<h1 style="text-align:center;">Ethiopia is Moving Towards Data Protection</h1>&nbsp;Ethiopia lacks a unified and comprehensive legal framework that governs privacy and data protection. However, there are protections scattered throughout different legislations, including the Constitution, the Criminal Code, the Civil Code, the Computer Crime Proclamation, and the Freedom of the Mass Media and Access to Information Proclamation. Even though the country doesn’t have a comprehensive data protection regulation nor a national data protection body, the regulatory bodies under these sector-specific legislations have the power to regulate data protection issues within their regulatory scope.However, the protections provided throughout these scattered legislations are not comprehensive. Specifically, considering the current digital world, a country typically has a comprehensive data protection system.&nbsp;In this context, the government of Ethiopia, through the Ministry of Innovation and Technology, recently took the initiative to draft a personal data protection proclamation. This draft personal data protection proclamation, which is the first by its nature in Ethiopia, is expected to be approved by the Council of Ministers this year (1). The proclamation, once enacted, will be vital in regulating the use and protection of personal data. In this blog, we summarize what this draft proclamation will cover.<figure class="image image_resized" style="width:100%;"><img src="/uploads/ethipia1_778f456404.jpg"></figure><h3>The Regulator&nbsp;</h3>The Ethiopian Data Protection Commission (the “Commision”) is envisioned under the draft proclamation as a national data protection institution. The Commission is proposed as a self-governing body accountable to the House of People's Representatives (HPR). The HPR also appoints the Commission's commissioner and deputy commissioners. The draft proclamation emphasizes the Commission's institutional independence, requiring commissioners to act with total independence and impartiality, neither seeking nor accepting orders.The Commission is charged with a wide variety of regulatory responsibilities. These include overseeing the implementation of the data protection law, keeping a register of data controllers and processors and undertaking audits of practices and policies of data controllers and processors, investigating complaints, and conducting search and seizure, among others. Furthermore, the draft proclamation also envisions the possibility that the Commission may be entrusted with additional roles in sector-specific data protection schemes.<h3>Rights of Data Subjects</h3>The draft proclamation contains fundamental data subject rights including the right to be informed, right of access, right to rectification, right to erasure, right to object to processing, right not to be subject to automated decision making, restriction right and right to data portability.<h3>Data Processing Requirements</h3>The draft proclamation envisages two levels of criteria for the authorized handling of personal data. First, it specifies the broad parameters for legitimate processing. Any processing will be lawful if it is based on the data subject's consent, which must be free, informed, explicit, unambiguous, and capable of withdrawal and granted before the start of the processing. It also provides other grounds for authorized processing, such as the fulfillment of contractual commitments, vital interests of the data subject, and public interest. Secondly, it defines the circumstances under which sensitive personal data, as well as data belonging to children, may be treated, setting of organizational and technical security measures, data protection impact assessments, prior authorization and data protection by design. Though the requirements may apply for various circumstances, failures to meet these requirements would make the processing unlawful. There will also be general requirements for personal data processing to be lawful including prior registration of data controllers and processors and appointments of data protection officers.&nbsp;<h3>Exemptions for Certain Categories of Data Processing</h3>An exemption for certain categories of data processing is provided in the draft proclamation. All of the exemptions concern the processing of personal data undertaken in the public interest. These are:&nbsp;<ul><li>When the processing is done for national security, defense, or public security purposes, including when the Prime Minister grants or certifies an exemption thereof;&nbsp;</li><li>When the processing is to prevent, investigate, and prosecute crimes, as well as the execution of penalties;&nbsp;</li><li>Processing to safeguard the general public interest, including the state's economic interests;&nbsp;</li><li>Processing to uphold judicial independence and judicial proceedings;&nbsp;</li><li>Processing for purposes of protecting data subjects or the rights and freedoms of others; and</li><li>Processing for purposes of historical, statistical or scientific research.</li></ul><h3>Data Breach Notification Requirements</h3>When a data breach occurs, the draft proclamation specifies two levels of notification: notification to the Commission where the breach is likely to constitute a "risk" to an “individual’s" rights and freedoms and notification to the data subject (the individual whose personal data is breached) when it’s likely to pose a high risk to the rights and freedoms of the individual. In principle, notification of the data breach should be provided to the Commission and data subjects within 72 hours unless the data controller has a reason for the delay.<h3>Transborder Data Transfer&nbsp;</h3>The provisions of the draft proclamation are the direct reflection of the General Data Protection Regulation (GDPR). The GDPR is the comprehensive data protection regulation of the European Union (EU) but applies to data controllers and processors in jurisdictions outside the EU provided they handle the personal data of EU citizens. When considering adopting personal data protection laws, many countries are considering laws in line with the GDPR for a variety of reasons. One of the reasons is to enable transborder personal data flow while avoiding statutory inconsistencies.&nbsp;The draft proclamation stipulates possible grounds by which the transborder transmission of personal data is allowed. Accordingly, the transmission of personal data from Ethiopia is permitted only if the third-party jurisdiction (any country other than Ethiopia, international organizations, and its subordinate bodies) provides an adequate level of data protection. The Commission will decide whether a third-party jurisdiction has an adequate degree of protection by taking into account two layers of considerations: general and specific.&nbsp;The general consideration encompasses all factors relating to a specific or group of data transfer procedures. The type of the data, the purpose and length of the intended transfer, and the state of the rule of law in the third-party jurisdiction are all vital particular concerns. It is worth noting that the Commission may restrict, suspend, or impose limits on transfers to third-party jurisdictions judged to have adequate levels of protection to preserve the data subject's rights and freedoms.&nbsp;There are, however, exceptions where personal data can be transferred to a third-party jurisdiction without meeting the adequate standard assessment by the Commission. These are: (i) when the data subject gives explicit consent to the proposed transfer after being informed of the lack of appropriate protection in the third-party jurisdiction; (ii) when the transfer is required to achieve certain legitimate aims of the data subject, data controller, or both, as well as for matters of public interest; and (iii) when the transfer is from a public register.The draft proclamation further provides the possibility of limited transfer of personal data to the third party jurisdiction, when the data subject gives his or her agreement to the transfer and elements of the data are omitted or reduced. However, authorization by the Commission may be required.&nbsp;<h3>What Happens if the Data Protection Laws are Breached?</h3>Under the draft proclamation, data subjects can file a complaint with the Commission if they believe their rights have been violated. In addition to the data subjects, if the Commission has any doubt about the contravention of the proclamation or any subsidiary laws, it can launch an investigation or cause an investigation to be initiated. Unless the Commission has reason to suspect or doubt the complaint (i.e. the existence of bad faith), it is required to investigate the case. Furthermore, the Commission is obligated to come up with a solution within a reasonable time frame, giving the data subject the option of going to court if the data subject is dissatisfied with the decisions of the Commission.&nbsp;The data subjects have the right to file an appeal to the Commission when they are unsatisfied with the decision rendered by a data controller. However, the time to appeal is limited and the Commission may dismiss the case for various reasons. Moreover, if the parties are not satisfied by the decision rendered by the Commission they can appeal to the Federal High Court.&nbsp;There are scenarios under which a third party (mediator) engaged on behalf of the Commission may investigate the appeal of the data subject. If the Commission does not authorize a mediator to investigate and settle the parties’ disagreement, it will conduct its investigation and render a decision. Even though filing a complaint is personal, the draft proclamation allows for a proxy. Hence, an agent can convey a client's case on her/his behalf in a written form unless the Commission requires other forms of presentation. The draft proclamation imposes a duty on the Commission to provide adequate assistance to complaints in putting their grievances in writing.<h3>What is Next?&nbsp;</h3>The draft proclamation has been completed by the Ministry of Innovation and Technology and is expected to be presented to the Council of Ministers this year. Once approved by the Council, it will pass to the House of People’s Representatives for final ratification. It will then be published in the Federal Negarit Gazette, marking its coming into force. A number of steps are expected to be taken before and after the enactment in order to operationalize the regulatory body. Creating awareness and building a legal infrastructure suitable for data protection are expected to be the biggest assignments for the government, post enactment. (1) <a href="https://www.capitalethiopia.com/news-news/first-structured-personal-data-protection-proclamation-in-the-making/">https://www.capitalethiopia.com/news-news/first-structured-personal-data-protection-proclamation-in-the-making/</a>.

Ethiopia is in the Process of Enacting a Data Protection Act 

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Ethiopia is Moving Towards Data Protection 

<h1 style="text-align:center;">A CSR Opportunity in Addis</h1>TAPCOO (Tesfa Addis Parents Children Cancer Organization), a nonprofit organization (NPO) in Addis Ababa, Ethiopia, was established by parents of children with cancer and other individuals who have an interest in helping children with cancer and their families who have no place to stay in Addis Ababa during their children’s clinical treatment.<figure class="image"><img src="/uploads/2021_10_13_15_56_42_d6c049a08d.jpg"></figure>The organization recently invited the RENEW team to their care center in Addis Ababa. A cohort of 16 team members traveled to the center and donated clothes, children’s books and sanitary items to the families that are&nbsp; staying at the center. We spent a few memorable and impactful hours with them and saw firsthand what the wonderful home provided to children from across Ethiopia who are undergoing cancer treatment.<figure class="image"><img src="/uploads/2021_10_13_15_54_37_d4e0d3216f.jpg"></figure>They have beautiful, clean and spacious rooms where moms can stay with their children while they're receiving treatment at the Black Lion Hospital in Addis Ababa. Dads are housed in a separate part of the facility but are still close enough to support their wives and children through this challenging time of their lives. In addition, the organization has various projects that enable parents to earn extra money while their children are receiving treatment.<figure class="image"><img src="/uploads/2021_10_13_15_50_43_0631353c7e.jpg"></figure>The home currently houses 150 children in their Addis Ababa facility and has branches in two other major cities in Ethiopia. Though recent data is unknown, according to a <a href="https://bmccancer.biomedcentral.com/articles/10.1186/s12885-021-08014-0">2015 source</a>, hospital records in Ethiopia show about 6,000 new cases of pediatric cancer each year.&nbsp; According to the World Health Organization, approximately 400,000 children and adolescents of 0-19 years old are diagnosed with and suffer from cancer each year around the world (<a href="https://www.who.int/news-room/fact-sheets/detail/cancer-in-children">World Health Organization, 2021</a>).&nbsp;&nbsp;To find out more or to consider donating, check out <a href="http://tapcco.org/contact-us/">http://tapcco.org/contact-us/</a>

A visit to the Tesfa Addis Parents Nonprofit Organization 

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A CSR Opportunity in Addis

<h1 style="text-align:center;">Lessons Learned from the GAC &amp; RENEW Blended Finance Event</h1>On Tuesday, October 26, Global Affairs Canada (GAC) and RENEW co-hosted a learning session titled “A Blended Finance Project in Ethiopia, Start to Finish: What Did We Learn?”. The learning event explored the Accelerating Business Growth (ABG) program, which ran in Ethiopia from May 30, 2016 to May 31, 2021, supported over 6,700 jobs and helped facilitate over $79M CAD in financing to SMEs trapped in the “missing middle”. ABG was designed by RENEW and GAC, and implemented by RENEW.&nbsp;&nbsp;During the webinar, four different stakeholders shared their experience with ABG and the lessons they learned from the blended finance project: GAC, the donor; RENEW, the project manager; Ethiopian SMEs, the local beneficiaries; and investors, the private capital providers.&nbsp;&nbsp;The lessons learned have been captured in the <a href="https://drive.google.com/file/d/1eL9zLckuX2a-yxdg0jSJHOby3MGFTvVD/view?usp=sharing">ABG Program Summary</a>, which also provides a high-level overview of the program’s objectives, results, case studies, and more.&nbsp;Some of the noteworthy lessons learned include:<ul><li style="text-align:justify;">From GAC (The Donor): Blended finance (BF) is a new model needed to close the funding gap to achieving the SDGs. While the awareness of BF is growing as a tool for accomplishing the SDGs, significant pushback still exists within donor government organizations when implementing innovative BF models. Donors’ systems and cultures still favor and are better positioned to work with big NGOs with a traditional lens to development.</li><li style="text-align:justify;">From an ABG-supported SME (Local Beneficiary): Practical, hands-on training for SME executives (i.e., The Exec’s Program) is essential and not available in the market. While training is good, more active support with implementation and regular touchpoints and refreshers would increase longer-term impact on SMEs and local beneficiaries.</li><li style="text-align:justify;">From Impact Investor (International Beneficiaries): International impact investors need full-service investment advisors operating in-county, like RENEW, to carry out BF program services in order for SME investing to work. There is growing desire but a larger pipeline is desired that spans multiple countries.</li><li style="text-align:justify;">From RENEW (Project Manager): For other BF project managers, be careful not to get overburdened with reporting - you serve two masters and it is important to align, where possible, the impact metrics and reporting to both at the onset of the project. Otherwise, sizable resources will be spent reporting to both masters.&nbsp;</li></ul><figure class="image"><a href="https://drive.google.com/file/d/1eL9zLckuX2a-yxdg0jSJHOby3MGFTvVD/view"><img src="/uploads/Screen_Shot_2021_10_19_at_4_20_22_PM_66c0dd7057.png"></a></figure>Several more interesting and valuable insights on organizing, implementing and managing blended finance models and projects are provided in the <a href="https://drive.google.com/file/d/1eL9zLckuX2a-yxdg0jSJHOby3MGFTvVD/view?usp=sharing">ABG Program Summary</a>; we encourage you to read it!&nbsp;And, in case you missed the ABG Learning Event, please feel free to watch a <a href="https://www.youtube.com/watch?v=rhPs8DVpbe4">recording of the webinar</a> uploaded to our YouTube channel.&nbsp; &nbsp;

Perspectives from four blended finance stakeholders: donors, investors, SMEs and project manager

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Lessons Learned from the GAC & RENEW Blended Finance Event

<h1 style="text-align:center;">Reflections After a Recent Visit to Addis</h1><h3>Jonathan Baker, an investor with RENEW, shares his background and motivations for impact investing.&nbsp;</h3>Tell us about your background?​My career started in management consulting in the late 80s. My primary role was on the business development side where I brokered the insights of some very smart colleagues amongst C suite executives around the world. Whatever cachet conveys with, “I was a management consultant” is not mine to claim. I was a glorified “sales guy” whose job was to grow the firm’s client base. The firm, Corporate Executive Board, had a successful IPO in 1999. In 2001, I was able to pivot to investing in start-ups across a broad spectrum of industries (renewable energy, life sciences, SaaS, consumer goods, IT &amp; various technology plays). My very first investment was a terrific success; that was unlucky as it led me to believe I had the “Midas Touch,” and it took several&nbsp;subsequent investments (i.e., total losses) for me to grasp just how hard start-up investing can be.<figure class="image"><img src="/uploads/JB_1_907d6aef21.jpeg"></figure>How did you learn about RENEW and the Impact Angel Network?&nbsp;After hearing I had done some small-scale investing in Ethiopia (also total losses), a mutual acquaintance, David Grizzle, introduced my wife, Julie, to Laura Davis. Julie had come alongside an NGO in Ethiopia that was helping women rebuild their lives after prostitution. In 2015, Laura helped Julie find employment for these women.&nbsp;&nbsp;Why are you interested in Ethiopia? Tell us about some experiences in Ethiopia? What do you remember about your first visit?&nbsp;I first came to Ethiopia in 2009 and was completely smitten. So much so I returned with my entire family (six of us!), and we lived there for three months. What struck me, and has stayed with me, is the depth of relationships Ethiopians have with each other. In the fast-paced world of the West, we have lost the joy of just being together without distraction.What lessons did you learn from your first investments in Ethiopia?The primary reason my initial, personal investments failed in Ethiopia was because of some unfounded assumptions on my part.&nbsp; Basic business principles (accounting, finance, governance, operations, etc.) were missing AND I did not stay on the ground with these companies to help them. I wrote a check, got fewer and fewer updates as time went on and then I stopped hearing from them altogether. Granted these were very small investments, but (at least) two principles hold. First, failure to define and agree upon frameworks and methods of business processes prior to investing won’t end well, regardless of the smarts and integrity of the entrepreneur being backed. Second, given how much time this first part takes, if you are not on the ground, cheek to jowl, day in and day out, having close, substantive, “in the weeds” exchanges, you will not be able to effectively assess and prioritize what needs to happen next.<figure class="image"><img src="/uploads/JB_2_8ee906aa5b.jpeg"></figure>What motivates you to be involved in impact investing?Like any human, I can’t see the suffering of extreme poverty. Over the years, I have gotten involved with various international aid efforts – everything from drilling freshwater wells to medical education and training for people working with very sick children. While this work has been life-changing for its recipients, it hasn’t changed the circumstances surrounding them. Investing in viable enterprises and seeing them through to ever-expanding horizons of success displaces poverty and its concomitant miseries. As a businessman, I see profit and ROI as the only reliable markers to identify which businesses are viable. The aim in impact investing is to make money, but if I do, I know it will ultimately replace suffering with opportunities for other humans to flourish.&nbsp;

Jonathan Baker, an investor with RENEW, shares his background and motivations for impact investing. 

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Reflections After a Recent Visit to Addis

<h1 style="text-align:center;">Three Lessons From Nairobi and Kigali</h1> When I returned the week before last from a trip to Nairobi and Kigali, my brain felt like it had eaten a huge meal and needed to digest. I've had a chance over the past two weeks to review the many conversations I had with business owners and public and private sector leaders. (I think I doubled the weekly revenues of a few coffee shops in Nairobi and Kigali.) After some reflection, three themes have bubbled to the surface:<ol><li>Capital-starved does not equal capital ready. Most small businesses in Kenya and Rwanda are capital-starved -- even ones that are turning a profit. But in the vast majority of cases, there is much pre-work to be done within the business to lay the foundation upon which an infusion of capital can grow the business. Without this pre-work, capital can exacerbate unresolved issues and ultimately hurt the business.</li><li>Business owners in search of capital need to understand exactly what their options are. Equity is a powerful, patient instrument that will help close the gap between SMEs and big business in East Africa. But it comes with a set of responsibilities and expectations that are poorly understood, for the most part, by business owners. Yes, equity entails some loss of control -- but also a host of connections and resources that can propel the business in new ways. Owners need a place to think hard about not just how much, but also what kind, of financing will serve their business best. There is a lot more to capital than money.</li><li>Managers need a coach, not a consultant.Management teams need their capital partners to help implement change, not tell them what to do. Before this trip, I did not really grasp the difference. Both investor and business owner need to be prepared to roll up their sleeves and get to work both "on" the business and "in" the business.</li></ol>The common theme here is the need to understand your business partner very well. Our team thinks that is best accomplished face-to-face, so RENEW is rolling out a series of workshops this spring in Nairobi, Kigali and Kampala that will help business owners get ready to do business with the West. Stay tuned

When I returned the week before last from a trip to Nairobi and Kigali...

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Three Lessons From Nairobi and Kigali

<h1 style="text-align:center;">Davos Discusses Investment in Africa</h1>Ed Cropley and Ben Hirschler of Reuters filed a <a href="http://www.reuters.com/article/idUSTRE60P04120100128">special report on Africa from Davos</a> last week. I've included a brief excerpt below. Note that the long-term "buy" recommendation, that <a href="../2008/benchmarking-potential-eight-african-countries.html">analysts gave</a> before the financial crisis, persists.<ul><li>Investors with cheap cash needing to spice up returns in more obscure parts of the globe are asking whether Africa can shift from final investment frontier into the emerging market mainstream. Reflecting this interest, Africa gets top billing at the annual meeting of the rich and powerful in Davos this week.</li><li>"Not investing in Africa is like missing out on Japan and Germany in the 1950s, Southeast Asia in the 1980s and emerging markets in the 1990s," said Francis Beddington, head of research at emerging market investment house Insparo Capital.</li><li>He believes that in the long term, Africa has the potential to be home to a sizeable chunk of the factories and warehouses of tomorrow's world.</li></ul>

...long term "buy" recommendation persists.

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Davos Discusses Investment in Africa

<h1 style="text-align:center;">Positioned to Help Investors Scale in Sub-Saharan Africa</h1>The landscape of impact investing in emerging economies is changing rapidly. Interest is growing, and having surveyed the space for more than three years, RENEW is uniquely positioned to assist investors in accessing quality investment opportunities in sub-Saharan Africa.Our East Africa network is growing and across the industry private equity funds slated for Africa are increasing (an estimated $5 billion is earmarked for Africa). Success stories are emerging and <a href="http://allafrica.com/stories/201002010795.html">policy changes</a> are making way for more investments.A recent news story posted on <a href="http://www.reuters.com/article/idUSTRE60P04120100128">Reuters.com</a> by Ed Cropley and Ben Hirschler details the current sub-Saharan Africa investment landscape. The piece quotes a range of folks involved in the space and summarizes recent work by the World Bank and International Monetary Fund.The RENEW team is invigorated by the growing life we see in the Impact investment market. Feedback on our services and Marketplace is positive and we are making regular trips to visit businesses and partners.Let us know if you need help finding quality businesses in East Africa.<figure class="image"><img src="/uploads/Find_Assess_Grow_png_84188d2a87.jpg"></figure>&nbsp;

The landscape of impact investing in emerging economies is changing rapidly.

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Positioned to Help Investors Scale in Sub-Saharan Africa

<h1 style="text-align:center;">What Are RENEW's Social Goals?</h1>That is a question that we, the RENEW team, have asked each other many times - and one that is common to most investors who approach African businesses with a social lens. Without question, we see tremendous opportunity for specific kinds of businesses to, say, revolutionize healthcare delivery or provide clean, affordable energy to rural areas.But there is a more fundamental idea that drives RENEW's model - and helps us keep in check the temptation to define exactly how social change should occur. Carl Schramm, president of the Kauffman Foundation, captures it succinctly in his article in the spring issue of the Stanford Social Innovation Review: <a href="http://www.ssireview.org/articles/entry/all_entrepreneurship_is_social">All Entrepreneurship is Social</a>. He writes:<blockquote>One danger... is that the use of the modifier social will diminish the contributions of regular entrepreneurs—that is, people who create new companies and then grow them to scale. In the course of doing business as usual, these regular entrepreneurs create thousands of jobs, improve the quality of goods and services available to consumers, and ultimately raise standards of living. Indeed, the intertwined histories of business and health in the United States suggests that all entrepreneurship is social entrepreneurship.</blockquote>Schramm goes on to elaborate how much social return plain, old-fashioned entrepreneurship has produced. RENEW seeks to capture that idea in our mission - "Serving Investors. Growing Businesses. Igniting Change."As investors discover the potential of more and more African entrepreneurs, RENEW aims to continue to show the social impact of all kinds of entrepreneurship, done well.

That is a question that we, the RENEW team, have asked each other many times...

What Are RENEW's Social Goals?

<h1 style="text-align:center;">Mo Ibrahim: How to Spend $10 Billion in Africa</h1><figure class="image image-style-align-left"><img src="/uploads/Mo_Ibrahim_0_c7540699b6.jpg"></figure> When the Wall Street Journal <a href="http://online.wsj.com/article/SB10001424052748703787304575075350668982866.html?KEYWORDS=philanthropy">asked</a> ten philanthropists and executives how they would spend $10 billion to make the world better, they got plenty of good ideas. But to my mind, one was clearly the winner. Mo Ibrahim, the telecom mogul, offered a deceptively simple - and immensely valuable - idea: "Establish a statistics office in Africa." Why?<ul><li>Africa's needs and potential are vast, while means are scarce. This necessitates efficiency, which is dependent on an ability to define aims, and to measure them, in order to assess results. In short, good governance.</li><li>This does not happen at the moment. The lack of comprehensive and reliable statistics inhibits all stakeholders, whether civil society, governments or donors.</li><li>So, I would use the $10 billion to fund the development of national or regional statistics offices. They would improve data collection and dissemination to ensure public access to, and sophisticated application of, these data.</li></ul>Ibrahim is right on the money. From an analyst's perspective, Africa is a black hole. Whether you're in business, government or philanthropy, that makes it hard to know what you're getting into (there is no baseline data) and what you might hope to accomplish.This data problem is one of the biggest that African SMEs face in attracting capital and business partners. The leading businesses, financial institutions and development projects in Africa will address this need over the next decade.

When the WSJ asked ten philanthropists and executives how they would spend $10 billion...

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Mo Ibrahim: How to Spend $10 Billion in Africa

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