<h1 style="text-align:center;">Compelling Incentives to Invest - Is a Tipping Point Near?</h1>As Western investors slowly begin seeing potential in Africa, we'll probably begin seeing more articles like <a href="http://www.bloomberg.com/apps/news?pid=20601080&amp;sid=aeuJT_pSE68c">Ethiopian Farms Lure Investor Funds as Workers Live in Poverty</a> coming from main-stream investment publications like Bloomberg. As African leaders shift their focus from aid to investments, they hope that market drivers will help take their economies up the <a href="http://www.doingbusiness.org/EconomyRankings">World Bank rankings</a>, and flood their markets with foreign direct investment. Africa's leaders can now be found as frequently on Wall Street asking for investments, as they can in Washington, D.C. asking for aid. The Fortune article, <a href="http://money.cnn.com/2008/02/13/magazines/fortune/gunther_africa.fortune/index.htm">Investment in Africa Starts to Pay Off</a>, reads, "...virtually every country, their presidents, and even the leaders of the opposition parties, have gotten on the same page regarding the primacy of the private sector, the need to deregulate, and the importance of attracting foreign investment. Centralized planning, state control of assets and socialistic rhetoric, for the most part, are dead. Market forces have won."The U.S. only has a handful of funds actively investing in Africa, while India, China, the Middle East and Europe are moving in to take advantage of the handsome social and financial returns Africa is offering. So, although considerable amounts of perceived and actual risk exist, the questions is out there: is a tipping point near?Let us know your thoughts.

As Western investors slowly begin seeing potential in Africa...

EDITORIAL.png_1.jpg

Compelling Incentives to Invest - Is a Tipping Point Near?

<figure class="image image-style-align-center"><img src="/uploads/photo_2_3_338a22f9f6.jpg"></figure><h1 style="text-align:center;">Exporting Entrepreneurship and Innovation</h1>I had the honor of speaking on a panel at the <a href="https://www.un.int/kenya/news/2015-global-entrepreneurship-summit-ges-nairobi-kenya-25-26-july-2015">Global Entrepreneurship Summit</a> (GES) in Nairobi, Kenya, July 25 and 26, 2015. The energy in Nairobi was high for several reasons, including, of course, the presence of the President of the United States Barack H. Obama, “a son of Kenya” as the local newspapers like to call him. It was the first time a sitting U.S. president visited the country.More than a thousand entrepreneurs, investors and ecosystem partners from around the world woke up before dawn on Saturday morning and traveled to the United Nations compound in Nairobi to await his arrival. During the hours of waiting inside the auditorium at the compound, I was honored to sit with Lesa Mitchell (<a href="http://instigating.co/">Instigating+co.</a>), Philip Auerswald (author of <a href="http://auerswald.org/">The Coming Prosperity</a>, professor at George Mason University, and co-chair of the <a href="http://www.gern.co/">Global Entrepreneurship Research Network</a>), and Derek White (Chief Design and Digital Officer for <a href="http://www.barclaysaccelerator.com/location-london.html">Barclays Accelerator</a>). Jim Sorensen, the Utah founder of the <a href="http://sgiicenter.com/">SGII Center</a>, and <a href="http://www.coons.senate.gov/">U.S. Senator Christopher Coons</a>, a leader in the Senate Foreign Relations Committee, were close by. What a pleasure it was to engage intellectual thought leaders regarding topics such as the bitcoin and blockchain movements, electronic intellectual property rights, the experience economy, and most importantly, entrepreneurship, as we awaited the founder of the summit, President Obama.<figure class="image image-style-align-center image_resized" style="width:75%;"><img src="/uploads/photo_2_1_1_0_42b94805cd.jpg"></figure>In the days leading up to GES, I also participated in two wonderful events organized in part by <a href="http://www.vilcap.com/">Village Capital</a>: “Pitch for Impact”, hosted by <a href="http://casefoundation.org/">The Case Foundation</a>, SGII Center and the <a href="http://www.doen.nl/web/about-DOEN/About-the-DOEN-Foundation.htm">DOEN Foundation</a>, and “Celebrating Entrepreneurship”, hosted by the Case Foundation and Barclays. Both events provided additional opportunities to experience the entrepreneurship ecosystem in Nairobi, including <a href="http://www.ihub.co.ke/">iHUB</a> and scores of entrepreneurs and other investors (be sure to check out <a href="http://www.barclaysafrica.com/barclaysafrica/Supply-Chain-Challenge">#BarlcaysAfricaChallenge</a>).<figure class="image image-style-align-center image_resized" style="width:75%;"><img src="/uploads/photo_3_1_253c5233ca.jpg"></figure>it was the first time I had participated in GES, and I left Nairobi reinvigorated about America’s role in the world. The President made a commitment six years ago to, in summary, export the American spirit of entrepreneurship and innovation – now this is something I can support! From my world in Addis Ababa, Ethiopia and my travels around the globe, it has become clear to me that promoting entrepreneurship is key for the United States to maintain, and perhaps in some places even regain, our diplomatic relevance. During the past year, President Obama even named several <a href="http://blogs.wsj.com/washwire/2015/05/11/meet-president-obamas-entrepreneurship-ambassadors/">U.S. Ambassadors for Entrepreneurship</a>, including ABC’s Shark Tank favorite, <a href="http://daymondjohn.com/">Daymond John</a>, who I had the pleasure of meeting briefly. Ambassadors for Entrepreneurship - what a great idea!<figure class="image image-style-align-center image_resized" style="width:75%;"><img src="/uploads/photo_4_69bbe8c74d.jpg"></figure>Thanks to some of our partners at <a href="http://www.usaid.gov/">USAID</a>, I was asked to sit on an angel investing and crowdfunding panel. The panel was wonderfully moderated by Michael Ducker of <a href="http://jeaustin.com/about/">J.E. Austin Associates, Inc.</a> It also included Rich Hoops, a quintessential example of an angel investor, Hossam Allam, who leads the <a href="http://www.cairoangels.com/">Cairo Angels</a>, and Cecile Watson, who is pioneering a Caribbean crowdfunding platform called <a href="http://pitchandchoose.com/">Pitch and Choose</a>. It was a great, diverse panel that engaged audience of 80+ entrepreneurs and investors, including Suzanne Biegle of <a href="http://www.clearlysocialangels.com/">Clearly Social Angels</a>, Dan Awendo of <a href="http://www.investeqcapital.com/">Investeq Capital</a>, and Ben White of <a href="https://vc4africa.biz/">VC4Africa</a>.As President Obama instructed in closing the summit, “Go out and start something.” And when you do, persist and persist and persist in your vision until you change the world around you.

Laura Davis attends the 2015 Global Entrepreneurship Summit.

photo_4.jpg

Exporting Entrepreneurship and Innovation

<h1 style="text-align:center;">Investing On The Frontier Podcast Series</h1>RENEW presents our new podcast series <a href="https://soundcloud.com/renewstrategies">Investing On The Frontier</a>. In this series, the RENEW team will be sharing unique insights on all things impact investing, life in Africa, remarkable stories of entrepreneurship, and a variety of other real and raw topics that we hope will leave you looking at the world a little differently.Investing On The Frontier’s first episode (Trust Your Gut) opens with Matt and Laura Davis getting ready to travel back to their home in Ethiopia, a 7,000-mile voyage that can prove to be a time consuming and exhausting process.<div class="raw-html-embed"><iframe width="100%" height="166" scrolling="no" frameborder="no" allow="autoplay" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/223071716&amp;color=ff5500"></iframe><div style="font-size: 10px; color: #cccccc;line-break: anywhere;word-break: normal;overflow: hidden;white-space: nowrap;text-overflow: ellipsis; font-family: Interstate,Lucida Grande,Lucida Sans Unicode,Lucida Sans,Garuda,Verdana,Tahoma,sans-serif;font-weight: 100;"><a href="https://soundcloud.com/renewstrategies" title="Investing On The Frontier" target="_blank" style="color: #cccccc; text-decoration: none;">Investing On The Frontier</a> · <a href="https://soundcloud.com/renewstrategies/trust-your-gut" title="Trust Your Gut" target="_blank" style="color: #cccccc; text-decoration: none;">Trust Your Gut</a></div></div>The pair briefly discusses the next three months’ upcoming activity, from working with our current portfolio companies, to developing our investment pipeline, to closing additional investments. Our teams in the U.S. and on the ground in Ethiopia are working around the clock across multiple time zones to ensure that both the portfolio and pipeline continue to grow. The podcast also describes how RENEW is gearing up for several Econ-Tourism Trips that are to take place this fall and winter.In this episode, you will hear about the importance of listening to your gut in investment environments where the numbers, legal structures and systems are not always as standardized as in the West.We hope you listen in to get firsthand perspectives from the RENEW team on investing in Africa. Have thoughts on what you would like to hear about in the future? We would love to hear from you!

RENEW produces its first episode on trusting your gut.

soundcloud-4.jpg

Investing On The Frontier Podcast Series

<h1 style="text-align:center;">Matthew Davis, CEO of RENEW LLC, has earned the prestigious Chartered Financial Analyst® (CFA®) designation.</h1><figure class="image"><img src="/uploads/cfalogo_registered_2d37704023.jpg"></figure>"The CFA charter, the most respected and recognized investment credential in the world, represents a tradition of upholding the highest standards of education and integrity in the investment profession. The charter is recognized globally by employers, investment professionals and investors as the definitive standard by which to measure the competence, integrity and dedication of serious investment professionals," as indicated at <a href="http://www.cfainstitute.org/">www.cfainstitute.org</a>.Matt has extensive experience facilitating international investments in sub-Saharan Africa and South Asia. Matt has an undergraduate degree in physics and a master’s of science in physics and business. Matt passed all three levels of the CFA exams on the first attempt.About CFA Institute: &nbsp;<a href="https://www.cfainstitute.org/">CFA Institute</a> is the global association for investment professionals. It administers the CFA and CIPM curriculum and exam programs worldwide; publishes research; conducts professional development programs; and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 115,000 members, who include the world’s more than 100,000 CFA charterholders, in 138 countries and territories, as well as 138 affiliated professional societies in 60 countries and territories. More information may be found at www.cfainstitute.org.CFA Institute marks here are trademarks owned by CFA Institute.

cfa-1.jpg

Matthew Davis Earns Prestigious Chartered Financial Analyst® Designation

<h1 style="text-align:center;">Preparing for a New Era of Africa</h1>The second episode of <a href="https://soundcloud.com/renewstrategies/preparing-for-a-new-era-of-africa-1">Investing On The Frontier</a> beings with hosts Matt and Laura Davis hiking on the trails of Entoto Mountain in preparation for their climb up Mount Kilimanjaro (Tanzania) in a few weeks. This episode also coincides with the Ethiopian Orthodox holiday of Meskel, where hundreds of individuals light small bonfires in honor of Queen Eleni, who was instructed to build a bonfire and told that the smoke would reveal the location of the true cross. Be sure to check out <a href="entoto-observations.html">Laura’s blog</a> on her observations and reflections of this year’s celebrations.In keeping with the theme of preparation, Matt and Laura share insights that will help listeners prepare for a new era on the continent of Africa. RENEW advocates and believes that the continent will experience significant growth over the next few decades, and Westerners should start engaging with Africa in a new way and not miss out on this great business opportunity. We need to better understand and become familiar with the cultural, economic and investment environments of the 54 different countries that make up this great continent.<div class="raw-html-embed"><iframe width="100%" height="166" scrolling="no" frameborder="no" allow="autoplay" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/226637377&amp;color=ff5500"></iframe><div style="font-size: 10px; color: #cccccc;line-break: anywhere;word-break: normal;overflow: hidden;white-space: nowrap;text-overflow: ellipsis; font-family: Interstate,Lucida Grande,Lucida Sans Unicode,Lucida Sans,Garuda,Verdana,Tahoma,sans-serif;font-weight: 100;"><a href="https://soundcloud.com/renewstrategies" title="Investing On The Frontier" target="_blank" style="color: #cccccc; text-decoration: none;">Investing On The Frontier</a> · <a href="https://soundcloud.com/renewstrategies/preparing-for-a-new-era-of-africa-1" title="Preparing for a New Era of Africa" target="_blank" style="color: #cccccc; text-decoration: none;">Preparing for a New Era of Africa</a></div></div>Be sure to tune in and listen to Matt and Laura’s recommendations on how listeners can start coming to terms with and shifting their perspective towards the “New Africa”.&nbsp;

Tune in for the second episode in RENEW’s podcast series, Investing On The Frontier.

screen_shot_2015-11-06_at_10.06.46_am_0.png

Preparing for a New Era of Africa

<h1 style="text-align:center;">#askRENEW: Live Google+ Hangout with CEO Matt Davis</h1>Want to Learn More About Impact Investing, Ethiopia and a New Strategy for Africa?Join the RENEW team on August 22 at 2pm EST for a <a href="https://plus.google.com/u/0/events/ch7glv1ifdp2g7kjf7munusjk5o">Google+ Hangout</a> with our CEO Matt Davis. Listen as Matt shares RENEW's recent impact investing activity in Ethiopia and answers your questions via Google+, Twitter and Facebook using #askRENEW.Here's How to Join Us:1. RSVP to the hangout <a href="http://ow.ly/nNeHH">here.</a>2. Use #askRENEW to ask Matt all your impact investing questions from now until Wednesday August 21 on the <a href="http://ow.ly/nNeHH">Google+ event page</a>, Twitter or Facebook.3. We’ll pick seven people who ask questions using the hashtag #askRENEW to join Matt in the hangout, and they’ll get to ask Matt their questions live on air!4. On Thursday August 22 at 2pm EST, be sure to check out our <a href="http://ow.ly/nTNAn">YouTube Channel</a> to join in the conversation and watch the hangout live!Have Questions? Tweet <a href="https://twitter.com/RENEWLLC">@RENEWLLC!</a>

Join RENEW's CEO Matt Davis for a Google+ Hangout August 22.

renew_-_logo_-_tag_-_small_19.png

#askRENEW: Live Google+ Hangout with CEO Matt Davis

<h1 style="text-align:center;">2014: What's Next</h1>Next year will be focused on scaling. We plan to make more great investments and focus on adding value to our portfolio companies. We will also be doing more work with our angel network. We plan to work more closely with our current chapters and expand organically into a few more cities. We’ll be offering our angels more trip options, benefits for their family members, and creative ways for them to help engage and work with their investments.We will also embark on some innovative projects to strengthen our analysis by gathering and mining sources of local market data, and monitoring and evaluating our portfolio so we can accurately capture and report post-investment metrics.Finally, we hope to create some great success stories, and we will do our best to profile these throughout the year.So stay tuned. Thank you all for your continued support of our company, and we hope to hear from you soon.<figure class="image"><img src="/uploads/photo_ethiopia_whats_next_for_2014_fc1a0de3da.jpg"></figure>Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

A look into what's in store for RENEW in 2014.

2014: What's Next

<h1 style="text-align:center;">Financing Ethiopia’s Ambitious Economic Plans</h1>Economists, business leaders, investors, development partners, government leaders, local and international journalists and a host of others focused their attention on Addis Ababa last week with The Economists’ <a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">2015 Ethiopia Summit</a>, held at the Sheraton on October 28th and 29th.<figure class="image"><img src="/uploads/img_8243_1_128a3eec8e.jpg"></figure>His Honorable Excellency Prime Minister Hailemariam Desalegn of the Federal Democratic Republic of Ethiopia opened the event, sharing some high level thoughts on Ethiopia’s economic accomplishments and plans. Next, Dr. Arkebe Oqubay, a senior advisor to the Prime Minister and the former mayor of Addis Ababa, gave a very succinct overview of the government’s development plans as described in the Growth and Transformation Plan II, which in some ways was formally launched at the event. Dr. Oqubay detailed how the government is aiming for continued economic growth at around 11% per year and plans to focus on growing the manufacturing, agriculture and export industries. The government is also aiming to help create two million jobs in the next ten years. He described how the government looked closely at the economic development plans and accomplishments of countries such as China, South Korea, Vietnam and Brazil, and used several of their lessons learnt and best practices to map out the country’s future economic goals.Both Dr. Oqubay and Prime Minister Desalegn mentioned the need for increasing local and foreign investment, encouraging groups like RENEW and the Impact Angel Network (IAN) to invest in textiles, leather, agro-processing, clean energy, steel, cement and chemicals. And, while some of these investments are larger than RENEW and the IAN’s focus (our sweet spot is $500K to $1.5M per deal), Dr. Oqubay stressed the need to invest in small and medium enterprises to fuel growth at all levels in the private sector.The government appeared determined to continue building, and in some cases owning, critical infrastructure, including EthioTelecom (a government owned entity), industrial parks, and the railway system to Djibouti, which is estimated to cut transportation costs by one half. At the same time, government leaders at the summit were clear that they would not be opening up the banking sector to foreigners for at least another five years, as they feel they do not yet have the capacity to regulate international banks. Dr. Oqubay spoke about the current challenges of the country (infrastructure and human capital), which the government will continue to work on within the context of their ‘state led capitalism’ plan.<figure class="image"><img src="/uploads/img_8257_1_8bc617077f.jpg"></figure>Later in the day, RENEW’s Matthew Davis, along with a powerhouse panel of international and local investment bankers, took the stage to discuss the “financing of Ethiopia’s ambitious plans.” Matthew’s fellow panelists included Davinder Sikand, Partner of The Abraaj Group; Helaway Tadesse, Senior Vice President and Chair of Management Credit Committee of Zemen Bank; and Sergei Stankovski, Managing Director of Goldman Sachs. Matthew’s main points were to be successful in Ethiopia investors need to “get small”, “play by the government’s rules” and “don’t complain about the challenges.”<figure class="image"><img src="/uploads/img_8260_2_dae07cca2d.jpg"></figure>Following the panel, Hailu Tessema, one of the owners of Mama Fresh Injera PLC (a RENEW portfolio company), held a one-on-one interview with the Xan Smiley, the Editor-at-Large of The Economist, about “doing business in Ethiopia.” Hailu challenged the assumption that obtaining debt financing was an issue for companies in Ethiopia, and stressed how the Ethiopian government has helped ensure small, local companies are having access to foreign markets through partnership with companies like RENEW, which are helping increase exports and modernize cottage industries like injera manufacturing.Overall, the summit was a success and important for Ethiopia, as it brought the country’s economic progress and plans into the global spotlight, and gathered investors from around the world to hear about the prospects and challenges of investing in one of the next great investment frontiers.

RENEW reflects on its time at The Economist's 2015 Ethiopia Summit.

the_economist_-_2.jpg

Financing Ethiopia’s Ambitious Economic Plans

<h1 style="text-align:center;">RENEW Speaks at the Leeds School of Business</h1>RENEW's Tom Scriven was invited to speak to a class of about 30 MBA students at the University of Colorado's Leeds School of Business on March 4. The topic was "Financing Sustainable Change: Cleantech and Impact Investing."Among topics discussed were the opportunities and challenges facing Ethiopia as its economy grows. Significant investments in infrastructure and a growing middle class in the second most populous country in sub-Saharan Africa present remarkable opportunities for business growth at rates which would be seen as "too good to be true" in most other countries of the world. The conversation also included discussing ways to minimize some of the risks associated with these investments and opportunities to attract more public and private sector funds into investments that have potential for both significant financial and social returns.<figure class="image"><img src="/uploads/20140304_183658_9dcc35a44c.jpg"></figure>Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

Founder Resources