<h1>The Future of Africa’s Private Sector</h1>Still small, but massive, fast-moving and digital<img src="/uploads/Skyline_Landscape_Mobile_Money_50beba7137.avif">For decades, the "African growth" narrative has been stuck in a time loop. From development banks to global financial journals, the message has been consistent: for Africa to prosper, it must industrialize through factories, infrastructure, commercial agriculture and a formal manufacturing base capable of absorbing the millions of young people entering the workforce each year.But one possible view from the ground, and I should note that my husband and I have lived in Africa and invested in startups across the continent for more than 14 years, suggests something different. Our sense is that the factories are not arriving fast enough, and the formal jobs are not appearing at the scale many hoped. The reality we see as we travel across Africa often looks quite different.This reality raises a broader question:&nbsp;should we stop trying to fit Africa into a 20th-century development model? At a moment when technology is reshaping nearly everything we do, could Africa instead be at a point where it develops a different model of growth altogether?&nbsp;<h2>The Myth of the Industrial Savior</h2>Publications such as&nbsp;The Economist (<a href="https://www.economist.com/special-report/2025/01/06/africa-has-too-many-businesses-too-little-business?utm_medium=cpc.adword.pd&amp;utm_source=google&amp;ppccampaignID=17210591673&amp;ppcadID=&amp;utm_campaign=a.22brand_pmax&amp;utm_content=conversion.direct-response.anonymous&amp;gclsrc=aw.ds&amp;gad_source=1&amp;gad_campaignid=17210596221&amp;gbraid=0AAAAADBuq3IrrOn13siii2pkXA3wnZ7mz&amp;gclid=Cj0KCQjwgr_NBhDFARIsAHiUWr7_yQi40h-TXYi0hqjfcZ3hQxFQ7EkeXhfRVA0alVZMFTq3LsSuJekaAqEYEALw_wcB">Africa has too many businesses, too little business</a>) point to Africa’s "disappointing" manufacturing performance. The continent’s share of&nbsp;<a href="https://futures.issafrica.org/blog/2025/Unlocking-Africas-manufacturing-potential#:~:text=Energy%2C%20transport%20and%20reforms%20are,the%20global%20manufacturing%20value%20chain.">global manufacturing value-added is less than 2%</a>. The argument is straightforward: without a large manufacturing base to drive growth, Africa risks remaining stuck in low-productivity informal work.&nbsp;But this is the 20th-century model. It overlooks recent developments, such as the massive, mobile tech-surge happening across the continent and, more recently, AI.Some interesting news that points to a new development model could be first, that sub-Saharan Africa has more&nbsp;<a href="https://www.forbesafrica.com/current-affairs/2025/04/09/sub-saharan-africa-dominates-global-mobile-money-landscape-with-1-1-billion-accounts-new-report-finds">mobile money accounts than any other region of the world, combined.</a> Another development is smartphone adoption — Africa is one of the fastest growth markets in the world. Young Africans are building and running businesses on their phones, skipping right over laptops.&nbsp;<figure class="image"><img src="/uploads/image_6089a72815.png"></figure>Source:&nbsp;<a href="https://ourworldindata.org/mobile-money-why-it-matters">Our World in Data</a><h2>From Micro-Shop to Tech-Enabled Business</h2>In the past, an entrepreneur running a small shop in a local market might spend 30% to 40% of their time dealing with friction. Closing the shop to travel to wholesalers. Waiting in long lines at the bank to wire cash to a loved one or a supplier. Operating without records that could demonstrate creditworthiness.Technology is removing much of that friction.<ul><li>Inventory at the fingertips: Apps now aggregate wholesaler inventories, allowing entrepreneurs to browse and order products directly from their place of business.</li><li>Frictionless payments: Transactions move through digital wallets rather than cash boxes, creating a record that was previously invisible to the financial system.</li><li>Embedded finance: That digital transaction history, the everyday "data exhaust" of commerce, is increasingly being used to unlock credit.</li></ul>What once looked like informal trading increasingly resembles mobile-first, data-rich small businesses.<h2>The Surge: Why "Small" May Be Huge</h2>All this leads me to wonder if Africa will not develop the same way as other emerging markets. By moving directly from limited infrastructure to smartphones and high-speed connectivity, many entrepreneurs are adopting tools and market access faster than previous generations of business owners ever could.At Renew Capital, this is one place we see momentum building within Africa’s private sector. Rather than waiting for a perfectly formalized market to emerge, we invest in tools that make the existing market more efficient. Portfolio companies such as&nbsp;<a href="https://www.hypeo.ai/en">Hypeo AI</a> in Morocco and&nbsp;<a href="https://www.njiapay.com/">NjiaPay</a> in South Africa are examples of this approach, building technology that helps founders scale businesses without the constraints of legacy infrastructure.Africa’s jobs challenge is real. The continent needs to&nbsp;<a href="https://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/jobs-for-youth-in-africa/what-is-the-jobs-for-youth-in-africa-strategy">absorb 10-12 million new workers</a> each year to keep pace with population growth.But the solution may not look like a traditional industrial park. It may instead emerge from a decentralized, tech-enabled network of millions of entrepreneurs gaining access to better information, better tools and, increasingly, smarter capital.One possible future for Africa’s private sector may not be defined by large factories, but by millions of digitally connected businesses growing from the ground up.If that future is unfolding already, the question becomes: are investors, policymakers and institutions prepared to recognize it?&nbsp;We’d love to hear your thoughts. Please share what you’re seeing and what models you think will work in what we believe will be the most exciting market to emerge in the next 50 years.&nbsp;

Still small, but massive, fast-moving and digital

Perspectives

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The Future of Africa’s Private Sector

Renew Capital's presence has expanded to 14 African countries. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our in-country team. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>My Journey to Renew Capital: Get to Know Raisa Chowdhury&nbsp;</h1>International footprints and lessons in balanceWelcome to the latest feature in our 'Journey to Renew Capital' blog series. In this interview, we spoke with Raisa Chowdhury, Senior Project Consultant and M&amp;E Lead, about her personal journey to Renew Capital. We explored her diverse international career in the development sector&nbsp;across countries such as the United States, Bangladesh, Myanmar, Cambodia, Mozambique, Ethiopia, and now Rwanda and uncovered the underlying passion that fuels her work in this domain.<figure class="image"><img src="/uploads/d3b9fb61_863b_41c5_97e6_fb8115bc4d64_16c7ac7770.JPG" alt="Image of the Senior Project Consultant and M&amp;E Lead posing with Renew Capital employees, highlighting teamwork and collaboration within the organization."></figure>Raisa, center-left, leading with passion and purpose.Welcome Raisa, thank you for taking the time to sit down with us. You are originally from the U.S. and are now based in Kigali, Rwanda, where you are currently working on Renew Capital’s&nbsp;<a href="https://www.renewcapital.com/newsroom/five-facts-about-accelerating-regional-business-growth">Accelerating Regional Business Growth (ARBG) project</a> among others. Could you please share a bit about your background and how you landed in East Africa?Before joining Renew Capital, I focused on other areas of global development—mostly going back and forth between digital development and peace/rights/civil society/democracy-focused work. In both areas, there was also a lot of talk about the economy—both building on the economic foundations in place within a given context, as well as enabling economic growth. While I found the other work morally and intellectually interesting, I wanted to learn more about this recurring theme of how to “build an economy.”&nbsp;Coming out of graduate school in 2022 I knew that I wanted to do work that produced a tangible impact. I was looking for something that felt different from the U.S.-based development consulting work I was doing at the time. Though I didn’t set out to work in Africa, I was curious when I found Renew Capital through a job alert. As I learned more about the firm, I felt aligned with Renew Capital’s values and the work felt exactly like what I was looking for. I had been to East Africa and Southern Africa for shorter stints already and knew about the great energy in many of the ARBG countries. This made me excited to learn from and contribute in a small way to the buzzing ecosystems in these places.&nbsp;You mention that your career has spanned several development sectors. Can you elaborate on what drives and inspires you to pursue this path?It’s amazing to witness and experience the dynamic energy in emerging markets across different sectors from business, government, arts… you name it. In the development sector particularly, you get to meet all these incredible people who are working tirelessly to make their countries better, and in just a few years positive changes are visible. That inspires me to play a small enabling role in those changes.I’ve also tried to take advantage of my time in the region to be as curious and connected not only because it’s fun but also to better understand the histories and cultures of the countries we work in and be better at my job as a result. One of Renew Capital’s guiding statements is that we seek to change the way the world engages Africa and I joke to my friends that I’m doing that one Instagram story at a time. In all seriousness, though, living here and being fully present gives me a chance to fall in love with the places we work in, gain valuable insights and come to the office with a level of personal investment in the outcome that I hope makes a difference to the quality of my work.In your work on various projects in the East Africa region, what are some unique opportunities that you've come across and what excites you about your work?I’m new to the investment and business support space so it’s been fun to learn more about how things work here. Though there’s been a learning curve, I love getting to be a part of a team that’s working hard to move the needle on business success in the region by testing out different approaches to best support companies in their growth journey.&nbsp;For example, in the first year and a half of the ARBG program, we’ve developed trade training, connected companies to valuable market intel and retail expertise, gotten products moving across borders and expanded the reach of the Renew Capital’s offerings for SMEs by beginning to build an online training platform.&nbsp;I'm also enjoying the opportunity to develop internal systems for our ARBG program, taking on increased responsibility for shaping and managing its progress. This also means more accountability — if something goes wrong, it's on me, which is both scary and gratifying.What excites me the most is that if we get things right we will have helped catalyze business growth and hopefully helped expand the pool of people that benefit from the economic shifts in the region. The boom is coming and I hope that firms like Renew Capital can help bring that reality a little faster and shape that future to be a little more equitable and just.Can you share with us a defining moment in your career? What lesson did you learn from this experience?When I was taking pre-med courses (classes necessary to apply for medical school: biology, chemistry, physics, math, psychology, humanities) in university, I did abominably poorly in Organic Chemistry 1 and 2. I was devastated, as I had always been the kind of gung-ho student who had never gotten less than an A academically, except once in a middle school art class.&nbsp;I’m so grateful now for that failure because it helped me walk away from a path I wasn’t truly passionate about or particularly well suited for, and instead pursue a career that has been more amazing than what I could have imagined for myself at that point. That experience was super formative and forced me to learn to pause and reflect on whether things are progressing in alignment with the bigger picture, and being okay to change course even when it’s hard. To this day, I try to apply that lesson not just to my career, but also more broadly in my life.Also on the theme of reflection and pausing, a slightly different lesson I’ve gotten throughout my life comes down to balance. In one previous role, I had an older colleague who would go around at the end of the work day and tell everyone to go home because “we’re not saving lives.” What she meant was that whatever we were working overtime on could likely wait until the morning to be completed without major consequences. This particular colleague was one of the members of a tight-knit team of sharp Bangladeshi women I had the privilege of getting to join for a short period at USAID Bangladesh. I try to remind myself of this lesson when things get overwhelmingly busy.&nbsp;

I wanted to learn more about this recurring theme of how to “build an economy.” 

Rwanda

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My Journey to Renew Capital: Get to Know Raisa Chowdhury 

Renew Capital's operations have expanded to nine African countries. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our team on the ground. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>My Journey to Renew Capital: Get to know Antony Maina&nbsp;</h1>Navigating the marathon of career, impact, entrepreneurship and family<figure class="image"><img src="/uploads/Image_20231130_150400_924_251f971004.jpeg"></figure>Welcome to the latest feature of our ‘Journey to Renew Capital’ blog series. In this interview, we speak with Antony Maina, Marketing and Communications Manager about his journey to Renew Capital, what entrepreneurship means to him, family life and a lot more.&nbsp;Antony, it’s wonderful to have you with us. Growing up in Eldoret, Kenya a town quite famous for its athletes, how did this influence your unique career path, particularly your passion for communications and entrepreneurship?My hometown of Eldoret, Kenya is known as the “home of champions” because of the many elite long-distance runners it has produced. Compared to other cities like Mombasa and Nairobi it felt more like a village where everyone knew everyone even though it is a metropolitan town. We all went to the same schools and would meet in the same churches. The one thing that brought everyone together was athletics, with the main stadium in the town — “Kipchoge Keino Stadium” — named after Kenya's first Olympic gold medalist. Coming across droves of runners as they practiced for their marathons was a usual sight.&nbsp;While I admired the runners, my journey was destined for a different track. I was more drawn into entrepreneurship so after completing my undergraduate studies, I immediately started out as a freelance blog writer. This experience was my introduction to the world of communications and storytelling. I found myself drawn to stories about businesses and this marked the start of my path towards understanding entrepreneurship.You've had a diverse career across various organizations before joining Renew Capital. How have these experiences shaped your understanding of entrepreneurship and its role in addressing global challenges?Each experience has been a building block in my understanding of the entrepreneurial landscape, especially in developing economies. Prior to Renew Capital, my role at the Aspen Network of Development Entrepreneurs (ANDE) was particularly transformative. I led our work in Ethiopia and Rwanda and also spearheaded the Argidius-ANDE Talent Challenge, which was a unique challenge that sought innovative programs that addressed the challenge that many businesses encounter that is identifying, attracting and retaining middle- and senior-level managers.&nbsp;I also led the mapping of entrepreneurial ecosystems in Rwanda and Ethiopia. This was eye-opening too as it underscored the critical gap in financing for small and growing businesses – a gap that, if filled, could catalyze significant progress toward the United Nations Sustainable Development Goals (UN SDGs). Well, the bottom line is - I strongly believe that entrepreneurship is an underleveraged tool in the fight against poverty and many other global challenges that we face today. Entrepreneurs are innovative and are wired to create solutions. With the right support, entrepreneurs can be a driving force for sustainable economic growth.&nbsp;That's a powerful insight. How did this perspective lead you to Renew Capital, and how has your first year there been?I first came across Renew Capital in 2018, while I was still with ANDE. We hosted a few events with the team in Addis Ababa and Nairobi and that gave me a driver's seat view of their culture, vision and beliefs. Oh, and did I say there was a podcast too? Well, Renew Capital was at the time running a series of podcasts that I loved listening to on my way to work. Their vision and passion for transforming Africa's narrative from an aid-dependent to an investment-ready continent deeply resonated with me. At the time, Renew Capital was in Ethiopia and had just opened an office in Uganda marking the start of its pan-Africa expansion. Joining Renew Capital therefore felt like a natural next step in my journey.&nbsp;My first year has been exhilarating. Like many entrepreneurs we support, Renew Capital is fast-paced. New ideas are generated daily with those that don’t work being put quickly to rest.&nbsp; You can feel the entrepreneurial energy once you step into the room. The team’s diverse backgrounds contribute to a rich mix of perspectives that fosters a dynamic environment where innovative solutions to complex challenges are encouraged and implemented on a daily basis. And by the way, if that sounds like a team that you would like to join, check out the current&nbsp;<a href="https://www.renewcapital.com/careers">job opportunities</a>.&nbsp;How has it been managing the first-paced work at Renew Capital with your family life? Is there such a thing as balance?Finding a balance between work and family life is like trying to dance on a moving train, you just have to go with the flow. My twins keep me on my toes. They’re a constant reminder of why the work we do is crucial. It’s about creating a world where they and other children like them, can thrive. I want to instill in them an entrepreneurial spirit, the courage to innovate and make a difference.What are your hopes for the future?Looking ahead, I see a world where entrepreneurship is at the heart of sustainable development. At Renew Capital, we're just scratching the surface of what's possible. Africa’s brimming with potential and people are beginning to recognize the continent's untapped wealth and opportunities. For example, the African Development Bank highlights that Africa holds 65% of the world’s remaining uncultivated arable land, abundant fresh water and about 300 days of sunshine each year. Furthermore, with Africa's population projected to reach 2.4 billion by 2050 and continue growing to 4.2 billion over the next century, the potential market for new businesses is enormous.I believe Africa’s economic growth is largely going to be driven by entrepreneurs and entrepreneurial thinking. As our Co-CEO Matt Davis says, “Africa’s moment is now.” Here are more&nbsp;<a href="https://www.renewcapital.com/newsroom/embracing-africas-startup-revolution">reasons</a> why.&nbsp;

Finding a balance between work and family life is like trying to dance on a moving train, you just have to go with the flow.

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My Journey to Renew Capital: Get to know Antony Maina 

Renew Capital's operations have expanded to nine African countries, spanning four regions. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our team on the ground. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges</h1>Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam, Tanzania.&nbsp;<figure class="image"><img src="/uploads/TZ_Linked_In_fd3d58377e.png" alt="Q&amp;A session with Renew Capital's Investment and Project Manager in Dar es Salaam, Tanzania, discussing insights on Tanzania’s entrepreneurial scene and addressing local challenges."></figure><figure class="image"><img></figure>Tanzania has a population of over 67 million people, making it one of the most populous countries in Africa. This vibrant and youthful nation is also one of the continent's fastest-growing economies. ML Kidaha, Renew Capital investment and project manager for Tanzania sheds light on the startup scene in the country, citing that the community-oriented culture of Tanzania, embodied by the Umoja spirit of togetherness, drives the success of the business community.What unique characteristics and advantages does Tanzania's startup scene offer?Tanzania has a lot of untapped opportunities to take advantage of especially since it is under the radar of the global startup community. The country's population of over 67 million people, rapidly growing cities like Dar es Salaam and its strategic location bordered by the Indian Ocean, as well as the vast&nbsp;<a href="https://globalsiasar.org/pt-br/node/249">freshwater</a> resources of Lake Victoria to the north, Lake Tanganyika to the west and Lake Nyasa (Lake Malawi) to the southwest, make it an attractive place to do business. These features also make Tanzania a suitable market to test validation for both product-to-market fit and scalable market opportunities for adaptation across multiple African countries with similar characteristics.&nbsp;Tanzania’s young population is eager to learn and adapt and this contributes to the vibrant, moldable, startup ecosystem we’re seeing. Success in the Tanzanian context is tied to understanding and aligning with the local culture and people. For example, thriving businesses can be found in a wide variety of locations, catering to a wide range of income brackets. Due to Tanzania's background as a socialist state and its community-focused culture, business requires a collaborative, courteous approach. Understanding the local demographics and building partnerships with them is key.&nbsp;Tanzania is known for its safety and peaceful environment, which can provide a secure foundation for startups to operate.&nbsp;What are the most common obstacles that Tanzanian startups face?Funding is a major obstacle for Tanzanian founders as well as the lack of systems to support business growth and help entrepreneurs scale their businesses. Despite ongoing capacity-building efforts, there is a shortage of technical assistance and systems in place to assist entrepreneurs in becoming investor-ready or taking their businesses to the next level. Additionally, there are bureaucratic processes and red tape that can slow down progress.&nbsp;Entrepreneurs often rely on cash injections from friends and family rather than formal institutions to address funding challenges. However, they lack guidance on how to optimize these resources and are not able to use their funds wisely to achieve business growth.&nbsp;In the context of Tanzania's startup ecosystem, what role do young people – and young women in particular – play in shaping the future of the country's entrepreneurship and innovation landscape?The youth, comprising over 60% of Tanzania's population, have a significant role in shaping the economic future of the country. With rapidly growing cities and a tech-savvy mindset, young people are at the forefront of digital adaptation. The increasing number of internet users reflects this positive trend. This shift towards digital adaptation highlights the need for more tech-enabled businesses.&nbsp;Women contribute significantly to nurturing businesses and play a crucial role in decision-making processes. Moreover, with over 50% of the population being women, there will be a growing demand for products and services that cater to their specific needs.&nbsp;Could you please provide us insight into your journey in the investment sector?I majored in finance in the U.S. where I developed a strong interest in the field. I started my career in financial services, focusing on financing small businesses, entrepreneurs and investment properties, especially in commercial real estate. Later, I worked at Goldman Sachs in their private wealth management division. After that, I gained valuable experience in management consulting at one of the Big 4 accounting firms in Tanzania, across various industries. This gave me a comprehensive understanding of the Tanzanian landscape and reinforced my desire to work in investments.&nbsp;

Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam.

Ecosystems

Tanzania

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How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges

The blog explores Zambia's potential as an emerging tech hub in Africa, focusing on regulatory advancements, political commitment, deal flow and private sector engagement.<h1>How I See My Ecosystem: Zambia’s Growing Tech Scene</h1>How policies and the private sector are driving the ecosystem forwardIn the heart of Southern Africa, a nation is paving the way for technological advances that could reshape its future. Zambia, known for its rich cultural heritage and abundant natural resources, is gaining&nbsp;<a href="https://techcabal.com/2023/06/02/zambia-ecosystem-feature/">recognition</a> for its ambitious drive to position itself as an emerging technology hub within the African continent. With an increasing focus on innovation, entrepreneurship and regulatory reforms, Zambia is setting the stage to redefine its economy and empower its citizens. Delve into some of the reasons and learn more about Zambia’s growing tech scene in this Q&amp;A with Calvin Chitangala, Renew Capital’s investment and project manager in Zambia.&nbsp;<figure class="image"><img src="/uploads/Start_Up_Converse_Event_c946fbee8f.jpeg" alt="Entrepreneurs and tech enthusiasts posing for a group photo at Startup Converse in Zambia, celebrating innovation and collaboration in the growing tech ecosystem."></figure>Photo: Startup Converse - NyamukAfricaQ. How is Zambia positioning itself to be a leading technology hub in Africa?A. In terms of regulations and political will, Zambia's presidential cabinet is making significant strides in&nbsp;<a href="https://www.mots.gov.zm/?p=2030">formulating a startup bill</a>, aligning with market trends regarding startup acts. Over&nbsp;<a href="https://www.icr-facility.eu/fileadmin/files/downloads/icreports/icreport_startupacts.pdf">16 African nations</a> have been diligently advancing this initiative, with a noteworthy milestone being the enactment of the&nbsp;<a href="https://nigeriastartupact.ng/">Nigerian Startup Act</a> into law&nbsp;<a href="https://www.mazars.com.ng/Home/Insights/Mazars-Insights/Start-Up-Act-2022">last year</a>. Zambia being on this trajectory sets the tone for clear definitions of startups and SMEs, aiding regulatory interactions and fostering a favorable environment for startups. Switching focus to deal flow, Zambia ranks second in Southern Africa, following South Africa, in generating startup deals in the last decade. South Africa led with&nbsp;<a href="https://www.avca.africa/data-intelligence/">536 deals</a>, while Zambia recorded 50, suggesting a nascent ecosystem in Zambia. Among Entrepreneurship Support Organisations (ESOs), I am aware of about 30+ meetups/events that promote the startup ecosystem throughout the year, notably, the&nbsp;<a href="https://zban.org.zm/">Zambia Business Angels Network</a> which conducts frequent demo days that showcase pre-seed and seed deals. Additionally, NyamukAfrica/ITC has&nbsp;<a href="https://en.nyamukafrica.com/#">monthly startup converse events</a> that demystify technical startup conversations. There are more ESOs backed by donor communities and corporations which add to the support of the ecosystem's growth. Considering these facets — regulatory advancements, political will, increasing deal flow, private sector-led initiatives for tech-enabled startups and an attractive macroeconomic environment — it's plausible that Zambia could emerge as a noteworthy African tech hub.Q. What is one noteworthy tech sector emerging in the country?&nbsp;A.&nbsp;We are seeing exciting trends in fintech in Zambia. A 2022 UNCDF study identified 57 companies in Zambia that identify as fintechs, compared to their 2018 study that identified 25. African fintech unicorns also are entering the Zambian market through various means, such as acquiring a local fintech or entering directly while going through the regulatory system. One example is&nbsp;<a href="https://www.crunchbase.com/acquisition/chipper-cash-acquires-zoona--266c4483">Chipper Cash's acquisition</a> of the local Zambia entity Zoona. However, regulatory risk tends to be the biggest hurdle for most fintechs in Africa and Zambia is no exception. Tech-enabled startups that have achieved product-market fit are providing solutions to fundamental African problems.Q. What are some of the challenges you’ve witnessed in the ecosystem?A. Internet penetration rate among our African population is still relatively low, however, growing steadily. As of 2021 individuals<a href="https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=ZM"> using the internet (% of the population) stood at about 21%</a>. The Zambia Information and Communications Technology Authority (ZICTA) has provided an in-depth<a href="https://www.zicta.zm/storage/posts/attachments/JE2Uc1d98h9rZKvL7IqnRLSl8WpIBbqK4aND4Xgf.pdf"> understanding of access and usage of ICTs among the Zambian population</a>. Therefore, for most tech-enabled businesses, especially the ones with a B2C business model servicing the mass market, the use of ICTs remains a challenge for customer acquisition and retention. Other than that, among the ESOs, critical information still exists in silos. It would be highly beneficial to implement ESOs that provide comprehensive information and education to entrepreneurs throughout the nation, particularly those who do not have easy access to relevant news. In addition, it almost goes without saying now, that there remains a funding gap for SMEs and startups, especially for female entrepreneurs. The funding gap for SMEs in Africa is estimated to be over&nbsp;<a href="https://www.afreximbank.com/receivables-finance-can-help-close-africas-90-billion-sme-financing-gap-says-kenya-central-bank-governor/#:~:text=Nairobi%2C%2011%20March%202020%20%E2%80%93%20Receivables,Bank%20of%20Kenya%2C%20has%20said.">$90B</a>. Additionally, the funding gap for female entrepreneurs is estimated to be around&nbsp;<a href="https://www.weforum.org/agenda/2022/08/how-female-led-start-ups-can-transform-africa/#:~:text=In%20Sub%2DSaharan%20Africa%2C%20research%20shows%20that%20there%20is%20currently%20a%20%2442%20billion%20funding%20gap%20for%20women%20entrepreneurs.">$42B</a>. Traditional bank debt is generally not suited for the investment needs of early-stage startups seeking pre-seed or seed-stage funding, so most startups in Zambia tend to seek capital partners from outside the country. Lastly, there is a need for mentorship, capacity building and educational programs to help startups navigate the fundraising landscape, especially among young people.&nbsp;Q. With the growing momentum and enthusiasm surrounding technology and innovation, what are your hopes for Zambia’s future?&nbsp;A. Let me begin by discussing Zambia's recent economic history and its outlook for the short and medium term.&nbsp;In the wake of the challenges posed by the COVID-19 pandemic and the 2021 general elections, Zambia's&nbsp;macroeconomic landscape initially displayed unfavorable indicators around 2020. However, a more stable macroeconomic environment was anticipated post-2021, with the annual GDP growth projected to average around 4.5% throughout 2023-2025. This positive economic projection by the World Bank was updated around March 2023, it agrees slightly with the&nbsp;<a href="https://www.boz.zm/MPC_Statement_August_2023.pdf">insights</a> of the Bank of Zambia around mid-August 2023, that is, even though the Bank of Zambia’s Monetary Policy Committee advised that they expect the GDP for 2023 is likely to fall below projections due to contractions in the mining sector and slowdowns in the education and energy sectors, the Central Bank anticipates that the Country’s economic growth will rebound between 2024 and 2025, bolstered by the anticipated recovery in the mining sector and sustained expansion in the information and communications, financial and insurance, as well as wholesale and retail trade sectors. Furthermore, acknowledging inflationary pressures – inflation is projected to&nbsp;<a href="https://www.boz.zm/MPC_Statement_August_2023.pdf">average 10.2% in 2023</a> and 9.3%in both 2024 and H1 2025, the Bank of Zambia Monetary Policy Committee opted to increase the monetary policy rate from 9.5% to 10%, in the immediate term.&nbsp;Regarding investor appetite, the&nbsp;<a href="https://www.nabii.org.zm/reports.php">Zambia Impact Investment Climate Survey Report 2022/23</a> advised that 82% of Zambian impact investors expressed their determination to augment their backing for portfolio companies and actively seek out fresh avenues for growth; this investor enthusiasm and dedication remained steadfast despite the prevailing public apprehensions surrounding Zambia's debt burdens and economic hardships. In addition, regarding investor sentiment, the&nbsp;<a href="https://www.boz.zm/PCF_HIGHLIGHTS_SURVEY_FINDINGS_2022.pdf">2022 Bank of Zambia study</a> unveiled that investor decisions to invest or reinvest in Zambia were primarily influenced by factors such as peace and security, market potential, robust infrastructure, and political stability. Among the government policies and initiatives, those perceived as most effective in promoting investment included the establishment of a favorable governance environment, economic diversification, enhancements to transportation infrastructure and facilitation of business connections.&nbsp;&nbsp;Furthermore, a notable success under the new government is the successful negotiations of the country's national debt restructuring. It is anticipated that this restructuring will lead to&nbsp;<a href="https://www.parliament.gov.zm/sites/default/files/images/publication_docs/Ministerial%20Statements%20-%20Debt%20Restructuring.pdf">benefits of an improved micro-and-macro economic environment,&nbsp;</a>also, the Ministry of Finance anticipates this debt restructuring will generate over US$5.8 B in debt savings between 2023 and 2031, unlocking more resources for Government's developmental programs. Lastly, the startup scene is also looking promising,&nbsp;<a href="https://www.mots.gov.zm/?p=2030">as the Government seeks to set up a Startup Bill,</a> we hope this will lead to fiscal incentives towards startups in Zambia and perhaps more startup deal flow.&nbsp;

We are seeing exciting trends in fintech in Zambia.

Zambia

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How I See My Ecosystem: Zambia’s Growing Tech Scene

Chukwudi Ofili, Renew Capital's Legal Director and West Africa Investment Manager shares how he returned to Nigeria after a successful career in the U.S. and U.K. to use his knowledge of international corporate and investment law and make an impact in his home country.&nbsp;<h1>Homecoming: My Journey to Renew Capital</h1>As an undergraduate law student in Nigeria, I had a keen interest in corporate law, commercial law and the law of contracts. I recognized very early on the important role of corporations and the private sector in growing and sustaining a nation’s economy. Within law, my particular interest was in the advancement of emerging economies. I knew first-hand the challenges of daily survival and I beat the odds to graduate with honors from Babcock University and later on received my first bar qualification to practice law in Nigeria.&nbsp;<img src="/uploads/image_4723b7654e_2d008e21bd.png">Leaving the continent&nbsp;After five years practicing law in Nigeria, where I did mostly local and cross-border finance and investment transactions with counterpart law firms in London, New York and Dubai, I moved to the U.S. on a full graduate assistant scholarship for a Masters of Law program at the University of Georgia School of Law, and subsequently qualified as an attorney in the state of New York. While in the U.S., I was selected by The Coca-Cola Company as an extern in its legal department at its headquarters in Atlanta, Georgia. At The Coca-Cola Company, I worked with the international trade team on export, import and sanctions as they related to the company’s global operations in over 250 countries. This was my first foray into working as an in-house legal counsel with a global corporation.To further broaden the scope of my legal experience in another jurisdiction, in 2018 I took part in the highly selective&nbsp;<a href="https://www.ilfaafrica.com/ifsp">International Lawyers for Africa (ILFA) International Secondment Programme</a> in the U.K. IFSP is an annual international secondment program where lawyers practicing in various African jurisdictions are sponsored on secondment at highly reputed international law firms and corporations in London, Dubai and Paris. During this period, I worked with the finance (corporate and project finance) and private equity team of Trinity International LLP in London doing deals across Africa. It was an enriching experience that included working on international transactions as well as participating in training programs on business development and technical legal skills. The networking events provided an opportunity to meet some of the brightest minds in the international legal market in diverse practice areas.&nbsp;Investing back into NigeriaI moved back to Nigeria with the goal of leveraging my international experience and the network I’d built in the U.S. and U.K. to grow a legal practice in Nigeria. Consistent with this goal, I made partner within a year of my return (a record seven years after being called to the Nigerian bar). I continued to work with financial institutions, investors and tech-enabled businesses (which were on the rise and continue to dominate the ecosystem) in relation to fundraising – debt and equity – transactions.Notwithstanding the remarkable personal milestone and the many awards and recognitions, I was still keen on contributing my quota by providing solutions to the issues challenging the advancement of emerging economies in Africa.&nbsp;I noticed that a shift was on the horizon and I needed to satisfy my desire to be part of an initiative or organization whose activities are geared towards accelerating the growth of small and growing businesses to drive sustainable development in Africa. During my research on the emerging impact investment firms that have the potential to curate bespoke and effective products suitable for Africa, Renew Capital shone through with its unique approach of blending impact investing, management training and ecosystem building to accelerate the growth of small and growing businesses and advance the emerging economies in Africa.My role as Renew Capital’s Legal Director and West Africa Investment Manager provides an exceptional platform to contribute to Renew Capital’s vision of changing the way the world engages Africa – from a place of giving to one of investing.&nbsp;Five key lessons that I have learned in my journey with Renew Capital to date that will continue to drive my efforts and contributions as we scale our investment work across the continent are: (i) hard work is indispensable, but you must always work smart and be flexible; (ii) always strive for excellence; (iii) people skills, cultural skills and emotional intelligence are vital for success in any endeavor; (iv) developing a good network over time is invaluable; and (v) always look to add value and be solution-driven in every endeavor.There is no doubt that these are exciting times for investments in Africa and the team at Renew Capital is well-placed to contribute significantly to developing the ecosystems and infrastructure needed to make the investments possible. I am here for all of it.

Chukwudi Ofili, Renew Capital's Legal Director and West Africa Investment Manager shares how he returned to Nigeria after a successful career in the U.S. and U.K. to use his knowledge of international corporate and investment law and make an impact in his home country.



Nigeria

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Homecoming: My Journey to Renew Capital

<h1 style="text-align:center;">My Journey of Impact in Ethiopia</h1>Growing up, I don’t remember wishing ‘I want to be a pilot or a doctor’. Being able to fly an airplane or becoming a healing hand is indeed a noble job, and it’s no wonder many children wish to become one. For me, the goal was to lead a balanced and meaningful life, regardless of the career I choose. I grew up in a family that equally emphasized the importance of work, family and friends, and spiritual activities; a philosophy that I wished to continue building in my own life. So when the time came to make a decision in junior high, it was with some concern and a heavy heart that I decided to pursue business school. Would it help me achieve my goal of a balanced and meaningful life? Fast forward 12 years, I am happy to say that it was the right decision, and I would do it all over again.Business school was great, however, it did fall short in preparing me for the real-world challenges after graduation. When I was in my final year, I moonlighted as a sales representative for different companies. One month, I was trying to promote kitchen appliances door-to-door, and the next month I was making hundreds of cold calls to promote a new share company and selling stock. These part-time gigs helped me develop a good work ethic, and helped me understand that the next step after graduation was going to be a hard one. Even so, I honestly thought I would find the perfect job right out the door and be great at it. Little did I know that it would be two years after graduation that I would find a secular career in which I personally believed I could make ‘worthwhile’ contribution.<figure class="image"><img src="/uploads/berke_blog_b2e2a9f649.jpg"></figure>When I started my finance career seven years ago as junior analyst at one of the leading consulting firms in Ethiopia, I was very excited. I helped develop and review more than 100 business plans, advised many entrepreneurs and businesses on developing and improving their feasibility studies, and developed new and attractive opportunities in different value chains. Great work and a great team! However, I always wondered what happened to those businesses after they received their business plans or expansion strategies. Some would go on and use these plans to make their investment decisions, secure bank loans or attract foreign investment. Most remained frustrated because of their inability to attract financing or execute their business strategies properly. I wondered why some seemingly attractive opportunities did not actually attract investment. When private equity firms started opening in Addis, I knew they held the answers to my questions. So, when I was introduced to RENEW, I knew it was time to ask those questions and figure out if I could do anything about it. It was time for a new challenge to uncover the ‘why’ and assess the facts from the other side of the table. I welcomed the opportunity to join the RENEW team as an analyst with great excitement and anticipation. Three years down the road and at the close of my time with RENEW, while I am happy to say that I have found many answers, I did not think the ride would be filled with so many highs and lows.A day at RENEW is no ordinary day. I start reading emails on my way to the office and reply as soon as I open my computer at my desk. Once morning emails are out the door, it is game on. No day is a routine. Some days are filled with just sourcing, cold calls, meetings with new companies, introducing RENEW, running trainings on private equity, and building and maintaining relationships with companies. Other days are spent at the office creating financial models, conducting market analysis, running working sessions with businesses, drafting annual plans, budgets or strategies, board meetings and coaching sessions. The heat turns up at the office during active pipeline meetings, discussing due diligence findings, drafting terms or term sheet negotiations.Before I joined RENEW, Matt Davis did warn me that ‘this is not a 9am to 5pm job”, and he wasn’t kidding. Finding the right company with the right management team is no easy task. As a native Ethiopian, building bridges between the Western way of doing business and the Ethiopian way is a tiring task. It is not just the difference in language, but translating the different cultures, communication styles, expectations and relationship management between the two extremes is an exercise that sometime leaves me breathless. Most days are exciting and I leave office feeling satisfied, and other days are a little frustrating. Not just because of the hard work with our portfolios or would-be portfolios, but also as a result of changes in government regulations and procedures, barriers to closing our investments or delays in processes. But, as one of our investors always says, “if this was easy, everyone would be doing it”. There is a reason why RENEW is only one of a handful of private equity investment firms operating in Ethiopia’s frontier economy.I believe the diversity within the team in terms of background, education, experience, culture and perception has created the right recipe for learning and success at RENEW. Our focus area, private equity, is an exciting industry in the financial sector of Ethiopia. It’s almost an unchartered territory, full of surprises but rewarding. Investing in small businesses and turning business people into real executives is a satisfying process. Our SME private equity trainings are eye openers, and I always enjoy reading the feedback from the participants. The workshops open new understanding and opportunities, a source of finance and growth. Training participants leave full of excitement and hope, determined to come back after developing their investment plans or business strategies and attract equity financing. I am proud that my career in finance has brought me such an opportunity to impact the local economy and to meet and work with hundreds of businesses in Ethiopia.Today, many children still wish to become a pilot or a doctor, and for good reason. And I am fortunate to have friends who are pilots or health professionals, not because they occasionally bring me stuff from abroad or because I visit them when I feel ill, but because they are great friends and they too do their best to lead an impactful and balanced life. And while I didn’t, like my friends, go through five or more years of school and training, I’ve gained important knowledge through my education, formal trainings and from my bosses and colleagues.Applying the principles that I have learned and helping companies change their ‘business as usual’ approach to management, customer service, and excellence; observing companies come out of their shells and position themselves for growth and greatness - that is what I call a rewarding job. The balance between impact and returns on investment is hard to find. Yet, at RENEW, I enjoyed such a great balance, not only between impact and returns but in personal and spiritual activities as well.What’s next? After testing both sides of the private equity market as a business consultant and portfolio analyst, I think it’s time to see from the eyes of the investor or the entrepreneur. I recently made my first small investment in a small business, and I am leading the efforts to promote the business. Who knows, this could be the start of something new, something exciting, impactful and balanced.

Reflections on the steps that led me to RENEW and what the future has in store.

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My Journey of Impact in Ethiopia

<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.

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My Journey to RENEW Through the Busy Streets of Addis

<h1 style="text-align:center;">The Stretch - My Journey to RENEW</h1>Have you ever faced your limit? The limit of your strength, your patience or your capacity to work? Sometimes we arrive at a place where we look up from our desk and we ponder, “Is there more to life than this? Is there something else that would give my life more purpose, meaning, joy and balance?” Some days we see our limits, and it is never easy to accept the distance between what we can do and what we want to do. “This is as far as I can go” is a statement of resignation that evokes frustration, grief and discouragement, but we often go through this for a good purpose. This purpose may be to better understand our limited capacity as human beings so that we may be humbled. When we are faced with our limits, we have two choices: to resign and say "this is as far as I can go" or respond to the call to expand.&nbsp;This call has been an integral part of my journey to Ethiopia that has become the enlargement of my “tent”, the lengthening of my cords and the strengthening of my stakes.<figure class="image"><img src="/uploads/Picture1_Fotor_126eff1ff0.jpg"></figure>I have become acutely aware that we should not be limited to what we already have. We need to try new doors and accept that this expansion requires work. Indeed, this growth does not come to the sluggish. This speaks of seeking new opportunities, without forsaking the old ones - it's adding, not replacing. Growth brings along new challenges, concerns and needs that will arise, but we must allow this work to happen. The inconveniences, sacrifices, difficulties, heartaches and burdens you are carrying will all increase, but the rewards will be far greater. We need to feel the strain if the work is going to make an impact. These burdens are put on our shoulders for a reason, they stretch us as we learn to lay down our own rights for the sake of others. In the process of growth, we simply can’t stop at what we think we can do, because if we stop there, we will not see the possibilities. We are being called not to hold back but to sacrifice in our quest for significance.Most of us like the idea of being significant, to move from getting to giving. The challenge we face is to ensure that we do not wait until our life is half over before we work towards significance. We go through life focused on success that is represented by wealth, recognition, power and status. The reality is that true significance requires us to focus on the opposite of each of these symbols.The opposite of accumulating wealth is generosity with our time, talent, treasure, and touch (reaching out to support others). The opposite of recognition is service. The opposite of power and status is relationships. If we just focus on significance (generosity, service, and relationships), we will always be amazed at how much success will come our way.Life is all about the choices we make as we interact with others. We can choose to be serving or self-serving. Life constantly presents us with opportunities to choose to love and serve one another.Leadership is loving our mission, loving our customers, loving our people, and loving ourselves enough to get out of the way so that other people can be magnificent.This is why I removed my stakes, stretched my tent and moved to Ethiopia.

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