, and improving the investment environment. We also work on women's economic empowerment and climate-change by helping companies become climate and gender-smart. After 10 years of working on our model in Ethiopia, we’re happy to say we’re rapidly expanding into the region. Looking back, we wanted to share the eight biggest lessons we learned from implementing our blended finance model in Ethiopia.&nbsp;<ol><li>FIND A BALANCE WITH MONITORING AND EVALUATION AND REPORTING: With BF projects, implementers will serve two masters that require robust and specific reporting. Obtaining timely and accurate financial statements from portfolio companies and other non-investee SMEs was a challenge. &nbsp;Lesson Learned: During the project planning stage, be careful what you sign up for in terms of reporting. Try to create as much alignment and overlap between the reporting requirements for your different clients to lessen the burden.</li><li>PERSIST ON THE OUTCOMES, BE FLEXIBLE ON THE ACTIVITIES AND OUTPUTS: Investing in Africa is relatively new for Western governments and investors. We’re learning that some approaches that worked for one country could be unsuccessful in another. &nbsp;Lesson Learned: Make sure your donor partner and your investors are flexible and allow you to pivot as you begin implementation and apply lessons learned throughout the project, even if that means adjusting how you get there. Further, be diligent in documenting your failures and reviewing them to extract lessons learned. For many investors right now in Africa – the early ones like those supported by blended finance – this can be extremely valuable for the larger community and can catalyze more capital.</li><li>DON’T BE AFRAID TO TRY SOMETHING RADICALLY NEW: Building on the idea of flexibility, be willing to try something totally radical. One component of the project from the planning phase to expand our reach in Ethiopia was “investment hubs” in larger cities outside of Addis Ababa to educate SMEs on investing, sourcing deals, and creating valuable business networks. Due to unrest, logistics and a lack of local partners in these cities, there was little traction. Instead of continuing down a failed path, someone came to a more radical idea to reach the masses; an edutainment show – Chigign Tobiya, which is like Shark Tank or Dragon’s Den meets American Idol, customized for Ethiopian culture. We soon went from minimal touchpoints in four cities outside of Addis with only a few stakeholders, to a reported 40 million viewers that raised excitement for entrepreneurship and the formation of local angel networks. Lesson Learned: Be open to trying something radical if the status quo is not working and you may just end up unlocking impact at a larger scale than you thought possible.</li><li>MONEY TALKS WITH POLICY REFORM: Due to the sheer volume of SME transactions we closed in Ethiopia, we became a de facto expert on investing in a country where this is very hard to do. This gained us credibility and a seat at the table when the Ethiopian government was updating their investment code. Our track record of bringing FDI into the country allowed us to help influence several changes that will have a significant impact on the investment and entrepreneurial ecosystem.</li><li>STAY THE COURSE, DON’T GET PULLED AWAY FROM YOUR SWEET SPOT: It’s tempting to chase grant dollars and get pulled into work beyond your sweet spot, or your general good investment sense. For example, it’s easy to become infatuated with social enterprises that have a compelling story, but no real investment case. Lesson Learned: Be disciplined with your investment model and don’t sacrifice longer-term sustainability of the business for near-term soft funding and praise.</li><li>EXTEND THE TIMELINE: SMEs take a long time to realize impact and growth from investments. You might invest in a company in year four of a five-year project and, as a donor, never see the benefits of that initiative. The market and the country are also very dynamic, and the entire private sector might be in an economic slump right at the end of your project, which hurts your numbers. &nbsp;Lesson Learned: Work with your donor to find ways to either extend the project or the reporting period to get a truer sense of the long-term positive impact of a blended finance model.</li><li>80/20 RULE: FOCUS ON A FEW GROWTH COMPANIES, VERSUS TRY TO HELP EVERYONE: Not everyone is meant to be an entrepreneur, and blended finance interventions need to realize this. You’ll figure out quickly which entrepreneurs have the capacity to take on financing. &nbsp;Lesson Learned: 80% of the impact and the results will come from 20% of the SMEs you support under the model. Focus on the 20% and those who are equipped to grow and create impact at scale.</li><li>BE PREPARED TO EDUCATE ALL STAKEHOLDERS, MULTIPLE TIMES – YOU’RE LIVING IN THE “MIDDLE”: Some of the reporting, forms and requests we received made no sense in the greater context in which the project operated. Some, in the donor community, have said we are only making rich people richer. Some SMEs thought we were grantmakers and approached us as such. Many investors are ignorant to Ethiopia’s private sector potential. The bottom line: you must constantly educate because development is so conditioned to fall in line with specific expectations. Lesson Learned: Be prepared to be a project manager and an educator to all program beneficiaries involved – all the time.</li></ol>To read more lessons learned from other key stakeholders in our blended finance model, including investors, donors and entrepreneurs, download our <a href="https://latest-api.renewcapital.com/uploads/ABG_Program_Overview_and_Lessons_Learned_3ebb258c22.pdf">Accelerating Business Growth Project Report.</a> &nbsp;

8 Lessons learned from implementing a blended finance model in Ethiopia

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10 Years of Blended Finance

<h1 style="text-align:center;">Lets #BreakTheBias for International Women’s Day</h1><a href="https://www.internationalwomensday.com/theme">International Women’s Day</a> (IWD) is fast approaching on March 8, 2022, and this year's theme is “Break the Bias” (#breakthebias). The goal for this year’s campaign aims to turn a spotlight on the gender biases people carry around with them, and to actively move forward to collectively create a world free of bias, stereotypes and discrimination.&nbsp;At RENEW, we aim to encourage ourselves and those around us to examine and change our biases. Below is a video we’ve been sharing during <a href="https://www.renewcapital.com/what-we-do/market-building">The Exec’s Program</a> to help highlight the biases many tend to have. Watch the video, answer the riddle and consider sharing it in your community.&nbsp;<div class="raw-html-embed"><iframe src="https://www.facebook.com/plugins/video.php?height=314&amp;href=https%3A%2F%2Fwww.facebook.com%2Fmindspace.me%2Fvideos%2F550888202442564%2F&amp;show_text=false&amp;width=560&amp;t=0" width="1000" height="562" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share"></iframe></div>&nbsp;

International Women’s Day (IWD) is fast approaching on March 8, 2022, and this year's theme is “Break the Bias” (#breakthebias)

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Lets #BreakTheBias for International Women’s Day

<h1 style="text-align:center;">A Globetrotter Who Found Her Way Back to Uganda</h1>I recently celebrated my one-year anniversary at RENEW. The journey has been a rollercoaster, in a positive way.&nbsp;A few months before joining RENEW, I completed my MBA at Warwick Business School. Going back to business school full-time was challenging initially, as I had spent years working in the SME investing field and developed a passion and increased desire for investing and transforming businesses to achieve their long-time vision, and I took a break to embark on an educational adventure. The reason I say it was an adventure is because for the last thirteen years, my life had been a series of adventures, where I called different places home and had a lot of introspection and exposure to different cultures.&nbsp;<figure class="image"><img src="/uploads/Diana_76e9ca7187.png"></figure>I was born and raised in Kenya, and I would classify myself as someone that is really patriotic and proud of my roots. After seventeen years growing up in Kenya, I moved to Canada for my final year of high school and that is when my journey of being a global citizen began. It was here that I was initially exposed to an environment that was incredibly diverse with students from Canada, Kazakhstan, China, Nigeria, to mention but a few. As a naturally curious person, I was fascinated by the divergence in values, perceptions of the world and desires of different individuals. However, one thing that was clear was despite our differences there was a general understanding as to what makes us human and the priorities of different nations, including economic empowerment. Soon after completing high school, I moved to Rutgers University in New Jersey, U.S.A. to pursue a bachelors of science in finance. While at Rutgers, which again was an incredibly diverse environment, I gained key tools that have formed the foundation of who I am. It was during this adventure that I believe I began to find my purpose. Upon graduating from Rutgers, I was itching to put into practice what I had learned. It was clear to me that my desire was to play a significant role in the development impact and economic empowerment of Kenya. The question was, how could I play a significant role, at the time when there was a wave of economic and social change. It is this passionate desire and indebtedness to my homeland that led me to move back home to Kenya, after living abroad for five years.After a challenging but active job search, the opportunity to join Pearl Capital Partners (PCP) presented itself and it seemed like the perfect fit because it focused on African emerging markets, Kenya included, and they were attracting a great degree of private equity and venture capital funding. Additionally, it tied into my long-term goal as the firm’s investment thesis was to invest in businesses that would generate social and environmental impact alongside a healthy financial return. Thus, getting a foot in the door at my age would open vast opportunities. While at PCP, I was immersed into substantial work from the beginning and was exposed to investment opportunities across eastern and southern Africa. I was fortunate enough to not only be involved on the investment side, but also got to represent the fund on different boards and be part of a team that was driving companies to become robust businesses that could scale.&nbsp;In February 2017, I moved to the Uganda office after being promoted to senior investment analyst and transitioned to the role of investment team lead. The general assumption is that Uganda and Kenya, given that they share a border, have cultures that are more or less similar. However, I was shocked to realize that while our cultures have similarities, there are certain cultural nuances that differentiate Kenyans. I soon realized that I had to tame my initial “aggression” or zeal to close investments in Uganda and had to initially take some time to appreciate and learn the country. As I flashback to July 2018, when I closed my first investment as a deal lead, I recall the feeling of euphoria and sense of self-actualisation that was awakened. The due diligence process and approval process was tough as the fund’s investment committee scrutinized the investment to detail. This accomplishment validated my long-term vision and inspired me to pursue my long-term goal of obtaining my MBA.In 2018, I began the long and grueling process to go back to business school. While it was tough, I was focused on the fact that my long-term career goal was to be a senior leader in the SME investing field and to have the ability to invest in businesses that could catalyze growth in Sub-Saharan Africa. To achieve this goal, it was essential that I develop strong soft skills such as managerial and leadership skills and to widen my network. My MBA experience at Warwick was a transformative and amazing experience. The challenging, yet scintillating, multicultural learning experience, provided the ideal environment to broaden my perspectives, whilst providing the perfect platform to share insights. Further, the expected differences of the students in the cohort were a hallmark of my experience and provided the opportunity (despite the COVID-19 pandemic) to unify the student cohort through thoughtful, honest and genuine intellectual forums.Fast forward to the end of the MBA program, I wasn’t sure where my career would take me - London, Nairobi, Paris or Kampala. As fate would have it, the opportunity to join RENEW presented itself, and it was clear that there was a reason that I needed to move back to Kampala. During the onboarding process in Addis, I felt at home knowing that I was part of a team that shared the same values. That is the desire to address the missing middle and support SMEs in Africa in order to scale and be regional champions. The multi-faceted approach that RENEW takes from the Exchange, to the Asset Management Division and finally the Shared Growth Services team fascinated me and I knew that I was part of a team that had a compelling vision and took a pragmatic approach in investing.&nbsp;People ask me what I’m most proud of on this journey. The answer is simple: my constant evolution and growth as an individual while staying true to my long-term vision and values. While the journey has led me back to Kampala, I can say with confidence that I’m excited about the adventure ahead, wherever it will lead me.&nbsp;&nbsp;

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A Globetrotter Who Found Her Way Back to Uganda 

<h1 style="text-align:center;">CBDC: the Next Big Disruption&nbsp;</h1>&nbsp;Digital currencies generally refer to acceptable means of payment completed through electronic forms. The last couple of years have seen a record number of entrants into the digital currency space, which has largely been dominated by cryptocurrencies, whose value seems to keep rising with every bout of human acceptance. In Africa, monthly <a href="https://www.investopedia.com/terms/c/cryptocurrency.asp">cryptocurrency</a> transfers to and from Africa under $10,000 increased 55% over the past year, reaching a peak of $316M in June (1). Also, according to the 2020 Global Crypto Adoption Index from blockchain analytics firm Chainalysis, South Africa, Kenya and Nigeria are among the world leaders in peer-to-peer cryptocurrency trading (2). Accordingly, Nigeria recorded weekly peer-to-peer volumes between $5M and $10M. Kenya and South Africa followed with an average of between $1M and $2M per week (3).<figure class="image image_resized" style="width:100%;"><img src="/uploads/CBDC_de233e6c9b.jpg"></figure>The statistics above solidifies one thing – <a href="https://www.investopedia.com/terms/b/blockchain.asp">blockchain</a> technology is here to stay! And the reality of this statement begs the question of how we can fully maximize the benefits that blockchain technology brings. Over the last couple of years, the biggest issues on acceptance have centered on two main factors. Firstly, the erratic nature of these cryptocurrencies being mined, and secondly, the unregulated nature of these cryptocurrencies, which is where the Central Bank Digital Currency comes in.The Central Bank Digital Currency (CBDC) is a form of blockchain technology that assumes the benefits of having a digital payment system but is particularly used as a virtual form of a country’s fiat currency. Simply put, it is an electronic record or digital token of a country's official currency. The major difference between this and the regular cryptocurrency is that the CBDC is typically heavily regulated by an individual country’s central bank, given it closely represents the country’s fiat currency. The reality is, central banks across the world now face stiff competition with their country’s currency due to the increasingly rapid nature of acceptance of cryptocurrencies. Currently, there are more than 87 countries exploring the possibilities of having their own CBDC (4).&nbsp;African countries are currently closely monitoring the global trends, with Nigeria now leading the pack to become the first African country to create its own CBDC, effectively becoming only the 7th country in the world to develop its own crypto asset, with the U.S. still in the research stage and China currently in its pilot phase.The importance of these digital currencies in Africa cannot be over emphasized, largely due to some of its benefits, the first of which is its ability to facilitate financial inclusion. For example, according to a report by Enhancing Financial Innovation and Access (EFInA), only 64% of Nigerian adults were financially included, while 36% of Nigerian adults (which translates to 38 million) were completely financially excluded as of 2020 (5). An individual country’s digital currency would typically allow rolling out of the USSD (Unstructured Supplementary Service Data) version of the e-currency as an alternative to downloading the digital wallet for people who do not have access to the internet. This would allow for people without any level of sophistication whatsoever to still be able to use the e-payment system.Secondly, and perhaps most importantly, the CBDC helps to create a relatively easier system of payment. In essence, the CBDC is expected to create a more secure, faster and cheaper means of carrying out financial transactions and currency exchange. This could be a major game changer for cross border trade as it could drastically reduce the cost of doing business with other countries as there are typically no middlemen with blockchain technology. An exciting possibility is the creation of one unique digital currency which can be used for cross-border trade in Africa, with acceptance by other African countries. For years the dream has remained elusive for East and West African regional blocs to create common currencies that will improve trade among member states. This could finally start looking like a not too far reality for the region as a lot of African countries have started showing some genuine interest in blockchain technology, and a willingness to explore its potential benefits. For example, in April, the Ethiopian government confirmed that it had signed a deal to create a national database of student and teacher IDs using a decentralized digital identity solution (6). The deal involves providing IDs for 5M students across 3,500 schools which will be used to store educational records. This deal is perhaps the largest deal to be signed by a government and has been making waves in the crypto-asset industry. Akin to this, Ethiopia has also adopted a Digital Transformation Strategy, where the government explicitly underscored the willingness to adopt a decentralized ledger technology that underpins cryptocurrencies. This is specific to the agricultural sector with the aim of benefiting farmers who are currently getting minimal amounts for the hardest work they put in the value chain. The adoption of the technology will allow traceability of transactions and is expected to force companies to ensure that their farmers adhere to Fairtrade Standards. In addition to the agricultural sector, the country’s Digital Transformation Strategy also incorporates the use of this technology in the tourism sector.In conclusion, Africa may become the next big digital currency market – leapfrogging the migration from cash to credit cards, and moving directly into digital currencies. While the emergence of digital currencies presents several challenges in regards to global adoption, due to its privacy and security concerns, it clearly has benefits that cannot be completely overlooked, especially for Africa. We at RENEW are closely monitoring developments, to ensure we can take advantage of opportunities that these developments may create for the IAN in the not-too-distant future. &nbsp;Reference;<ol><li><a href="https://www.dw.com/en/africas-quiet-cryptocurrency-revolution/a-55199637">https://www.dw.com/en/africas-quiet-cryptocurrency-revolution/a-55199637</a></li><li><a href="https://news.bitcoin.com/ukraine-russia-south-africa-nigeria-cryptocurrency-adoption/">https://news.bitcoin.com/ukraine-russia-south-africa-nigeria-cryptocurrency-adoption/</a></li><li><a href="https://blog.chainalysis.com/reports/2020-global-cryptocurrency-adoption-index-2020">https://blog.chainalysis.com/reports/2020-global-cryptocurrency-adoption-index-2020</a></li><li><a href="https://www.atlanticcouncil.org/cbdctracker/">https://www.atlanticcouncil.org/cbdctracker/</a></li><li><a href="https://efina.org.ng/our-work/research/access/">https://efina.org.ng/our-work/research/access/</a></li><li><a href="https://www.appsafrica.com/cardano-launches-blockchain-deployment-in-ethiopia-with-5m-students/">https://www.appsafrica.com/cardano-launches-blockchain-deployment-in-ethiopia-with-5m-students/</a></li></ol>

The Central Bank Digital Currency (CBDC) in Africa and why we are watching closely 

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CBDC: the Next Big Disruption 

<h1 style="text-align:center;">ANDE Helps RENEW-Backed Company Become Gender-Smart</h1>&nbsp;On December 15, 2021, ANDE announced the winners of the Gender-Smart Investing Capacity Building Facility funds, an activity under the ANDE Gender Equality Initiative (AGEI). RENEW, along with four other organizations, were picked to advance their gender lens investing strategies. The funds, provided by the United States Agency for International Development (USAID), targets investors who are committed to advancing gender equality through investments into SGBs. Each of the five organizations are slated to receive up to $30,000 and support SGBs operating in India, Brazil or the East and Southeast Asia, Andean or Eastern African regions.&nbsp;Learn more about this announcement in ANDE’s recent press release: <a href="https://www.aspeninstitute.org/news/press-release/ande-gender-smart-investing/">ANDE Announces Winners of the Gender-Smart Investing Capacity Building Facility</a>.<figure class="image image_resized" style="width:100%;"><img src="/uploads/desta_713214ebe3.jpeg"></figure>

On December 15, 2021, ANDE announced the winners of the Gender-Smart Investing Capacity Building Facility

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ANDE Helps RENEW-Backed Company Become Gender-Smart

<h1 style="text-align:center;">Ethiopia is Moving Towards Data Protection</h1>&nbsp;Ethiopia lacks a unified and comprehensive legal framework that governs privacy and data protection. However, there are protections scattered throughout different legislations, including the Constitution, the Criminal Code, the Civil Code, the Computer Crime Proclamation, and the Freedom of the Mass Media and Access to Information Proclamation. Even though the country doesn’t have a comprehensive data protection regulation nor a national data protection body, the regulatory bodies under these sector-specific legislations have the power to regulate data protection issues within their regulatory scope.However, the protections provided throughout these scattered legislations are not comprehensive. Specifically, considering the current digital world, a country typically has a comprehensive data protection system.&nbsp;In this context, the government of Ethiopia, through the Ministry of Innovation and Technology, recently took the initiative to draft a personal data protection proclamation. This draft personal data protection proclamation, which is the first by its nature in Ethiopia, is expected to be approved by the Council of Ministers this year (1). The proclamation, once enacted, will be vital in regulating the use and protection of personal data. In this blog, we summarize what this draft proclamation will cover.<figure class="image image_resized" style="width:100%;"><img src="/uploads/ethipia1_778f456404.jpg"></figure><h3>The Regulator&nbsp;</h3>The Ethiopian Data Protection Commission (the “Commision”) is envisioned under the draft proclamation as a national data protection institution. The Commission is proposed as a self-governing body accountable to the House of People's Representatives (HPR). The HPR also appoints the Commission's commissioner and deputy commissioners. The draft proclamation emphasizes the Commission's institutional independence, requiring commissioners to act with total independence and impartiality, neither seeking nor accepting orders.The Commission is charged with a wide variety of regulatory responsibilities. These include overseeing the implementation of the data protection law, keeping a register of data controllers and processors and undertaking audits of practices and policies of data controllers and processors, investigating complaints, and conducting search and seizure, among others. Furthermore, the draft proclamation also envisions the possibility that the Commission may be entrusted with additional roles in sector-specific data protection schemes.<h3>Rights of Data Subjects</h3>The draft proclamation contains fundamental data subject rights including the right to be informed, right of access, right to rectification, right to erasure, right to object to processing, right not to be subject to automated decision making, restriction right and right to data portability.<h3>Data Processing Requirements</h3>The draft proclamation envisages two levels of criteria for the authorized handling of personal data. First, it specifies the broad parameters for legitimate processing. Any processing will be lawful if it is based on the data subject's consent, which must be free, informed, explicit, unambiguous, and capable of withdrawal and granted before the start of the processing. It also provides other grounds for authorized processing, such as the fulfillment of contractual commitments, vital interests of the data subject, and public interest. Secondly, it defines the circumstances under which sensitive personal data, as well as data belonging to children, may be treated, setting of organizational and technical security measures, data protection impact assessments, prior authorization and data protection by design. Though the requirements may apply for various circumstances, failures to meet these requirements would make the processing unlawful. There will also be general requirements for personal data processing to be lawful including prior registration of data controllers and processors and appointments of data protection officers.&nbsp;<h3>Exemptions for Certain Categories of Data Processing</h3>An exemption for certain categories of data processing is provided in the draft proclamation. All of the exemptions concern the processing of personal data undertaken in the public interest. These are:&nbsp;<ul><li>When the processing is done for national security, defense, or public security purposes, including when the Prime Minister grants or certifies an exemption thereof;&nbsp;</li><li>When the processing is to prevent, investigate, and prosecute crimes, as well as the execution of penalties;&nbsp;</li><li>Processing to safeguard the general public interest, including the state's economic interests;&nbsp;</li><li>Processing to uphold judicial independence and judicial proceedings;&nbsp;</li><li>Processing for purposes of protecting data subjects or the rights and freedoms of others; and</li><li>Processing for purposes of historical, statistical or scientific research.</li></ul><h3>Data Breach Notification Requirements</h3>When a data breach occurs, the draft proclamation specifies two levels of notification: notification to the Commission where the breach is likely to constitute a "risk" to an “individual’s" rights and freedoms and notification to the data subject (the individual whose personal data is breached) when it’s likely to pose a high risk to the rights and freedoms of the individual. In principle, notification of the data breach should be provided to the Commission and data subjects within 72 hours unless the data controller has a reason for the delay.<h3>Transborder Data Transfer&nbsp;</h3>The provisions of the draft proclamation are the direct reflection of the General Data Protection Regulation (GDPR). The GDPR is the comprehensive data protection regulation of the European Union (EU) but applies to data controllers and processors in jurisdictions outside the EU provided they handle the personal data of EU citizens. When considering adopting personal data protection laws, many countries are considering laws in line with the GDPR for a variety of reasons. One of the reasons is to enable transborder personal data flow while avoiding statutory inconsistencies.&nbsp;The draft proclamation stipulates possible grounds by which the transborder transmission of personal data is allowed. Accordingly, the transmission of personal data from Ethiopia is permitted only if the third-party jurisdiction (any country other than Ethiopia, international organizations, and its subordinate bodies) provides an adequate level of data protection. The Commission will decide whether a third-party jurisdiction has an adequate degree of protection by taking into account two layers of considerations: general and specific.&nbsp;The general consideration encompasses all factors relating to a specific or group of data transfer procedures. The type of the data, the purpose and length of the intended transfer, and the state of the rule of law in the third-party jurisdiction are all vital particular concerns. It is worth noting that the Commission may restrict, suspend, or impose limits on transfers to third-party jurisdictions judged to have adequate levels of protection to preserve the data subject's rights and freedoms.&nbsp;There are, however, exceptions where personal data can be transferred to a third-party jurisdiction without meeting the adequate standard assessment by the Commission. These are: (i) when the data subject gives explicit consent to the proposed transfer after being informed of the lack of appropriate protection in the third-party jurisdiction; (ii) when the transfer is required to achieve certain legitimate aims of the data subject, data controller, or both, as well as for matters of public interest; and (iii) when the transfer is from a public register.The draft proclamation further provides the possibility of limited transfer of personal data to the third party jurisdiction, when the data subject gives his or her agreement to the transfer and elements of the data are omitted or reduced. However, authorization by the Commission may be required.&nbsp;<h3>What Happens if the Data Protection Laws are Breached?</h3>Under the draft proclamation, data subjects can file a complaint with the Commission if they believe their rights have been violated. In addition to the data subjects, if the Commission has any doubt about the contravention of the proclamation or any subsidiary laws, it can launch an investigation or cause an investigation to be initiated. Unless the Commission has reason to suspect or doubt the complaint (i.e. the existence of bad faith), it is required to investigate the case. Furthermore, the Commission is obligated to come up with a solution within a reasonable time frame, giving the data subject the option of going to court if the data subject is dissatisfied with the decisions of the Commission.&nbsp;The data subjects have the right to file an appeal to the Commission when they are unsatisfied with the decision rendered by a data controller. However, the time to appeal is limited and the Commission may dismiss the case for various reasons. Moreover, if the parties are not satisfied by the decision rendered by the Commission they can appeal to the Federal High Court.&nbsp;There are scenarios under which a third party (mediator) engaged on behalf of the Commission may investigate the appeal of the data subject. If the Commission does not authorize a mediator to investigate and settle the parties’ disagreement, it will conduct its investigation and render a decision. Even though filing a complaint is personal, the draft proclamation allows for a proxy. Hence, an agent can convey a client's case on her/his behalf in a written form unless the Commission requires other forms of presentation. The draft proclamation imposes a duty on the Commission to provide adequate assistance to complaints in putting their grievances in writing.<h3>What is Next?&nbsp;</h3>The draft proclamation has been completed by the Ministry of Innovation and Technology and is expected to be presented to the Council of Ministers this year. Once approved by the Council, it will pass to the House of People’s Representatives for final ratification. It will then be published in the Federal Negarit Gazette, marking its coming into force. A number of steps are expected to be taken before and after the enactment in order to operationalize the regulatory body. Creating awareness and building a legal infrastructure suitable for data protection are expected to be the biggest assignments for the government, post enactment. (1) <a href="https://www.capitalethiopia.com/news-news/first-structured-personal-data-protection-proclamation-in-the-making/">https://www.capitalethiopia.com/news-news/first-structured-personal-data-protection-proclamation-in-the-making/</a>.

Ethiopia is in the Process of Enacting a Data Protection Act 

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Ethiopia is Moving Towards Data Protection 

<h1 style="text-align:center;">A CSR Opportunity in Addis</h1>TAPCOO (Tesfa Addis Parents Children Cancer Organization), a nonprofit organization (NPO) in Addis Ababa, Ethiopia, was established by parents of children with cancer and other individuals who have an interest in helping children with cancer and their families who have no place to stay in Addis Ababa during their children’s clinical treatment.<figure class="image"><img src="/uploads/2021_10_13_15_56_42_d6c049a08d.jpg"></figure>The organization recently invited the RENEW team to their care center in Addis Ababa. A cohort of 16 team members traveled to the center and donated clothes, children’s books and sanitary items to the families that are&nbsp; staying at the center. We spent a few memorable and impactful hours with them and saw firsthand what the wonderful home provided to children from across Ethiopia who are undergoing cancer treatment.<figure class="image"><img src="/uploads/2021_10_13_15_54_37_d4e0d3216f.jpg"></figure>They have beautiful, clean and spacious rooms where moms can stay with their children while they're receiving treatment at the Black Lion Hospital in Addis Ababa. Dads are housed in a separate part of the facility but are still close enough to support their wives and children through this challenging time of their lives. In addition, the organization has various projects that enable parents to earn extra money while their children are receiving treatment.<figure class="image"><img src="/uploads/2021_10_13_15_50_43_0631353c7e.jpg"></figure>The home currently houses 150 children in their Addis Ababa facility and has branches in two other major cities in Ethiopia. Though recent data is unknown, according to a <a href="https://bmccancer.biomedcentral.com/articles/10.1186/s12885-021-08014-0">2015 source</a>, hospital records in Ethiopia show about 6,000 new cases of pediatric cancer each year.&nbsp; According to the World Health Organization, approximately 400,000 children and adolescents of 0-19 years old are diagnosed with and suffer from cancer each year around the world (<a href="https://www.who.int/news-room/fact-sheets/detail/cancer-in-children">World Health Organization, 2021</a>).&nbsp;&nbsp;To find out more or to consider donating, check out <a href="http://tapcco.org/contact-us/">http://tapcco.org/contact-us/</a>

A visit to the Tesfa Addis Parents Nonprofit Organization 

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