<h1 style="text-align:center;">RENEW to Help Launch Season 2 of Chigign ‘Tobiya</h1>Season 1 of Chigign ‘Tobiya was a success culminating in the show’s angel investors choosing three companies to invest in, pending they pass due diligence. On September 11, 2018, just after the Ethiopian New Year’s Day, in a premium slot on national television, the show broadcasted the final episode of Season 1 during which the following three entrepreneurs were chosen by the panel of local angel investors for investment:<ul><li>Rohobot - A provider of home care nursing and training</li><li>YenePay - A mobile payment platform</li><li>BAMA Coffee - A mobile coffee-to-go business</li></ul>The transactions are in process, pending due diligence, and in the meantime, RENEW is helping to launch Season 2 of the TV series which will appear on Fana TV, Fridays at 8:30 PM. Girmay Haile Gebreselassie, the visionary behind the show, will return to produce Season 2. He has written and directed two movies, three plays and has a solid career in IT.Chigign is a reality TV show dedicated to elevating entrepreneurship and angel investing, with a special focus this season on female entrepreneurship. The show aims to encourage and educate youth and society at large about the importance of innovation, entrepreneurship, private equity, angel investing and the private sector in general in Ethiopia. RENEW is proud to be a sponsor, to be represented on the panel by our own Laura Davis, and also to invest in winning entrepreneurs who pass our due diligence process.Visit <a href="https://www.youtube.com/watch?v=GyovqM8acCY&amp;feature=youtu.be">YouTube</a> to view a short program clip or <a href="http://www.tonetormultimedia.com/">HERE</a> to see the advertisement.Show Name - Chigign 'Tobiya (Roughly translated to “Ethiopia Emerges”)The Concept - Chigign 'Tobiya is a platform for entrepreneurs to gain access to potential capital, contracts and coaching. Entrepreneurs appear and pitch in a venue that combines the American TV programs “Shark Tank” and “American Idol”. Entrepreneurs who move on through the competition receive coaching from the Chigign team and, in some cases, the judges with a focus on enhancing the entrepreneurs’ business concepts. The top contestants who make it to the final round will be considered for an investment from the panel's fund.Get Involved:Pitch Your Company or Idea - The Chigign 'Tobiya team will choose more than 30 entrepreneurs each season and have them pitch their company or idea for a chance to appear on the show.Be an Investor - Be a permanent or rotating investor on Chigign 'Tobiya. Hear pitches, mentor entrepreneurs and vote with the panel to allocate the fund to finalist entrepreneurs. Not interested in appearing on the show? There are still options to be involved. Reach out via email to learn more (contact information is below).Be a Sponsor - The Chigign 'Tobiya team is looking for sponsors interested in promoting entrepreneurship and innovation among Ethiopian youth and the society at large. We offer sponsors options to be featured in Chigign Tobiya events and programming, among a variety of benefits. Contact us to learn more (contact information is below).Ecosystem Partner - Do you work with Ethiopian entrepreneurs? We'd love to add value to your program by having your entrepreneurs pitch on Chigign 'Tobiya.Contact- Interested in being involved? Email us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> or visit <a href="http://chigign.com">www.chigign.com </a>for more information.

Edutainment uses mass media as a platform to educate the public and elevate the concept of entrepreneurship and angel investing across East Africa. In Ethiopia, Renew Capital helped to build Chigign, a reality TV show dedicated to elevating entrepreneurship and angel investing. Future programs will aim to extend this educational work across Africa.

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For Youth Entrepreneurs and Local Angel Investors

Elevating Entrepreneurship and Angel Investing in Ethiopia

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RENEW to Help Launch Season 2 of Chigign ‘Tobiya

<h1 style="text-align:center;">5 Reasons to Attend the International Gathering</h1>RENEW's International Gathering is 5 short months away. This event convenes IAN members and guests to explore the dynamic investment landscape in sub-Saharan Africa, through the lens of SME investing. To highlight the 5 month countdown, we've compiled the top reasons to attend the event on May 17, 2019.Here are 5 reasons why you shouldn't miss the 2019 International Gathering:<ul><li>Hear from the greatest minds and strongest advocates for impact investing: Our Keynote Speaker for the evening will be <a href="https://www.carlyle.com/about-carlyle/team/david-m-rubenstein">David Rubenstein</a>, Co-Founder and Co-Chairman of the Carlyle Group. He will be sharing his story of building one of the world's most successful private equity firms with more than $200B under management, and how he views opportunities in Africa.</li><li>A unique networking opportunity: Meet individuals, business executives, thought leaders and experts in the impact and angel investing space. The International Gathering is a great opportunity to have important conversations with like-minded individuals interested in sub-Saharan Africa.</li></ul><figure class="image"><img src="/uploads/ngcollage_0_ec2cdc7ec7.png"></figure><ul><li>The International Gathering is a place for storytelling and impact: Hear stories from the continent and learn about how we’re all contributing to Africa’s growth story from 7,000 miles away. The International Gathering is a unique learning opportunity to challenge the assumptions people hold about East Africa.</li><li>Visit the Capital of the United States: Washington D.C. is beautiful in the spring, and our venue (the Embassy of Canada) overlooks the historic Capitol building. Spend the weekend exploring the <a href="https://washington.org/dc-neighborhoods/national-mall">National Mall</a> and all the free <a href="https://www.si.edu/museums">Smithsonian Museums</a>.</li><li>Attend exclusive IAN events: <a href="https://www.renewcapital.com/apply">Join the network</a> and attend several exclusive member-only events and activities that will take place on Saturday, May 18, 2019. Get to know fellow members while attending events designed to share perspectives and experiences.</li></ul>We hope that you will join us at our 2019 International Gathering in Washington D.C. on May 17. To learn more about the International Gathering, visit the <a href="../../internationalgathering/about.html">event page</a> on our website or register below.Early bird pricing ends at the end of January. <a href="https://www.eventbrite.com/e/renew-and-the-impact-angel-networks-2019-international-gathering-tickets-51562748569">Reserve your tickets today</a>.<figure class="image"><img src="/uploads/logos_e4af8d4895.png"></figure>Special pricing and Saturday events are reserved for members of the Impact Angel Network. To learn more about joining the network, please contact Erin O'Connor at <a href="mailto:eoconnor@renewcapital.com">eoconnor@renewcapital.com</a>.Image Source for David Rubenstein: CNBC: <a href="https://www.cnbc.com/2017/12/05/carlyles-rubenstein-says-geopolitical-black-swan-only-market-worry.html">5 Most Common Problems of Startups and Their Solutions</a>

Join us on May 17, 2019 in Washington D.C.

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5 Reasons to Attend the International Gathering

<h1 style="text-align:center;">Building Ethiopia’s Investment Ecosystem</h1>Part of RENEW’s purpose is to master the art and science of doing smaller sized equity investments in Africa. Smaller equity investments, those below 3M, are often not attractive for private equity (PE) funds to invest in since they cost the same, or sometimes more than the larger deals. Unfortunately, this creates a problem in many countries across Africa called the “missing middle”, and it makes it very hard for small and medium-size businesses (SMEs) to access capital and reach their full potential. RENEW‘s mission, in partnership with the <a href="https://www.renewcapital.com/investing" target="_blank" rel="noopener noreferrer">Impact Angel Network</a> and our partners at Global Affairs Canada, is to fill this gap in the capital market through new investment strategies. We are happy to report that in Ethiopia, it is working! In this blog, we want to share some interesting data we have discovered through some of our work, called sourcing.Sourcing is one of the key activities done by an investment firm. Sourcing is the job of everyone at the company and it involves lots of meetings, driving around and doing creative activities to find the best companies. One of the sourcing activities we do at RENEW is called the PE500: a half-day workshop hosted at The Exchange for companies to learn about private equity and the investment process. The goal is for companies and owners to learn about how PE works, and for us to meet new businesses.Throughout the 5-year term of the ABG project, our goal is to train 500 companies in Ethiopia through the PE500. Most of the companies that attend are looking for a partner to help them grow. Our aim with this training is to help owners learn about how equity investors can be a partner and then to help them learn how the equity process works.At the PE500 workshop, we cover the following topics:<ul><li>Who is RENEW, who are our investors, why are we here, and what do we do?</li><li>What is private equity, why is it important to companies in Ethiopia, and how is it unique?</li><li>What are the benefits and drawbacks of working with an equity investor?</li><li>How does the investment process work?</li><li>How can you increase the chances of attracting an equity investor?</li></ul>Through July and August of 2018, RENEW submitted a survey to 312 companies that have attended past PE500 trainings since the beginning of the ABG project. We received 150 responses to the survey. The purpose of the survey was to evaluate how the PE500 is helping SMEs improve their financial acumen and attract capital, given two of the intermediate outcomes of the ABG project are improved financial, environmental and social performance and success in attracting financing of SMEs to drive sustainable and responsible business growth. The overall target of the ABG project is to attract 52.5M Canadian Dollars (CAD) of financing, 15% of which should be provided to incubator companies. The PE500 training is a key tool for achieving these results. All data reported below was self-reported and provided by the entrepreneurs.Key survey findings:<ul><li>18 SMEs attracted financing after attending the PE500 training</li><li>4 of the 18 SMEs (or 22%) are led by women</li><li>CAD 2.3M in additional capital was secured</li><li>CAD 589K (or 26%) was secured by women-led businesses</li><li>Of the 18 SMEs, 39% received loans, 27% received grants, 17% received equity, and 17% reported other sources of funding (e.g. founders, family and friends).</li></ul>The above results indicate we have achieved 24% of the target for number of incubator companies attracting financing (18 of 75) and 15% of the target in terms of dollars (CAD 2.3M of CAD 15M).We have seen more compelling gender results, since we were targeting only 5% of incubator financing to be received by women-led businesses.More about the entrepreneurs that attended the PE500:<ul><li>Of the 312 companies to which the survey was submitted, 94 (30%) are women-led, and from the 150 companies that responded, 48 (32%) are led by female entrepreneurs.</li><li>The PE500 training is designed for business leaders and members of the senior management team, and 87% of our respondents were general managers, founders and/or owners of the businesses.</li></ul>Gender profile of the businesses that responded to the survey:<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_04_10_pm_0_269852fda6.png"></figure>About their companies:<ul><li>The companies are diversified and represent many industries and sectors, but over 60% of the companies that attended the PE training to date operate in sectors that are relevant for Ethiopia’s economic development and exist within the government’s priority sectors. These companies are also relevant for RENEW’s investment criteria and pipeline.</li><li>Of the 150 respondents, only 88 companies reported previous year revenues; of those who did report, average income was CAD 1.5M. However, this number may be misleading because large companies typically feel more confident in sharing their revenue, whereas small and medium sized companies, especially startups, often feel uncomfortable reporting small revenue results.</li><li>131 of the 150 companies reported employment data. On average, the companies have 68 employees in their workforce.</li></ul>Growth plans:At the end of each PE500 workshop, entrepreneurs are asked to complete a form providing feedback on the facilitation and content of the training. Additionally, we ask for more information about the attendees’ businesses (such as sales and employment numbers, as mentioned above), and ultimately if the attendees have interest in a one-on-one meeting with RENEW to learn more about potential financing. Most often, the feedback is very positive, and companies also provide valuable insights, such as their plans for growth as seen in the chart below.<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_05_43_pm_0_5b03b77465.png"></figure>The above chart illustrates the feedback from 104 companies regarding their plans for growth. The top initiative or plan for company growth involves increasing capacity (27%), followed by expansion and finally by working on and refining business strategy. The others did not specify.What SMEs need:<figure class="image"><img src="/uploads/screen_shot_2019_01_07_at_7_07_17_pm_501436b1f3.png"></figure>When companies were asked what they were most in need of, 47% responded with financing and working capital, followed by 20% reporting business support and expertise and 10% reporting strategic partnerships.Job Growth:On average, the companies that replied to the survey increased their number of employees by 44% in the current year compared to the prior year. When comparing the current year to two years ago, companies had increased their employee numbers by 71% on average.Conclusion:We believe that equity training can be a great tool to educate the market about a new funding source for companies in frontier markets like Ethiopia. These can also act as a great sourcing tool for Private Equity investors. We are excited about the results from the first 2.5 years of the program and look forward to enhancing the training to help high-quality SMEs attract capital and close the funding gap called the missing middle.

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Building Ethiopia’s Investment Ecosystem

<h1 style="text-align:center;">RENEW Facilitates a Pitch Event in Nairobi</h1>During the last week of November, the governments of Kenya, Canada and Japan came together to host the <a href="http://www.blueeconomyconference.go.ke/">2018 Sustainable Blue Economy Conference</a> at the Kenyatta International Convention Centre in Nairobi. The forum gathered entrepreneurs, delegates and policy leaders from across the globe to advance the discussion around the Blue Economy which consists of two main pillars: 1) sustainability, climate change and controlling pollution, and 2) production, accelerated economic growth, jobs and poverty alleviation.<figure class="image"><img src="/uploads/sbec1_fotor_0_b16fc98a75.jpg"></figure>The event provided a setting for NGOs, governments, and the private sector to converge and work towards sustainability. As Jonathan Wilkinson, Canada’s Minister of Fisheries put it, “The blue economy framework that has been talked about here allows us to integrate conversations that have been happening almost in silos. So issues around sustainable fisheries management, issues around illegal and unregulated fishing. Issues around plastics pollutions in the oceans, issues around climate change, and issues around economic opportunities and prosperity.” (Source: <a href="http://www.ipsnews.net/blueeconomy2018/2018/11/28/we-are-in-this-together/">http://www.ipsnews.net/blueeconomy2018/2018/11/28/we-are-in-this-together/</a>)RENEW was honored to play a special role in the event by facilitating an entrepreneur/investor pitch session during the Business and Private Sector Forum on day two of the conference. For this event, four impressive entrepreneurs with businesses and products related to water and oceans preservation and sustainability pitched their businesses to a panel of seasoned venture capitalists including RENEW’s CEO, Matthew Davis, alongside Sunir Chandaria of Conros Corporation and Ladé Araba of Convergence Finance.<figure class="image"><img src="/uploads/sbec3_fotor_09056cc937.jpg"></figure>At stake for the entrepreneurs was not funding, but rather real business and growth advice to help scale their ventures and create positive social impact by helping advance the UN’s sustainable development goals. The session was also meant to create a buzz at the conference and demonstrate the real conversations that happen every day between entrepreneurs and investors. Playing off of the format of popular TV shows such as <a href="https://www.cbc.ca/dragonsden/">Dragon’s Den</a> and <a href="https://www.ctv.ca/Shark-Tank">Shark Tank</a>, the pitch event added an exciting and authentic component to the conference that hopefully inspired those in attendance to engage the private sector on conversations around international development.A full recording of the event is available for viewing on <a href="https://www.youtube.com/watch?v=jr1uyyqj4zM&amp;t=348s">YouTube</a>.

The 2018 Sustainable Blue Economy Conference.

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RENEW Facilitates a Pitch Event in Nairobi

<h1 style="text-align:center;">A Look Back at 2018: Words and Pictures</h1>As we stand in the early days of a new year, it’s one of our traditions at RENEW to look back at the milestones we accomplished during the last 12 months. The work is not just happening in Ethiopia, but it's happening around the world. At RENEW, we are trying to tap into the enormous potential of making impact investing possible for 'not just the big funds' but for individual investors - angels. Here are some of the highlights for RENEW in 2018.<figure class="image image_resized" style="width:100%;"><img src="/uploads/year1_animation_6cd0459816.gif"></figure><ul><li>January – We started the year with our annual partners planning session in Colorado. It was a snowy and productive time in the mountains. We then packed our bags and headed to Texas, Georgia and New York to meet with people interested in our work in Ethiopia.</li><li>February – We rolled out our second round of the <a href="https://www.renewcapital.com/companies">CFO100</a> and <a href="https://www.renewcapital.com/companies">The Exec’s Program</a>. We also had IAN Member, Jeff Turi, join us for a month in Ethiopia to learn the ropes about what we do here at RENEW.</li><li>March – We held our second <a href="../2018/second-women-finance-event.html">Women in Finance</a> event in partnership with Enat Bank. We also traveled to Toronto, Canada to meet with a number of our Canadian IAN Members and we held two events in the city.</li><li>April – We traveled to Ottawa to visit our friends at Global Affairs Canada! We had several meetings and had the chance to host a brown bag lunch to report our success.</li><li>May – We helped launch Season 1 of <a href="../2018/ethiopia-emerges-chigign-tobiya.html">Chigign ‘Tobiya</a>! This show proudly works to build Ethiopia’s entrepreneurship and angel ecosystem. We also closed our 10th investment in FC Speciality.</li><li>June – We traveled to <a href="https://renewcapital.com/blog/2018/june-investor-trip">Minneapolis and Chicago</a> to meet with investors and other people interested in the work RENEW is currently doing. We also released our <a href="../2018/third-annual-impact-report.html">Third Annual Impact Report</a>. Several members of RENEW’s international team got their feet wet working on the ground in Ethiopia.</li><li>August – We finished the Exec’s Program with three intensive sessions where we invited the executives from both cohorts to participate. We are very excited that the results from this program are exceeding benchmarks!</li><li>September – We expanded into our second country, <a href="../2018/press-release-renew-enter-uganda-market.html">Uganda</a>! We also traveled to Wilmington DE and Charlottesville, VA to meet with members and others who were interested in learning more about our work.</li><li>November – We closed our <a href="../2018/press-release-renews-impact-angel-network-closes-eleventh-investment-east-africa.html">11th investment</a> in Ethiopia! RENEW and the IAN invested in ET Fresh, LLC, a company focused on increasing the branding, value and market reach of Ethiopian products into the Middle East and other markets.</li><li>December – We helped launch Season 2 of <a href="../2018/renew-help-launch-season-2-chigign-tobiya.html">Chigign ‘Tobiya</a>! We also finished the year the way we started it, with a planning session, but this time in Virginia. We are planning for 2019 to be a big year.</li></ul>Overall, we saw growth in our portfolio, and our companies supported more than 2,280 jobs. Throughout the year, we enjoyed connecting with members of the Impact Angel Network in Ethiopia and around the world. We are grateful to our partners in Ethiopia and the Government of Canada who make our work in Ethiopia possible and to the inspirational entrepreneurs leading our <a href="../../marketplace/portfolio.html">companies</a>.As we take on 2019, we raise a toast to our investors, our partners, our entrepreneurs, our team…and to our vision where people see Africa as a land of opportunities (not problems). Here's to a good 2019!!<a href="https://www.linkedin.com/in/matthew-davis-a948772/">Matthew Davis</a>, <a href="https://www.linkedin.com/in/tom-scriven-cfa-1b61767/">Tom Scriven</a>, <a href="https://www.linkedin.com/in/laura-davis-25764430/">Laura Davis</a>, <a href="https://www.linkedin.com/in/justin-reesor-019a942a/">Justin Reesor</a>, <a href="https://www.linkedin.com/in/erinhoconnor/">Erin O’Connor</a>, <a href="https://www.linkedin.com/in/eziethen/">Emily Ziethen</a>, <a href="https://www.linkedin.com/in/neetesh-dohare-2906b978/">Neteesh Dohare</a>, <a href="https://www.linkedin.com/in/praghuwanshi/">Prasoon Raghuwanshi</a>, Lulit Negash, <a href="https://www.linkedin.com/in/renatamakhoul/">Renata Makhoul</a>, <a href="https://www.linkedin.com/in/yoseph-getachew-98184366/">Yoseph Getachew</a>, <a href="https://www.linkedin.com/in/tsegamlak-solomon-921175a2/">Tsegamlak Solomon</a>, <a href="https://www.linkedin.com/in/kirsten-newman-10301aa7/">Kirsten Newman</a>, Teddy Fantahun, <a href="https://www.linkedin.com/in/dagmawit-shiferaw-8665943b/">Dagmawit Shiferaw</a>, <a href="https://www.linkedin.com/in/filseta-asrat-4b5615158/">Filseta Asrat</a>, <a href="https://www.linkedin.com/in/mary-adoi-0317b0b8/">Mary Adoi</a> &nbsp;

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A Look Back at 2018: Words and Pictures

<h1 style="text-align:center;">An Angel Investor's Tour to Ethiopia, Uganda and Rwanda</h1>At the end of January, a longtime member and IAN investor, Dr. Andrew Umhau, joined Matt, Laura and Brooklyn on a regional trip across East Africa to see how the Ethiopia <a href="../../marketplace/portfolio.html">portfolio</a> was doing, meet new companies in Ethiopia and Uganda, and explore Rwanda. It was Dr. Umhau’s first trip back to Addis in over 7 years and a lot has changed since he last visited, including the amount of growth the country has undergone.<figure class="image image_resized" style="width:100%;"><img src="/uploads/img_5912_2_2673dc655f.jpg"></figure>Over the course of the week with RENEW, Andrew was able to visit over 20 different businesses. This included a number of site visits, as well as meetings with partners and entrepreneurs. It was a unique opportunity for him to see some of the businesses his family had invested in, as well as other companies in the RENEW portfolio and in the current pipeline. Visiting RENEW in-country is always a valuable trip and provides a first-hand experience seeing the companies that are discussed on our Monthly Members’ Calls.After a few days in Addis, Andrew and the RENEW partners took off for Kampala, Uganda. Joined by our team member in-country, Mary Adoi, the group had the opportunity to visit with 16 different businesses currently interested in receiving financing. The entrepreneurs in Uganda were eager and excited for the prospect of working with RENEW.<figure class="image image_resized" style="width:100%;"><img src="/uploads/img_6039_2_20d69849ab.jpg"></figure>The last leg of the journey was a stop in Rwanda: an exciting, young country vibrant with businesses. The team agreed there was a lot of growth potential in the country, and were excited by the people and the city of Kigali.Overall, Dr. Umhau experienced first-hand how RENEW works in-country. He had the chance to meet our team on the ground as well as a number of businesses, and he was able to witness some of the training and vibrant community that has been built at the Exchange.<figure class="image"><img src="/uploads/img_6140_3d45539148.jpg"></figure>

Rwanda

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An Angel Investor's Tour to Ethiopia, Uganda and Rwanda

<h1 style="text-align:center;">Press Release: Official Launch of KROTAJ Tahini Manufacturers PLC’s Processing Factory</h1><a href="https://renewcapital.com/sites/default/files/02.11.2019_-_press_release_-_krotaj_launch_final_1.pdf">Download the Full Press Release.</a>Addis Ababa, Ethiopia February 11, 2019 -- On February 12, 2019, KROTAJ Tahini Manufacturers PLC (KROTAJ), will host a formal launch event to celebrate the opening of its tahini factory in Addis Ababa. Visitors will witness the production of tahini at the newly certified factory and sample the product.Date: February 12, 2019 Time: 3 PM in the afternoon Location: Nifas Silk Lafto Sub City Woreda 12 (Lebu, Mebrat hayel behind Haile Garment)KROTAJ is an international partnership of sesame experts and investment professionals formed to produce world-class tahini close to the source of some of the world’s finest sesame from the Humera region of Ethiopia. The company’s mission is to become the leading provider of tahini to the international food processing industry.<figure class="image"><img src="/uploads/img_5956_40fb42729f.jpg"></figure>Sesame is one of the leading agricultural products exported by Ethiopia, generating a significant amount of foreign currency revenue for the country. Value addition to sesame in Ethiopia has so far been limited, but has the potential to both increase overall revenue for Ethiopian sesame producers and open up new markets worldwide.The company, by sourcing sesame locally, will support thousands of smallholder farmers and strengthen the sesame industry in Ethiopia. The new factory plans to produce 3,758 tons of tahini per year and directly employ more than 40 staff at full capacity. KROTAJ is anticipated to have a significant impact on the local economy and its shareholders and managers are excited to celebrate this milestone of opening a state-of-the-art tahini processing factory in the home of the some of the world’s best sesame. “We are grateful for our Ethiopian, Israeli and U.S. partners who have helped us get to this stage of launching a tahini factory in Ethiopia,” CEO, Dr. Mulugeta Kidanemariam, recently said.<figure class="image image_resized" style="width:100%;"><img src="/uploads/tahini_fotor_2_0_a31a796afd.jpg"></figure>“Our partners include Wegagen Bank, many Government partners, and several U.S. investors, including RENEW and the Impact Angel Network,” said Meseret Kidanemariam, sister to Dr. Mulugeta and a co-founder. “Each group has been integral in helping us get to this key stage. Now it’s time to produce and export exceptional tahini to the world market,” she continued.As a key stakeholder, RENEW and the Impact Angel Network (IAN) are proud to partner with KROTAJ Tahini Manufacturers PLC.&nbsp;###

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Press Release: Official Launch of KROTAJ Tahini Manufacturers PLC’s Processing Factory

<h1 style="text-align:center;">Press Release: RENEW and the IAN Make Second Investment in Logistics and E-Commerce Company in Ethiopia</h1>Denver CO and Addis Ababa, February 19, 2019 -- Members of RENEW’s <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> (IAN) have funded a second investment in Roadrunner Technology Solutions LLC (Roadrunner), which partners with Universal Courier Services PLC (<a href="https://deliveraddis.com/">Deliver Addis</a>) to expand the burgeoning logistics and e-commerce industries in Ethiopia. Deliver Addis is a technology enabled, online food delivery company based in Addis Ababa, Ethiopia, launched in October 2015. Deliver Addis has succeeded in building a loyal customer base by offering meal delivery services from select restaurants around Addis Ababa. Since the IAN’s initial investment in 2017, the company has focused on three main service areas: logistics, B2C focused e-commerce and technology.<figure class="image"><img src="/uploads/roadrunner_almost_done_887f39dc57.jpg"></figure>Roadrunner and Deliver Addis utilized the IAN’s initial investment to enhance and expand its restaurant delivery services for consumers in Addis Ababa. Roadrunner developed a technology platform for Deliver Addis which has enabled the courier company to significantly reduce average delivery times, handle higher volumes and add additional service offerings. In addition, Roadrunner launched a new website for Deliver Addis with additional features, including a loyalty program and credit card payment options, as well as new restaurant offerings. With the IAN’s second investment, Deliver Addis intends to expand its service offering, allowing customers to order deliveries from a wider range of restaurants, as well as a soon-to-be-launched menu of retail products. The company also aims to expand its offering into new markets, making deliveries accessible to a wider segment of the Ethiopian population.“RENEW and the IAN exist to invest in smaller companies like Roadrunner and Deliver Addis, which are creating jobs for Ethiopian men and women by supporting local businesses and which can deliver strong performance following an investment,” said Matthew Davis, RENEW’s CEO. “We are pleased to be investing a follow-on round at a time when Roadrunner and Deliver Addis are positioning themselves as leaders in the nascent e-commerce industry in Ethiopia. We could not invest in companies like Roadrunner if it were not for Global Affairs Canada and USAID, and we are grateful for our partnerships with them.”<figure class="image"><img src="/uploads/deliveraddis2_0_80bacb826e.jpg"></figure>“RENEW and the IAN have been incredible partners during our growth since their first investment last year and we're glad to see that they are as optimistic about Ethiopia as we are,” said Feleg Tsegaye. “Since their first investment, we've been able to generate significant value for our partner restaurants as well as expand and optimize our driver fleet to ensure we're satisfying the needs of an ever-growing customer base. We're looking forward to our next chapter of growth and our continued relationship with RENEW's support.”About the Impact Angel Network and RENEW The Impact Angel Network is one of the most active private equity investors in Ethiopia. Its members seek to make both social impacts and financial returns through investments in small and medium enterprises (SMEs); a proven engine of economic growth and job creation, but lacking capital in Africa due to their size. They believe that targeting employment through SMEs, dollar-for-dollar, can help reduce poverty in a more sustainable way than charity.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims at sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.&nbsp;###

The IAN's second investment in Roadrunner.

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Press Release: RENEW and the IAN Make Second Investment in Logistics and E-Commerce Company in Ethiopia

<h1 style="text-align:center;">An Ode to Africa's Businesswomen</h1>Close your eyes for a few minutes and imagine that you are a businesswoman in East Africa. What inequalities might you face? What extra challenges might come into play as you go about the daily work of growing your business? Are there extra family obligations your life might entail that your male counterparts don’t typically face? How about equal access to land, finance and markets?According to a recent study conducted by the IFC, Sub-Saharan Africa (SSA) has the largest proportion of financially constrained small and medium enterprises (SMEs) (54%) in the world.[1] Women-owned SMEs in SSA face additional barriers to trade and finance because they often lack the collateral, banking relationships and market linkages afforded to their male counterparts. The same IFC study outlines that, despite their smaller average size, female-owned businesses in SSA account for an outsized share of the finance gap, at $42B.[2]As an example, one of our portfolio companies, Mama Fresh, is an injera company in Ethiopia and is a family business comprising of Konjit Zewdie and her husband Hailu and son Miraf. The Mama Fresh team has been baking injera daily in Ethiopia since 2003. With entities registered in Ethiopia and the United States, the company now offers a range of traditional Ethiopian food products and consumers can find Mama Konjit’s food in restaurants and retail outlets in Ethiopia, the United States, Sweden, Norway, Germany, Hong Kong, Kuwait and Nigeria. The company currently has 39 employees, and 69% are women.<figure class="image"><img src="/uploads/mamafresh_0_d4d0a5ebff.jpg"></figure>Global Affairs Canada (GAC) worked with RENEW to design and implement the Accelerating Business Growth (ABG) Project in Ethiopia. ABG helps address some of the challenges faced by companies like Mama Fresh. The project helps SMEs, especially women-owned and managed, access finance from a growing network of domestic and international angel investors committed to building Ethiopia’s economy. The ABG project goes beyond addressing access to capital; it provides an executive training program for the C-suite of companies, helping them build and strengthen their governance, financial management and sales and marketing. All of this aims to create thousands of jobs in Ethiopia and build a vibrant and sustainable economy in Ethiopia.Here are some numbers that we are tracking for the ABG to keep us focused on building gender equality:<ul><li>40% of the SMEs that have received an investment from our angel investors have female shareholders. We want this to get above 50%.</li><li>70% of the jobs provided across our portfolio are held by women.</li><li>40% of participants in The Exec’s Program are women. We will push to get this to 50%.</li><li>38% of the professionals in the CFO100 are women. We want more!</li><li>39 or 27% of the North American angel investors are women. We want to have more women join the IAN.</li></ul>And finally, 50% of the RENEW team that manages the ABG project are women. Gender-balanced! Why is gender equality so important for projects like ABG? Just as women are often the backbone of a family, they are also the backbone of an economy. And this is why all of the work we do at RENEW and with our partners at Global Affairs Canada emphasizes gender empowerment and equality.So please stay in touch to keep learning about the high-impact work we are doing in Sub-Saharan Africa. There is much more coming on the horizon.

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