<h1 style="text-align:center;">In Africa, Do What Works</h1>What a refreshing piece from the New York Times columnist (and longtime development aid advocate) Nicholas Kristof in last Sunday's Times. His insightful take on the much-debated value of development aid titled simply <a href="http://www.nytimes.com/2009/11/22/books/review/Kristof-t.html?_r=2&amp;ref=review">How Can We Help the World's Poor</a>, was right on the money. Kristof advises that we take note of but look past the headline-grabbing debates between the various camps promoting or excoriating aid as a giant waste of time.Look, says Kristof, to the projects that are being rigorously evaluated, some of which actually produce measurable results for the poor. And guess what? Many of these turn out to be businesses:<blockquote>I was recently in Liberia, a fragile African democracy struggling to rebuild. It is chock-full of aid groups rushing around in white S.U.V.’s doing wonderful work. But it also needs factories to employ people, build skills and pay salaries and taxes."</blockquote>Through our online Marketplace, RENEW is working to provide a forum for these entrepreneurs to tell the story of the impact they have had and the impact they hope to achieve.<a href="https://renewcapital.com/marketplace">Take a look</a> and tell us what you think.

What a refreshing piece from the New York Times...

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In Africa, Do What Works

<h1 style="text-align:center;">Welcome to Our New Website</h1>We are excited to announce the launch of our new website. Assisted by the professionals at <a href="http://developmentseed.org/">Development Seed</a>, the RENEW team has worked hard over the past few months to offer a number of new services and features that we believe will add value to investors, developing world businesses and others in the social investment community. Here is a brief overview of what you will find as you navigate through our new site:<ul><li>For investors: We now offer an easy way to browse investment opportunities in developing countries. Our Marketplace (beta) currently features opportunities in sub-Saharan Africa with more coming soon.</li><li>For businesses in developing countries: In as little as 30 minutes businesses can apply to be featured in our Marketplace (beta). We will also be featuring resources and tools to help businesses grow.</li><li>For the social investment community: As part of our blog, we will be active in scanning the news and providing our thoughts and ideas for building the middle markets in developing countries.</li></ul>Enjoy the site and please send us your thoughts at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>.<figure class="image"><img src="/uploads/RENEW_Home_Page_Screen_Shot_Nov_2009_30de6c4623.png"></figure>

We are excited to announce the launch of our new website.

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Welcome to Our New Website

<figure class="image"><img src="/uploads/blog_whitney_d681aaf50b.jpg"></figure><h1 style="text-align:center;">I Had a Farm in Africa...</h1>RENEW and the Impact Angel Network lost a dear friend and member this week. Whitney Ball, the founder of DonorsTrust, passed away on Monday, August 17, 2015 after a long and valiant battle with cancer.Her organization, DonorsTrust, is a donor-advised fund and community foundation that works on promoting “free society as understood in America's founding documents” according to the organization’s website. Whitney joined the Impact Angel Network in 2013 and participated in RENEW’s Econ-Tourism trip to Ethiopia that year. She later participated with the network in investing in several of our companies, including Metad, a specialty coffee farm in the Yirgacheffe region of Ethiopia.Whitney once told us that one of her dreams in life was to be able to live out the well-known quote by Karen Blixen in her famous book, Out of Africa, "I had a farm in Africa…”We miss you Whitney. We are honored to be part of fulfilling one of your life’s dreams.Read more about <a href="http://www.donorstrust.org/AboutUs/News/RememberingWhitneyBall.aspx">the life and legacy of Whitney Ball</a> on the DonorsTrust website.

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I Had a Farm in Africa...

<h1 style="text-align:center;">Investing for Impact in Africa</h1>On Monday evening, RENEW co-hosted a happy hour with the <a href="https://colorado.nationalchristian.com/">National Christian Foundation Colorado</a> to discuss the philosophy of “doing well by doing good.” A wonderful group of individuals came together from Denver to talk about how impact investing could change the lives of thousands of individuals in Africa, while generating financial returns for investors and givers.The partners of RENEW and the president of NCF Colorado - Bryan Chrisman - introduced attendees to a unique option in the growing world of impact investing. Questions ranging from “What is an impact angel?” to “How do I go about making an impact investment?” to “What’s the connection between impacting investing and charity?” were all addressed throughout the evening’s conversations.<figure class="image"><img src="/uploads/image1_0_3d897acb25.jpg"></figure>The RENEW team shared about its unique business model and how it differs from the traditional model of development and aid for Africa. By <a href="renew-closes-investment-east-africa-emergency-services-ltd">facilitating investments</a> into East African small and medium-sized enterprises through the Impact Angel Network (IAN), RENEW and the network are helping local businesses grow into market leaders.<figure class="image"><img src="/uploads/image8_2_3c4831c780.jpg"></figure>Bryan Chrisman also discussed how investing in impact options like the IAN through donor-advised-funds (DAFs) enables people to reap the tax benefits of charitable giving, while also making sound investment and impact decisions. DAFs, such as the <a href="http://impactfoundation.org/about/">Impact Investing Foundation</a>, are now being used to make impact investments in communities located half a world away.<figure class="image"><img src="/uploads/image9_0_5f868b6849.jpg"></figure>RENEW is honored to have co-hosted such a great event with the NCF Colorado team, and is looking forward to continuing to connect with Denver investors about the merits of impact investing.

RENEW and NCF Colorado co-host happy hour in Denver

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Investing for Impact in Africa

<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.

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Investing On The Frontier Podcast Series

<figure class="image image-style-align-center"><img src="/uploads/mftc_logo_tm_1_0104e07f41.png"></figure><h1 style="text-align:center;">Mama Fresh: Baking Injera and Creating Impact in Ethiopia</h1>It was a cool and dewy morning in August when I made my way over to <a href="http://www.mama-fresh.com/">Mama Fresh Injera PLC’s</a> new manufacturing and export facility to speak with members of the baking team. Clouds were off in the distance, threatening the rain that comes so often to Ethiopia during the summer months, but neither the early hour nor threatening weather dampened my spirits - I was getting an in-depth look at how Mama Fresh not only makes injera, but positive impact as well.Mama Fresh is Ethiopia’s largest commercial manufacturer and exporter of fresh-baked injera. The Impact Angel Network’s investment in Mama Fresh in January 2014 helped finance the modern facility that I visited on this particular morning. The investment is also expected to enable Mama Fresh to increase its production capacity, create jobs in the local economy and explore new market opportunities for injera, including the growing gluten-free markets in the U.S. and Europe. While this investment’s expected social impact for the local community and greater Ethiopian economy is significant and important in this company’s story, my interest that day was actually on a smaller scale. I wanted to find out how Mama Fresh, through this investment, was achieving impact at the individual level, specifically for underprivileged women. Injera baking is considered “women’s work” in Ethiopia because most household baking is done by female family members or female hired help, so Mama Fresh has had the opportunity to provide work as injera bakers for many women in Addis Ababa.Mama Fresh gave me the wonderful opportunity to speak with several of its diligent and hard-working injera bakers. When I arrived at Mama Fresh to meet with these bakers, the facility was buzzing with activity – the morning shift employees were completing preparations to start the injera baking for the day. Out of the many bakers that I was introduced to, one baker stood out amongst the rest for her reputation of being one of the most diligent and hard-working employees in the company - Belaynesh Millkiyas. Belaynesh kindly shared her personal story with me, which I believe shows how Mama Fresh is creating impact across the spectrum, from the country level all the way down to the individual.Belaynesh was born in Hossana and moved to Addis Ababa in 2004. Like many people, she came to the capital looking for work, and after a series of events, found her way working for Mama Fresh.<figure class="image"><img src="/uploads/belaynesh_collage_2_98dcbc0ae8.jpg"></figure>When did you start working with Mama Fresh, and how did you hear about the company? I started working at Mama Fresh in November 2010; it has been five year since I started working here. I have a relative who used to work at Mama Fresh as a supervisor in the dough room, and she recommended me to MF management. But she [has since] left MF and is currently working at another company.How did you become an injera baker? I have been baking injera since I was a little girl. We had a family business [local café] at Hossana, and I used to bake injera there. I wanted to go and work in the Middle East, and that is why I [initially] came to the city [Addis Ababa], but after realizing this is not a good choice for me, I stopped and began searching for work here. After changing several jobs I started working at Mama Fresh as injera baker.How does Mama Fresh injera compare to the injera you make at home, or you grew up eating? Mama Fresh injera compared to the injera I make at home is much healthier because it is made from pure teff. I usually mix other grains with teff to make injera at home and so do other households. The process here is also much cleaner because we are using clean utensils; the workers are very efficient and the process is much more modernized than baking injera at home. Overall, the production process is safe, clean and dough processing is different from what I do at home. Besides, the teff we use is quality teff and not mixed with other grains - I know because the teff is ground here at the facility - I prefer eating Mama Fresh injera than any other injera, even from what I make at home.How has working for Mama Fresh changed your life? Before joining Mama Fresh I used to work at a carpet-manufacturing factory as an operator. While I was working there, I had my first child and took a maternity leave, but this didn’t make my bosses happy so they had to let me go! I started looking for other job, but I was required to work on night shifts, which was impossible for me because I had to take care of my baby. That is when I heard about Mama Fresh from one of my relatives who was working here. Although I haven’t seen that much growth in my salary, working at Mama Fresh has made my life stable, so I can raise my kid. He is now seven years old and is in first grade. The management team is very understanding about my problem[s], they are good people, and I feel like they are my family. They help me out when I have money problems by lending me money to pay for my kid’s school.What is your favorite part about working for Mama Fresh as an injera baker? I like baking injera because it a quiet job, and I can focus on baking for a long time.Your reputation at Mama Fresh is that you are one of the most productive / quickest injera bakers in the company – how did you come to be so skilled? I have been baking injera since I was a child, so it came from experience. And the incentive given to us if we bake more injera we will [then] get paid more money. Currently the quota is to bake 350 injera per shift, but on a good day I usually bake from 450 to 600 injera per day, using four to five metads [ovens]. But it all depends on the power available and time I have. Once I get in the facility I am very focused, I just want to bake injera.Has your job at Mama Fresh made you feel empowered as a woman? Yes, I earn my own money and raise my child so it has made me feel empowered as a woman. Since I am a single mom, I am required to support my child and his needs. It has inspired me to be an entrepreneur – I want to start my own business.

RENEW has a Q&A session with a Mama Fresh baker to talk about injera and impact.

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Mama Fresh: Baking Injera and Creating Impact in Ethiopia

<h1 style="text-align:center;">Matt Davis Speaks at U.S. - Ethiopia Business and Investment Summit</h1><figure class="image"><img src="/uploads/photo_la_investment_summit_2013_panel_0_62d172137e.jpg"></figure> RENEW's Matt Davis spoke at a panel on investing at the U.S. - Ethiopia Business and Investment Summit in Los Angeles on Friday, August 1. A similar summit was also held in Houston, Texas, and the main goal of the summit was to promote investment in Ethiopia and to invite investors to explore opportunities there. Over 300 business leaders, investors and government officials were at the summit, including Ethiopia's President, Mulatu Teshome, who invited investors to visit and invest in his country and highlighted several sectors of interest for potential investors.Matt sat on a panel of investors and funds and shared insight on the investment environment in Ethiopia. The panel focused on building a strategy for investing in Ethiopia, whether the size of investment is $200K or $2B. Other topics that were discussed included the importance of working with a local partner; the ease of working with the Ethiopian government; affordable labor and energy costs; and exciting opportunities in local manufacturing and export including Ethiopia's commodities that have a clear competitive advantage such as coffee, sesame and teff.Some West Coast-based members of RENEW's Impact Angel Network were also in attendance at the summit.

The RENEW team joins the Business and Investment Summit in Los Angeles.

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Matt Davis Speaks at U.S. - Ethiopia Business and Investment Summit

<h1 style="text-align:center;">IAN to Hit Another Milestone</h1>In just a few weeks, a network of families and wealthy individuals living around the United States – members of RENEW’s Impact Angel Network (IAN) – will achieve another milestone: They will be closing several more investments into local medium-size companies (SMEs) in Africa.<figure class="image"><img src="/uploads/photo_ian_becomes_the_largest_98cb0046a8.jpg"></figure>This is exciting news for a number of reasons. First, it means that impact investing is starting to take hold as a new alternative for <a href="http://www.forbes.com/sites/russalanprince/2014/09/08/the-high-end-appeal-of-impact-investing/">doing well by doing good</a>. Next, it means that many in the U.S. are beginning to see Africa as an investment destination. This is exactly what the President hoped to achieve following the recent <a href="http://blogs.wsj.com/frontiers/2014/08/25/africa-summit-set-the-stage-for-us-business-now-what/">U.S.- Africa Leaders’ Summit</a> in Washington, D.C.. And finally, and maybe most importantly, it means that local, high-potential companies in Africa can finally begin to access growth capital to do what we all want; to grow and create jobs so these economies can stand on their own.The latter point may be the best news of all, especially for entrepreneurs, who desperately want the West to see them as investment-worthy. It is well known that SMEs on the continent lack access to growth capital. <a href="http://www.afdb.org/en/news-and-events/article/the-afdb-sme-program-approval-boosting-inclusive-growth-in-africa-12135/">The African Development Bank Group</a> (AfDB) estimates that the financing gap for SMEs is $140B. China, India and many other countries know this, and are investing. But they are not necessarily investing in local companies to satisfy this gap. Most are setting up their own shops and factories, and sometimes driving local companies out of business. But now the U.S., which has largely been a charity-giving nation, is rising to the challenge and investing in Africa via networks like the IAN.African business owners are excited about more than the financing that comes with Western investors. Many entrepreneurs tell RENEW that they are equally excited to have the U.S. brand associated with their company. They realize that their shareholders will require them to improve their quality, service and governance... and they are eager to deliver.But be cautioned: it is not easy to invest on the continent. Investing in countries like Ethiopia can leave you with some bumps and bruises, and it requires a very hands-on approach.“We don’t believe it’s possible to be a suitcase investor flying in and out, hoping all goes well. RENEW, with our office in Ethiopia, often has to rebuild the financial departments of our portfolio companies, train entrepreneurs about running board meetings, and design and help the companies execute new marketing and sales initiatives. Still, if you’re patient, the rewards will come”, says Matthew Davis, partner at RENEW.Thankfully, organizations like the IAN are building new segments of the capital markets in countries like Ethiopia, where local companies can now access mid- to long-term investment capital in the range of $300K to $3M. The IAN has already <a href="real-stories-real-investments/index.html">closed three investments</a> that have created jobs and increased exports. The next series of investments will help local firms buy new machines, launch new products, scale up production and expand into new markets.As the largest U.S. network of accredited angel investors for Africa, the IAN continues to grow as more investors and philanthropists become aware of impact investing and the potential returns and impact that can come from investing in Africa’s young economies.

RENEW's Impact Angel Network (IAN) prepares to close another set of investments in Ethiopia.

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IAN to Hit Another Milestone

<h1 style="text-align:center;">Why Impact Investment and Why RENEW?</h1>I have always possessed a passion for helping others, which was further instilled in me by the Jesuit education that I received from Loyola University Chicago. Under the Jesuit ideals, I was taught to constantly seek and expand my knowledge in the service of humanity, and acquire the skills that would enable me to solve the issues facing the world. Justice, social responsibility and global community are all values that were a part of my collegiate education, and have inspired me to, in the words of St. Ignatius himself, “Go forth and set the world on fire.” I believe that this drive was strengthened during my year studying abroad in France and living with a French host family. Being exposed to a completely different culture, language and way of life led me to truly appreciate the diverse international community and become globally aware in my personal identity and outward perspectives.<figure class="image"><img src="/uploads/dsc03207_b3638f0d2e.jpg"></figure>View from my home in Nantes, FranceIt was upon my return to the United States that I knew I wanted to pursue a career in international development, but I was not yet sure how I could go about achieving this dream. During my senior year at Loyola University Chicago, I was very fortunate to intern with the U.S. Department of Commerce, U.S. Commercial Service, which gave me the opportunity to work one on one with small and medium sized business owners who were looking to expand overseas. It was at this internship that I first discovered the power of the private sector and how it can positively affect the global economy. Balancing trade deficits, spurring economic growth, job creation and raising the overall standard of living are just a few examples of what the private sector can accomplish. By witnessing the direct consequences of encouraging private sector growth, I was inspired to learn how to bring out the best attributes of capitalism and make it a force of good.<figure class="image"><img src="/uploads/useac_chicago_2012_2_0_d1d25ba2b8.jpg"></figure>U.S. Department, U.S. Commercial Service Chicago StaffAfter graduating from Loyola University Chicago, I realized that in order to become knowledgeable on how to help the international community through private enterprise, I needed practical and real world experience working in the actual sector. I was once again given a wonderful opportunity, this time working at a private-equity venture capital firm. It was at this firm that my understanding of the private sector’s potential expanded, specifically how the field of international investment can be harnessed. It was fascinating and exciting to watch investments being made in mid to late stage ventures, seeing the portfolio companies grow and become market leaders (second round of investments, IPOs, acquisitions/sales), while all providing a return on the original investment for the investors. That’s when the light bulb went off; if we could apply this growth cycle to businesses in developing countries, then we could positively change the local economy and help raise a community out of poverty. This was my introduction to impact investment, and I was driven to learn more.I started researching all things impact investment, and found out what an amazing tool private investment can be when used to help others. The most important aspect of impact investment is that it not only provides a social impact for a community, but it also provides a return on the original investment. Impact investment is sustainable because it follows this philosophy; it is a helping hand, not a hand out. It does not participate in creating an aid-dependent society, but rather gives community members the resources and tools they need to help themselves.The more I researched and learned about the field, the more I wanted to become a part of this amazing work. It was during this time that I learned about RENEW, and let’s just say it was love at first sight. RENEW is both unique and exciting by providing its angel investors a means to experience new cultures and exotic lands, all the while connecting them to socially impactful investments; a mash-up of Indiana Jones meets Warren Buffet. RENEW’s business model is hopeful and visionary; strategic and memorable. It strives to help its clients find, invest in and grow midsize companies into market leaders, make a great return, and create a positive impact on the country’s economy. All in all, RENEW strives to give its angels an unforgettable experience. It is now my hope, as the newest member of the RENEW family, that I in turn will gain the necessary skills and experience that will ultimately provide me the means to uphold RENEW’s mission and create a positive social impact in the world.

Investing in Africa