<h1 style="text-align:center;">Expansion Brings Rural Jobs to Ethiopia</h1>During a recent visit to Butajira, Ethiopia, a small town three hours outside of Addis, I saw the Bekele family’s vision to be a leading Ethiopian owned and led garment manufacturing facility coming alive. Historically, the company, <a href="http://www.desta-garment.com/">Desta Garments PLC</a>, which the Impact Angel Network made an investment into in 2015, has been operating in a relatively small, three story building in Gerji, a sub-city of Addis Ababa. The company has done really well with the space that it has had, employing close to 700 people and producing garments for international brands.“Our current factory was never designed to be a garments facility, but our new Butajira facility is,” stated Eyob Bekele, owner and general manager of Desta. “To increase our ability to compete with any company worldwide, we need a proper setup and Butajira is the answer.”The facility is in the final stages of construction, but production and export has already started from the new location. The company employs around 220 employees at the new site and has already established 5 sewing lines. With a large contract for 1M garments per year already in place for the facility, the company is moving fast to fully utilize the 8,000 square meter space.Further expansion will include a second shed that will have a canteen to serve nutritious food to the staff which is expected to grow to more than 1,000 employees. Further plans include a medical clinic for staff and the community, rainwater collection and a state-of-the-art waste treatment plant.“We are committed to hiring people with disabilities including the deaf,” Eyob continued. “We have a family member who has a disability, and we feel like just because you are disabled doesn’t mean you cannot work productively. We aim to employ 30-50 workers with a disability at any one time which is about 5-10% of our current labor force.”“The women in Desta’s workforce play a significant role from the bottom to the top of the organization. About 90% of our workforce are women. A few have started as a cleaner and are now in management. We take women empowerment seriously and invest in soft skills,” Eyob said.To read more about Desta, download our most recent <a href=" https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d_815a14c8fa.pdf">Impact Report</a>.

The Impact Angel Network’s garments facility, Desta, is expanding to Butajira.

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Expansion Brings Rural Jobs to Ethiopia

<h1 style="text-align:center;">2019 ABG Check-In</h1>In 2016, RENEW signed a collaboration agreement with the development arm of the Canadian federal government, Global Affairs Canada, for a project known as Accelerating Business Growth (ABG). 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”. This missing middle limits the ability of SMEs to access finance to grow their businesses and create sustainable jobs.The project’s ultimate outcome is to increase employment and generate income opportunities for men, women and young adults from Ethiopia’s small and medium enterprises sector and related value chains. Specifically, RENEW is aiming to support a total of 5,000 jobs and help Ethiopian SMEs attract $52.5M (CAD) of financing to help scale their companies by the time the project concludes in May 2021.<figure class="image image_resized" style="width:100%;"><img src="/uploads/abg2_7d4fbe5c3d.png"></figure>With three years completed, RENEW has made significant progress on both metrics, now supporting 3,944 jobs through the program (79% of target) and having helped Ethiopian SMEs attract $47.5M CAD (91% of target). A sampling of other project targets and current results are as follows:<ul><li>Target: Train 650 SMEs on finance. Current result: 529 (81%).</li><li>Target: Train 100 resource providers (banks, chambers of commerce, accounting and legal firms, financing institutions, etc.) on finance. Current result: 74 (74%).</li><li>Target: Annual sales growth rate increase of 10% achieved by companies who participate in The Exec’s Program. Current result: 13.50% (exceeding target).</li><li>Target: Graduate 50 individuals from The Exec’s Program. Current result: 46** (92%).</li><li>Target: Graduate 100 finance executives from the CFO100 Program. Current result: 51 (51%).</li><li>Target: Grow the Impact Angel Network (IAN) by 175 individuals and families. Current result: 73 (42%).</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/chigign_98d5028b3a.png"></figure>Throughout the project, the team has also developed unique initiatives that directly support the project’s goals and have contributed to the achievements listed above to date, including:Chigign ‘Tobiya: In partnership with Tonetor Multimedia, RENEW launched Chigign ‘Tobiya, a business pitching TV series broadcast on national television (FANA TV) which aims to raise awareness and build interest in entrepreneurship locally in Ethiopia. The initiative also aims to build out a local Ethiopian angel investor network for SMEs. Two seasons have been fully aired attracting a reported 40M viewers, with season three production now in the final stages. Eleven companies that pitched on the show have advanced to the diligence stage, and RENEW anticipates multiple closings in these companies during 2019.Women in Finance: RENEW launched the “The Women in Finance” series in 2017 aimed at empowering and inspiring female finance professionals in Ethiopia. Four sessions have since been held in partnership with local banks and organizations, with glowing reviews and results. Guest speakers have been invited and productive discussions have been held related to the unique challenges that women face in the finance industry in Ethiopia. The 5th edition of the program is scheduled for Q4 of 2019.Women’s Mini-fund: The mini-fund is an investment vehicle that pools funds for investment in multiple (women-owned) companies. The RENEW team wanted to be creative in forming a vehicle that would address the unique constraints faced by women entrepreneurs. More details about the mini-fund can be found in our Press Release from May, as well as in the Press Releases for RENEW’s two new portfolio companies, a company that supports <a href="https://travelethiopia.com/">tourism in Ethiopia</a> and a <a href="https://kijanionline.com/">Ugandan diaper company.</a>For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_1_c404b1a690.png"></figure>The Accelerating Business Growth (ABG) program is undertaken with support from the Government of Canada provided through Global Affairs Canada. The Impact Angel Network (IAN) is one of the largest North American-based angel networks dedicated to investing in Africa. RENEW is an impact investment firm working in Ethiopia that manages the IAN and provides professional investment advisory and consulting services in support of its investments.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

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2019 ABG Check-In

<h1 style="text-align:center;">A Look into The Exec’s Program</h1>In May 2017, RENEW launched <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec’s Program</a>, an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.The reason RENEW started the program is simple: our investment thesis is that with a little planning and disciplined execution, companies in Ethiopia can have a huge competitive advantage over others in the market. Our experience is that poor execution is why most companies fail. Starting at the top, most CEOs, often founders, don’t know or apply some of the most basic fundamental disciplines that have been proven to work around the world. For example, writing down a clear plan for the year; tracking a few key metrics; closing the company’s books each month and analyzing the three financial statements; running effective weekly management meetings; using a sales pipeline; asking for feedback from customers, etc. You’d be shocked at how few companies do the basics.<figure class="image"><img src="/uploads/execs_0_5f0e006bab.png"></figure>We started The Exec’s Program to be different from the flood of donor and consultant offered accelerator programs and boot camps out there. We wanted to have a program focused on tools that could be immediately applied by a CEO to their organization that would move the needle on their performance. The program requires a commitment of time, and like any skill, what is taught must be practiced over and over again until it becomes a habit. The habits that disciplined executives form are those that other top-performing executives attribute to their success.The program is for executives in RENEW’s portfolio and a select few additional executives we believe have the potential to become market leaders. The program focuses on planning, governance, execution, finance, marketing and sales, and corporate stewardship, with a strong focus on teamwork and group implementation.Now for the numbers. Since 2017, we have had three cohorts with a total of 46** executives. Of these 46 executives who were enrolled in the program, 19 have been women. The following table provides a deeper look into the three cohorts:<figure class="image"><img src="/uploads/graph1_8aff448ffb.png"></figure>In the latest annual survey conducted from February to March 2019, RENEW collected data from the companies that attended The Exec's Program, a total of 26 companies. Here are some quick findings based off these surveys:<ul><li>As of December 2018, the total number of employees of all The Exec's Program Alumni was 1,943, which translates into a 16% increase from 2017. Of these 1,943 jobs, 871 were held by women.</li><li>In terms of the number of jobs created over the course of the training program, The Exec’s Program Alumni have added 264 new jobs to the local economy, of which 132 jobs were jobs for women (50%). On average this represents 10 new jobs created per company, five of which were for women.</li><li>From the 26 companies in the Alumni group, 18 companies raised capital in 2018, 69% of the total.</li><li>From the 18 companies that raised capital, five companies raised equity, 10 companies raised debt and three companies raised grants.</li></ul><figure class="image"><img src="/uploads/graph2_f89ce253c1.png"></figure><ul><li>On average, accelerated ventures display greater one-year growth in revenues, employment, and investment;</li><li>USAID’s PACE Program (Partnering to Accelerate Entrepreneurship) report finds that Small and Growing Businesses (SGBs) that receive shorter, less individualized technical assistance, such as cohort-based, time-bound incubators and accelerators, demonstrate an average revenue growth over two times and job growth over one-and-a-half times that of other SGBs.</li></ul>Some comparisons between GALI and The Exec’s Program:<figure class="image"><img src="/uploads/graph3_93b77f1b26.png"></figure>Based on these survey results and through facilitating these sessions, we believe that The Exec’s Program is providing valuable skills and opportunities to the participants. We are constantly aiming to graduate top-performing executives with disciplined management teams that become legends of Ethiopia’s economic growth.For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_ca912bbd10.png"></figure>The Executives’ Program, a part of RENEW’s Accelerating Business Growth (ABG) project, is undertaken with financial support of the Government of Canada provided through Global Affairs Canada. Please see the following press release on the ABG project for more details. To find out more about RENEW or the Impact Angel Network, contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>, follow us on Twitter @RENEWLLC or find us on Instagram @impactangelnetwork.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

The Exec’s Program is an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.

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A Look into The Exec’s Program

<h1 style="text-align:center;">Our Jobs Scorecard, Ethiopia's First Jobs Summit</h1>On October 31, 2019, RENEW was invited to attend the first Jobs Summit in Addis Ababa, hosted by the Jobs Creation Commission of Ethiopia. The Jobs Creation Commission highlights the commitment that the government, the private sector and development partners have in steering Ethiopia towards higher numbers of sustainable jobs, especially those for women and youth. Their goal is to help bridge the unemployment gap in Ethiopia by creating 20 million jobs in the country by 2030.During the Jobs Summit, the Commission presented its <a href="http://jobscommission.gov.et/documents/">Plan of Action for Job Creation</a> and the <a href="http://jobscommission.gov.et/documents/">2019 State of Jobs Report</a>. The presentation recognized the potential that small and medium enterprises (SMEs) have to be huge drivers of job creation and growth, citing an increase of support to those working in that sector.<figure class="image"><img src="/uploads/jobsummit_fotor_0_6b3aeefc9e.jpg"></figure>We can all be proud that as of June 30, 2019, through the investments made by RENEW and the Impact Angel Network, we have created 1,487 jobs and helped sustain an additional 2,229; we have also supported 1,792 jobs through our training to companies in The Exec’s Program, for a total of 5,464 jobs created or sustained through our work in Ethiopia.**RENEW is committed to working with the Jobs Creation Commission, development partners and other stakeholders to help achieve Ethiopia’s goal of 20 million jobs. Be sure to visit the <a href="http://jobscommission.gov.et/">Commission’s website</a> to learn more about their initiatives.Read more about RENEW’s efforts related to job creation:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Desta%20%20Building%20Sustainability">Eyob’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/An%20Angel%20Investor%E2%80%99s%20Perspective">Beth’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/Expansion%20Brings%20Rural%20Jobs%20to%20Ethiopia">Desta Worker’s Blog</a></li></ul>**The data for portfolio jobs is current as of June 30, 2019. Data is preliminary and has not been audited. The data includes figures for investments that were exited during Q2 2019and is based on a high-water mark. The data for The Exec’s Program is current as of September 30, 2019.

Hosted by the Jobs Creation Commission of Ethiopia.

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Our Jobs Scorecard, Ethiopia's First Jobs Summit

<h1 style="text-align:center;">High-Impact Giving: Grow a Company. Build a Nation. Leave a Legacy.</h1>Prior to joining RENEW, I helped launch a firm which evaluated poverty alleviation initiatives in terms of their social return on investment. The analysis measured the increased wages and other measurable benefits that beneficiaries realized and the government spending saved per dollar spent on the evaluated program. After evaluating dozens of organizations and causes and looking at third-party assessments of many more, I concluded that the most effective way to tackle poverty is through investing in SMEs in frontier markets. I was impressed by studies showing that, for every dollar invested in an SME in a frontier market, the local economy realized 12 dollars, with benefits reaching multiple stakeholders, including employees and their families, other businesses, and taxpayers, as beneficiaries depended less on public assistance <a href="#section1">[1]</a>. Few other programs could claim such 'bang for the donor buck', especially when factoring in the potential for recycling of returns from SME investments to other impact investments or high-impact donations.This realization prompted me to join RENEW full-time and to invest both from my and my wife's personal assets and from our donor-advised fund (DAF). In 2017, we used funds from our DAF to make an impact investment and received a tax deduction to support a company and the local economy in Ethiopia. As our DAF receives funds back from this investment, we are able to then recommend that the funds be redirected to other investments or causes we care about. The use of our DAF allowed us to invest our philanthropic dollars into organizations that were supporting poverty alleviation with RENEW.<figure class="image"><img src="/uploads/destaphoto_0_a9b2ff1109.jpg"></figure>RENEW believes that the most effective way to move a country from poverty and dependence to prosperity is to help small and medium enterprises (SMEs) grow and, in the process, unlock their potential as primary engines of job creation and economic growth. We seek to invest in great companies that struggle to access what they need to grow and provide full and productive employment and decent work for all. Our strategy is to build great management and companies that in turn will support their employees and the community. RENEW has developed and implemented a unique blended finance model from our offices in Ethiopia and Uganda to pursue this strategy in partnership with the Impact Angel Network and the U.S. and Canadian governments.As we enter the 2019 holiday season, many look back at the previous year and reflect on what they are grateful for - be it friends, family, successes, experiences, or other blessings. A few years ago, it was this holiday-centric, philanthropic mindset that created <a href="https://www.givingtuesday.org/">#GivingTuesday</a> - “a global generosity movement unleashing the power of people and organizations to transform their communities and the world… and inspiring hundreds of millions of people to give, collaborate, and celebrate generosity.”This year, RENEW wants to challenge the #GivingTuesday donors of the world to think a little differently about some of their philanthropy - why not invest your charitable dollars in a way that results in far reaching and sustainable impact for poverty alleviation?Accredited, entrepreneurial givers can invest with RENEW from a donor-advised fund to make a dent in global poverty with the potential of earning a return on their charitable capital.<figure class="image"><img src="/uploads/new1_0_7e879d63e0.jpg"></figure>What is a Donor-Advised Fund?A donor-advised fund, commonly referred to as a DAF, is a philanthropic vehicle administered by a public charity. Think of it like an investment account dedicated to supporting your charitable contributions over time.As a donor, you can recommend where the charitable dollars will be focused and can also recommend your favorite charities or causes, which will then receive support from the fund, either in the form of grants or investments.How does a DAF lessen my tax burden?Contributions to a DAF result in an immediate tax deduction for those itemizing deductions. Any financial returns realized through a DAF investment simply return to the fund, tax-free, and can then be re-invested or donated through the DAF. DAFs can also eliminate capital gains taxes and reduce marginal income taxes on donated appreciated stock <a href="#section2">[2]</a>.How do I go about creating a DAF?<ol><li>Select a DAF manager.</li><li>Donate cash, publicly traded securities, or other illiquid assets to fund the DAF.</li><li>Receive a tax deduction immediately for your charitable contribution to the fund (if you itemize).</li><li>Working with your DAF manager, you can choose a strategy for growing your fund.</li><li>Recommend a target – such as a charity or impact investment – for your philanthropic investment.</li><li>At this time, DAF investing with RENEW is available only to investors who are ‘accredited’. (SEC <a href="https://www.sec.gov/fast-answers/answers-accredhtm.html">definition</a>).</li></ol>&nbsp;[1] One notable study is the Small Enterprise Assistance Fund’s report, “From Poverty to Prosperity: Understanding the Impact of Investing in Small and Medium Enterprises” published in October 2007 summarizing the results of a survey of 50 SME investments.[2] The information contained in this brief is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.

What Does Sustainable Investing have to do with #GivingTuesday?

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High-Impact Giving: Grow a Company. Build a Nation. Leave a Legacy.

<h1 style="text-align:center;">2019 in Review and a Sneak Peek at 2020!</h1>As we start off the new year and decade, it’s one of our traditions at RENEW to look back at the last 12 months and ahead to the next. February 2020 will mark eight years RENEW and the IAN have been in Ethiopia. Before we arrived, there was one PE firm, now there are over a dozen. RENEW’s <a href="https://www.renewcapital.com/what-we-do/investing">Impact Angel Network</a> is the most active SME investment group in Ethiopia, and we have already achieved two exits! Before the IAN, most of the private sector had no option for financing. Unless you had a micro-enterprise or a huge company, there was nowhere to get $500K. Now, friends advise entrepreneurial friends to speak with RENEW's angel network or pitch on <a href="http://www.tonetormultimedia.com/">Chigign 'Tobiya</a>, the investment TV show RENEW helped launch. The work is not just happening in Ethiopia and Uganda, but it's happening around the world with the Impact Angel Network. Here are some of the highlights for RENEW in 2019.January - We started the year with our annual partners planning session in Colorado. We also held an Econ-Tourism Trip that took place in Ethiopia, Uganda and Rwanda!February - We held our third 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 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.March - We celebrated International Women’s Day with an Ode to Africa’s Businesswomen and started making plans for an investment vehicle focused on women.April - RENEW and the Impact Angel Network committed capital to a fund dedicated to investing in women-owned and led companies in Ethiopia and Uganda. RENEW and the IAN designed the fund to address a pressing need to close the financing gap for women-owned companies in Sub-Saharan Africa. We also visited our partners, <a href="https://www.international.gc.ca/gac-amc/index.aspx?lang=eng">Global Affairs Canada</a>, in Ottawa, Canada.May - This was a big month at RENEW! We successfully exited two investments to a regional private equity fund and a family office. RENEW and the IAN provided two rounds of angel financing to support the launch of an Ethiopian production company that exports to international markets. We also held our fourth International Gathering weekend in Washington D.C., and we released our <a href="https://www.renewcapital.com/resources/blogs/The%20Fourth%20Annual%20Impact%20Report">Fourth Annual Impact Report</a>.June - We attended the 5th Annual Private Equity in East Africa Conference (hosted by EAVCA) and participated on the "Investing in Women is a Good Idea" panel discussion.July - We made our first investment in Uganda from the Women-Owned Business Investment Fund. The fund was set up to invest in female entrepreneurs in Ethiopia and Uganda, and the first company to receive an investment was Kijani Baby (<a href="https://www.kijanionline.com/">Kijani</a>).August - We closed our second investment from the Women-Owned Business Investment Fund. This investment was made into a company that supports tourism in Ethiopia, which partners with Travel Ethiopia PLC (Travel Ethiopia).September - We visited with our IAN Chapter in Virginia and spent some quality time with some IAN members and investors. The partners also visited London and the Netherlands.October - RENEW had the pleasure of hosting a panel discussion in partnership with the Aspen Network for Development Entrepreneurs (<a href="https://www.aspeninstitute.org/">ANDE</a>), <a href="http://www.trust.org/trustlaw/">TrustLaw</a> (Thomson Reuters Foundation) and <a href="https://www.international.gc.ca/gac-amc/index.aspx?lang=eng">Global Affairs Canada</a> on the changes that are coming to the legal and regulatory framework for investing in Ethiopia. We also launched our fourth cohort of The Exec’s Program and CFO100, and we had several members of the Impact Angel Network visit us in Ethiopia.November - We attended the <a href="http://www.ipsnews.net/2019/11/global-gender-summit-2019-african-leaders-take-responsibility-urgently-close-gender-gap/">Global Gender Summit</a> in Kigali along with 20+ female entrepreneur delegates from Ethiopia who had won the <a href="https://invest2impact.africa/">Invest2Impact</a> Challenge. What an inspirational time and an encouragement to double-down on our strategy to build gender-balanced, gender smart management teams!December - We announced an important strategic shift in our investment strategy to the Impact Angel Network. Look for more background on this in 2020, but here are the broad strokes of it. Going forward, we intend to bring capital, training and skilled management into companies the IAN and RENEW take controlling positions in. With this strategy, we will be able to provide opportunities for existing team members to learn from veteran managers that have successfully led similar companies. Owners of portfolio companies will be freed to focus on their core competencies. A critical piece of this strategy is that RENEW will manage the back-office services for portfolio companies in the areas of finance, accounting, marketing, HR, sales, IT and potentially others to achieve economies of scale. We will also continue to provide training to company managers and will work with them to implement the lessons they learned within the companies we invest in.Throughout the year, we enjoyed connecting with members of the Impact Angel Network in Ethiopia, Uganda and around the world. As we start this new year and decade, we are grateful to the <a href="../../new-strategy/partners.html">Government of Canada</a> who makes our work in Ethiopia possible, members of the Impact Angel Network who believe in the potential of businesses to be the engines of prosperity, our team who works tirelessly around the world and the inspirational entrepreneurs leading our <a href="https://www.renewcapital.com/portfolio">companies</a>.The year and decade ahead look bright. This year will be about implementing the strategy shift we announced in December and providing high-quality professional services as we build businesses into market leaders, adding value to their employees and the markets in which they operate in. Here's to a great 2020.The Renew Team, Matthew Davis, Tom Scriven, Laura Davis, Justin Reesor, Erin O’Connor, Emily Ziethen, Prasoon Raghuwanshi, Lulit Negash, Yoseph Getachew, Tsegamlak Solomon, Kirsten Newman, Teddy Fantahun, Dagmawit Shiferaw, Filseta Asrat, Mary Adoi, Tamiru Belayneh

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2019 in Review and a Sneak Peek at 2020!

<h1 style="text-align:center;">Management: The Real Missing Middle Opportunity</h1>As an avid angel investor in Africa and a manager of one of the most active SME investment firms in Ethiopia, seeing the development community take up the ‘entrepreneurship cause’ these last few years is refreshing. It has become popular for big foundations to fund impressive African entrepreneurship pitch days, accelerators and incubators from Lagos, Nigeria to Addis Ababa, Ethiopia. Because of this, Ethiopia is now home to more than a dozen private equity offices; up from only two firms eight years ago when we opened RENEW’s office here.Governments like the Federal Democratic Republic of Ethiopia are working to support the startup ecosystem and are developing local angel networks, rather than focusing solely on attracting large foreign direct investments. By the looks of it, the world is slowly moving in the right direction to fill the “missing middle” in Sub-Saharan Africa by growing a prosperous and vibrant private sector with balanced economies.While these developments are moving in the right direction, I think we are missing a small but critical piece of the puzzle. A piece that I believe could unlock even better, stronger and more sustainable growth.If the first step is building up cadres of promising entrepreneurs, our next job needs to be turning these big ideas into scaling companies. This requires strong management. While not as sexy as hearing a pitch, closing a deal or investing capital, businesses need solid executives and middle management to scale - ideas are good, but execution is everything. Unfortunately, there is a dearth of quality middle management in Africa. I argue the lack of management might be as critical (if not more) as the lack of capital that so many economists talk about.<figure class="image image_resized" style="width:100%;"><img src="/uploads/execsfeb_b5a597cae4.jpg"></figure>After eight years of backing companies in Ethiopia and meeting with hundreds more, we are not consistently seeing entrepreneurs effectively execute on their ideas and scale their companies. Which leads RENEW to a hypothesis: is there a huge opportunity for the development community to widen their lens and partner with investors to build up a class of local executives and managers that can scale companies into market leaders? We certainly believe so.At RENEW, we have been searching for patterns in SME success, looking across our portfolio and beyond to see why some companies fail and others succeed. We have concluded that those that fail have weak management. In markets across Sub-Saharan Africa, where competition is low, it’s not product-market fit or timing, it’s management. This is why we are working on an SME investment playbook that amasses years of best practices and lessons learned for building up the middle management in SMEs.Part of the playbook is training and hands-on experience, working alongside experienced executives that can transfer knowledge to budding CFOs and COOs. To start, we built a frills-free executive training program that teaches managers the basics of running effective management meetings, working their calendars, scanning their cash flow statements, and hiring and firing. Next, our program goes beyond the classroom and into the company - teaching real-world tactics alongside successful executives that we place into companies to mentor and build up local teams around them.We’d like to give a huge hat-tip to <a href="https://www.international.gc.ca/gac-amc/index.aspx?lang=eng">Global Affairs Canada</a> for stepping into the private sector development space and taking the narrative beyond capital and into the critical world of executive and management building by funding <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec’s Program</a> and <a href="https://www.renewcapital.com/resources/blogs/Building%20a%20New%20Class%20of%20Finance%20Executives%20for%20Ethiopia">CFO100</a>.We regularly hear that the development community wants solutions that create impact at scale. As an investor, I want companies that create profit at scale and, in doing so, create jobs, pay taxes and have a huge multiplier effect. Let’s not just throw capital at the problem. I recommend that the development community take a lesson from Canada - go beyond the glitz of the demo days and start training executives to lead these companies.To dig deeper into this issue of the middle management gap, come see us at Sankalp where we’ll be hosting a panel in conjunction with <a href="https://www.andeglobal.org/">ANDE</a> and Open Capital Advisors. Visit ANDE to find out more and <a href="https://www.andeglobal.org/events/EventDetails.aspx?id=1331628&amp;group=">register for the event</a>.

Scaling companies in Africa requires management plus capital.

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Management: The Real Missing Middle Opportunity

<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>

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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;

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