<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 Proclamation No. 1056/2019, which repealed Proclamation No. 377/2003, came into effect on September 5, 2019.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 Surprisingly, the repealed labor proclamation did not define ‘Sexual Violence’ or ‘Harassment’, nor did it provide for any consequences for offenders.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Reduction of the WorkforceThe repealed proclamation had established a retainer arrangement for certain groups of employees during a reduction of the workforce by an employer.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.

Notable change in terms of protecting the rights of women employees in Ethiopia

img_9202_fotor_0.jpg

The Rights of Women Employees Under the New Employment Law

<h1 style="text-align:center;">Following Along with Travel Ethiopia</h1>You may have noticed that we at RENEW often share proudly when we close an investment, but we don't always do a good job of sharing stories that allow you to follow along with the incredible entrepreneurs we partner with. Today, we’d like to give you a closer look into Travel Ethiopia.Samrawit Moges graduated from <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec's Program</a> and, in late 2019, received an investment from the Impact Angel Network. The investment helped her company, <a href="https://www.travelethiopia.com/">Travel Ethiopia</a>, enhance its corporate governance and will allow her company to bring on a professional to improve its back and front office systems in order to become a top tour company in Ethiopia. Samrawit graduated from Addis Ababa University in 1983 where she studied journalism. After graduating, she entered a compulsory lottery to draw the institution she would be working for. She ended up drawing the national tour operator.<figure class="image image_resized" style="width:100%;"><img src="/uploads/samrawit_0_91ff51b895.jpg"><figcaption>Image Source: Love Everything Travel: <a href="https://loveeverythingtravel.com/interview-with-samrawit-moges-travel-entrepreneur-in-ethiopia/">Interview with Samrawit Moges | Travel Entrepreneur in Ethiopia</a></figcaption></figure>In 1994, she and her husband founded Travel Ethiopia using personal savings as start-up funding. At the time, they hired five people, and now she employs 41, of which 40% are women. In 2019, Samrawit lost her husband, and is now continuing forward with the company they founded. Determined to leave a legacy, Samrawit is passionate about exposing predatorial tour companies that cater to prostitution in Ethiopia. She is proud to be the first company to hire and train female tour guides.Read more about the<a href="https://drive.google.com/file/d/1rycvnlOOmX9CSqhsJg6WAYeLWzhuCIHU/view?usp=sharing"> investment</a> from the IAN, and check back soon for more photos of Samrawit along with more information about how our Accelerating Business Growth program with <a href="https://www.canada.ca/en.html">Global Affairs Canada</a> and The Exec's Program she participated in are impacting her business.Learn more about Samrawit in the following interviews:<ul><li>Macropolis: <a href="https://marcopolis.net/exclusive-interview-with-travel-ethiopia-a-woman-led-tour-operator-from-ethiopia.htm">Exclusive Interview with Travel Ethiopia, a Woman-Led Tour Operator from Ethiopia</a></li><li>Love Everything Travel: <a href="https://loveeverythingtravel.com/interview-with-samrawit-moges-travel-entrepreneur-in-ethiopia/">Interview with Samrawit Moges | Travel Entrepreneur in Ethiopia</a></li></ul>

samrawit_0.jpg

Following Along with Travel Ethiopia

<h1 style="text-align:center;">RENEW’s Gender Equality Report Card</h1>As International Women’s Day approaches on March 8, I thought it would be a good time to take a step back and look at RENEW’s scorecard as it relates to gender equality. While we aren’t perfect, gender equality and gender-smart policies are something we genuinely aim for. Here’s how that currently stacks up.<ul><li>55% of the SMEs currently in the IAN's <a href="https://www.renewcapital.com/portfolio">portfolio</a> have female shareholders.</li><li>60% of the jobs provided across our portfolio are held by women.</li><li>43% of participants in <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec’s Program</a> are women.</li><li>36% of the professionals in the <a href="https://www.renewcapital.com/resources/blogs/Building%20a%20New%20Class%20of%20Finance%20Executives%20for%20Ethiopia">CFO100</a> are women.</li><li>43 or 28% of the <a href="https://www.renewcapital.com/apply">Impact Angel Network</a> members are women. We want to have more women join the IAN.</li><li>And finally, 47% of RENEW’s <a href="https://www.renewcapital.com/about/teams">professional team</a> are women.</li></ul>To read real-life perspectives from some of these key stakeholder groups referenced above, check out the following blogs:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Desta%20is%20Like%20Family">Desta is Like Family</a> (Tadelech Buto, a manager in the textile sector)</li><li><a href="https://www.renewcapital.com/resources/blogs/An%20Angel%20Investor%E2%80%99s%20Perspective">An Angel Investor’s Perspective</a> (Beth Marquette, an Impact Angel Network member)</li><li><a href="https://www.renewcapital.com/resources/blogs/Made%20in%20Ethiopia">Made in Ethiopia</a> (Lulit Negash, a former RENEW team member)</li></ul><figure class="image"><img src="/uploads/renew_team_e3591578e1.png"><figcaption>Photo by Ian Christmann: <a href="http://ianchristmann.com/">www.ianchristmann.com</a></figcaption></figure>&nbsp;

We aren’t perfect, but we are proud of our results!

Gender Equality

renew_team.png

RENEW’s Gender Equality Report Card

<h1 style="text-align:center;">Gender Equality: When the Market Demands It, the Private Sector Will Respond</h1>I have been asking myself the question, “what will it take to achieve genuine gender equality in companies in sub-Saharan Africa?” After all, we still face massive inequalities in the West. I look eagerly toward the day when we no longer need to bring attention to and advocate for women through wonderful efforts like International Women’s Day. It may take us decades yet, but even in the last few years, sentiments and actions are shifting in what I believe to be the right direction.As consumers, investors, entrepreneurs, governments, the development community, and as women, we must all take responsibility and align our behaviors and policies to ensure we move the public sentiment in the right direction.<figure class="image"><img src="/uploads/destaian_0_2810ad183e.png"><figcaption>Photo by Ian Christmann: <a href="http://ianchristmann.com/">www.ianchristmann.com</a></figcaption></figure>I think we can, and here’s a tangible example of how I can see it working. It upsets me to visit companies in Ethiopia, or anywhere in the world for that matter, where the workers are not using personal safety equipment. When I ask managers or entrepreneurs, they often say, “we provide the equipment, but we can’t make them wear it.” While I know it is difficult to achieve compliance with safety standards across organizations, this comment really frustrates me. First, I believe it starts with leadership. Second, building a culture of compliance and the understanding of “why” something is important is possible. But recently, I noticed something new. I visited one of our portfolio companies that has achieved a host of internationally recognized accreditations. The company is audited annually by related organizations. I also heard from the entrepreneur about the latest string of buyers and their requirements prior to sending a purchase order. I have seen the entrepreneur invest in additional safety features for the building and policies for the work environment. I saw compliance across the company for simple things like earplugs and steel glove usage, and I said to myself...Aha... When the market demands it, the private sector responds. On the issue of safety, I have seen it work. I believe we can do the same thing with gender.The development community, including <a href="https://www.international.gc.ca/gac-amc/index.aspx?lang=eng">Global Affairs Canada</a> and their <a href="https://www.international.gc.ca/world-monde/issues_development-enjeux_developpement/priorities-priorites/policy-politique.aspx?lang=eng">Feminist Assistance Policy</a>, has set the bar for other stakeholders to follow. They are doing their job. So whether you are an Ethiopian government official, a consumer, an investor or an entrepreneur, let’s do our part. Let’s think about ways we can insist on gender equality and gender-smart policies in the companies you work with. We can do this!

We can insist on genuine gender smart policies!

destaian_0.png

Gender Equality: When the Market Demands It, the Private Sector Will Respond

<h1 style="text-align:center;">March 2020 Resource Blog</h1>For this month’s resource blog, we collected articles on gender equality and women in the workforce in honor of International Women’s Day on March 8. Read through the articles below to learn more about gender equality in Africa and in the venture capital and private equity space.<ul><li><a href="https://www.mckinsey.com/featured-insights/gender-equality/the-power-of-parity-advancing-womens-equality-in-africa">The Power of Parity: Advancing Women’s Equality in Africa</a> - A McKinsey report makes the economic case for gender parity in Africa. The punchline: $316B could be added to the continent’s GDP in 2025 if all countries matched the progress towards gender equality of their best-performing neighbor. (McKinsey &amp; Company)</li><li><a href="https://www.theguardian.com/global-development/2020/jan/20/worlds-22-richest-men-wealthier-than-all-the-women-in-africa-study-finds?CMP=Share_iOSApp_Other">World’s 22 Richest Men Wealthier than All the Women in Africa, Study Finds</a> - Oxfam calculates that the world’s 22 richest men are wealthier than all the women in Africa, with a total of 12.5B hours a day of unpaid care work. (The Guardian)</li><li><a href="https://www.weforum.org/agenda/2019/04/how-women-vcs-invest-says-a-lot-about-the-inequality-in-their-field">How Women Venture Capitalists Invest Says a lot About the Inequality in their Field</a> - The vast majority of female VCs are investing primarily in early-stage startups, in the seed and series A funding rounds. Part of the reason they are investing mostly in the early stages is that female VCs have trouble pooling the large sums of money needed for later-stage funding, says Jessica Peltz, a partner at VC firm MDC Ventures. “It’s a big problem,” she adds. (World Economic Forum)</li><li><a href="https://www.ifc.org/wps/wcm/connect/79e641c9-824f-4bd8-9f1c-00579862fed3/Moving+Toward+Gender+Balance+Final.pdf?MOD=AJPERES">Moving Toward Gender Balance In Private Equity Markets</a> - Women are significantly underrepresented among the investment decision-makers at private equity and venture capital firms, as well as in the leadership of companies that receive this investment capital. Women hold only 10 percent of all senior positions in private equity and venture capital firms globally, and women-led enterprises collected less than 3 percent of global venture capital in 2017. (IFC)</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/resourceblog_0_a5d3b90294.jpg"><figcaption>Image Source: World Economic Forum: <a href="https://www.weforum.org/agenda/2019/04/how-women-vcs-invest-says-a-lot-about-the-inequality-in-their-field">How Women Venture Capitalists Invest Says a lot About the Inequality in their Field</a></figcaption></figure>

A focus on gender equality and women in the workforce

resourceblog_0.jpg

March 2020 Resource Blog

<h1 style="text-align:center;">Be the Woman who Fixes Another Woman’s Crown…</h1>International Women’s Day (IWD) is a global day to celebrate the achievements of women, while simultaneously acknowledging and accelerating gender equality. Gender parity is an issue that should be on everyone’s radar, especially businesses. At RENEW, we believe that gender equality and gender-smart companies are enabling factors that, in addition to being just, will also help economies in sub-Saharan Africa thrive. As the IWD website states, “the race is on for the gender-equal boardroom, a gender-equal government, gender-equal media coverage, gender-equal workplaces, gender-equal sports coverage and more gender equality in health and wealth.” (<a href="https://www.internationalwomensday.com/">International Women’s Day</a>).In celebration of IWD, and with gender equality always at the forefront of our work and business, we wanted to highlight a few perspectives from some of the amazing women on our team. These women are from diverse backgrounds and are located across four different countries and two continents where RENEW currently has operations. While we still have work to do to continue our push for gender equality, gender-balanced teams, and gender-smart policies, we’ve taken steps and have set goals to make this a reality (read more about <a href="renews-gender-equality-report-card.html">RENEW’s Gender Equality Report Card</a>). In the meantime, we hope you enjoy these perspectives on the challenges and opportunities our team has seen in the impact investing and investment space.Scroll down or click through to the following team members:<ul><li><a href="#dagi">Dagmawit Shiferaw, Project Manager - Ethiopia</a></li><li><a href="#erin">Erin O’Connor, Marketing &amp; Investor Relations - Canada</a></li><li><a href="#kirsten">Kirsten Newman, Associate General Counsel - U.S.A.</a></li><li><a href="#mary">Mary Adoi, Legal Counsel - Uganda</a></li></ul><figure class="image image_resized" style="width:95.82%;"><img src="/uploads/dagi2_0_77e3f8db27.jpg"></figure><a href="https://www.linkedin.com/in/dagmawit-shiferaw-8665943b/">Dagmawit Shiferaw</a>, Project Manager - Ethiopia:Why did you choose to work with RENEW? What drew you to the company? At first, the job description was very interesting; then during the onboarding the whole vision of the company was in line with my values.What does career success look like? What holds you back? Career success for me is to have impactful work, successful results and appropriate compensation. What might hold me back is my desire to spend more time with my family/kids.Are there any opportunities or challenges you face as a woman in this industry? Opportunities in the industry require critical thinking and careful reasoning which I believe the women have and the industry is acknowledging they need this balance. The challenge is that the industry is more time demanding and it might be challenging for women with a family to accommodate this need. Also, some of the industry players are still not recognizing that women can actually be as good or better than men and are either not giving them the opportunity or are not paying them enough.What is it like working in the investment industry? Do you feel women are well represented in the industry? In impact investing? As a whole impact investing is a new phenomenon in Ethiopia, but usually women are more attracted to impact investing as they witness the social impacts around them and they are usually trying to solve the social challenges by also improving their family’s livelihood. But as the women-owned businesses are often very small, they are not well represented in the impact investing space.Is there a female executive you look up to? If yes, why? Bethlehem Tilahun of soleRebels. She has been able to execute a big vision and have an internationally competitive brand.Is there any advice you have (or have you heard) for women executives or women in finance? For women executives, don't try to do it all. Delegate, know what’s happening in your business (know your numbers), understand what each division does and set milestones to keep them accountable, then track their performance. This will give you confidence and also the respect from your staff.<figure class="image"><img src="/uploads/erin01_154e147c6d.png"></figure><a href="https://www.linkedin.com/in/erinhoconnor/">Erin O’Connor</a>, Marketing &amp; Investor Relations - Canada:Why did you choose to work with RENEW? What drew you to the company? Having worked in the investment industry, I had heard murmurs about impact investing and it became my mission to join a company where my ideals and values would line up with the work I was doing. I was looking for a company that I could get behind, and one that I would feel good about contributing to at the end of the day. That’s when I found RENEW and joining the team was a no-brainer for me.What does career success look like? What holds you back? Career success for me is being with a company that acknowledges your contributions and being in a role that is challenging and always evolving. What holds me back? I think guts. Just having the guts to really grasp for what I want and go for it.Are there any opportunities or challenges you face as a woman in this industry? I think the investment industry as a whole is still male-dominated and has that “boys club” mentality. As a woman, that can be a challenging barrier to break through at times. I do think more and more companies are making concerted efforts to put more women in higher positions and are striving for more gender-balanced teams, which I think is a great opportunity that is slowly presenting itself.What is it like working in the investment industry? Do you feel women are well represented in the industry? In impact investing? I think working in the investment industry, in general, can be challenging at times in terms of being heard and listened to. However, I don’t think you see this bias as much in impact investing. So many impact investing companies and stakeholders are oftentimes trailblazers for gender equality issues. I think the industry as a whole could learn a lot from this sector.Is there a female executive you look up to? If yes, why? I felt a bit corny writing this, but as much as I tried to think of someone well-known, I kept coming back to my mom. She started her own business in a heavily male-dominated industry, and I was always so impressed with how she gained respect and got herself a seat at the table, oftentimes being one of the only women there. I’ve always been inspired by her strong work ethic, the hours she was willing to put in, and seeing how people respected and listened to her.Is there any advice you have (or have you heard) for women executives or women in finance? “Be the woman who fixes another woman’s crown, without telling the world that it was crooked”. I think it’s good work and life advice for women in any role, in any job.<hr><figure class="image image_resized" style="width:100%;"><img src="/uploads/kirsten_2133d69eb7.jpg"></figure><a href="https://www.linkedin.com/in/kirsten-newman-10301aa7/">Kirsten Newman</a>, Associate General Counsel - U.S.A.:Why did you choose to work with RENEW? What drew you to the company? I was looking for meaningful work in the development space, something that had an international focus and that I could be proud to be a part of. After learning about RENEW, I was intrigued by its unique approach to investing and its belief that investing (and not charity) is the best way to empower developing countries.What does career success look like? What holds you back? To me, career success is being in a role that is challenging and stimulating, that pushes me to grow and learn, but that is also rewarding -- that is making a difference in the world in some way -- and that provides a balance between life and work. Doing impactful, challenging, meaningful work (but also recognizing that life doesn't revolve around work).Are there any opportunities or challenges you face as a woman in this industry? I think there are always challenges for women in the finance industry regardless of setting. In my experience, finance in the development space perhaps presents fewer challenges, as the companies and partners we are working with recognize the importance of gender equality and gender-balanced teams. But the typical stereotypes and barriers of women in finance are always out there, regardless of industry or sector.What is it like working in the investment industry? Do you feel women are well represented in the industry? In impact investing? To me, it seems like women are better represented in the impact investing / development space than in the finance industry overall. I think generally in the finance industry, there are still a lot of barriers for women who face the "old boys' club" mentality, but I'm glad to see this being broken down and am pleased with the number of women I encounter in our work at RENEW.Is there a female executive you look up to? If yes, why? I look up to one of the partners at my old law firm -- she was an immigrant, single mother and became a partner at one of the most prominent law firms in the world in eight years (which is basically unheard of these days). She was also only the second female partner in our practice group. She is brilliant, and she stands her ground, never letting anyone in the room speak over her or diminish her voice and opinions.Is there any advice you have (or have you heard) for women executives or women in finance? Overcoming the "impostor syndrome" -- the feeling that you aren't qualified or don't deserve a seat at the table. Own your accomplishments, force yourself to speak out and offer ideas, and recognize that your ideas and input are valuable. Find your voice and use it.<figure class="image image_resized" style="width:100%;"><img src="/uploads/mary_50c9948e6e.jpg"></figure><a href="https://www.linkedin.com/in/mary-adoi-0317b0b8/">Mary Adoi</a>, Legal Counsel - Uganda:Why did you choose to work with RENEW? What drew you to the company? The diversity of the team and hands-on approach to developing economies in developing countries.What does career success look like? What holds you back? Playing a pivotal role in transforming industry and economies across East Africa. What holds me back: Time. With RENEW and similar companies, this impact is a matter of time and concerted effort.Are there any opportunities or challenges you face as a woman in this industry? Surprisingly, none. Coming in, I thought this would not be the case but, I have been pleasantly surprised. The "boys club" has an open door policy.What is it like working in the investment industry? Do you feel women are well represented in the industry? In impact investing? Women are underrepresented at the point of investment and deciding where capital is placed; however, there are more women in the business acceleration/ incubation end of investment.Is there a female executive you look up to? If yes, why? Anne Juuko. She is the youngest and first female CEO of Stanbic Bank Uganda and has risen through the ranks in the financial sector. I look up to her because her appointment was based on merit and she played her part well, in a “man's world".Is there any advice you have (or have you heard) for women executives or women in finance? There are no excuses, you have to do your time.

And other life lessons from the badass women at RENEW

dagi2_0.jpg

Be the Woman who Fixes Another Woman’s Crown…

The ABG project supported high-potential SMEs in Ethiopia to attract and use finance to scale up and play a strong role in the economy, while creating 2,632 jobs (70% for women).

<h1 style="text-align:center;">An Update on the ABG Project</h1>RENEW recently hit the four-year mark of the five-year Accelerating Business Growth Project (ABG) in Ethiopia, a collaboration agreement with <a href="https://www.international.gc.ca/gac-amc/index.aspx?lang=eng">Global Affairs Canada</a>. 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”. Learn more about the project <a href="https://www.international.gc.ca/world-monde/stories-histoires/2021/business-growth-ethiopia-ethiopie-croissance-entreprises.aspx?lang=eng.html">here</a>.With four years completed and the May 2021 finish line quickly approaching, we thought it was a good time to look back and celebrate some of the project outcomes achieved to date (these results are also represented in a visual format below):<ul><li>We are supporting 5,806 jobs across the SMEs in our program of which 3,613 or 62% are held by women. The project target of 5,000 jobs was recently exceeded.</li><li>We have helped SMEs attract $56M CAD in financing for their businesses through 85 investments, to help them scale, create jobs, and contribute to Ethiopia's private sector. 29 of these investments have gone to women-owned businesses, with an average investment size of $493K CAD.</li><li>We have trained and graduated 84 finance professionals (of which 25 are women) and 61 executives (of which 26 are women) from our rigorous CFO100 and Exec's Program training and have equipped them to be strong and ethical managers of Ethiopian SMEs.</li><li>We have trained over 700 SMEs and resource providers on private equity through our PE500 incubator program, equipping them to access or help others access growth capital.</li></ul>As we reflect on this progress and these stories of impact in our <a href="https://www.renewcapital.com/resources/blogs/Celebrating%20our%20Impact">2019-2020 Impact Report</a>, we do so in a subdued manner recognizing the reversal of outcomes that are expected in light of the COVID-19 pandemic's severe impact on East Africa's already fragile private sector. According to ANDE<a href="#section1">[1]</a>, a funding gap of $930 billion already existed for SMEs in emerging markets prior to the pandemic, and this only stands to widen. The RENEW team has been working hard to develop and deliver virtual programs directly helping SMEs respond to the challenges of the current climate under COVID-19 and providing resources and dedicated coaching to help them access much-needed funding during this time.The economy of Ethiopia has increasingly strengthened during the last two decades as industrialization has expanded. Between 1999 and 2015, the poverty rate decreased by 7.6%<a href="#section2">[2]</a>, lifting roughly 8.3M Ethiopians out of poverty. COVID-19 is putting these developmental outcomes at risk by constraining business growth and capital attraction for SMEs which will be most impacted and will require timely support in order to survive. In fact, it is estimated that 42% of all SMEs in Africa are in danger of failing within the next six months<a href="#section3">[3]</a>. For this reason, we believe that programs like ABG, working to leverage capital into SMEs and training local managers to increase their capacity for scaling companies, have the greatest impact on development outcomes.Cover Photo by Ian Christmann: <a href="www.ianchristmann.com">www.ianchristmann.com</a><a href="https://www.macrotrends.net/countries/ETH/ethiopia/poverty-rate">https://www.macrotrends.net/countries/ETH/ethiopia/poverty-rate</a>

4 years into our 5 year project with Global Affairs Canada

abgpic.png

An Update on the ABG Project

<h1 style="text-align:center;">Project Sage 3.0: Wharton’s Gender Lens Investing Report</h1>In July, Wharton’s Social Impact Initiative published <a href="https://socialimpact.wharton.upenn.edu/research-reports/reports-2/project-sage-3/">Project Sage 3.0: Tracking Venture Capital, Private Equity, and Private Debt with a Gender Lens</a> authored by Suzanne Biegel and Sandi M. Hunt. This report illustrates key findings on the current initiative to invest through a gender lens and how it’s being applied in impact investing.“Gender lens investing” is a relatively new term which emerged about ten years ago, and it’s when investments are made to not only generate financial returns, but also to create positive impacts for women. Over the last decade, this ecosystem has expanded to include numerous funds and companies and billions of dollars in investments. Project Sage 3.0 aims to track and present relevant data on the ecosystem and the current trends and insights within this fast growing field. Over the past year in 2019, Project Sage collected data with contributions from 138 funds and structured vehicles, including RENEW.Key findings pulled directly from Project Sage 3.0 Report (page 6).The number of funds continues to grow significantly. Project Sage 3.0 in 2020 identified 138 total funds deploying capital with a gender lens, up 58.6% from the 87 funds in 2019’s Project Sage 2.0, and up 138% from the 58 funds in 2017’s initial Project Sage report. Almost 50% of these funds launched in 2019.<figure class="image"><img src="/uploads/destapic_1_4b9a819bab.png"></figure>As in our previous reports, gender lens funds are still predominantly first time funds. Almost two thirds — 61% — of funds were first time funds, which are first funds from a given team with this thematic focus. The partners may not be first time fund managers, but this is their first fund with this focus or under this name.Geographic diversity continues to increase. In the original 2017 Project Sage, approximately 80% of reported investments were U.S.-focused. Now, Project Sage 3.0 showed that 38.1% reported North America as their investment target geography (this does not include the global funds). This demonstrates an increase in the diversity of targeted investment geography, with significant focus on regions including Asia, sub-Saharan Africa, and Latin America.Total capital raised has cleared $4.8 billion. The total capital raised, among those firms who allowed us to publish capital raised, was approximately $4.8 billion, more than doubling from Project Sage 2.0’s reported $2.2 billion.Gender lens investing is still broadly defined. When we gave funds six options for how they defined gender lens investing, and asked them to select all that apply, approximately 50% of funds included all five of the following classifications in their definition of gender lens investing, suggesting that this is still a very broad definition.<ul><li>Advancing women in finance: fund managers, on investment committees (ICs), etc.</li><li>Advancing women in leadership: C-suite positions, entrepreneurship, boards, etc.</li><li>Advancing products and services that improve the lives of women.</li><li>Advancing companies that have a positive impact on the women they employ.</li><li>Advancing companies that improve the lives of women in their ecosystem (supply chain members, etc.)</li></ul>Many funds’ investment criteria focus on gender as well as other forms of diversity. Among the funds surveyed, 45% consider gender as one of several key impact priorities of equal importance. Other forms of diversity publicly stated in their investment criteria include racial/ethnic diversity (24.6%) and LGBTQIA diversity (7.2%).Make sure to read the full report here: <a href="https://socialimpact.wharton.upenn.edu/research-reports/reports-2/project-sage-3/">Project Sage 3.0 </a>.

A look at the recent report published by Wharton’s Social Impact Initiative

destapic_1.png

Project Sage 3.0: Wharton’s Gender Lens Investing Report

<h1 style="text-align:center;">A Gender Analysis on the Effects of COVID-19 on Ethiopia’s SMEs</h1>This blog was co-authored by <a href="https://www.linkedin.com/in/dagmawit-shiferaw-8665943b/">Dagmawit Shiferaw</a><hr>Sign up for <a href="https://renewstrategies.formstack.com/forms/renews_digital_library">RENEW’s Digital Resource Library</a> for additional resources, including video tips for executives.The impact of COVID-19 on businesses is wide and diverse, bringing about opportunities for some while threatening the existence of others, and this is especially true in Ethiopia. At RENEW, we have been creating interventions to help businesses weather the storm. One of the interventions that the <a href="https://www.international.gc.ca/world-monde/stories-histoires/2021/business-growth-ethiopia-ethiopie-croissance-entreprises.aspx?lang=eng">Accelerating Business Growth (ABG) Project</a>, led by RENEW, has created in response to COVID-19 is a widely accessible virtual webinar series designed to keep companies informed and to provide resources that will help them make critical decisions during these difficult times.Over the last few months, we have continued to run a number of webinars, including our virtual Women in Finance Series, recognizing the need for women business owners to stay connected during this time. We have seen a significant increase in participation, showing the importance of solidarity amongst women business owners and executives during the pandemic. At the end of all our webinars, RENEW has polled participants using a set of questions with 6 to 9 indicators to assess and better understand the effects COVID-19 is having on companies.The resulting company data was gender-disaggregated and analyzed in order to better understand how COVID-19 was impacting female-led versus male-led companies so that we, and the greater development community, could continue to refine our existing interventions using a data-driven approach.<figure class="image"><img src="/uploads/gender_graph_1_ca0cdba438.png"></figure>Out of the 95 respondents in total, the spread between female versus male participants was roughly equal at 51% and 49%, respectively. The respondents were predominantly operational companies with a fairly even distribution among the business stages (i.e., micro, small, medium, etc.) across both females and males. Further, the sector spread between female and male companies is also largely similar. And by having these three factors roughly equal and not skewing the data with significant outliers, RENEW believes the data is statistically under control.The business owners were polled about the effects of COVID-19 on their companies, wherein they could choose as many of the eight pre-listed indicators that applied to them. Within the female participant category, “a decline in local sales/revenue” was cited the most with a 51.2% prevalence rate (excluding pre-revenue companies, this becomes a 39.5% prevalence rate). In comparison, the male participant category “a decline in local sales/revenue” and a “delay in an expansion project” were equally cited the most with a 40% prevalence rate for each (or a 35% prevalence rate for the two reasons if we exclude pre-revenue companies).&nbsp;<figure class="image"><img src="/uploads/gender_graph_3_ab51dacb3e.png"></figure>The business owners were then polled about the measures they were taking to survive during this period, wherein they could choose as many of the nine pre-listed indicators that applied to their companies. Within the female participant category, “decreasing costs” was the most cited action with a 41.9% prevalence rate (34.9% excluding pre-revenue). In comparison, the male participant category “looking for new markets” was the most cited action with a 45% prevalence rate (35% excluding pre-revenue). When we exclude pre-revenue companies for male-led companies, “working to improve the product or businesses” also has a 35% prevalence rate.Finally, the business owners were polled on what they would use funding on if secured, wherein they could choose as many of the seven pre-listed indicators that applied to their companies. Both the female and male categories chose “growth - working capital” as the most cited use of funding at 62.8% and 62% respectively (37.2% and 47.5%, respectively, excluding pre-revenue companies). Interestingly though, the second most cited use of funding for each category differs - for females it is “Survival - salaries and other expenses”, whereas males listed “Pivot - launch new lines of business in response to COVID” (this remains unchanged when we exclude pre-revenue companies).&nbsp;<figure class="image"><img src="/uploads/gender_graph_2_b3c3c18e98.png"></figure>RENEW believes that these observations provide further support for our investment strategy to help SMEs become gender-smart and be run by gender-balanced executive teams. Having both women and men in positions of leadership, management and decision-making not only drives gender equality but, we believe, is simply smart investing. There are a number of research reports and data on how gender-smart companies (i.e., gender-equal boards, executive teams, etc.) outperform their non-gender-smart peers in terms of financial performance (1).In the gender analysis outlined above, we see how female and male entrepreneurs respond differently to COVID-19 (“inward” versus “outward” looking); something that we have even experienced at RENEW. Both approaches can be right and good for the company, but it's in having that diversity of thought at the executive and management level that builds balance and brings about opportunity, something that is particularly important during times of hardship.--Interested in seeing more of RENEW’s resources? Sign up for <a href="https://renewstrategies.formstack.com/forms/renews_digital_library">RENEW’s Digital Resource Library</a> to access the full PDF and a number of other white papers, recordings and publications.

RENEW examines how female and male entrepreneurs are fairing under the global pandemic