<h1 style="margin-left:0px;">Press Release: ChipChip Makes Online Shopping Cheaper with Group Buying</h1>The platform connects consumers directly with suppliers to drive down costs.<a href="https://latest-api.renewcapital.com/uploads/24_10_8_FINAL_Chip_Chip_Press_Release_b816fb1c7a.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>ADDIS ABABA, Ethiopia,&nbsp;October 8, 2024 - ChipChip, an innovative e-commerce platform bringing consumers and suppliers together through group buying, has secured investment from Renew Capital as lead investor as well as other international co-investors. Since its launch, &nbsp;<a href="https://www.linkedin.com/company/chipchip/">ChipChip</a> has been changing how consumers purchase fresh produce and fast-moving consumer goods (FMCG) by enabling them to unlock bulk prices through collective purchasing.&nbsp;<figure class="image"><img src="/uploads/Linkedin_Templates_16_1e3cf6fbe2.png" alt="A photo of the ChipChip team based in Addis Ababa, Ethiopia, who work on connecting consumers directly with suppliers through group buying to make online shopping more affordable."></figure>ChipChip allows users to form groups, pool orders and buy directly from farmers and suppliers. By eliminating intermediaries, ChipChip allows users to enjoy bulk savings while supporting local farmers and suppliers. This community-based approach makes it easier for consumers to access high-quality, locally sourced products at lower prices.“We believe that group buying can change e-commerce in Africa by making it more affordable and impactful,” said <a href="https://www.linkedin.com/in/amir-redwan/">Amir Redwan</a>, Co-CEO of ChipChip. “Our platform helps consumers save while supporting local suppliers. With this investment, we’re excited to expand our reach and continue delivering value to communities across Africa.”ChipChip also caters to businesses like restaurants and hotels, providing access to bulk purchases of essential goods. With a seamless shopping experience and exclusive deals, the platform ensures consumers and businesses alike benefit from trusted and affordable access to products.“ChipChip is tackling some of the biggest challenges in Africa’s e-commerce - affordability and access to high-quality products,” said Adam Abate, Principal, Investment Management at Renew Capital. “By giving consumers direct access to suppliers, they’re not only making everyday products more affordable but also building lasting relationships between local producers and buyers. This model is transforming the way communities engage with commerce. We are proud to support Amir and his team as they lead this shift.”ChipChip employs 40 full-time staff and 50 sourcing agents, with 33 women and 57 men. By the end of the year, the company plans to grow to 400 employees, with a strong focus on promoting women, while also prioritizing the recruitment of top-quality talent with the support of Renew Capital.Renew Capital remains committed to supporting growth-oriented entrepreneurs who drive innovation and deliver scalable solutions to Africa’s most pressing needs.Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.

ChipChip, an Ethiopian e-commerce platform, secures investment from Renew Capital to expand its group buying model.

Ethiopia

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Press Release: ChipChip Makes Online Shopping Cheaper with Group Buying

<h1>Press Release: Chpter Secures Investment to Drive Sales for African Businesses on Social Media</h1>Changing Africa’s social commerce landscape.<a href="https://latest-api.renewcapital.com/uploads/2024_09_24_FINAL_Chpter_Press_Release_ff5c6b13ff.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>NAIROBI, Kenya, September 24, 2024&nbsp;— Renew Capital has invested in&nbsp;<a href="https://www.linkedin.com/company/chpter-holdings/">Chpter</a>, an AI-powered conversational commerce platform that enables businesses to sell more on social media platforms such as WhatsApp and Instagram.&nbsp;Founded in 2022, Chpter enables faster and simpler social commerce through automated conversations, marketing and aggregated payments. This helps businesses to increase sales and manage customer interactions more efficiently. With this new funding, Chpter will speed up product development, expand its presence in sub-Saharan Africa and boost its sales and marketing.<figure class="image"><img src="/uploads/Chpter_Cofounders_From_Left_Mark_Kuria_Tesh_Mesongo_00af38c3c5.jpg" alt="A photo of the four co-founders of Chpter, an AI-powered platform helping businesses increase sales on social media platforms like WhatsApp and Instagram."></figure>“At Chpter, we’re dedicated to transforming the way businesses interact with their customers on social media,” said <a href="https://www.linkedin.com/in/teshmbaabu/">Tesh Mbaabu</a>, Co-Founder and CEO of Chpter. “We look forward to working with Renew Capital to accelerate our growth and further our mission of empowering businesses to elevate their social commerce strategies and take advantage of social media.”&nbsp;Chpter’s platform is already in use in Kenya and South Africa, serving industries such as retail, financial services and education. The company plans to expand into new markets, including Nigeria, Ghana, Egypt and Morocco.“As one of the investors in the consortium, Renew Capital is proud to support Chpter’s innovative approach to social commerce,” said Esther Mwikali, Senior Investment Manager at Renew Capital. “Chpter’s technology solves key problems for African businesses, like shopping cart abandonment and scattered customer interactions. Chpter is ready to drive growth and change the social commerce landscape by making engagement on platforms like WhatsApp and Instagram more effective.”Renew Capital is committed to backing growth-oriented founders who possess a blend of skill, grit and passion. Entrepreneurs seeking financing for asset-light, tech-enabled businesses should check out the&nbsp;<a href="https://venturelab.renewcapital.com/">Renew Venture Lab</a> and apply.Support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

Chpter secures investment to enhance social media sales for African businesses through AI-powered solutions. Learn how this platform is shaping social commerce across Africa.

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Press Release: Chpter Secures Investment to Drive Sales for African Businesses on Social Media

<h1>Renew Capital Legal Brief - September 2024</h1>The latest changes in Africa's regulatory environment<figure class="image"><img src="/uploads/Sept_Legal_Brief_Ld_08dcd450d9.png" alt="Photo of Renew Capital's September 2024 Legal Brief document."></figure>With a growing presence in Africa’s top startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;Egypt:&nbsp;<ul><li>Non-Resident Foreigners Can Now Own Egyptian Bank Accounts Freely -&nbsp;The Central Bank of Egypt has, via a circular dated August 7, 2024, directed all Egyptian banks to open non-resident bank accounts for foreign customers not residing in Egypt and to grant them access to available banking services. The aim is to expand access by foreigners to a range of banking services while ensuring compliance with account opening regulations, Know Your Customer (KYC) requirements and anti-money laundering laws and regulations.</li></ul>Ethiopia:&nbsp;<ul><li>Capital Market Regulatory Sandbox Launch&nbsp;-&nbsp;The Ethiopian Capital Markets Authority (ECMA) launched the sandbox on August 29, 2024. The sandbox provides a controlled environment for testing new capital market products or services with consumers under temporary regulatory flexibility.&nbsp;This is in line with similar approaches adopted by Nigeria, Rwanda and Kenya which have seen a lot of benefits for startups.</li></ul>Ghana:&nbsp;<ul><li>Ghana is Set to Lift Cryptocurrency Ban, Issues Draft Guidelines on Digital Assets - Draft Guidelines on Digital Assets were issued by the Bank of Ghana (BoG) in August 2024. The Guidelines contemplate the existence of a regulatory framework for digital assets and Virtual Asset Service Providers (VASPs) in Ghana and the licensing duties of both the BoG and the Securities and Exchange Commission. Similar to Nigeria, this should eventually lead to a certain regulatory framework for digital assets and inspire investor confidence in VASPs which were largely neglected in the past because of a lack of regulation and licensing options.</li></ul>Kenya:&nbsp;<ul><li>The Constitutionality of the 2023 Finance Act Remains on the Fence&nbsp;– The 2023 Finance Act was ruled unconstitutional by the Court of Appeal in Kenya in July 2024 due to the National Assembly’s failure to justify its decisions on public proposals and provide revenue estimates. However, the Supreme Court has stayed the lower court’s order pending the outcome of appeals filed on the matter.</li></ul>Nigeria:&nbsp;<ul><li>Tax Holiday for Basic Food Items&nbsp; -&nbsp;From July 15 to December 31, entities can import food items like maize, husked brown rice and wheat with a zero percent customs duty rate and sell them on commodity exchanges without charging value-added tax (VAT). This tax holiday aims to encourage food imports, reduce food inflation and address the food crisis in the country.</li><li>Busha and Quidax Receive Go Ahead to Commence Operations -&nbsp;The Securities and Exchange Commission (SEC) has issued its first approvals-in-principle to digital asset exchanges Busha and Quidax. Full registration will follow as the SEC reviews other participants in its Accelerated Regulatory Incubation Program. This groundbreaking move is expected to set a precedent for other digital asset exchanges to operate in one of Africa’s largest digital assets markets by volume.</li></ul>Rwanda:<ul><li>New Intellectual Property Regime Emerges&nbsp;- The 2024 Law on the Protection of Intellectual Property took effect on July 31, 2024, introducing several changes. These changes include the creation of an independent Intellectual Property Office and the introduction of provisional patent applications for ongoing inventions.</li></ul>South Africa:&nbsp;<ul><li>Satellite Service Operators Prepare for Licensing Framework -&nbsp;The Independent Communications Authority (ICA) has set up an inquiry to establish a licensing framework for satellite services in South Africa, particularly fixed, mobile and broadcasting satellite services. Stakeholders have until November 12, 2024, to submit suggestions to the ICA. This inquiry is a crucial step towards creating a transparent and efficient process for satellite operators, enhancing the delivery of satellite services across the country.&nbsp;</li></ul>Tanzania:&nbsp;<ul><li>Tanzanian Parliament Raises Market Dominance Threshold -&nbsp;&nbsp;The Parliament has endorsed a bill proposing to raise the market dominance threshold from 35% to 40%. Therefore, a single entity will be allowed to control up to 40% of the market it specializes in. This also means that when two or more entities consider a merger, they will not be restricted to the 35% market dominance rule. This is expected to encourage foreign investments whilst also imposing restrictions on the misuse of market holdings by multiple individuals.</li></ul>Uganda:&nbsp;<ul><li>ICT and Communications Laws Face a Likely Merger -&nbsp;The Uganda Communications Commission has declared its intentions to consolidate all ICT and communications laws for better regulation of all media platforms and the media industry.</li></ul>Zambia:&nbsp;<ul><li>Zambia Opens Access to Energy Transmission -&nbsp;Independent power producers can now bypass state-owned Zambia Electricity Supply Corporation Limited (ZESCO) Ltd as the transmission entity and transmit power directly to consumers. This is expected to improve access to power, reduce losses and promote efficient metering.</li></ul>Regulatory&nbsp;<ul><li>More African Governments Gear Towards&nbsp;Artificial Intelligence (AI) Regulation&nbsp;- In August, Nigeria and South Africa joined the growing number of African countries with national AI policy frameworks. Like Kenya and Egypt, they're developing policies to foster AI innovation and growth within their borders.&nbsp;</li></ul>Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.

Renew Capital’s September 2024 Legal Brief highlights key regulatory updates in Africa, including banking reforms in Egypt, cryptocurrency guidelines in Ghana and new market regulations in Ethiopia, Kenya and more.

Legal Corner

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Renew Capital Legal Brief - September 2024

<h1>Renew Capital Legal Brief - August 2024</h1>The Latest Changes in Africa's Regulatory EnvironmentWith a growing presence in Africa’s top startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and to provide insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;<figure class="image"><img src="/uploads/Legal_1_a4c7d7c64b.jpg" alt="Photo of Renew Capital's August 2024 Legal Brief document."></figure><hr>Egypt:&nbsp;<ul><li>Egypt Privatizes Health Sector – Egyptian and foreign investors can now operate and manage public health facilities for profit. This presents a huge opportunity for investors!&nbsp;</li></ul>Ethiopia:&nbsp;<ul><li>Market-Based Exchange Rate Introduced – On July 29, 2024, the National Bank of Ethiopia (NBE) adopted a market-driven exchange rate system, ending its direct control. Key changes include abolishing surrender requirements to NBE, liberalizing import restrictions, improving retention rules for exporters, removing interest rate caps on foreign borrowing and allowing residents to open foreign currency accounts. Read the&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2024/07/FXD012024-FOREIGN-EXCHANGE-1-1.pdf">directive</a>.&nbsp;</li><li>Banking Sector to Open Foreign Investment – A draft proclamation allows foreign banks to acquire up to 49% of local banks, with potential for full ownership subject to NBE approval. Foreign entities can also establish banks, create subsidiaries or set up branches or representative offices with distinct legal liabilities. This is a long contested area of deregulation and it is currently not clear when the draft proclamation will become law.&nbsp;</li><li>New VAT Proclamation Passed – The VAT base now includes transportation services, portable water, electricity supply and digital transactions, while capital goods for production remain exempt to encourage investment.</li></ul>Ghana:&nbsp;<ul><li>Court Clarifies Termination Without Cause – Ghana’s Supreme Court ruled that employers and employees can end their relationship without providing a reason, affirming that neither can be forced to retain or continue employment. This is a big step forward for employers in Ghana!&nbsp;</li></ul>Kenya:&nbsp;<ul><li>New Income Tax Rules for Charitable Donations – The 2024 rules outline procedures for determining donation allowability and set administrative procedures for tax exemptions. They also restrict surplus retention by charitable organizations and limit tax deductions on donations exceeding 50% of total annual donations by a taxpayer.</li></ul>Nigeria:&nbsp;<ul><li>National Digital Economy &amp; E-Governance Bill Introduced – The National Assembly proposed a bill to regulate the digital economy and mandate electronic records and contracts within government bodies. It is not clear how long it will take for the bill to be enacted, but startup founders are watching it closely to identify opportunities to innovate and provide solutions for these agencies.</li><li>Single Shareholder Structure Approved – The Federal High Court ruled that companies incorporated before CAMA 2020 can now adopt single shareholder structures. This means that founders and investors who are looking to adopt a true holding company structure can now restructure their companies such that it is solely owned by one offshore entity.</li></ul>South Africa:&nbsp;<ul><li>Companies Amendment Act Brings Corporate Reforms – As of July 30, 2024, new laws require listed and state-owned companies to disclose pay gaps and mandate remuneration policies for public and state-owned companies.</li><li>Climate Change Act Enacted – Signed in July 2024, the law establishes a legal framework to regulate climate change impacts, reinforcing South Africa’s commitment to international agreements.</li></ul>Tanzania:&nbsp;<ul><li>Finance Act 2024 Enacted – Effective July 1, 2024, the Finance Act introduces major tax law amendments, enhancing public revenue management and aligning with broader African trends. It remains to be seen how this will impact foreign investments in the country.</li><li>Diaspora Gains Land Ownership Rights – The new legislation allows foreigners and companies with majority foreign shareholders to own land in Tanzania via the Diaspora Tanzanite Card and special non-citizen diaspora status.</li></ul>Uganda:&nbsp;<ul><li>Central Bank’s Immunity Partially Lifted – A new instrument from the Minister of Finance permits execution orders against the assets of the Central Bank of Uganda, reducing its blanket immunity.</li></ul>Zambia:&nbsp;<ul><li>VAT E-Invoicing Implemented – Zambia Revenue Authority’s Smart Invoice system for VAT collections launched on July 1, 2024. This is expected to improve transparency and improve efficiency in tax collection.&nbsp;</li></ul>Regulatory:&nbsp;<ul><li>US Bank Restricts Accounts for Certain African Residents – Historically, African founders who set up holding companies in Delaware typically open bank accounts for their startups with Mercury Bank. In a rather unfortunate turn of events, Mercury Bank has restricted account access for founders residing in Mozambique, Nigeria and 35 other countries, with closures effective by August 22. This means that many founders from these countries will have to move their foreign accounts to new banks in an already restrictive banking system in the US.</li></ul>Visit our blog to learn more about some of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a> or contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in his blog does not constitute legal advice. Consumers should consult their legal advisors.

Ghana’s Supreme Court ruled that employers and employees can end their relationship without providing a reason.

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Renew Capital Legal Brief - August 2024

<h1>Renew Capital Legal Brief - July 2024</h1>The Latest Changes in Africa's Regulatory Environment<figure class="image"><img src="/uploads/Linkedin_Templates_21_eb566a2aff.png" alt="Photo of Renew Capital's July 2024 Legal Brief document."></figure>With a growing presence in Africa’s top startup ecosystems, the Renew Capital team works hard to stay on top of the legal landscapes shaping the venture capital and investment space. For the next few months, we will be publishing a monthly piece highlighting the significant legal and regulatory developments across Africa. We hope this offers insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment. If you like it, let us know at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> and it may become a permanent offering. &nbsp;Key Legal and Regulatory UpdatesEgypt:&nbsp;<ul><li>New Fast-Track M&amp;A Notifications - Starting June 1, 2024, companies involved in mergers and acquisitions can notify the Egyptian Competition Authority (ECA) using a&nbsp;<a href="https://eca.org.eg/en-us/%D8%AC%D9%87%D8%A7%D8%B2-%D8%AD%D9%85%D8%A7%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D9%86%D8%A7%D9%81%D8%B3%D8%A9/economic-concentrations/notification-file-simplified-procedures">fast-track procedure</a> with a 20-business day timeline and simplified forms for specific transactions. This procedure applies only to specific transactions detailed in the&nbsp;<a href="https://eca.org.eg/getattachment/793b7930-dee1-4815-bc27-c73d2cf632a6/Notification-File-Economic-Concentrations-subject-to-Simplified-Procedures.docx">simplified notification file</a>.</li></ul>Ethiopia:&nbsp;<ul><li>Data Protection Law - The Ethiopian Parliament passed the Personal Data Protection Proclamation in April 2024, aligning with international standards. It empowers individuals with control over their data and enforceable rights against data processors and controllers.&nbsp;</li><li>Foreign Investment Expansion - The Ethiopian Investment Board (EIB) now allows foreign participation in export, import, wholesale and retail trade sectors, previously reserved for domestic investors. Conditions include relevant experience, market linkages, capital thresholds, procurement levels, and contractual commitments. Read the&nbsp;<a href="https://investethiopia.gov.et/wp-content/uploads/2024/04/Ethiopian-Investment-Board-Directive-to-Regulate-Foreign-Investors-Participation-in-Restricted-Export-Import-Wholesale-and-Retail-Trade-Investments-No.1001_2024.pdf">directive</a>.&nbsp;</li></ul>Ghana:&nbsp;<ul><li>Crowdfunding Guidelines - In June 2024, Ghana’s SEC launched regulations for crowdfunding, establishing a licensing framework for platforms and intermediaries. These guidelines exclude rewards-based or donations-based activities.</li></ul>Kenya:&nbsp;<ul><li>Carbon Project Regulations - The Climate Change (Carbon Markets) Regulations 2024 create a regulatory framework for carbon projects. The Designated National Authority (DNA) will oversee implementation, with a two-year compliance period for existing projects.</li></ul>Mozambique:&nbsp;<ul><li>Leniency Regime Proposal - The Competition Regulatory Authority (CRA) is consulting on draft regulations for a leniency regime. This regime offers reduced fines for companies or individuals who report anti-competitive practices and provide evidence against other offenders.</li></ul>Nigeria:&nbsp;<ul><li>Debt Capital for Private Companies - The Nigerian SEC proposed rules allowing private companies to issue debt securities to the public, subject to SEC restrictions. The proposed rules can be found&nbsp;<a href="https://sec.gov.ng/wp-content/uploads/2024/05/Rules-for-Exposure-Issuance-and-Allotment-of-Private-Companies-Securities.pdf">here</a>.</li><li>New Measures for Remittances - The Central Bank of Nigeria (CBN) introduced measures to ease foreign exchange pressures. These include same-day Naira settlement for diaspora remittances using the Nigerian Autonomous Foreign Exchange Market (NAFEM) rate.</li></ul>Rwanda:&nbsp;<ul><li>Digital Currency Plans - The National Bank of Rwanda (NBR) aims to issue a Central Bank Digital Currency (CBDC) by 2026. The NBR is currently conducting public consultations and feasibility studies. The report on the feasibility study is available&nbsp;<a href="https://www.bnr.rw/payment-systems/cbdc/">here</a>.</li></ul>South Africa:&nbsp;<ul><li>Deposit Insurance Operational - The Corporation for Deposit Insurance, a subsidiary of the South African Reserve Bank, began operations on April 1, 2024. It manages the Deposit Insurance Fund, covering up to R100,000 per qualifying depositor per bank.</li><li>Spectrum Hoarding Policy - South Africa’s new Spectrum Policy promotes spectrum trading, sharing, and pooling among licensees to prevent capacity hoarding.</li></ul>Tanzania:&nbsp;<ul><li>Mining Act Amendments - Proposed changes to Tanzania’s mining sector include increasing the minimum capital investment for a mining license to $5,000,000, introducing penalties for false data and delayed payments, and clarifying royalty payments on imported minerals.</li></ul>Tunisia:&nbsp;<ul><li>Startup Ecosystem Watch - Tunisia's pioneering Startup Act continues to influence tech investment and startup growth in the region. We are monitoring developments closely.</li></ul>Uganda:&nbsp;<ul><li>Stamp Duty Exemptions - The Stamp Duty (Amendment) Bill 2024 introduces exemptions for investments in electric vehicles and private equity funds, effective July 1, 2024.</li></ul>Zambia:&nbsp;<ul><li>E-Hailing Platform Regulation - New regulations require road licenses for all e-hailing drivers and set guidelines for operators, with fines for non-compliance.</li></ul>Contact us at&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystem! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.&nbsp;

The Corporation for Deposit Insurance, a subsidiary of the South African Reserve Bank, began operations on April 1, 2024. 

Renew Capital Legal Brief - July 2024

<h1>Press Release: Pumpkn Secures Investment to Transform Funding for African Agribusinesses</h1>Renew Capital makes its first-ever investment in South Africa in an agribusiness loan platform.<a href="https://latest-api.renewcapital.com/uploads/7_2_2024_FINAL_Pumpkn_Press_Release_6b346ca3f2.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>JOHANNESBURG, South Africa,&nbsp;July 2, 2024&nbsp;—&nbsp;Africa’s agricultural sector plays a significant role in the continent's economy, contributing about 35% to the GDP and supporting the livelihoods of nearly half of Africa's 1.4 billion population. Despite its immense potential, agriculture faces a funding gap hindering its growth. <a href="https://www.linkedin.com/company/pumpkn/">Pumpkn</a>, a South African startup, is actively addressing this challenge by offering and facilitating financial support for agribusinesses.<figure class="image"><img src="/uploads/Zuri_Instagram_1_0bd40616a3.png" alt="A photo of the three co-founders of Pumpkn, a South African startup that provides a digital platform to connect agribusinesses with financing by leveraging data for credit assessments."></figure>Pumpkn leverages data to make credit assessments of agricultural small and medium-sized enterprises (agri-SMEs). On the other hand, Pumpkn helps lenders easily identify bankable businesses and manage their loan portfolio. Pumpkn’s overall objective is to make agribusiness financing commercially viable for lenders and make loans accessible for agribusinesses. These loans help these businesses to obtain the necessary tools, machinery, and equipment to facilitate their growth.“Despite agriculture being the major GDP contributor for many African countries, many agriculture-focused businesses still have a hard time finding the financing they need to grow and thrive. Pumpkn is committed to working closely with agribusinesses to enable their growth, with a direct impact on job creation,” said <a href="https://www.linkedin.com/in/zaheerdindar/">Zaheer Dindar</a>, co-founder &amp; CEO of Pumpkn. "Pumpkn seeks to fill the financing gap for agribusinesses by providing farmers and entrepreneurs with the financial resources they need to thrive."Pumpkn stands out with its aim to provide fast loan approvals, zero paperwork and seamless accessibility. Pumpkn's intuitive platform directly links to agri-SMEs' bank accounts, empowering them to swiftly secure essential financing."We are witnessing an important shift in Africa, with technology playing a major role in boosting sectors including agriculture," said Adam Abate, principal of investment at Renew Capital. "We are thrilled to support Pumpkn on its mission and proud to have them as our first-ever investment in South Africa."*Ecosystem activation, pipeline development and capacity-building support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

Renew Capital makes its first investment in South Africa with Pumpkn, a South African startup enhancing agribusiness financing and leveraging data to bridge the funding gap for agri-SMEs in Africa's agricultural sector.

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Press Release: Pumpkn Secures Investment to Transform Funding for African Agribusinesses

<h1>Secrets of Egypt's Momentum&nbsp;</h1>Context for the country’s current state and startup potentialThe past few months have been full of exploration for Matt and I as we’ve traveled around Africa to meet founders and to better understand startup ecosystems on the continent. Today, you find me in Cairo, Egypt. Last week, we were in Casablanca, <a href="https://www.renewcapital.com/newsroom/secrets-of-moroccos-momentum" target="_blank" rel="noopener noreferrer">Morocco</a> and next week, we will be in Lagos, Nigeria.&nbsp;Side note: For those who are interested (and not familiar with the ecosystem), we are hosting a Zoom webinar on “Nigeria’s Startup Scene: How Does it Stack Up?” June 19th, 12:30 PM Eastern.&nbsp;<a href="https://us02web.zoom.us/webinar/register/WN_RfG8ycMnTnOh8tc4QQva6g">Register here</a>.&nbsp;Renew Capital has been exploring Egypt for about a year now, and we are currently sourcing startups for investments as part of Renew Venture Lab (<a href="https://venturelab.renewcapital.com/">apply here</a>). We have so much to learn, but these are some of our key takeaways on Cairo this week and our earlier trip in March.&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/IMG_7314_832de261f0.JPG" alt="A beautiful photo of Cairo's skyline over the river, featuring modern buildings and historical architecture."></figure>Here are a few things we have learned:&nbsp;<ul><li>A startup leader in MENA - Cairo's startup ecosystem is a leading hub in the MENA region, driven by strong sectors such as fintech, e-commerce and logistics. The e-commerce sector seems to be growing rapidly due to a young population and increasing internet penetration. Cairo’s ecosystem benefits from a supportive environment with various active investors and other stakeholders. Cairo's strategic location and robust talent pool further enhance its appeal as a startup hub​​.</li><li>Cairo is a city of contrast - I’ve worked in frontier and emerging markets for 20 years. But in Cairo the contrast was unique. First, you have&nbsp;ancient and new -&nbsp;You’ll find the Pyramids of Giza 15 minutes from the center of town and then 30 minutes in the other direction you have New Cairo and the New Administrative Capital with giant IT parks, IKEA, beautiful malls, modern restaurants and the tallest building in Africa. The contrasts are almost overwhelming. Next, you have&nbsp;outside versus inside and day versus night&nbsp;- Cairo is dusty and dense and on the outside of buildings and during the day, the old city can look a bit run down. But, when you go inside it’s like a new world. You find beautiful old buildings with great architectural designs and finishing work. It’s clean and beautiful. In Cairo, you have to know where to look. Also, once the sun sets, the buildings are lit up and it’s absolutely breathtaking!</li><li>Cairo is surprisingly affordable - Granted, the currency devalued in March by almost 40%, but even before that, internationals who live here describe Cairo as a very affordable city. A Starbucks run in March for four people - lattes, cappuccinos, juice drinks and snacks ran us about $6.</li><li>Cairo is large! -&nbsp;Cairo is the&nbsp;<a href="https://citymonitor.ai/environment/infrastructure/what-are-the-largest-cities-in-the-middle-east#:~:text=It%20is%20the%20most%20populated%20%E2%80%98metropolitan%E2%80%99%20area%20in%20the%20Middle%20East">largest city</a> in the Arab world with a population of almost&nbsp;<a href="https://www.worldbank.org/en/country/egypt/overview">10 million</a> and the whole urban area being above&nbsp;<a href="https://populationstat.com/egypt/cairo">22 million</a>. Egypt has two of the continent’s <a href="https://africa.businessinsider.com/local/lifestyle/top-10-african-cities-with-the-highest-population/sz3n5pv" target="_blank" rel="noopener noreferrer">largest cities</a>, with the second being Alexandria. As many cities and populations in the developed world age and shrink, Egypt and Cairo are forecasted to grow with nearly 43% of Egyptians living in urban centers.&nbsp;</li><li>Egypt is wealthy, relative to other SSA countries -&nbsp;Cairo had Starbucks, McDonalds, Hardees (Carl’s Juniors), delivery services, Uber, IKEA, Carrefour and everything you could want. We all know this development in South Africa. But, prior to my first visit in March, I didn’t know I would also find it in Cairo. Its&nbsp;<a href="https://data.worldbank.org/indicator/NY.GDP.PCAP.CD#:~:text=6%2C391.3-,Egypt%2C%20Arab%20Rep.,-2022">GDP per capita</a> is more than $4,000, which is one of the wealthier countries in Africa.&nbsp;<a href="https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=A9&amp;most_recent_value_desc=true">10th</a> among the 54 countries on the continent and many believe the&nbsp;<a href="https://english.ahram.org.eg/News/520322.aspx">structural reforms</a> President Abdel Fattah el-Sisi is putting in place will help the country see higher GDP growth in the coming years.&nbsp;</li><li>Egypt (and Africa) may become the focal point of a shift in geopolitical power -&nbsp;​​From an Economist article titled “<a href="https://www.economist.com/middle-east-and-africa/2024/03/13/gulf-countries-are-becoming-major-players-in-africa">Gulf countries are becoming major players in Africa</a>”, “As African leaders seek alternatives to dwindling Chinese loans and Western aid, the Gulf’s rise is reshaping geopolitics on the continent, with effects good and bad.” Cairo - as the epicenter of Africa’s Arab cultural and economic influence - will be one to watch as this geopolitical reshuffle happens. For example, in November 2023 Saudi pledged to invest $25B in Africa by 2030.&nbsp;</li></ul><h2>Go Deeper on Egypt?</h2><ul><li><a href="https://www.linkedin.com/posts/renew-capital_egypt-in-12-photos-activity-7207270407031238657-zxwu?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noopener noreferrer">Cairo in 12 photos</a></li><li><a href="https://www.youtube.com/watch?v=XIbSkaTdvrg" target="_blank" rel="noopener noreferrer">Interview with Matt and Laura</a></li><li><a href="https://latest-api.renewcapital.com/uploads/Egypt_s_Startup_Ecosystem_Factsheet_07e3c034a1.pdf" target="_blank" rel="noopener noreferrer">Egypt Startup Ecosystem Factsheet</a></li><li><a href="https://maps.app.goo.gl/X5JctByrSorhGMUL7">Cairo Startup Ecosystem Google Map</a></li></ul>

Learn about Cairo's fast-growing startup scene, its role in the MENA region, the unique blend of ancient culture and modern growth shaping its business landscape.

Ecosystems

Egypt

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Secrets of Egypt's Momentum 

<h1>Press Release: Zuri Secures Investment: Poised to Transform Africa’s Beauty Industry</h1>Renew Capital Supports Zuri’s Rise in Africa’s Booming Beauty Industry<a href="https://latest-api.renewcapital.com/uploads/2024_11_6_FINAL_Zuri_Press_Release_39eb9c56c7.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>KINSHASA, DRC and KIGALI, Rwanda, June 11, 2024&nbsp;—&nbsp;Zuri (<a href="http://myzuri.com">myZuri.com</a>), a tech-enabled beauty company, seeks to transform the African beauty industry with high-end, beauty products designed by Africans.&nbsp;<figure class="image image-style-align-center image_resized" style="width:100%;"><img src="/uploads/1708699055330_8e252ca833.jpeg" alt="Founder of Zuri Luxury Hair poses with employees, showcasing teamwork and dedication to empowering women in Africa's beauty industry."></figure>Established in 2016, Zuri is a growing brand in the booming African beauty industry.&nbsp; Through a unique business model that integrates physical hair salons, an e-commerce platform and social media communication channels in 3 East African countries (Democratic Republic of Congo, Uganda and Rwanda), <a href="https://www.linkedin.com/company/zuribeauty/">Zuri</a> distributes its high-end products and services to the growing African consumer market. The company is also tapping into the growing demand in the African diaspora markets in Europe."Zuri's objective is to empower women, from all over the world, to become the best version of themselves. We have made it easy for our customers to access high-quality beauty products and services through all of our touchpoints," stated <a href="https://www.linkedin.com/in/gis%C3%A8la-van-houcke-1aa177159/">Gisèla Van Houcke</a>, the founder &amp; CEO of Zuri. “We are thrilled to welcome Renew Capital aboard as we look ahead to the next phase of Zuri's expansion journey.”The company has leveraged its innovative model to develop a proprietary platform, seamlessly integrating it into both its e-commerce app and physical salons, delivering tailored experiences to its customers from their home to the hair salons."Zuri's innovative approach, particularly their integration of technology to disrupt the beauty space, is truly exciting. Their growth trajectory is very promising, and we're thrilled to join forces with them on this journey," said <a href="https://www.linkedin.com/in/adamabate/?originalSubdomain=et">Adam Abate</a>, Renew Capital’s principal of investment management.Zuri's innovative business model and commitment to empowering women through beauty have made them a leader in the African beauty industry. With this new investment, the company is poised to take its mission to the next level and make a significant impact on the African beauty industry.*Ecosystem activation, pipeline development and capacity-building support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

Renew Capital invests in Zuri, a tech-enabled beauty startup to enhance Africa's beauty industry by integrating salons and e-commerce, empowering women across the continent.

Rwanda

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Press Release: Zuri Secures Investment: Poised to Transform Africa’s Beauty Industry

<h1>Secrets of Morocco's Momentum&nbsp;</h1>Context for the country’s growth and startup potentialMatt and I have been in Morocco for almost two weeks now, last week, attending&nbsp;<a href="https://gitexafrica.com/?utm_source=theafricabrief.beehiiv.com&amp;utm_medium=referral&amp;utm_campaign=africa-in-brief-may-31-2024">GITEX Africa</a>&nbsp;in Marrakesh hosted by the Dubai World Trade Center and this week exploring the startup ecosystem in Casablanca. Renew Capital has had a small presence in Morocco since January and we are currently sourcing startups for investments as part of Renew Venture Lab (<a href="https://venturelab.renewcapital.com/">apply here</a>). We have so much to learn still, but these are some of our key takeaways so far.&nbsp;<figure class="image"><img src="/uploads/Image_a4f058478e.png" alt="Collage of four photos: Renew Capital’s Co-CEO, Matt Davis, with the U.S. Ambassador to Morocco at a Moroccan startup demo, UNESCO World Heritage Site, Jenaa El Fnna Square in Marrakech, GITEX Africa event in Marrakesh, Morocco, May 2024, Moroccan seafood pastilla delicacy."></figure><ul><li>Taking Their "Game Up": The 2030 FIFA World Cup is a tri-country event with Portugal, Spain and Morocco set to play host. Moroccans are inspired (and perhaps a little nervous!) that they will be compared to the two other countries. Competition is good and we predict continued improvement in quality across the services sector, and a boom in real estate and services industries, along with the creation of new tech companies that Europeans are used to in their home country. Sidenote: The airline, Royal Air Maroc is&nbsp;<a href="https://simpleflying.com/royal-air-maroc-new-aircraft-fleet/">slated to quadruple</a>!&nbsp;</li><li>A Better Wall?: Morocco and other countries in Northern Africa will need to absorb a massive amount of migrants looking for a life - but being rejected entry - into Europe. We see huge potential (or problems if not done) for Europe to help build up factories and invest in job-absorbing industries in Northern Africa to minimize migration. Look for a boom in high job creation industries.</li><li>Windfall of Too Much Tourism: Spain received 85 million&nbsp;<a href="https://www.investinspain.org/content/icex-invest/en/noticias-main/2024/turismo-2023.html">tourists last year</a> and many want to move there. But some say Spain is now starting to burst at the seams. Morocco is a great country to absorb that spillover. Look for a big boom in the tourism industry!</li><li>Long Live the King: Moroccans LOVE and trust their King and they believe the monarch has a good plan to build their country. This also creates stability and focus - people work hard when they're not worried about politics. Given the factors above and the stability, look for GDP growth to beat forecasts.</li><li>Homeward Bound: Amid Europe's polarized migration debates, descendants of Moroccan immigrants are moving back to Morocco. Seeking better opportunities and reconnecting with their heritage, many find support through platforms like&nbsp;<a href="https://web.facebook.com/groups/277379784237975/?_rdc=1&amp;_rdr">"J’ai décidé de m’installer au Maroc"</a> on Facebook and "<a href="https://www.instagram.com/vivre_au_maroc/?hl=en">Vivre au Maroc</a>" on Instagram. Despite adjustment challenges, positive feedback highlights Morocco's appeal for social and economic advancement, with returning diaspora contributing to the nation's growth. There’s little to no brain drain problem in Morocco!&nbsp;</li></ul>Go Deeper on Morocco?<ul><li><a href="https://www.linkedin.com/posts/renew-capital_morocco-in-12-photos-activity-7204750404012675072-q5Wb?utm_source=share&amp;utm_medium=member_desktop" target="_blank" rel="noopener noreferrer">Morocco’s Momentum in 12 Photos</a></li><li><a href="https://latest-api.renewcapital.com//uploads/Morocco_Startup_Ecosyestem_Fact_Sheet_006a5a8686.pdf" target="_blank" rel="noopener noreferrer">Morocco’s Startup Ecosystem Factsheet</a></li><li><a href="https://www.google.com/maps/placelists/list/ET4sW5dcS_6HWsverJmwqA">Casablanca Startup Ecosystem Google Map</a></li></ul>

Explore Morocco's growing startup ecosystem with Renew Capital, fueled by tourism, returning diaspora and a stable economy.