<h1 style="text-align:center;">Africa Investment Index 2018</h1>The Africa Investment Index (AII) developed by Quantum Global aims to integrate tools to measure "multidimensional concepts for assessing the investment attractiveness of African countries over time" (pg. 4). Developed in April 2017, Quantum Global tries to provide investors with a full view of the current investment climate in all 54 African countries. The Index is meant to show the overall attractiveness of each country in the short and medium term.This report can help investors to see the ever-changing opportunities and risks from country to country. The AII gives a full view of the country and allows investors to make decisions based on an overall macroeconomic outlook. If using this from a business point of view, it can be used as a tool to identify well performing economies. From a policy standpoint, it can help understand where Foreign Direct Investment typical goes, and how to attract additional capital based on benchmarking and monitoring (pg. 4).<figure class="image"><img src="/uploads/screen_shot_2018_04_30_at_4_01_58_pm_0_6b9d73c2b1.png"></figure>Using the AII, Quantum Global provides a ranking of all 54 countries based off six criteria: Economic Growth Factors, Liquidity Factors, Risk Factors, Business Environmental Factors, Demographic Factors and a measure of Social Capital. Here is a breakdown of what each factor includes:<ul><li>Economic Growth Factors: GDP growth, domestic investment, size of economy</li><li>Liquidity Factors: level of domestic real estate interest rates, excess money supply</li><li>Risk Factors: credit rating of the country, risks of currency depreciation, import-cover ratio, current account balance and external debt levels</li><li>Business Environment Factors: based off a micro-institutional index developed by the World Bank</li><li>Demographic Factors: size of the population, potential market</li><li>Social Capital Factor: level of networks, knowledge and connections</li></ul>As of their 2018 report, the current top 10 countries include: Morocco, Egypt, Algeria, Botswana, Côte d'Ivoire, South Africa, Ethiopia, Zambia, Kenya and Senegal (pg. 3).<figure class="image image_resized" style="width:92.28%;"><img src="/uploads/screen_shot_2018_05_01_at_5_00_38_pm_2a7dad796d.png"></figure>One theme the report touched on was foreign direct investment (FDI) to Africa. They've found that FDI's are typically declining (as of 2016), but there are reports which indicate that inflows of capital will likely increase in the next few years. Currently, the United States is the largest contributor of FDI's to the continent, followed next by the United Kingdom, France, China and South Africa (pg. 6).A few of the findings from the report focused on Ethiopia include:<ul><li>Ethiopia topped the individual ranking for the Economic Growth factor, followed by Algeria, Mozambique, Tanzania and Côte d'Ivoire.</li><li>Ethiopia sustained an average GDP growth rate of 8.4%. This was bolstered by public infrastructure investment.</li><li>Domestic investments reached 40% of the country's GDP. (pg. 10).</li><li>Ethiopia ranked in the top four for most populous countries, scoring highly on demographic factors.</li><li>Over the past four years, Ethiopia had the following ranking based off the AII: 15 in 2015, 15 in 2016, 21 in 2016 and 7 in 2017 (pg. 13).</li></ul>Read the full report here <a href="http://quantumglobalgroup.com/knowledge-hub/indices/africa-investment-index/">Africa Investment Index 2018</a>&nbsp;

Ethiopia ranked in top 10 in 2018 report.

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Africa Investment Index 2018

<h1 style="text-align:center;">Ethiopia Emerges (Chigign 'Tobiya)</h1>It's really not too often that the stars align so well with a vision we had in our head at RENEW, but knew we couldn't pull off without the right people, becomes a reality.That's just what happened with the upcoming TV series, Chigign 'Tobiya, which will appear on Fana TV, Friday's at 8:30 PM. Girmay Haile Gebreselassie is the visionary behind the show. 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 Ethiopian entrepreneurs who are innovating in IT, the arts, education and general business. The show aims to encourage and educate youth and the society at large about the importance of innovation, entrepreneurship, private equity, angel investing and the private sector in general in Ethiopia. The program will be produced by his company Tonetor. RENEW is proud to be a sponsor, for members of our Investment Committee to sit on the panel and also to be investing in the winning entrepreneurs.Visit <a href="https://youtu.be/GyovqM8acCY">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 (Chigign mean sapling/sprout and 'Tobiya is an old name for Ethiopia). Our English definition for Chigign Tobiya is Ethiopia Emerges.Air Times: Tune in the following dates to view the first episodes.&nbsp;<figure class="image"><img src="/uploads/screen_shot_2018_05_02_at_11_16_52_am_f32731bfcc.png"></figure>&nbsp;The Concept: Chigign 'Tobiya is a platform for the entrepreneurs to gain access to capital, contracts and coaching. Entrepreneurs will appear and pitch, in a concept that combines Shark Tank and American Idol, if they pass to the next show, the Chigign team and in some cased the judges will provide coaching to help them enhance their business concept to make it to the final round where they will be eligible for an investment from the panel's fund.<figure class="image"><img src="/uploads/chigign_tobiya_94171a620d.jpg"></figure>Get Involved:<ul><li>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.</li><li>Be an Investor in the Fund - 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. You can still invest in an ETB fund which will be managed in a partnership between RENEW and Tonetor.</li><li>Be a Sponsor - The Chigign 'Tobiya team is looking for sponsors interested in encouraging Ethiopian youth and the society at large towards entrepreneurship and innovation. In return, you will receive good press and a variety of benefits as part of your CSR program.</li><li>Ecosystem Partner - Do you work with Ethiopian entrepreneurs? We'd love to add value to your program by having your entrepreneurs pitch on the program.</li></ul>

Proudly partnering to build Ethiopia's entrepreneurship and angel ecosystem

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Ethiopia Emerges (Chigign 'Tobiya)

<h1 style="text-align:center;">AGRF Summit - Agribusiness Pitch Event Summary</h1>The <a href="https://agrf.org/">2021 African Green Revolution Forum (AGRF) Summit</a> is taking place this week (September 6-10) through a virtual conference and deal room platform. The theme of the Summit is “pathways to recovery and resilient food systems”. This past Monday (September 6),&nbsp; <a href="https://agra.org/">AGRA</a> and RENEW co-hosted a session as part of the Summit and in support of the ARISE program.&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_09_08_at_9_07_13_AM_71435c2ce0.png"></figure>The session, titled Women Agri-Enterprises and RESILIENCE – Experiences from ARISE Women and Investment Readiness Initiative (or “Agribusiness Pitch Event” for short), highlighted the experiences, insights and lessons learned from the activities and trainings and a participant conducted under the <a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_Arise_Program_96e66c3ca6.pdf">African Resilience &amp; Investment Series for Women Entrepreneurs (ARISE)</a> program. As background, the ARISE program was launched by AGRA in March 2021 in partnership with RENEW. The ARISE program is a continental project aimed at assisting women-owned and women-led agribusinesses recover from the impact of the COVID-19 pandemic through capacity training and strengthening access to finance and investments. So far more than 1,000 women from 27 countries have participated.&nbsp;The Agribusiness Pitch Event represented almost six months of training and support provided to hundreds of women agribusiness owners and managers. The session was hosted by Sabdiyo Dido (Head, Gender &amp; Inclusiveness of AGRA), Laura Davis (Managing Partner of RENEW) and Matt Davis (Managing Partner &amp; CEO of RENEW).<figure class="image"><img src="/uploads/21_2_b65a0cc0cc.jpg"></figure>The highlight of the session was, of course, the live pitch portion, during which three leading women entrepreneurs who were trained as part of the ARISE program pitched to a panel of investors, including eight members of the Impact Angel Network and gender-lens investing experts <a href="https://www.linkedin.com/in/jessicaespinozat">Jessica Espinoza</a> (Vice President of DEG/KfW; Chair of the 2XChallenge / 2XCollaborative) and <a href="http://www.cosustainconsulting.com/who-we-are/">Chintal Barot</a> (Founder of CoSustain). Overall, the panel of investors were impressed with the quality of the pitches, as demonstrated by their high-level of engagement during the pitch Q&amp;A and feedback collected during and after the pitches. We are extremely proud of the women who represented their fellow trainees at the event, demonstrated their capacity for resilience and recovery through compelling pitches, and took their first steps on their journeys towards growth and scalability.&nbsp;The following three women/companies who pitched were selected by their peers and the ARISE project team:<ol><li>Ady’s Food Mart: An agro-processing company that provides hygienically processed food ingredients and spices to a wide clientele in Nigeria and the world where African dishes are appreciated.<ol><li>Website - <a href="http://adysfoodmart.com/">http://adysfoodmart.com/</a></li><li>Social Media - <a href="https://www.facebook.com/adysfoodmart">Facebook</a>, <a href="https://twitter.com/adysfoodmart">Twitter</a>, <a href="https://www.instagram.com/adysfoodmart/">Instagram</a>, <a href="https://www.youtube.com/channel/UCouEmEEqQST0GIL0xRIJWwA">YouTube</a></li></ol></li><li>Kuanijom: A supply chain company that is involved in the fruit and vegetable value chain. Their clients include hotels, restaurants, supermarkets, institutions, wholesalers and retailers.<ol><li>Website - <a href="https://kuanijom.com/">https://kuanijom.com/</a></li><li>Social Media - <a href="https://www.facebook.com/kuanijom">Facebook</a>, <a href="https://www.instagram.com/kuanijom/">Instagram</a>, <a href="https://www.linkedin.com/company/kuanijom/about/">LinkedIn</a></li></ol></li><li>JAM - The Coconut Food Company: An integrated coconut processing company. They have developed over 10 unique popular products made from coconut, such as premium coconut oil, coconut flakes, coconut cinnamon balls and more.<ol><li>Social Media - <a href="https://www.facebook.com/jamthecoconutfoodcompany/">Facebook</a>, <a href="https://twitter.com/jamcoconutfoods?lang=en">Twitter,</a> <a href="https://www.instagram.com/jamcoconutfoods/?hl=en">Instagram</a>&nbsp;&nbsp;&nbsp;&nbsp;</li></ol></li></ol>Parting thoughts of the session were that participants and the broader investment and development communities will need to continue to play a critical role in Africa’s agriculture industry’s recovery from COVID-19 and resilience against future external shocks. The result of these actions will hopefully contribute towards the continent’s overall food security and food system transformation.&nbsp;The ARISE project team is proud of the women who pitched during the session and is looking forward to continuing to support them and other participants in the ARISE program. . . Stay tuned for more!Disclaimer:&nbsp; RENEW is not promoting or recommending an investment in any of the companies profiled herein. Nothing in this blog is intended to constitute an investment recommendation or advice, or an offer or solicitation to buy or sell any security.&nbsp; &nbsp;

In partnership with the Alliance for a Green Revolution in Africa (AGRA), RENEW launched the African Resilience Investment Series for Women Entrepreneurs (ARISE). ARISE supports resilience for women in agriculture to recover from the impacts of COVID-19. The program aims to reach more than 2,000 women in agriculture-focused SMEs across sub-Saharan Africa and will provide managerial capacity building, coaching on investment readiness and how to pitch to investors among other elements of support.



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ARISE

Highlighting the experiences, insights and lessons learned through the ARISE Program. 

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AGRF Summit - Agribusiness Pitch Event Summary

<h1 style="text-align:center;">A Dreamer from Nigeria&nbsp;</h1>"Dreams are extremely important. You can do it only if you can imagine it." This was said during a training, in a small lecture room at the University of Lagos, in Nigeria, which introduced me to the world of investments and finance. At the time, I was just an ambitious young student from the Obafemi Awolowo University, Ile-Ife, Nigeria, devoting a 6-month period to a 130-mile, biweekly interstate trip, to learn everything required to break into the world of finance. I had just returned from my first trip abroad, which doubled as my first ever work/volunteering experience, and I was extremely fired up to secure my next adventure. Over the next few years, I held roles in New Delhi, London, Lagos, and Accra, and my next stop was Addis Ababa! This was in no way a coincidence, and I'll tell you why!<figure class="image"><img src="/uploads/Screen_Shot_2021_09_08_at_10_55_19_AM_db24d3cc6f.png"></figure>I grew up in the small town of Ijede, Lagos State, Nigeria, and luckily, I was exposed early on to the importance of education, and its capacity to be the wings to fly to the topmost height and achieve the loftiest goals. Private equity had always been a dream for me, fueled by the infamous achievements of Wall Street and the role of FDIs in Africa’s development, but I was never oblivious to the difficulties in landing a PE role. I had taken up five different roles, in five different cities, over the course of five years in preparation: business analysis, sales, project finance, investment finance and management consulting. The business analysis and sales roles were to acquire client relationship management skills after which I moved on to the investment finance role to build core skills needed to thrive in finance, and finally a role in management consulting to understand the strategic and operational side of building a business. During these five years, I developed an uncanny level of strength, learned the ability to convert setbacks into learning opportunities and the cross-cultural experience allowed me to truly appreciate the value of diversity. In December 2020, I received an offer to join RENEW, and it was the perfect way to wrap up a year that tested every form of resilience in me.My time at RENEW has been nothing short of challenging and exciting. I have had the opportunity to meet truly talented and amazing individuals. The team’s diversity (a team of about 24 people from 10 different nationalities), exposes me to unique perspectives and contributions. I currently have the privilege of working closely with the investment team and the SGS team, supporting the investment process alongside Diana, Tamiru, Lincoln, Mary and Dagi, while learning from amazing coaches like JC and Pranay.At RENEW, every day is different, and this is what makes it so exciting to work here as there is always something to look forward to. The exemplary leadership style of Matt and Laura has made working here such a dream and the culture is simply sensational. Everyone is given an equal level of respect irrespective of their level or position and this creates a very healthy working environment as every team member knows that their views will always be respected and acknowledged.RENEW’s vision is to be the most successful SME investment firm in Africa, and we have assembled not just an army of dreamers, but dreamers with a track record of success, and this fuels my excitement for the future of the firm and the journey ahead. From my experience, I’m confident that if you can dream it, then you can do it!

Nigeria

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A Dreamer from Nigeria 

<h1 style="text-align:center;">The Ins and Outs of Investing through an IRA</h1>An individual retirement account (IRA) is a tax-advantaged account that individuals in the U.S. can use to save and invest for retirement. Investments held in IRAs can encompass a range of financial products, including stocks, bonds, ETFs and mutual funds. A special type of IRA, known as a self-directed IRA, allows investors to access a broader variety of investments, including real estate and private placements. Self-directed investments can include alternative asset classes, such as investments with RENEW and the Impact Angel Network (IAN).For members of the IAN who wish to invest in companies through their IRA, RENEW can work with any custodian that is set up to facilitate self-directed investments into alternative asset classes. If you already have a custodian who allows this, we can work with them. If your current custodian cannot accommodate this, you’d need to roll your IRA over to a custodian that can. RENEW has worked with Millennium Trust Company and Equity Trust Company on past investments.&nbsp;Want to learn more? Here are some more resources:<ul><li><a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_IRA_One_Pager_18a5a2ddf5.pdf">A Guide to Impact Investing using an Individual Retirement Account </a>(IRA)</li><li><a href="https://www.investopedia.com/ask/answers/102714/what-are-differences-between-selfdirected-ira-and-traditional-ira.asp">Self-Directed IRA vs. Traditional IRA: What Are the Differences? </a>(Investopedia)&nbsp;</li></ul>Contact us at renew@renewcapital.com if you have questions. And if you aren’t already a member, we invite you to <a href="https://renewstrategies.formstack.com/forms/renew_investor_accreditation_form">apply to join the Impact Angel Network</a>.&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_08_04_at_10_25_28_PM_ca58093dcc.png"></figure>

How Investments Work with an Individual Retirement Account

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The Ins and Outs of Investing through an IRA

<h1 style="text-align:center;">Keep Moving, Go Beyond, Be Limitless, Leave a Mark</h1>“Niky, wake up… Niky, wake up… It’s time… Get ready for school… You are late”. Those words from my mother still echo in my mind, and it reminds me of all the hard work, dedication and perseverance put in by my parents to make me the person I am today. Growing up in a small town in India, my parents always exposed me to the best of things, whether it was education or extra-curricular activities. They even went beyond that to get me admitted to one of the best boarding schools in India. I suppose that’s where I started to understand what excellence means and to never be satisfied with mediocrity. Today, I realize that was the start of a strong foundation that was being laid to shape my overall personality.&nbsp;From the beginning, my parents instilled various habits in me like, never restrict yourself, go the extra mile, strive for nothing but the best, be limitless and above all, always be a nice human being. During my boarding school days, I was exposed to various extra-curricular activities like sports (played state-level cricket, table tennis, badminton), music (learned to play multiple instruments and classical singing), which really helped me to understand the meaning of being a team player, paying attention to details and being a leader. As part of my educational journey, I pursued some of the best colleges in India, moving from one part of India to another. I went on to pursue my master’s from the UK (London), which reminds me to always dream big because dreams only come true for those who have the guts to dream them.&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_08_04_at_11_54_24_AM_aa5d55bfb3.png"></figure>Once you finish college, life generally takes a turn and becomes a little more serious as you move towards the next phase in your life, the corporate world. It was a paradigm shift as I started my career in India after returning from London, and I entered an equity research role in Mumbai. When you start working professionally, that’s when you learn the distinction between responsibility and accountability, and that learning brought a lot of change in me. Over the course of five years, I moved into various diverse roles such as investment banking, equity research and private equity. I didn’t realize my first opportunity to move out of India for professional work was knocking on the door, and guess what, it was in Jeddah, Saudi Arabia, to be a part of the private equity team of a large investment firm. At first, I was skeptical about moving, as I was doing fine in India. However, the mindset to never stop learning and go beyond made me decide to move. I knew that the exposure would be fantastic and add a lot of value to my career, and that’s what exactly happened. I gained a lot of valuable experience meeting people from different cultures, learning about different ways of working and upscaling myself as an investment/private equity professional. That experience made me realize you always need to be open to opportunities that come your way, as you never know what transformation can come to your personal and professional journey. As they say, when the roller-coaster starts, just enjoy the ride and every moment of it. So, after that, my journey became exactly like that. Again, a fantastic opportunity came by. I moved to one of the Big 4s (Ernst &amp; Young) in India. All the knowledge gained in Jeddah was the big reason for this shift and constant upscale in my professional life.After 1.5 years at Ernest &amp; Young, a turning point came in my career where I was offered a chance to move to Nairobi, Kenya, with one of the biggest confectionery manufacturers in the East African region. My previous experience had been on the consulting/ service side, and I always wanted to move to the operational side of things with a core manufacturing company. Once again, since it was in Africa, that dilemma of whether or not I should move started to haunt me, as I was doing well, and life was good. However, with the “be limitless” theme, I decided to grab this opportunity and relocate. My four years in Nairobi were beyond words, and I gained a lot of experience both professionally and personally. One evening, when I was reflecting on my decision to move, I was so satisfied and realized that being at the right place at the right time can do wonders for one’s life. I thought if I didn’t take this opportunity, someone else would have, and I might have regretted not doing so. The Nairobi experience changed my profile as a finance/investment professional and added a lot of color to my professional experience.With the philosophy of keep moving, an opportunity from RENEW knocked at my door, offering a fantastic opportunity to move into impact investing by supporting portfolio investments and helping manage financial/business performance. The role was a significant step-up in my career, and the location was in Addis Ababa, Ethiopia. Until then, I loved it in Nairobi and had no intention of moving as things flowed smoothly. However, my instinct, which constantly pushed me to go beyond and be limitless, made me eventually decide to take up the offer.&nbsp;I can confidently and happily say that I made the right move. I still remember my onboarding week, where I visited Addis for three days in February 2021, and my first day in the office was terrific. People at RENEW were so amazing, and right from day one, I felt at home. I interacted with my fellow new employees from different backgrounds and cultures, and I was amazed by the diversity that RENEW brought to the table. I finally joined RENEW in March 2021, and I have thoroughly enjoyed my experience over the last four months. RENEW has been one of the finest SME investing firms in Ethiopia, with a strong track record the previous nine years. The thing I love most about working at RENEW is I get to work on different engagements (investments, portfolio management, training etc.) alongside some of the best brains, thereby creating a significant impact on the SME landscape. I look forward to this journey with RENEW, and I hope to continue to add value.Looking back at my journey from a small-town boy in India to Addis Ababa, Ethiopia, via different countries on my way has been truly life-changing and fulfilling. As I mentioned earlier, my theme for life has motivated me all the way through, and I hope this momentum continues forever.

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Keep Moving, Go Beyond, Be Limitless, Leave a Mark

<h1 style="text-align:center;">An in-depth interview with Samrawit Moges of Travel Ethiopia​​</h1>For more pictures from Travel Ethiopia, download our recent<a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf"> Impact Report</a>, and read an abbreviated version of the following story called “Seizing Open Opportunities Despite Closed Borders” on page 19 of the report.&nbsp;In January of 2020, Samrawit Moges had a thriving tourism business with 25 years of experience and 60 staff. A female business owner and visionary for gender equality, 40% of Moges’ employees are women, and her company was the first in Ethiopia to hire and train female tour guides.&nbsp;&nbsp;In late 2019, she completed RENEW’s Exec’s Program and received an investment from the IAN Women’s Fund, just in time for the global travel and tourism industry to be shuttered. “The hospitality industry has been hit harder than many other sectors,” Moges explained, reflecting on a year of closed borders, grounded airlines and very few inbound tourists.&nbsp;&nbsp;While travel restrictions to Ethiopia have begun to ease, Ethiopian tourism faces a double struggle of security concerns for travelers on top of the health issues that the industry must overcome. Yet, Moges is committed to standing her ground. Her vision is to continue to diversify her business and open new opportunities that will allow her to weather any future storms she and her employees may come against. “I see a bright future because our mentality has changed for the better,” she says. “We’ve already seen improvement from 2020 into 2021; 2022 will be a great year!”&nbsp;Here’s what Samrawit had to say during a recent conversation.<figure class="image"><img src="/uploads/IMG_030_2e0d615e0e.jpg"></figure>First, can you tell me how you experienced the pandemic?&nbsp; As we all know, most sectors have been hit by the pandemic and bombed in terms of finance. The hospitality industry is among them, and I am one of them being a tour operator in Ethiopia.We had rented our vehicles to the Ministry of Health to transport their doctors and medicine. The payment is low and slow coming but it’s helping us. We are paying salaries still, and we had two big opportunities in March and April 2021. 2020, we were supposed to have clients coming but it didn't happen. One of the issues we are facing is a double hit as a result of the issues of security on top of the health issues that other countries are facing.&nbsp;Did you have to close your business? Did it affect your employees and income? We didn't have any intention to close the company. The main issue here for businesses can be rent which we didn't face. I used to go to the office 6 days a week before, but now the marketing and sales team are working from home where we installed internet for them. We also provided transport for anyone that came to the office. We didn't have to close our business.&nbsp;How did you adapt to your new way of working? Did you have to change your business model? Yes, I had taken The Exec’s Program at RENEW, and we were trying to implement things when COVID hit. Since my two other managers took the training with me, we worked to completely adopt the whole training which was very effective. We have implemented standard operating procedures, position agreements and an annual management plan. The only thing that the pandemic restricted us from getting done was forming a board.We sent out promotions and video clips which we disseminated to all our clients, and it showed a coffee ceremony and said: we are going to meet again, stay safe. These shows are still working and active despite the issues we faced.&nbsp;Are you familiar with the phrase “Standing Ground”? What does it mean to you as an entrepreneur? I started this business in 1994 in my bedroom when I lived with my mother. When I opened my office, I thought it was the path for me. I believe in starting small and growing big. My fellow Rotarian had given me his first client. The package they purchased was hyena watching in Harar, and while they were watching this spectacle, a hand grenade was thrown, and my guide died. All people said it was a bad omen for my business. But since tourism is my passion, I had to move on from this. I bought insurance for the very small team I had at that time. There were challenges with the family too, but this made me even stronger afterward. I couldn't give up. It’s all in the mind. If I had stopped, I would have given up this business.&nbsp;One needs to be courageous in what they are doing when faced with struggles. This kept me going and never giving up. I realized nothing could stop me.What was the hardest part of the pandemic for your business? One hard thing was understanding the issue when the pandemic hit. Panic doesn't help anyone. People must know how to tackle a problem. Optimism is one of the best things for the human mind. We stayed home for weeks and thought about “what will I do with my business?”. So, I sat and started reading about it. And of course, Matt and Laura provided a ZOOM call on how to survive during a crisis. I then followed many podcasts which helped me to know about COVID and how to work through it.As you look forward, further into 2021, and beyond the COVID-19 pandemic, what dreams and visions do you now have for your business growth? We always face a problem getting a booking in the Semien area and the demand is very high. I was planning for our own lodge in that area. Even if I invest in this lodge, I need a partner to help me in managing it. I want to take Travel Ethiopia to the highest place. I would like to bring an expat to manage this business and work on taking it to another level.&nbsp;Disclaimer: This blog is provided as a recounting of the IAN’s and RENEW’s interactions with Travel Ethiopia and the happenings at Travel Ethiopia. This blog is not intended as performance data related to the IAN’s investment in Travel Ethiopia. Information about Travel Ethiopia pertains only to Travel Ethiopia and is not indicative of other companies in the IAN’s portfolio or the performance of investments in them. Any discussion of the performance of Travel Ethiopia or its social impact is no guarantee that such performance or impact will be realized by other IAN portfolio companies or other investments managed by RENEW, now or in the future.

How Travel Ethiopia Navigated the Pandemic

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An in-depth interview with Samrawit Moges of Travel Ethiopia

<h1 style="text-align:center;">An In-Depth Interview with Valerie Muigai of Kijani Baby</h1>For more pictures from Kijani, download our recent <a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf">Impact Report</a>, and read an abbreviated version of the following story called “Fighting for Women’s Jobs Amidst Uganda’s Strict Lockdown” on page 19 of the report.When the COVID-19 crisis nearly shut down Kijani Baby, the Uganda-based reusable diaper company persisted through every roadblock, ultimately increasing local business, maintaining production and ensuring staff employment and safety, while adhering to regulations amidst one of the world’s harshest lockdowns.&nbsp;Before the world barely knew of a pandemic, Kijani Baby was facing the first of many hurdles. Fabric production in China and imports were halted, abruptly cutting off raw materials for Kijani’s production. Soon Uganda’s very tight lockdowns and transport restrictions paused local operations and sales, while international border closures followed, impeding the business’ ability to fulfill export orders—just as demands for reusable diapers skyrocketed around the world.&nbsp;&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_07_07_at_5_51_16_PM_bc17b00fe8.jpg"></figure>Around every corner, Muigai and team found a creative and resilient solution. When public transportation was banned, they kept the workshop open with staff who lived in walking distance. When private transport for delivery was halted, they shifted to a local online delivery service. When airlines shut down cargo flights and halted exports, they trialed new ways to move products with DHL. “Everyone on the team stood their ground to make sure that the business came out alive on the other side of the pandemic,” Valerie said. “Now it is exciting to see that growth has picked up again, and we can continue to hire more women, expand our production and expand our brand.”Here’s what Valerie had to say during a recent conversation. How did you and Kijani experience the pandemic?&nbsp;It was quite a year. For us in Uganda, we heard about the pandemic from China because that is where we bought our fabric. Quite quickly, the hardest lockdowns in the world came to Uganda. Thankfully, we managed to keep our workshops open because many of our staff lived within walking distance.&nbsp;Even while operating legally, we were stopped by police while dropping our products to our customers nearby. Around April, our suppliers in China became operational again but before then we were working on keeping the company alive and people paid. April to June, we had very low sales. We had to figure out a way to push out the delivery of our items and push out our inventories.We didn’t let go of our staff. Tailors are paid per item so our costs decreased of course, but we didn't have to let go of anyone. I was always in the office where we taught our staff about COVID, gave everybody masks and sanitizers, and worked to keep everybody safe. Even if there was fear at first, we managed to keep everybody employed.&nbsp; &nbsp;Does the term “standing ground” mean anything to you in light of your 2020 experiences?&nbsp;I am a very determined person and quite optimistic, so every time restrictions came, I remember saying “we can move through anything.” But there was a time when basically nothing was working. That was when our air shipment had been sent back to us, private cars had just been banned and shops had just been closed. And I remember feeling like I had to lower my expectations. January and February 2020 were really great months for us; we had a lot of plans for growth, but I realized I needed to shift my priorities from growth to survival, and growth would come afterward.&nbsp; I don't think there was a time we really considered shutting down. We were all determined to find a way to get through this and stay alive. People needed to keep their jobs. And so many people with day-to-day work had lost their jobs. It was so important for us to make sure that our people kept a source of income during the pandemic, and to make sure that we protected the business so that they can keep a source of income after the pandemic. Those were the two goals that I thought of. Growth doesn't matter right now -- we have to 1) stay alive and 2) keep our people paid. In those few months, everybody on the team pulled together to make sure we continued operating. It wasn’t only me, but the team did stand their ground to make sure that we came out alive on the other side. Not alive as people, but as a business.&nbsp; What was your biggest personal challenge?Keeping everything together. I have three kids homeschooling at home, my husband was stuck in the UK and with the uncertainty of the restrictions, I had to keep the business going. I had to be optimistic for my family and employees and not show this side of me just to keep them going.&nbsp;&nbsp; What was your biggest lesson from 2020?The ability to think quickly, change plans, find a way to make things work; this was felt throughout my team. Persistence and creativity. The year put challenges into perspective. I have been running Kijani for six years, but the most challenging times were the first three months of COVID. I hope the future challenges don’t change life as this one did, but it gave me and my team more confidence that if challenges come, we can find a way to go through them.&nbsp; What’s Next for Kijani?It's exciting to see that growth has picked up again. We are excited to see that we can build the export market, especially in the UK, with our brand story -- that the products are made by women and women are paid well, and the product is reusable. I want to hire more women, expand our production and expand the business.&nbsp;Disclaimer: This blog is provided as a recounting of the IAN’s and RENEW’s interactions with Kijani and the happenings at Kijani. This blog is not intended as performance data related to the IAN’s investment in Kijani. Information about Kijani pertains only to Kijani and is not indicative of other companies in the IAN’s portfolio or the performance of investments in them. Any discussion of the performance of Kijani or its social impact is no guarantee that such performance or impact will be realized by other IAN portfolio companies or other investments managed by RENEW, now or in the future.

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An In-Depth Interview with Valerie Muigai of Kijani Baby 

<h1 style="text-align:center;">The Opportunities and Challenges of the Transport and Logistics Sector in Ethiopia</h1>With a population of 110 million people, Ethiopia has one of the most underdeveloped transport and logistic sectors in the world, according to the World Bank’s 2016 Logistics Performance Index (LPI) which ranked the country 126 out of 160. The sector faces many challenges in Ethiopia, including a historically very limited private sector involvement (foreign and local) and a lack of integration between government entities, especially the Ministry of Revenue and Ethiopian Shipping and Logistics Services Enterprise (ESLSE). Nevertheless, the sector has significant growth potential by virtue of expected growth in the wider private sector economy (from a low base), expected increase in demand from production sectors for professionalized logistics services, a growing middle class and continuing GDP growth.&nbsp;<figure class="image"><img src="/uploads/transport_bf21d1fc2c.jpg"></figure> Sector Growth OpportunitiesEven though the sector has its challenges, it has significant growth opportunities driven by the following factors:<ul><li>Liberation of the logistics sector – The government initiative to allow foreign investors to participate in the sector is expected to create growth as foreign investors eye entry into the country. There are big international players ready to come to Ethiopia including Dubai ports giant, DP World, which is taking the lead after signing an MOU with the Ministry of Transport to invest $1B in an effort to create a trade and logistic corridor from Ethiopia to Berbera in Somaliland.</li><li>Expected growth of the agriculture sector – The Ethiopian government is emphasizing the potential of the agriculture sector. Since 2019, 121,356 hectares of irrigation schemes have been developed in order to increase productivity and production[1]. Similarly, different initiatives are being taken by the government to create growth opportunities for the transport and logistics sector as products will need to be transported from farmers to the market more efficiently.&nbsp;&nbsp;</li><li>Expected growth of the industrial sector – Despite the related regional disputes, the country is finalizing the Great Ethiopian Renaissance Dam (GERD) which is expected to help resolve the power shortage in Ethiopia and support industrial growth. In conjunction with this, Ethiopia has also built 13 industrial parks throughout the country which require a modern logistics route to move raw materials and ship end products to customers.</li><li>The African Continental Free Trade Agreement (AfCFTA) – In time, the agreement will open doors to the regional market as African countries move to open their borders for more trade within the continent.</li><li>A growing middle income, urbanization and food (inefficiency, price inflation, logistics chain) – There is a large potential in the agricultural goods transport sector since the country is experiencing huge food inflation (22.3% in April 2021[2]) and urban population growth of 4.78%[3]. There is a growing need for efficient logistics services as the market in cities such as Addis struggles to get products efficiently, which could be one big step to solve part of the food inflation challenge the country struggles with. To provide some perspective, 100 kg. of teff is sold for an average price of ETB 5K in Addis Ababa and the same quality product can be bought for ETB 4.2K outside Addis from farmers directly.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ul> Current StateCurrently, the sector is dominated by the government with only a handful of private companies in freight forwarding and the logistics space. The sector lacks smooth integration (between government entities and between government entities and the private sector) and expertise which is causing significant inefficiency. For instance: it takes 40 days to clear inbound goods from seaports in Ethiopia, whereas middle-income countries clear within 3 days on average; and, Ethiopia’s total logistics cost compared to GDP stood at 26% but the middle-income average is between 10 to 15%,[4] showing the country still has a long way to go.The inefficiency in this sector is also affecting the competitiveness of other critical sectors such as exports. For instance, to transport a P20-foot container of garments from Ethiopia to Germany costs 247% more than from Vietnam and 72% more than from Bangladesh[5]. Even when we compare Ethiopia with neighboring countries such as Uganda and Rwanda who are also landlocked, we see that Ethiopia is behind.&nbsp; In 2016, Ethiopia’s&nbsp; LPI was 2.38 and ranked 126 among 160 countries worldwide, whereas Uganda and Rwanda had 2.58 and 2.97 LPI scores and were ranked 58 and 62, respectively.&nbsp; Government Plan and Regulatory FrameworkThrough the Homegrown Economic Reform agenda, the government aims to transform Ethiopia into an industrialized, lower-middle-income country by 2030. The private sector has a paramount role in making this a reality. The government has made significant changes specific to the transport and logistics sector under the new investment laws, which allows foreign investors to participate in packaging, forwarding and shipping agency services (which was previously reserved for domestic investors), railway transport, cable transport, cold-chain transport and freight transport with a capacity of more than 25 tons. But some areas are still closed for foreign investors. For example, per the new investment laws, international air transport service is only allowed in partnership with the government. In addition, foreign investors can only invest in domestic air transport service, cross country public transport service with a seating capacity of more than 45 passengers, and urban mass transit service in partnership with domestic investors without holding majority membership interest.&nbsp;In addition to the improvements to the investment law, the government plans to mobilize ETB 3T ($73B) of investments into the sector over the next ten years in partnership with the private sector. This coupled with the improvements in the investment law will be integral to the growth of the sector for the next decade.&nbsp;&nbsp; The Future of Logistics in EthiopiaThe sector is marked with challenges and lags behind other countries. But the government is determined (and has little choice) to enable the private sector to address the county’s rapidly changing demographic and logistical demands – which is why the sector’s growth potential cannot be ignored.<hr>&nbsp;[1] The Ministry of Agriculture[2] Central Statistics Agency[3] World Bank[4] Compiled from World Bank and The Ministry of Transport[5]<a href="https://www.theafricareport.com/"> https://www.theafricareport.com/</a>&nbsp; &nbsp;

An In-Depth Look at the Ethiopian Logistics Sector

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