<h1>Investment Training</h1>SMES…MEET WALL STREET<figure class="image image_resized" style="width:100%;"><img src="/uploads/investment_training_0_189d4e9f1c.png"></figure>RENEW has provided our trademark investment training to SMEs in Kenya, Rwanda, Uganda and Afghanistan. Because of our training and pre-investment technical assistance, SMEs have secured millions in growth capital from private investors.RENEW helps entrepreneurs understand the unwritten rules of attracting private investors (with an emphasis on Western investors), through our investment workshop, one-on-one coaching sessions, and customized investment tools and templates. Through our training, SMEs avoid the common pitfalls many face during the capital raising stages of business growth. Key tools include:Unwritten Rules to Western Investing - <a href="https://renewcapital.com/about-renew/connect">Contact us </a>to sign up for an upcoming session <a href="https://renewcapital.com/sites/default/files/RENEW_Business_Guide_to_Investor_Relationships_2.pdf">Roadmap to Investor Relations</a>Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

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 Investment Training

<h1 style="text-align:center;">Portfolio Accomplishments: Part Three</h1><figure class="image image-style-align-left image_resized" style="width:37.16%;"><img src="/uploads/metad_logo_rgb_d1f33c42a5.jpg"></figure>To conclude our blog series about our portfolio companies' accomplishments, we move on to <a href="http://metadplc.com/">METAD</a>, an Ethiopian specialty coffee producer and exporter. Over the past month, METAD has been completing work on its new brand (see the sleek new leaf logo above!) and redesigning its website. The company recently launched the <a href="http://metadplc.com/">new website</a>, which highlights METAD’s specialty arabica coffee and notable accomplishments aimed at building Ethiopia’s coffee sectors. Aman Adinew, founder of METAD, has a vision of discerning coffee drinkers around the world enjoying Ethiopian specialty coffee, and of Ethiopia achieving the worldwide brand recognition its coffee deserves. METAD’s new website and brand are key resources the company will use to make this vision a reality.Meanwhile, METAD also is making strides in expanding its operations. The company recently expanded to a new site in Gedeb, where it operates a washing system, dry mill and drying beds. The company continues to operate a 200-hectare original specialty coffee farm in Hambela. Aman is overseeing both sites to ensure the same quality of coffee bean is produced at both sites.<figure class="image"><img src="/uploads/metad_farmsite_ab61dd1576.jpg"></figure>In the process of expanding, METAD has created 545 jobs within the community and has increased sales by 402% since the IAN initially invested in 2013. METAD has come a long way since that investment, and RENEW is excited about the company’s future with Aman at the helm.<figure class="image image-style-align-right image_resized" style="width:22.26%;"><img src="/uploads/kids_8df5424b85.jpg"></figure>Another thing we love about METAD is the company’s dedication to giving back to the local community. Since 2013, METAD has adopted an elementary school with 408 students near its Hambela farm, purchasing benches and tables for the school and subsidizing teachers’ salaries to incentivize them to stay rather than take higher paying jobs in bigger towns and cities.We are proud to be a part of the METAD story.

Read about METAD's wonderful achievements to date...

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Portfolio Accomplishments: Part Three

<h1 style="text-align:center;">Power Africa: Any case studies yet? Maybe...</h1>What is Power Africa? First, let me direct you to the <a href="http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa">White House Fact Sheet on Power Africa</a>. Great, quick read. Next, I’ll explain it in my own words.Simply put, I think Power Africa is a major shift in how our country views Africa…. and I like it! For a number of years the U.S. government’s focus has been on an initiative called Feed the Future, which, given the amount of arable land that has not been touched on this continent, is a good thing. In Fiscal Year 2012 (FY2012), the initiative focused on 19 countries and helped more than 7 million food producers make improvements, improved the cultivation of 4 million hectares of land, and helped increase the value of exports of targeted commodities by $84 million.With the world population rising, we need more food – it made sense to direct USAID in that direction. What I have observed is that much of the effort of FtF has been focused on helping smallholder farmers. Good? Yes. But, is that really keeping up with where Africa is today, and more importantly, where Africa is going?Well... here comes Power Africa. From what I observe looking out my office window here in Addis Ababa, Ethiopia, Africa is booming! I saw it in Uganda in 2008, Mozambique in 2010, Senegal, Zambia, Zimbabwe in 2011 and now in Ethiopia. The cities are alive. Addis is a great example. This growing metropolis has cranes scattered across the skyline, carrying bags of cement, wires, sheetrock, bricks and blocks to the tops of large buildings. Up they rise. I have weekly meetings with construction companies, block factories, sheetrock companies, cable companies...the list goes on. They are growing and yet starving for capital. According to research conducted by the IFC and McKinsey Global Institute, the total financing gap for SMEs in Africa is between $140 billion and $170 billion.This country - this continent - is industrializing. Of course Africa has its share of problems and aid is still playing a role in helping the least served. But the hungry engine of capitalism is in fifth gear. And what does industry need a lot of? Power! That’s right. So, what is Power Africa? In my very non-jargony, sophomoric words it means “Wow. I think I am getting that Africa is changing, growing, industrializing, and maybe the U.S. needs an initiative to get in, get involved and start participating with her private sector! Because everyone else is.”What does it mean for Africa? What I hope it means is that, instead of seeing just Chinese, Indian, Turkish and (fill in the country’s name other than the U.S.) doing all of the nation-building in the cities, we’ll start seeing some U.S. flags waving, painted on trucks, rigs and machines. I also hope it means that investors will see this great continent as an investment destination they can do business with. Come on over. There are amazing companies in these cities, some even working in the power sectors that could be great partners, clients and collaborators with U.S. companies. So, what does this mean for Africa? I hope it means more U.S. private-sector partners and investors knocking on their door.What does it mean for the United States? See above. America – it’s time.Any case studies? Actually, yes, there are a few. Here’s the 30-second rundown of one. In 2012, RENEW met a great entrepreneur who had lived in the United States, but, after starting a successful engineering company in Michigan, decided to come back to Ethiopia – his homeland – and start a clean energy company here. We introduced him to a group of impact angels from Charlotte, North Carolina in March of 2013 and, after a lot of work, due diligence, structuring, etc., the Charlotte angels closed an investment in dVentus. The investment is allowing the company to develop technology for a smart grid power transmission system in the country. The savings these little circuit boards will have are astonishing. The story goes on. Because of this angel investment the company is now attracting the interest of much larger financiers, and U.S. companies that want to be their partner. Success? Well, that remains to be seen. After all, this is business on the frontier.I know there are more of these stories out there waiting to happen. Investors are ready. Businesses are ready. Africa is ready. Thank you Power Africa for providing the phrase that will help transform this industrializing continent into an economic success story – one smart grid meter at a time.Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

A closer look at the new Power Africa initiative.

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Power Africa: Any case studies yet? Maybe...

<h1 style="text-align:center;">RENEW's Fellows Program: A View from Inside</h1>This is a guest post by Ryan Musser, who participated in RENEW's Fellows Program from May - August 2013. Ryan lives and works in Washington, D.C.I first learned about RENEW a year ago and was instantly drawn to its mission. As a student and practitioner of international development, I’m always interested in new and better ways to facilitate and encourage development. What attracted me to RENEW is its public-private partnership approach of impact investment that puts the investor and entrepreneur on the same level, rather than the typical donor-recipient relationship in traditional development models. If I were to make a prediction about the future of economic development, I would predict that the way of donor-based economic development projects are on their way out. Impact investment is on its way in.In the upcoming years, <a href="http://www.huffingtonpost.com/randall-kempner/entrepreneurs-are-transfo_b_825105.html">business creation, entrepreneurship, and investment</a> are bound to play an integral role in poverty alleviation around the world. China and India have proven that millions of people can be lifted out of poverty through the market-led economic growth of investment and business creation. Impact investment is an <a href="http://www.forbes.com/sites/skollworldforum/2013/07/30/why-impact-investing-is-an-emerging-paradigm-shift-in-philanthropy/">exciting opportunity </a>for philanthropists and development practitioners seeking to alleviate poverty.But impact investment isn’t just an opportunity for the charity-minded. We now see in Africa in general – and Ethiopia specifically – a situation that is ripe for investment with huge returns. Out of the 10 fastest growing economies in the world in the past decade, six are from Africa. From 2011-2015, seven African countries are set to be among the 10 fastest growing countries in the world, with only China and India being ahead of Ethiopia at 8.1% annual average GDP growth. Already from 2005 - 2009, Ethiopia recorded higher growth than China, averaging 11% growth. From 2003 to 2011, <a href="http://www.consultancyafrica.com/index.php?option=com_content&amp;view=article&amp;id=1325:a-subtle-engagement-ethiopia-and-india&amp;catid=58:asia-dimension-discussion-papers&amp;Itemid=264">Ethiopians have seen their income double</a> from $527 per capita to over $1,100. In the next five years, <a href="http://www.ey.com/Publication/vwLUAssets/The_East_Africa_Boom:_Dont_be_left_behind/$FILE/130219_SGF_TL_East_email_version.pdf">East Africa is expected to attract $6.8 billion of annual foreign direct investment</a>. And investing in this growth in the developing world is profitable. According to WhyDev, forty percent of impact investment funds that focus on emerging markets target a return between 16-20% after fees, carry, and currency conversion.Impact investment is a <a href="http://blogs.hbr.org/2013/01/social-impact-investing-will-b/f">win-win</a> for everyone: investors, entrepreneurs, and the poor. Investors are making money, entrepreneurs are growing their businesses, and the poor are seeing their incomes rise and their quality of life improve. This past summer I participated in a fellowship with RENEW because I want in on this action. I believe that <a href="http://www.economist.com/news/finance-and-economics/21575769-strategies-putting-money-work-fast-growing-continent-hottest">Africa is the future frontier for investment</a> and impact investment is a key tool in the fight to alleviate poverty. If the US wants to stay competitive globally, we need to be investing in Africa, and if international development practitioners want to stay competitive, we need to get involved in impact investing. During my fellowship with RENEW, I had the opportunity to familiarize myself with the impact investing field, gaining insight into the players, the opportunities, and the obstacles faced in impact investing. During this time and through my research with RENEW, my hunch has been confirmed: impact investing is a disruptive innovation here to stay. Whether you’re seeking a financial return or a social return with your money, you can’t ignore impact investing. It’s a crucial tool for the investment world, as well as the philanthropic and aid world, and it’s only just beginning to show its impact in these circles.&nbsp;

Read a guest post by RENEW's fellow, Ryan Musser.

RENEW's Fellows Program: A View from Inside

<h1 style="text-align:center;">Impact Angel Network 2015 National Gathering</h1><figure class="image"><img src="/uploads/may_event_final_blog_0c240533b9.jpg"></figure>Members of the Impact Angel Network (IAN) and other distinguished guests will be in Washington D.C., May 1 to May 2, for the Network's 2015 National Gathering.The gathering will include a series of events throughout the weekend, with the main event occurring on Friday evening. IAN members and select guests will be spending the evening with politicians, business executives and thought leaders. Experts in the impact and angel investing space will be speaking throughout the night, sharing insights on investing in Africa, as well as other countries on the continent and throughout the world. RENEW aims to elevate the importance of angel and impact investing and how the private sector is driving growth in companies around the world, even in our own back yards.We will also be having an informal gathering for members of the IAN at the home of the IAN’s DC Chapter Chair. We will be providing updates on our current portfolio, as well as discussing our current investment pipeline.*Note: The event has sold out and registration is now closed.

The Impact Angel Network's 2015 National Gathering is to be hosted in Washington D.C.

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Impact Angel Network 2015 National Gathering

<h1 style="text-align:center;">Angels in Addis</h1>November has been a busy month for RENEW with two angel groups from the U.S. visiting Addis for Econ-Tourism trips. This was the first trip to Ethiopia for most of the angels, who came from Washington, D.C., Delaware and Oregon.The groups met with countless Ethiopian entrepreneurs and visited a number of businesses spanning a variety of sectors - from healthcare to coffee to injera. All of the angels expressed their surprise and excitement about the incredible potential for growth they saw throughout the trips.<figure class="image"><img src="/uploads/2013_november_angels_3ac8cab271.jpg"></figure><figure class="image"><img src="/uploads/collage_2013_november_angels_oregon_0cc2ddd951.jpg"></figure>RENEW is gearing up for a busy 2014, with several trips already scheduled. Contact us to learn more about scheduling your own Econ-Tourism trip! Contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or follow us on Twitter @RENEWLLC to find out more.

RENEW hosted two angel groups in Addis in November.

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Angels in Addis

<h1 style="text-align:center;">RENEW Hosts Impact Investing Luncheon in Utah</h1>Last week, two of RENEW’s partners traveled to Salt Lake City, Utah to meet with local business and community leaders. While visiting, the RENEW team hosted a luncheon to discuss impact investing, angel investing and the U.S. government’s policies and viewpoints on Africa’s private sector.The luncheon opened with a<figure class="image"><img src="/uploads/photo_2_2_c8b88d3cee.jpg"></figure> greeting from Matt Davis, founder and CEO of RENEW, after which he introduced the event’s honored guest, Devin Thorpe. Devin is an <a href="http://devinthorpe.com/author">author</a> and advisor based in Utah who focuses on helping individuals who are “doing good” in the world. He calls himself a "champion of social good”, and as a <a href="http://www.forbes.com/sites/devinthorpe/">Forbes</a> contributor, he covers stories regarding social entrepreneurship and impact investing. During the luncheon, Devin shared his own personal viewpoint on impact investing and how it relates to Utah.For Devin, it’s an exciting and dynamic space to be in because “people with old investment strategies are joining the impact investing movement, and new money is actually coming in to the field.” This space now not only includes the individual investor, but family offices, foundations and institutional investors as well.Matt closed the event by challenging the group to think differently about Africa, as it has moved beyond the image that many of us typically think of when hearing the word, and by speaking about the power of business to achieve a greater good. Overall, it was an encouraging and exciting event - one that has inspired RENEW to pursue launching a new chapter of the Impact Angel Network in Salt Lake City.Matt remarked, “As a Ute, I believe Utah should be a leader in the impact investment space because, 1) we understand ethical capitalism, 2) we are global, and 3) we are entrepreneurial.” RENEW feels that our nation needs more Utah leaders like Jim Sorenson, renowned entrepreneur and founder of the James Lee Sorenson Global Impact Investing Center <a href="http://sgiicenter.com/jim-sorenson/">(SGII)</a>, to venture across the world and bring the concept of U.S. businesses to countries like Ethiopia.<figure class="image"><img src="/uploads/photo_3_2_4e736f3a2b.jpg"></figure>

Two of RENEW's partners traveled to Salt Lake City and met with local business leaders

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RENEW Hosts Impact Investing Luncheon in Utah

<h1 style="text-align:center;">RENEW in 2013</h1>In almost all regards, 2013 was a banner year for RENEW. We facilitated several investments into amazing companies in Ethiopia (see <a href="../../marketplace/portfolio.html">Portfolio</a>), secured great partnerships with the development community, and helped mobilize more than $3 million into our portfolio companies.As for impact, we created more than 20 full time jobs, some 30 part time jobs, supported 190* people, and helped mobilize $39 million** in the local economy.We provided more than five trainings on the basics of private equity, and met with more than 100 local companies.RENEW also hired three amazing staff members (see <a href="../../about-renew/team.html">Team</a>) and had three exceptional fellows participate in our RENEW Fellows Program.2013 was not without its challenges. We learned a lot about doing business in Ethiopia: I personally made some classic “western” blunders with regard to managing my team and negotiating terms with our portfolio companies (thank you all, for your grace, patience and wonderful advice). Nonetheless, we learned a lot from these challenges, and we are excited about what 2014 will bring!*Using the 9x job creation multiplier. **Using the 13x SEAF multiplier.<figure class="image"><img src="/uploads/photo_ethiopia_november_2013_angel_trip_6581aeedc7.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.

Read about RENEW's achievements and lessons learned in 2013.

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RENEW in 2013

<figure class="image"><img src="/uploads/the_economist_2_0_da21a74fc3.jpg"></figure><h1 style="text-align:center;">The Economist to Host Ethiopia Summit 2015</h1>This week, The Economist will be hosting <a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">The Ethiopia Summit 2015</a> in Addis Ababa. The conference plans to bring together the country’s leading policy makers and business executives to explore, discuss and tackle the current economic challenges Ethiopia faces today.Matthew Davis will be speaking on the “Financing Ethiopia’s Ambitious Plans” panel. This panel will discuss Ethiopia’s constrained banking sector, which had led to a “gap” in access to finance for small to medium sized enterprises. As a result, private equity groups, such as RENEW and the Impact Angel Network (IAN), have stepped in to fill this gap and provide entrepreneurs with the means to scale their companies. In light of Ethiopia’s second Growth and Transformation Plan (GTP II), the panel will explore Ethiopia’s current investment environment, the opportunities to help finance the country’s development goals, and the changes the private banking sector would experience if it were to open up.Hailu Tessema, the owner of <a href="http://www.mama-fresh.com/">Mama Fresh Injera, PLC</a> - one of the the IAN’s portfolio companies - will be sharing the challenges he has faced as an Ethiopian entrepreneur, his successes to date, as well as lessons learnt from building a company from scratch and growing it to a global enterprise.This event is significant, as it demonstrates a shift in the world’s focus on development and aid, to investment and trade. With Ethiopia being the second most populous country and the ninth largest economy on the continent, the country is poised to achieve its full potential and become one of the world’s fastest growing economies*. Be sure you do not miss out on the opportunities Ethiopia has to offer!<a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">*The Economist Ethiopia Summit 2015</a>

RENEW’s Matthew Davis and Mama Fresh’s Hailu Tessema to speak at this week’s summit.

Investing in Africa