<h1 style="text-align:center;">National Gathering: Thank you for the support!</h1>The 2017 Impact Angel Network National Gathering is taking place this weekend in Washington D.C.! The Embassy of Canada has graciously offered to host us at their beautiful venue located on the corner of Pennsylvania Avenue and 5th street, a stone’s throw from the US Capitol.The National Gathering is a unique event. First, we believe it is the largest Africa-focused impact angel investing event in Washington, D.C. Next, it will attract some of the brightest, action-oriented minds in the impact investment space. Contrary to your typical D.C. gala event, this one will focus on results, transparency and honest dialogue about how North American investors are putting money to work in real companies, and creating tangible impact and returns. And if that doesn’t interest you, the menu curated by Celebrity Chef Marcus Samuelsson should be enough to attract even the most seasoned D.C. socialites.We can’t wait for Friday and the mouthwatering food, great conversations and networking with like-minded individuals and industry experts.We would also like to thank several of our partners, that have helped make this event possible; true change agents – doers – people that walk the walk. With their support, we have been able to make this the largest National Gathering to date!<ul><li><a href="http://www.international.gc.ca/international/index.aspx?lang=eng">Global Affairs Canada</a> and the Embassy of Canada in Washington D.C.<ul><li><a href="http://www.veriswp.com/">Veris Wealth Partners</a><ul><li><a href="http://limalimolodge.com/">Limalimo Lodge in Ethiopia</a></li></ul></li></ul></li></ul><figure class="image"><img src="/uploads/sponsor_logos_0_b8333863c6.png"></figure>Much creativity went into the National Gathering menu for this year! A gracious thank you to...Marcus Samuelsson and team for curating the menu The Embassy of Canada's chefs for contributing flavours and skills Mama Fresh Injera PLC for the spices and injera for the menu Andrew Umhau, M.D. for the Impact Investor Cocktail Metad for the coffee, roasted by Qualia in D.C. &nbsp;

A thank you to those that made this event possible

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National Gathering: Thank you for the support!

<h1 style="text-align:center;">Press Release: IAN to Invest in Logistics and E-Commerce in Ethiopia &nbsp;</h1><a href="https://latest-api.renewcapital.com//uploads/RENEW_Press_Release_Road_Runner_Final_82051b5ee0.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release.</a>Members of RENEW’s <a href=" https://www.renewcapital.com/investing">Impact Angel Network (IAN)</a> have committed capital to fund Roadrunner Technology Solutions LLC (Roadrunner), which will partner with Universal Courier Services PLC (Deliver Addis) to expand the burgeoning logistics and e-commerce industries in Ethiopia. Deliver Addis is a technology enabled, online food delivery company based in Addis Ababa, Ethiopia, launched in October 2015. To date, the company’s focus has been on business-to-consumer (B2C) delivery, mainly of restaurant orders. The IAN’s investment in Roadrunner is aimed at helping its partner Deliver Addis to become Ethiopia’s leading technology-enabled, last-mile courier service for consumers and businesses. &nbsp;“RENEW and the IAN anticipate that this investment in Roadrunner will meaningfully contribute to the Ethiopian economy by creating jobs, reducing emission through the use of more fuel efficient vehicles, and increasing business for local restaurants, grocery stores and companies,” said Matt Davis, CEO of RENEW. He added, “We are grateful to our partners in Ethiopia and the Government of Canada who make, our work in Ethiopia possible.”Deliver Addis’ founder Feleg Tsegaye commented, “Since we launched Ethiopia's first online restaurant delivery service, people have quickly taken to it with virtually no marketing and have pushed us to expand in ways we hadn't expected. Our partnership with RENEW and the IAN will enable us to build the technology and scale our operations in order to support demands from existing and new customers, including individuals, businesses, organizations and more.”This is the Impact Angel Network’s ninth investment in its portfolio of eight companies in East Africa.If you have any questions, please contact: Erin O’Connor at <a href="mailto:eoconnor@renewcapital.com">eoconnor@renewcapital.com</a>

Roadrunner Technology Solutions LLC joins RENEW’s portfolio

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Press Release: IAN to Invest in Logistics and E-Commerce in Ethiopia

<h1 style="text-align:center;">RENEW’s Spring Investor Trip</h1>This June, the RENEW partners will be heading back to the United States to meet with investors in Chicago, Minneapolis and Michigan between June 25 and 29.This trip is a great opportunity to meet the partners and learn more about RENEW, the IAN and upcoming investment opportunities. If you’re interested in learning more about what we do, please <a href="mailto:eoconnor@renewcapital.com">contact us</a> to set up a meeting or consider joining us at our lunch events in Minneapolis and Chicago:<ul><li><a href="https://www.eventbrite.com/e/doing-well-by-doing-good-experience-investing-in-africa-registration-46201878061">Minneapolis Lunch Event</a></li><li><a href="https://www.eventbrite.com/e/doing-well-by-doing-good-experience-investing-in-africa-registration-46201510963">Chicago Lunch Event</a></li></ul>&nbsp;We hope to see you this June!<figure class="image"><img src="/uploads/us_map_0_e2318c51b6.png"></figure>

Join us in Chicago, Minneapolis and Michigan this June.

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RENEW’s Spring Investor Trip

<h1 style="text-align:center;">Only 4 Months...</h1>In mid-February 2018 amid increased protest and unrest in Ethiopia, the then sitting prime minister, Hailemariam Desalegn, announced his gracious and surprising resignation. On April 2, 2018, Dr. Abiy Ahmed was confirmed and sworn in by Ethiopian parliament as the new Prime Minister of Ethiopia.Dr. Abiy is now the chairman of both the ruling EPRDF (Ethiopian Peoples’ Revolutionary Democratic Front) and the OPDO (Oromo Peoples' Democratic Organization), which is one of the four coalition parties of the EPRDF.The new prime minister is just 42 years old and the youngest head of government in Africa. Since April, the world has been watching in fascination as he worked to address the country’s challenges head on. Challenges remain, but here at RENEW, we are grateful for the changes we see, and the increasingly positive impact on the business environment.Some of the highlights from the last four months include:<ul><li>Acceptance Speech – Dr. Abiy’s acceptance speech sparked optimism and received an overwhelmingly positive reaction from the Ethiopian public including some opposition groups inside and outside Ethiopia. - <a href="http://www.allthingsethiopia.com/ethiopia-news/2760/">Full English Transcript of Ethiopian Prime Minister Abiy Ahmed’s Inaugural Speech </a>(All Things Ethiopia - April 2, 2018).</li><li>Charm Offensive - In the weeks after his inauguration, Dr. Abiy launched a “charm offensive” in an effort to defuse tensions; he toured the country, freed prisoners, visited the main regions where protests have erupted, restored internet access in the restive Oromiya region and shut down one of the most infamous prisons where dissidents were jailed. - <a href="https://www.france24.com/en/20180730-abiy-ahmed-spreads-hope-reform-ethiopia">Abiy Ahmed: Ethiopia's first Oromo PM spreads hope of reform</a> (France24)</li></ul><figure class="image"><img src="/uploads/screen_shot_2018_09_04_at_3_25_29_pm_a9771d765b.png"></figure><ul><li>Reducing Trade Barriers - He is working to lower trade barriers with Djibouti, Ethiopia, Kenya and Sudan. - <a href="http://www.africanews.com/2018/05/14/ethiopia-ready-to-ratify-africa-free-trade-deal-after-keyna-ghana-pm/">Ethiopia ready to ratify Africa free trade deal after Kenya, Ghana</a> (Africanews.com - May 14, 2018)</li><li>Ending State of Emergency – On June 5, 2018, he ended the state of Emergency. – <a href="https://www.cnn.com/2018/06/05/africa/ethiopia-lifts-state-of-emergency/index.html">Ethiopia Lifts State of Emergency Two Months Early</a> (CNN - June 5, 2018 )</li><li>Egypt Relations - The PM was in Egypt this week holding talks with President Sisi. The talks appear to have gone well and eased tensions. President Sisi asked Dr. Abiy to swear to God that the dam will not hurt Egypt - “I swear to God, we will never harm you,” was how Dr. Abiy responded. <a href="https://www.reuters.com/article/us-egypt-ethiopia/egypt-ethiopia-agree-to-settle-differences-over-nile-mega-dam-idUSKBN1J60YL">Egypt, Ethiopia Agree to Settle Differences over Nile Mega-Dam</a> (Reuters – June 10, 2018)</li><li>Oil - Ethiopia is to start extracting the first ever crude oil deposit from Ethio-Somali Region as of tomorrow, The Reporter learned. To recap what happened back in March, 2018: Poly-GCL, a Chinese company engaged in oil and gas exploration and development project in the Ethio-Somali Regional State, discovered oil and natural gas deposits. The amount of gas reserve discovered by Poly-GCL is estimated to be 6 to 8 Trillion Cubic Feet. <a href="https://www.thereporterethiopia.com/article/ethiopia-start-extract-natural-gas-tomorrow">Ethiopia to Start Extracting Crude Oil</a> (The Reporter – June 27, 2018)</li><li>Opening its Economy - In a major policy shift, the government is set to loosen its monopoly on several key economic sectors, including aviation and telecoms. The government will also allow “outright full privatization” in several other sectors; such as logistics and printing. Ethiopia's move to open its markets has been hailed as a seismic policy shift, but analysts say the new government had little choice after years of tight control took a toll on the economy.</li><li>Eritrea and Ethiopia Make Peace - The Ethiopian PM traveled to Eritrea to make peace. Since then, Ethiopian Airlines flights have been restored and the Eritrean Embassy in Addis has reopened. <a href="https://www.economist.com/the-economist-explains/2018/07/17/how-ethiopia-and-eritrea-made-peace">How Ethiopia and Eritrea Made Peace</a> (The Economist – July 17, 2018)</li><li>FOREX - Dr. Abiy is getting very creative with trying to attract forex from remittances into the country. First, he has offered an attractive deal for diaspora that will come to Ethiopia between August and September. Second, he has set an Ethiopian Diaspora Trust Fund they will use for development. <a href="https://www.bloomberg.com/news/articles/2018-07-26/ethiopia-s-premier-to-woo-diaspora-investors-as-he-visits-u-s">Ethiopia's Premier to Woo Diaspora Investors as He Visits U.S.</a> (Bloomberg – July 26, 2018) and <a href="https://www.ethioembassy.org.uk/ethiopian-diaspora-trust-fund-account-officially-operational/">Ethiopian Diaspora Trust Fund Account Officially Operational</a> (Ethiopian Embassy – UK – July 18, 2018)</li><li>Diaspora - Dr. Abiy recently conducted a roadshow across the US - and was very well received by the Diaspora. <a href="https://www.theatlantic.com/entertainment/archive/2018/08/abiy-ahmed-meets-the-ethiopian-diaspora/566591/">Abiy Ahmed Meets the Ethiopian Diaspora</a> (The Atlantic – August 4, 2018)</li></ul><figure class="image"><img src="/uploads/screen_shot_2018_09_04_at_3_29_11_pm_46009b22f2.png"></figure>The challenges ahead of Ethiopia and Dr. Abiy include managing foreign exchange and inflation amidst a growing economy, managing international relations with Ethiopia’s neighbors, and controlling internal resistance from former leaders resistant to change. At RENEW, we remain bullish on the investment potential of Ethiopia and its long term growth.First Image Source: France24: <a href="https://www.france24.com/en/20180730-abiy-ahmed-spreads-hope-reform-ethiopia">Abiy Ahmed: Ethiopia's first Oromo PM spreads hope of reform</a>Second Image Source: The Atlantic: <a href="https://www.theatlantic.com/entertainment/archive/2018/08/abiy-ahmed-meets-the-ethiopian-diaspora/566591/">Abiy Ahmed Meets the Ethiopian Diaspora</a> &nbsp;&nbsp;

The New Prime Minister Takes Ethiopia by Storm.

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Only 4 Months...

<h1 style="text-align:center;">What's Behind the Soaring Inflation in Ethiopia?</h1>Co-authored by Yoseph Getachew and Tsegamlak SolomonInflation in Ethiopia hit a near-decade high of 26.4% (32% in food and 19% in non-food) in July 2021. Following that problematic high and the widening difference in the foreign exchange market between the official exchange rate and the parallel market (also known as the black market), the Ethiopian government has taken several strong regulatory measures aimed at curbing illegal foreign exchange trading and reducing the local currency supply circulating in the economy. At its high, the difference between the official and parallel market rates reached almost 50%, before eventually narrowing to today’s rate difference of approximately 25%, following the policy measures taken by the government. The major measures that have been taken by the Ethiopian government chronologically include:<figure class="image"><img src="/uploads/Screen_Shot_2021_09_08_at_6_28_50_PM_4e2dd8d43f.png"></figure><ol><li style="text-align:justify;">August 7 - Following an increase in the difference between the official FOREX market rate and the parallel market rate, which ranged from 28% to 48%, it has been reported by the government that the Tigray People's Liberation Front (TPLF), which is currently fighting with the Federal Government, is using illicit financial networks to finance its activities and that is resulting in a sharp price rise. As a result, the government has taken police action against the alleged black market.&nbsp;</li><li style="text-align:justify;">August 11 - Through a text message circulated to all commercial banks, the central bank of the country ordered all commercial banks to suspend all collateral-based loans for an indefinite period. The suspension included the dispersion of already approved loans. As reported, the decision was made to curtail economic sabotage. The government believes that supporters of the TPLF are using their assets to take out loans from commercial banks and use that money to fund their illicit foreign exchange market. Drying up that source of funds has helped narrow the gap between the official and parallel exchange rates.&nbsp;</li><li style="text-align:justify;">August 25 - The central bank suspended all commercial banks from providing loan guarantee services effective August 25.&nbsp;</li><li style="text-align:justify;">August 30 - The central bank adopted a restrictive monetary policy in order to restrict the liquidity of banks and reduce the amount of money in circulation, including:&nbsp;<ol><li style="text-align:justify;">The reserve requirement for commercial banks was doubled from the original 5% to 10% in hopes of sucking up money circulating in the economy. When there is more money circulating in the market, the demand for goods and services increases as consumers have more money to spend. Sucking some of that money out of the economy will help reduce price escalation. The new reserve requirement went into effect as of September 1st.&nbsp;</li><li style="text-align:justify;">The interest rate at which commercial banks can borrow directly from the central bank in order to sort their short-term liquidity problem has been increased from 13% to 16%.</li><li style="text-align:justify;">The central bank also increased the amount of foreign currency commercial banks must remit. All commercial banks are mandated to transfer 50% of their foreign exchange holdings to the central bank, up from 30%. The central bank also terminated the surrender requirement of foreign currency generated by commercial banks from foreign direct investment and diaspora foreign currency deposit accounts and also bumped the retention of forex by foreign exchange generators from 31.5% to 40%. This is intended to better benefit foreign currency generating customers, and in effect, increase the foreign currency remittance by these customers. This is expected to encourage these customers to import essential food items using their retained foreign currency earnings.&nbsp;</li><li style="text-align:justify;">The central bank also introduced a new mandatory rule that demands commercial banks invest at least 1% of their annual loan disbursement and that insurance companies allocate 15% of their net annual income to purchase bonds from the Development Bank of Ethiopia (DBE), which is the state policy bank. The government uses DBE to finance some of the mega government projects, MSMEs and some priority sectors.</li></ol></li><li style="text-align:justify;">August 30 - NBE lifted the freeze on loans for bank credits provided against vehicles. The central bank reiterated that the freeze on all other loan disbursements will continue until further notice.</li><li style="text-align:justify;">September 3 - The Federal Government has designated edible oil, sugar, wheat and rice as tax-exempt consumer goods. In addition, the value-added tax levied on food products like eggs and pasta was also lifted. VAT applied on these goods was 15%.&nbsp;</li><li style="text-align:justify;">September 4 - The central bank eased a loan freeze on importers and manufacturers of edible oil. Edible oil manufacturers are allowed to take on any form of loan from banks. However, importers are only allowed to borrow when their letter of credit is approved to make the payment.</li></ol>The Ethiopian central bank took these short and long-term policy changes in the hopes of controlling inflation, reducing the gap between the official and parallel rates and controlling illicit activities. Some of the policy changes such as banning all collateral-based loans will likely have a deep adverse impact on the economy as many businesses are reliant upon funding from the banking sector but the bans are thought to be short-term measures and are expected to be lifted soon.

A timeline on the government’s efforts to curb inflation

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What’s Behind the Soaring Inflation in Ethiopia?

<h1 style="text-align:center;">What We Know About the Establishment of a Capital Market in Ethiopia&nbsp;</h1>Part of the Ethiopian Government’s recent reform measure aims to correct imbalances and safeguard macro-financial stability in the country, among others. As part of the requirements for macro-economic stability, the reform program provides improvements to access to finance and the development of a capital market, where securities such as shares, bonds and derivatives are bought and sold. As a result, the National Bank of Ethiopia (NBE), which is the central bank of the country, was tasked to prepare the legal framework and came up with a draft capital markets proclamation, which was later approved and enacted by the Federal Parliament in its regular session held on June 10, 2021, as Proclamation No. 1248/2021. Consequently, actions are being taken by the government to operationalize the Ethiopian Capital Market Authority by the end of 2021 and finally the Ethiopian Securities Exchange through public-private partnership arrangements in 2022.&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_08_04_at_10_25_28_PM_ca58093dcc.png"></figure><h1 style="text-align:justify;">Historical Reference</h1>As share companies started to flourish in Ethiopia in the 1960s, shares were being traded by the NBE. Later on, the Addis Ababa Share Dealing Group was established to trade shares and government bonds in 1965. The Group started with the listing of 15 companies and four government bonds. The number of companies listed reached 17 the next year. The Addis Ababa Bank, Ethiopia Abattoirs, Bottling Company of Ethiopia, Indo Ethiopian Textiles, HVA Ethiopia, and Tendaho Plantation were some of the traded companies. With a socialist government coming to power, led by Derg, which overthrew the imperial regime in 1974, all the traded companies were nationalized and consequently, the stock market was shattered (1).&nbsp;After the fall of Derg in 1991, different attempts were made to re-establish a capital market both by the government and private players, however the attempts remained fruitless. The adoption of the new capital market proclamation by the parliament, however, seems to have taken a big leap forward in these efforts and the establishment of the capital market in Ethiopia looks closer than ever.&nbsp;<h1 style="text-align:justify;">What Do We Know about the New Proclamation?</h1><h2 style="text-align:justify;">The Regulator</h2>The Ethiopian Capital Market Authority (ECMA), an autonomous government regulatory body that is accountable to the Parliament, was established by the Proclamation. Similar to any other capital market regulator, the main aim of ECMA is to protect investors, ensure the existence of a capital markets ecosystem in which securities can be issued and traded, ensure the integrity of the capital markets and transactions in order to reduce systemic risk, and promote the development of capital markets by creating an enabling environment for long term investments.A person who wants to operate as a securities exchange, derivatives exchange, security depository and clearing company or undertake any other professional activity within ECMA’s jurisdiction, including activities of a securities broker, investment adviser, collective investment scheme operator, investment banker, securities dealer, custodian, market maker and credit rating agency, will be regulated by ECMA. This excludes activities of legal practitioners, public accountants or public auditors.ECMA is led by a Board of Directors, composed of seven directors, including the Director General of ECMA, the Governor of NBE, and the Director of the Accounting and Audit Board of Ethiopia as permanent ex-officio members of the Board. Four other members will be appointed by the Parliament based on qualification and upon recommendation by the Prime Minister.ECMA will be directed and its administration is supervised by the Director General, who will be appointed by the Parliament upon recommendation of the Prime Minister. The Director will also be part of the Board of Directors, but will not have voting rights. The Director General nominates a Deputy Director General and other senior executives for approval by the Board.&nbsp;<h2 style="text-align:justify;">Licensing of Self-Regulatory Organizations (SROs)</h2>Upon application, ECMA may give recognition to a private entity that aims to operate as an SRO. Such SROs are required to make rules relating to the matters for which they have regulatory and supervisory functions, including sanction and disciplinary powers to be exercised in connection with the functions which have been delegated to them.&nbsp;<h2 style="text-align:justify;">Establishment of Securities Exchange</h2>The government, in partnership with the private sector and including foreign investors, aims to establish the Ethiopian Securities Exchange (ESE). The government will not have more than 25% ownership of the ESE, either directly or indirectly. Majority ownership is left to private players, however, the ownership by the government may get bumped up if there is insufficient interest from private players.&nbsp;Entities are not allowed to use the terms “securities exchange” or “derivatives exchange” in connection with a business unless an exchange license is granted by ECMA. Accordingly, ECMA may grant licenses to other securities exchanges, derivatives exchanges or over-the-counter trading platforms established as share companies.&nbsp;Exchanges licensed by ECMA will be managed by a Board of Directors whose members will be elected by the shareholders of the securities exchange. The Board will be responsible for ensuring that the exchange is operated in compliance with the laws of the country. The Board of the exchange is responsible for appointing one or more CEOs to run the exchange.<h2 style="text-align:justify;">Securities Depository and Clearing Company</h2>Securities depository and clearing companies, offering securities depository, clearing, and settlement services except for government securities and commodities, will need to get a license from ECMA. Such companies offer custody and safekeeping for securities, clearing and settlement of securities.<h2 style="text-align:justify;">Dispute Settlement&nbsp;</h2>The Capital Markets Tribunal is established under the Proclamation to hear appeals against decisions made by the ECMA or against a person exercising the functions or powers of the ECMA.&nbsp;The Tribunal shall be composed of five members, who are all to be appointed by the Prime Minister. The chairperson and the vice-chairperson are required to have the qualifications to be a judge of the Federal High Court and the remaining three members need to have knowledge and experience in law, securities, commerce, finance or accountancy. The decisions of the Tribunal are not final. Any person aggrieved by the decision of the Tribunal can appeal against the decision of the Tribunal at the Federal High Court.<figure class="image"><img src="/uploads/Screen_Shot_2021_09_08_at_6_16_59_PM_4bb62c6d13.png"></figure><h2 style="text-align:justify;">Regulation and Ethics</h2>A person with inside information is prohibited from trading in securities if the securities are price sensitive in relation to the inside information. A person is considered as an insider if he/she is in possession of inside information by being a director, employee, or shareholder of an issuer of securities, or having access to information by virtue of his or her employment, office or profession, or the direct or indirect source of the information falls under any of the persons above.&nbsp;In addition to the prohibition against insider trading, market manipulation, false trading, fraudulent transactions, use of manipulative devices, false or misleading statements, front running, and other trading practices or restrictions on the selling of securities are the types of activities that are considered improper trading practices in the capital market and are subject to capital market offense.&nbsp;A capital market offense is considered a violation of the criminal law of the country. As such, any offense and act of improper trading practice is punishable with a fine not exceeding 1 million birr and rigorous imprisonment not exceeding 15 years.<h2 style="text-align:justify;">Going Public</h2>One of the major requirements for going public is having more than 50 shareholders. This implies, per the current Commercial Code of Ethiopia, only share companies are allowed to go public, as that is the only company type with more than 50 shareholders. An issuer that fulfills the membership requirement is required to get registered with ECMA prior to the offer. For that, the issuer is required to sign and file a statement of registration with a prescribed fee. Consequently, the issuer is required to submit a prospectus to ECMA that meets its requirements before issuing an advertisement to offer securities to the public. The issuer is also required to make the prospectus available to the public free of charge.Besides the information that is included in the prospectus, the issuer will have disclosure obligations to ECMA, its own shareholders, and other holders of its securities which will include all information relating to the issuer or its subsidiaries that are necessary to enable those parties and the public to appraise the financial position of the issuer to avoid the establishment of a false market in its securities.&nbsp;An issuer’s disclosure obligation will continue post-listing, and the issuer will have an obligation to keep the public informed of all matters which affect the value of the securities. This could be done by placing an advertisement in a newspaper, or by reports from ECMA and the securities exchange that the issuer’s securities are listed at. Once listed, it will become illegal to deal in any listed, registered securities other than through a registered securities exchange and through a licensed dealer. Similarly, it will be illegal to deal and trade unlisted securities through a registered securities exchange.&nbsp;Similar restrictions apply on the private placement of securities. As the case is with public offerings, private placement is also required to be registered with ECMA prior to placement. In addition, similar disclosure obligations are required to be met including providing a copy of the prospectus.<h1 style="text-align:justify;">What Does This Mean to Ethiopia and What is Expected?</h1>The reestablishment of the capital market is expected to serve as a platform to raise long-term funds for a business environment that has been highly reliant on bank financing. Having Africa's second-highest population and being one of the world’s fastest-growing economies, the establishment of the capital market poses a great opportunity. It is expected to support sustainable private sector development, which is directly tied to the development of the country’s economy. While economic growth may be explained by a number of factors, those countries with resilient capital markets are usually associated with faster economic growth.&nbsp;The establishment of the capital market, especially the securities exchange, will offer financing options for companies and an easy entry and exit opportunity for investors. It provides an opportunity for a shareholder to easily sell its shares at a quoted price. Similarly, it will also provide individuals with an opportunity to invest their money. In addition, for companies, who have for long been reliant on bank financing, the establishment of a stock market will offer a new opportunity to get finance.&nbsp;Considering the size of companies in Ethiopia currently, we might not expect numerous companies and operators in the capital market in the first few years. Financial institutions like banks and insurance companies are expected to be the first ones to be actively engaged considering their size and since they are already well regulated. Big state enterprises are also expected to surface in the market.The ECMA, once it becomes operational, is expected to come up with different directives that will help the provisions of the proclamation be put into effect. Directives in relation to licensing of the different market operators, listing and delisting of securities exchanges, and disclosure about securities transactions are the highly anticipated ones.&nbsp;&nbsp;(1) <a href="https://www.iiste.org/Journals/index.php/JAAS/article/view/9122/9341">https://www.iiste.org/Journals/index.php/JAAS/article/view/9122/9341</a> &nbsp;

The Ethiopian Government’s recent reform measure aims to correct imbalances and safeguard macro-financial stability.

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What We Know About the Establishment of a Capital Market in Ethiopia 

<h1 style="text-align:center;">Press Release: RENEW to Enter Uganda Market</h1><a href="https://latest-api.renewcapital.com/uploads/RENEW_Press_Release_Uganda_FINAL_1d1427f9c5.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release.</a>Kampala, Uganda, September 6, 2018—RENEW, a private equity impact investing firm, announces its expansion into its second African country, Uganda. The partners of RENEW recently travelled to Kampala, Uganda to hold preliminary meetings with promising companies, explore potential office sites, and interview applicants for RENEW’s first full-time position in country. RENEW’s local entity, RENEW Investments Uganda LTD, is officially registered with the Uganda Registration Services Bureau and has hired its first employee.Members of the RENEW team first traveled to Uganda in 2006 and have been observing the country ever since. Despite challenges, the country has experienced significant growth with a GDP of $88.61 billion (2017 est.). Several factors make it an attractive destination for RENEW and the Impact Angel Network, including a growing population (currently estimated at 40 million), a rising middle class with a per capital GDP of $2,400, a government oriented towards private sector growth and a legal system mainly based in English common law.<figure class="image"><img src="/uploads/uagnda_fotor_afaaa4a6de.jpg"></figure>“Uganda has performed very well over the past ten years. The country also has a special place in RENEW’s history, as it was the first country I visited on the continent and learned about the immense opportunity in Sub-Saharan Africa’s private sector. We are excited that RENEW and the Impact Angel Network (IAN) are expanding from Ethiopia, where we have become the most active investment firm, into Uganda; a country rich with culture and opportunity,” RENEW’s CEO Matthew Davis recently commented.RENEW has brought on Mary Adoi, as Legal Counsel. Mary comes to RENEW from Barry Investments Ltd, a commodity trading company operating in Northern Uganda, where she offered legal advisory services to the firm. Mary holds a bachelor’s degree from Makerere University Kampala and a post-graduate diploma from the Law Development Centre.RENEW has been a presence in Ethiopia since 2012 and, with the IAN, has become one of the most active private equity investors in the country and plans to bring this full model to Uganda. RENEW is an impact investment firm that has designed an innovative financing model to address the missing middle that exists in the capital markets across many countries in Sub-Saharan Africa. The missing middle is a gap in the capital markets that exists between micro-finance and larger equity funds and bank financing. The missing middle limits the development of the private sector, specifically for small and medium enterprises (SMEs). RENEW's model fills this gap by investing capital alongside the IAN, a global network of impact investors. RENEW established the IAN in 2012, and it has now grown to become the largest angel network in North America dedicated to investing in SMEs in Africa. RENEW and the IAN partner with the development community to build vibrant angel investment ecosystems that provide risk capital for SMEs, unlocking their potential for job creation and financial returns.<figure class="image"><img src="/uploads/uagnda2_c366fc7bb2.jpg"></figure>###&nbsp;To find out more about RENEW, please visit <a href="../../index.html">www.renewcapital.com</a>. RENEW manages the Impact Angel Network (IAN) and provides professional management and consulting services to portfolio companies. The IAN is one of the most active private equity investors in Ethiopia.

RENEW Expands to Second Country in Africa.

Uganda

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Press Release: RENEW to Enter Uganda Market

<h1 style="text-align:center;">September Investor Trip</h1>At the end of September, RENEW partners Matt &amp; Laura Davis visited Charlottesville, Virginia and Wilmington, Delaware. The week was packed with investor meetings and a happy hour in Wilmington. The trip was a great opportunity for the partners to share the work that the Impact Angel Network and RENEW are doing in Ethiopia and Uganda.Here are some of the trip highlights:<ul><li>The first stop was in Charlottesville, Virginia. Matt and Laura spent the day in the city and met up with four IAN Members. The partners enjoyed providing updates on the network’s investments and learning more about this growing chapter of the IAN.</li><li>The second stop on the trip was in Wilmington, Delaware. Matt and Laura spent three packed days in the city! RENEW held a happy-hour at the University and Whist Club where they hosted a great group of people, including a number of IAN Members. It was a great opportunity to share about RENEW’s Impact Angel Network and the work our investment team is accomplishing on the continent, specifically in Ethiopia and Uganda. A big thank you to IAN Members Larry &amp; Beth DiSabatino, Don Fulton, and Jeff &amp; Donna Turi for making this event a success.</li><li>Additionally, in Wilmington, the partners were able to meet with a few other IAN families and host our IAN Advisory Board meeting in person!</li></ul><figure class="image"><img src="/uploads/delaware_ianessentials_5c9bdb8228.jpg"></figure>Thank you to everyone who helped make our September trip so successful! Our next trip will be in the beginning of November to Toronto, Canada, where we’ll be hosting a luncheon aimed at accredited investors interested in the Impact Angel Network. If you would like to additional information about this event, please contact us for more information.

Highlights from Charlottesville and Wilmington

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September Investor Trip

<h1 style="text-align:center;">Press Release: RENEW's Impact Angel Network Closes Eleventh Investment in East Africa</h1><a href="https://latest-api.renewcapital.com/uploads/November_8_2018_RENEW_Press_Release_IAN_Texas_LLC_FINAL_245f5ff617.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release.</a>Addis Ababa, Ethiopia, November 8, 2018-- RENEW and members of the Impact Angel Network (IAN) have closed an investment in ET Fresh, LLC (ET Fresh). ET Fresh will specialize in increasing the branding, value and market reach of Ethiopian products into the Middle East and other markets. The company is a partnership between the IAN and Tesfalidet Hagos, the General Manager of Luna Export Slaughterhouse PLC, a family owned Ethiopian agriculture conglomerate.Initially, ET Fresh will focus on increasing the export of high-quality, processed and branded meat products from Ethiopia. ET Fresh intends to expand from this initial focus to become an umbrella brand that will launch a series of fresh product lines that are all-natural, premium quality and sustainable.In pursuing this strategy, the company will leverage the cattle ranching expertise which members of RENEW’s Impact Angel Network bring to the venture, as well as Mr. Hagos’ strong track record as a manager of industry-leading companies involved in processing fresh food in Ethiopia. RENEW will provide ET Fresh with branding and marketing support to position the company’s products for new markets, as well as supporting management in the areas of governance, financial management and recruiting.RENEW expects that this investment will contribute to the creation of hundreds of new jobs in Ethiopia, as well as greater income for pastoralists and increased foreign currency and tax revenue for Ethiopia.<figure class="image"><img src="/uploads/screen_shot_2018_11_06_at_10_47_50_am_0_d42c8ac59f.png"></figure>“I have great enthusiasm to work with [the] RENEW team and [they] will definitely make a difference in our marketing operation. It will give us a great opportunity to promote our country’s products internationally with a much better image and branding,” commented Mr. Tesfalidet Hagos.“We are excited to partner with Mr. Hagos and Luna,” said Matthew Davis, CEO of RENEW. He added, “Ethiopia has one of the largest livestock populations in Africa. It is a huge asset for the country and we are excited to help Luna and the citizens of Ethiopia realize greater economic and social value from this resource.”RENEW and the Impact Angel Network are one of the most active private equity investors in Ethiopia and recently expanded to Uganda. RENEW and the IAN seek to become the most successful SME investment firm in Sub-Saharan Africa, investing in hundreds of companies across twenty countries. Their mission is to find, invest and help grow great companies led by visionary leaders. The IAN and RENEW believe the greatest impact they can have in a country is realized through investing in strong companies and creating good jobs . They are able to accomplish this objective in Ethiopia and this investment in ET Fresh with support from Global Affairs Canada through a blended finance model. The investment in ET Fresh, LLC is the Impact Angel Network’s eleventh investment in a portfolio of ten companies in East Africa.&nbsp;###&nbsp;To find out more about RENEW, please visit <a href="../../index.html">www.renewcapital.com</a>. RENEW manages the Impact Angel Network (IAN) and provides professional management and consulting services to portfolio companies.

Increasing the export of high-quality, value-added products from Ethiopia.

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