<h1 style="text-align:center;">Building Up the Angel Investing Ecosystem in Ethiopia</h1>A big thank you to the <a href="http://addischamber.com/">Addis Ababa Chamber of Commerce and Sectoral Associations</a>! Yesterday, on July 26th, RENEW and the Addis Ababa Chamber, one of our City Partners, hosted a Private Equity seminar as part of the Investment Challenge. We had a full house at the event and were joined by over 50 entrepreneurs, mainly in Addis Ababa’s manufacturing sector.<figure class="image image_resized" style="width:99.54%;"><img src="/uploads/screen_shot_2017_07_27_at_12_17_31_pm_747101acc8.png"></figure>As one of the pioneers of equity investing in Ethiopia, our investment workshops helps participants understand private equity, why it exists and how it can help their business. Our goal is to help build and strengthen the investment ecosystem through targeted trainings, making good investments and growing great companies, in turn leading to financial returns and creation of jobs in Ethiopia.Want to learn more about the Investment Workshops offered by RENEW? <a href="https://www.renewcapital.com/contact">Contact us</a> today for more information and upcoming events.The Investment Challenge, 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&nbsp;press release&nbsp;on the ABG project for more details. To find out more about RENEW or the Impact Angel Network, contact us at&nbsp;renew@renewcapital.com, follow us on Twitter <a href="https://twitter.com/Renew_Capital">@Renew_Capital</a> or find us on Instagram <a href="https://www.instagram.com/renewcapital/">@renewcapital.</a>

RENEW hosted a PE Seminar with the Addis Ababa Chamber of Commerce and Sectoral Association

2017-07-26_09.42.09.jpg

Building Up the Angel Investing Ecosystem in Ethiopia

<h1 style="text-align:center;">Where Will They Be Next?</h1>The RENEW partners will be touching down in Europe, Canada and the U.S. this fall to meet with investors. Their hope is to meet with existing Impact Angel Network (IAN) members, as well as potential members and new connections to introduce them to RENEW, and the IAN.In late September, Matt and Laura Davis will be in the United Kingdom and The Netherlands. At the beginning of November they will be travelling to the Eastern U.S. and Toronto between early and mid- November.If you have time to meet the partners, or know other like-minded investors in these cities who would be interested in learning more about RENEW, the IAN or our upcoming deals, please reach out and let us know. We hope to see many of you in the upcoming months!Visit our <a href="../../impact-angel-network/events.html">Events Page</a> for specific cities and date-ranges for this upcoming trip, and visit the <a href="https://www.renewcapital.com/investing">Impact Angel Network</a> page to learn more about joining the network.<figure class="image"><img src="/uploads/collage_investor_roadshow_0_68958c5f0b.jpg"></figure>

collage_investor_roadshow_0.jpg

Where Will They Be Next?

<h1 style="text-align:center;">Meet us in D.C. October 27!</h1>Join us on Friday, October 27 in Washington D.C. for an evening filled with real stories about RENEW and the <a href=" https://www.renewcapital.com/investing">Impact Angel Network</a>. Learn about what we’re up to in Ethiopia and enjoy great food and conversations with other conscious capitalists. Special guests include <a href="http://marcussamuelsson.com/">Marcus Samuelsson</a>,&nbsp;an Ethiopian-born, Swedish-raised chef who has&nbsp;been featured on Anthony Bourdain's Parts Unknown and Iron Chef America.&nbsp;Make sure to reserve your spots for the Impact Angel Network’s National Gathering. Special pricing ends soon.<a href="https://2017-impact-angel-network-national-gathering.eventbrite.com/">Purchase your tickets here</a>Have additional questions? Contact Erin O’Connor at <a href="mailto:eoconnor@renewcapital.com?Subject=National%20Gathering">eoconnor@renewcapital.com</a> or (416) 998-0058 for more information.<figure class="image"><img src="/uploads/ngcollage_0_59dc04c624.jpg"></figure>

Attend the largest Africa-focused angel investment event in North America. 

ngcollage_0.jpg

Meet us in D.C. October 27!

<h1 style="text-align:center;">What Do the SDGs Have to Do With Me?</h1>Have you heard people throwing around the term Sustainable Development Goals or SDGs and wondered what it’s all about? Is it just meaningless development jargon, or is there something more to the United Nations efforts of setting an audacious goal and getting stakeholders headed in one direction? Keep reading for a synopsis of the goals and for information on what goals the IAN’s work is contributing to.Just over a year and a half ago, on January 1, 2016 <a href="https://sustainabledevelopment.un.org/?menu=1300">the Sustainable Development Goals</a> (SDGs) of the 2030 Agenda for Sustainable Development came into effect during the UN Sustainable Development Summit at the UN Headquarters in New York. These goals, set for 15 years with a completion date of 2030 call for all countries and various stakeholders, whether rich, poor or middle-income, to encourage prosperity while at the same time protecting the planet. The 17 goals set out by the United Nations are a call for all countries to help improve the circumstances and lives of people around the world. These goals, though not legally binding to a country, have been adopted by 193 nations with the expectation that leaders and governments will take ownership and establish ways to monitor and achieve them in their homelands.Prior to the SDGs, there were a set of goals known as the Millennium Development Goals (MDGs), which expired in 2015. To their credit, the MDGs became a strong point of interest for Governments and a way for NGOs to hold them accountable. The 8 goals were often criticized for being too narrow and many believed they didn’t consider the core issues of poverty and missed gender inequality, human rights and economic development. While these goals were intended to be applied around the world, they ended up as targets for poorer counties, while continuing the age-old dependency and financing from wealthier states. The MDGs were very specific and measurable, however, that was also their largest criticism. Since they were so specific, it left out several other important issues. This criticism led to the creation of the SDGs.<figure class="image image_resized" style="width:99.68%;"><img src="/uploads/miillenium_goals_0be4ab1ccc.png"><figcaption>Source: <a href="http://www.un.org/en/africa/osaa/peace/mdgs">OSAA: Millennium Development Goals</a></figcaption></figure>To rectify the MDGs, the United Nations undertook the largest consultation in the UN’s history; surveying 5 million people in 88 counties to find out their goals and visions for the world in 2030. The new goals, which include 169 specific targets touched on things such as: no poverty, zero hunger, quality education, decent work and economic growth, reducing inequalities, and clean water and sanitation, to name a few. These goals acknowledge that to end poverty, there must be strategies in place that help build up the economy while simultaneously addressing a large range of social and environmental needs and issues.Though they can seem high and lofty, the SDGs, now in year 2, have made some progress towards their 2030 goals. Many believe all the small steps will aid in pushing these goals forward. Recently, in July 2017, the United Nations released a report entitled <a href="https://unstats.un.org/sdgs/files/report/2017/secretary-general-sdg-report-2017--EN.pdf">Progress Towards the Sustainable Development Goals</a>. This report gives a high-level analysis of the progress made towards achieving the 17 goals, based on data that was available April 2017. If you have a few minutes, we recommend you read the report to see where the goals currently stand.<figure class="image"><img src="/uploads/screen_shot_2017_08_30_at_10_20_36_am_cd9c0cd8da.png"><figcaption>Source: <a href="https://sustainabledevelopment.un.org/?menu=1300">Sustainable Development Knowledge Platform</a></figcaption></figure>The SDG’s and Impact InvestingNot surprisingly, impact investors globally are using the SDGs to benchmark their investments. A recent report put out by InvestorFlow (an impact investor network) investigated impact investor’s preferences related to the goals. They found that their network had strong preferences towards: Goal 1 (no poverty), goal 3 (good health), goal 6 (clean water), and goal 7 (affordable and clean energy). The goals that were least tangible for the group included goal 14 (life in water), goal 15 (life in land), and goal 16 (peace, justice and strong institutions). The top preferred goals highlights people’s desire to contribute towards healthy and prospering economies and livable cities.The SDG’s and RENEWMuch of the work that impact investors do can be counted towards the SDGs. Hopefully it’s not to irreverent to say “it’s the economy stupid.” I can honestly say I feel like the work of the IAN can be counted in a small way (currently – but watch out world) towards 15 of the 17 goals. Don’t worry, I won’t go into the gory details, but let’s dig in deeper on a few goals that directly relate to our work:Goal 8: Decent Work and Economic GrowthOne important aspect of sustainable economic growth is a nation’s ability to create high quality jobs while at the same time bolstering the economy. To count towards the goal, jobs of course need to include good working conditions. To date, this has been an important part of RENEW’s investments: creating and bolstering jobs and helping our entrepreneurs to grow their businesses, while encouraging good working conditions for their workers.As of December 31, 2016, the IAN has created or sustained 1,490 jobs, and our companies work with 4,300 smallholder farmers. To our first point, I believe it goes without saying that a person with a job has better access to health care, clean water and education for his or herself and the family, but we’ll let that point rest for now.Goal 17: Partnerships for the GoalsIt’s been noted that one of the ways to achieve the SDGs is through partners; multistakeholder partners, governments, NGOs, and the private sector. All these groups and different partnership models have been called the glue that will hold this agenda together, and will be the reason these goals are seen through and met.On the United Nation’s website, it outlines what is needed with goal 17. “Urgent action is needed to mobilize, redirect and unlock the transformative power of trillions of dollars of private resources to deliver on sustainable development objectives. Long-term investments, including foreign direct investments, are needed in critical sectors, especially in developing countries”. With every new investment made, through RENEW and other similar vehicles, we’re pushing this goal forward and helping to make these goals a reality. And we are doing it through partnerships. Partnerships with angel investors, the development community and local entrepreneurs.While the SDG’s are audacious, let’s not forget, setting audacious goals are a big part of achieving alignment and success in the world of entrepreneurship. We all play a role. We all believe the world would be a better place, if we accomplish them. So watch out world, RENEW and the IAN are playing our part.Read more about the Impact Angel Network and RENEW’s portfolio and the companies we currently invest in on our website.<hr>Sources: (1) <a href="https://sustainabledevelopment.un.org/?menu=1300">Sustainable Development Knowledge Platform</a> (2) <a href="https://www.theguardian.com/global-development/2015/jan/19/sustainable-development-goals-united-nations">Sustainable Development Goals: All You Need To Know</a> (3) <a href="https://www.weforum.org/agenda/2015/09/what-are-the-sustainable-development-goals/">What Are the Sustainable Development Goals?</a> (4) Which of the 17 U.N. Global Goals do Impact Investors Prefer?

A closer look at the UN’s Sustainable Development Goals

screen_shot_2017-08-30_at_11.12.14_am.png

What Do the SDGs Have to Do With Me?

<h1 style="text-align:center;">My Journey to RENEW Through the Busy Streets of Addis</h1>"Erin.... we are hoping that you are available to come to Addis Ababa, Ethiopia from about May 1...."&nbsp; As I read this email early one morning, I knew my work life was about to get flipped completely around. It’s not every day that a new job asks you to take a transatlantic flight to Sub-Saharan Africa on your first day of work…--------Joining the RENEW team was a no-brainer for me. I was on the hunt for a company where my ideals and values would line up. A company that I could get behind and one that I could feel good about contributing to at the end of the day. Coming from a background in the investment field, I had heard of impact investing, and knew that if I was to stay in this industry, that was where I needed to be. Working at a small company taught me how to wear several different hats, but it also taught me where my strengths truly lie and what I value most in this field: using investments for the greater good. Right from the first conversation I had with RENEW, I could see my values and skills lining up with the company and position.<figure class="image"><img src="/uploads/collage_fotor2_d14841c0ff.jpg"></figure>Which brings me to about four weeks ago, where on day two of work, I landed at Bole International Airport; bright-eyed, bushy-tailed, and bag-less. As I drove through the city of Addis Ababa to The Exchange (our office in Addis Ababa), the sites around me were overwhelming. I had never seen so much traffic and so many people all trying to vie for the right of way. Rush hour in the city felt disorganized and hectic. After a good 30-minute drive, I finally made it to The Exchange and was greeted by a friendly team and positive work environment. A small hidden gem tucked inside a coffee warehouse down a dirt road in the heart of the city.Right from day one of work, I could tell&nbsp;this position would be fast-paced and right up my alley.&nbsp;One common theme that kept popping in my head over the two weeks I spent in Ethiopia, was something Matt and Laura told me in my interview. They said they’re a hard-working group, but at the end of the day, their company is like one big family. Over the two weeks in Addis, I saw that adage really come to light, and I saw first-hand that they live and breathe that. I also experienced the passion that was behind RENEW, and saw that the team truly stood behind and embodied the company’s values: "we are loyal and welcome the challenge of being trailblazers".&nbsp;<figure class="image"><img src="/uploads/erin_eat_ethiopian_2_e1293f19f1.jpg"></figure>While in Addis, I also had the chance to visit a few of our projects. To hear and see first-hand what impact our investments have, and to meet the people behind the portfolio, was truly eye-opening. Learning about where these companies started, versus where they were today because of the equity investments by the IAN, was a testament to the work being done by RENEW and the impact being created.Over the next two weeks, Addis eventually became less about the busyness and felt more and more like everyday life. The people were friendly and helpful and the city was alive and exciting.&nbsp;I woke up to the sound of morning prayers and church bells every morning; which on day 2, I was convinced my co-worker was blasting music at 5 AM. It made it hard to sleep, but you could feel how alive with energy the city was at the same time.Being able to see our investments, the country, and the circumstances that surround them, gave me such a strong grounding and understanding of what we're offering. Not only are we trying to create huge social impacts, but we're working with the community to move it forward, and ultimately, provide good financial returns to our angel investors.One month in, and I’m still getting my feet wet, but I can already tell this is somewhere I want to make a splash.<figure class="image"><img src="/uploads/renew_team_9361509dcd.jpg"></figure>

My first impressions of RENEW and Ethiopia.

Perspectives

erin_eat_ethiopian_2.jpg

My Journey to RENEW Through the Busy Streets of Addis

<h1 style="text-align:center;">The RENEW Partners are Heading to London on September 27!</h1>The RENEW partners will be touching down in London, England this September to meet with investors. If you have time to meet the partners, or know other like-minded investors who would be interested in learning more about RENEW, the IAN or our upcoming deals, please join us on Wednesday, September 27 at Airspace in London, England with The Baobob Network. Please <a href="https://www.eventbrite.co.uk/e/impact-investing-and-tech-in-africa-drinks-networking-updates-tickets-36651623994">RSVP</a> by September 20th to secure your spot.We hope to see you this September!Visit our <a href="../../impact-angel-network/events.html">Events Page</a> for other stops on their fall trip, and visit the <a href="https://www.renewcapital.com/investing">Impact Angel Network</a> page to learn more about joining the network.<figure class="image"><img src="/uploads/london_bridge_0_22cc094596.jpg"></figure>

london_bridge_0.jpg

The RENEW Partners are Heading to London on September 27!

<h1 style="text-align:center;">The RENEW Partners are Heading to Amsterdam September 28!</h1>The RENEW partners will be touching down in Amsterdam this September to meet with investors. If you have time to meet the partners, or know other like-minded investors who would be interested in learning more about RENEW, the IAN or our upcoming deals, please join us on Thursday, September 28 at Bocca Coffee in Amsterdam with The African Business Angel Network (ABAN) and VC4A. Please <a href="https://www.eventbrite.co.uk/e/impact-investing-in-africa-drinks-networking-updates-tickets-37057284335">RSVP</a> by September 20th to secure your spot.We hope to see you this September!Visit our <a href="../../impact-angel-network/events.html">Events Page</a> for other stops on their fall trip, and visit the <a href="https://www.renewcapital.com/investing">Impact Angel Network</a> page to learn more about joining the network.<figure class="image"><img src="/uploads/amsterdam_the_netherlands_rapenburgwal_65d1e60582.jpg"><figcaption>Source: <a href="https://en.wikipedia.org/wiki/Amsterdam#/media/File:Amsterdam,_the_Netherlands_-_Rapenburgwal.jpg">Wikipedia: Amsterdam</a></figcaption></figure>

amsterdam_the_netherlands_-_rapenburgwal.jpg

The RENEW Partners are Heading to Amsterdam September 28!

<h1 style="text-align:center;">The Africa Investment Report 2017</h1>2017 marks the rise of China as the largest investor in Africa, in terms of capital. Even though the number of greenfield FDI projects has decreased in 2017, total capital invested increased by 40% compared to the previous year. The largest proportion went to construction and real estate - representing a shift from the traditional extractive sectors.<figure class="image image-style-align-center image_resized" style="width:49.69%;"><a href="file:///D:/RENEW%20STRATEGIES%20WEBSITE%20CATALOG/renewcapital.com/sites/default/files/screen_shot_2017-10-04_at_8.49.14_am_0.png"><img src="/uploads/screen_shot_2017_10_04_at_8_49_14_am_0_d38ead8980.png"></a></figure>It was also the year in which Ethiopia, Cote D’Ivoire, Tanzania and Senegal have all grown well above 6%, while Nigeria and South Africa witnessed poor economic performance.We selected some of the highlights from The Africa Investment Report 2017, from This is Africa, a publication from the Financial Times.Highlights:<ul><li>40% of announced greenfield FDI into Africa last year went into real estate with the same proportion being invested in construction. This is a shift from previous years, in which extractive sectors were at the top of African FDI charts, mainly attributed to a decline in commodity prices.</li><li>Construction together with manufacturing accounted for 62% of total capital investment</li><li>The top 10 destination countries for FDI into Africa accounted for 78% of the total number of projects into the region and 91% of the total capital invested.</li><li>According to the World Economic Outlook, International Monetary Fund, Ethiopia is expected to grow 7.5% on capital investments in each of the next two years, leading the ranking.</li><li>In total, 470 companies invested in Africa in 2016, down from 506 in 2015.</li></ul>The rapid growth in urbanization is probably the most important factor when considering the bullish outlook on Africa; it’s urban population is expanding by 15 million a year. Global private equity and sovereign wealth funds are pouring billions of dollars into business and industrial parks, retails complexes, logistics facilities and housing across the continent, in an attempt to capture the attractive returns presented.Investing in Africa is not straightforward, and the same challenges persists – delays and unclear regulatory environment, to name a few. However, foreign investors can do well when taking calculated risks and thinking creatively about the destinations of their capital.You can download the full report <a href="http://forms.fdiintelligence.com/africainvestmentreport/">here</a>.&nbsp;

A Review on the Report published by This is Africa

africa_investment_report.png

The Africa Investment Report 2017

<h1 style="text-align:center;">The State of Private Equity and Venture Capital Sector in East Africa</h1>The private equity and venture capital sector has been growing sharply in East Africa. The number of firms in this space doubled in 2015 and 2016, as well as funds raised for East Africa investments, have also increased. There was an estimated total of USD 1.1billion raised for private equity investment in East Africa for the past two years.The region has seen impressive growth in the number of strong private enterprises with scalable business models and we have seen a growing appreciation on the strategic value of private equity investments. Especially with second generation business leaders who are eager to scale their businesses to the next level of growth, as we can observe in RENEW’s portfolio companies such as Mama Fresh.East Africa has presented positive economic growth over the last years, and Ethiopia is certainly leading this growth trends. According to the most recent African Economic Outlook 2017, published by the African Development Bank Group ADBG “FDI should increase slightly in 2017, but remain volatile due to domestic and global risks FDI flows to Africa are expected to grow by about 2% in 2017, reaching USD 57.5 billion. Ethiopia is expected to be one of the largest (USD 4.4 billion).” KPMG and EAVCA recently surveyed 28 private equity and venture capital funds with activities in East African Countries. Here are some of the highlights from the report published this month: &nbsp;<ul><li>A total of 115 PE-backed deals in East Africa have been reported by respondents from 2007 to 2016 (36 were reported from 2015 to 2016), with an estimated value of over USD 1.4 billion (USD 600 million for the 36 deals in 2015 to 2016).&nbsp; &nbsp;</li><li>Increase in the average investment size grew to USD 17 million in 2015 to 2016 from USD 10 million as per the 2014 Survey.&nbsp; &nbsp;</li><li>An increased number of exits over the last two years. &nbsp;</li><li>There has also been a shift in exits method - &nbsp;7&nbsp;of the 34 exits have been through secondary exits to financial investors and 13 through sale to strategic investors. There has been a decline in the share buyback method from 11 in 2007 to 2014 to 2 in 2015 and 2016. &nbsp;</li><li>Of the responses received, the average reported actual IRR has been 19%, 3% lower compared to a target IRR of 22%.</li></ul>&nbsp;As PE activities increase in East Africa, the region still presents many opportunities. The number of PE deals recorded in the region has steadily risen over the years and investors foresee new opportunities in rapidly expanding markets, including Ethiopia and Tanzania, which should replace more traditionally favored destinations such as Kenya.Please see the link to the full report:&nbsp;<a href="http://eavca.org/2017_KPMG_and_EAVCA_Private_Equity_in_East_Africa_Survey_Final.pdf"> KPMG and EAVCA Private Equity in East Africa Survey Final 2017</a> &nbsp;

Investment Insights