<h1 style="text-align:center;">&nbsp;Press Release: Roadrunner Technology Solutions to Expand in Ethiopia</h1>&nbsp;<a href="https://drive.google.com/file/d/1zHV1Spbj3_uXgJvTQyL0-2yt-VKhLeES/view?usp=sharing">Download the Full Press Release</a><hr>Addis Ababa, Ethiopia, March 8, 2022 -- Roadrunner Technology Solutions LLC (Roadrunner), a partner of <a href="https://deliveraddis.com/">Deliver Addis</a> (the d/b/a name of Universal Courier Services PLC), continues to see rising demand for its services and has attracted capital in its endeavor to be Ethiopia’s premier e-commerce and food delivery platform. The company has recently secured an investment from a blended finance vehicle that invests in Ethiopia, Uganda and Rwanda. The investment will help the company expand its delivery fleet, enhance its technology platform, and implement measures and systems to become a leading business in climate- and gender-smart practices.&nbsp;Deliver Addis is a pioneer in the e-commerce space and has been making deliveries in Ethiopia since 2015. Over the past three years, the company has expanded significantly, delivering food to tens of thousands of consumers around Addis. The company also proudly supports more than 130 restaurants and was one of the reasons hundreds of employees in the restaurant industry were able to stay employed during the pandemic. Through its online marketplace, Deliver Addis is now selling groceries, flowers and other consumer goods.&nbsp;<figure class="image"><img src="/uploads/DSC_0080_9599e166a0.JPG"></figure>“We're proud to bring on new partners that share our perspectives on sustainable growth and usher in a new era of service enhancements while continuing to build a forward-thinking workplace,” said Deliver Addis founder, Feleg Tsegaye, recently.&nbsp;“This investment will not only introduce new technology and an expanded fleet to increase Deliver Addis’s capacity, but will also introduce an expanded platform to improve the customer experience and lower delivery times, support women’s entrepreneurship through a new GIG model, and encourage a green economy through the use of E-bikes,” noted JC Oelofse, RENEW’s Group COO, Shared Growth Services. “We are excited about the opportunities this investment will bring and look forward to opportunities to better serve Deliver Addis’s customers.”About&nbsp; RENEW - RENEW is an impact investment firm with offices and teams across East Africa. RENEW specializes in small and medium enterprise (SME) investing and private sector development in Africa. RENEW believes that targeting employment through SMEs is, dollar-for-dollar, the most effective and sustainable way to reduce poverty. The investments made by <a href="https://www.renewcapital.com/what-we-do/investing">The Impact Angel Network</a> and other blended finance vehicles that RENEW manages have been made possible because of RENEW’s partnership with Global Affairs Canada (GAC), USAID and other development partners. RENEW’s blended finance partnerships aim to support high potential, responsible SMEs across East Africa, providing them with the tools, resources and training they need to attract and efficiently use finance to grow, thereby enabling them to play a stronger role in the economy.&nbsp; To find out more, please visit<a href="http://www.renewcapital.com"> www.renewcapital.com</a>.###&nbsp;

deliveraddis.com

Renew Capital Angels invested in Roadrunner Technology Solutions LLC, which partners 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 delivery company.

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Deliver Addis.avif

Roadrunner Technology Solutions to Expand in Ethiopia

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 Press Release: Roadrunner Technology Solutions to Expand in Ethiopia

<h1 style="text-align:center;">RENEW’s Legal Corner: March 2022</h1>Our take on the legal developments related to the investment landscape in Ethiopia, Rwanda and Uganda.<figure class="image image-style-align-center"><img src="/uploads/097_A2814_f27fb82728.jpg"></figure><hr>ETHIOPIAParliament Approves the Proclamation Lifting the State of Emergency &nbsp;Following the push several months ago from the Tigray People Liberation Front (“TPLF”) southwards to the capital, Addis Ababa, the federal government of Ethiopia declared a nationwide state of emergency, which later was enacted by the House of Peoples Representative (“Parliament”) as <a href="http://unidoseoul.org/en/?p=7249&amp;ckattempt=1">Proclamation No. 5/2021</a>. The main aim of the proclamation was to avert the threat posed by the TPLF, which is declared a ‘terrorist group’ by the federal government. Accordingly, a command post was established under the state of emergency proclamation, which was empowered to impose curfews, cause the termination of any means of communication and public transportation, and oversee activities of civil society organizations and activities of mass media and journalists, with the authority to revoke their license, among others. When enacted, the state of emergency had an expiry period of six months effective from the date of enactment, November 2, 2021.However, following the successful push back of the TPLF group to Tigray by the federal government, the Council of Ministers proposed for the state of emergency to be lifted as the threat from TPLF is no longer prevalent. As a result, the Parliament approved the recommendation and lifted the state of emergency on February 15, 2022, before the expiry date. According to the statement from the Prime Minister’s Office, the threat has reached a stage where law enforcement could be implemented by regular operation. The approval came after three weeks from the proposal by the Council of Ministers.The lifting of the state of emergency is seen as a positive development for the business community. Perhaps one of the most significant impacts of the lifting of the emergency is seen on the performance of the Ethiopian sovereign bonds. Following the expression of intention to lift the state of emergency by the government, the Ethiopian bonds witnessed a swing from near-worst to best performing. According to Bloomberg, “Ethiopia’s bonds are the best-performing sovereign debt in emerging markets this year.” The bonds have rallied 6 cents on the dollar following the announcement by the Prime Minister’s Office that the security threat had diminished. That brings returns this year to 13%, the best performance out of 80 developing nations tracked by Bloomberg. As a result of the war, the securities lost 28% last year alone, which was the worst performance after El Salvador.Executive Organs Proclamation Published&nbsp;One of the first tasks undertaken by the newly formed government when it took office on October 4, 2021 was restructuring the executive branch of the Federal Government. During its first session, the newly formed Parliament enacted a proclamation that defines the powers and responsibilities of the executive organs of the government. This has created a number of changes in the structure, from their nomenclature to restructuring their responsibilities and accountabilities. However, despite this being the first act of the Parliament, we had to wait for four months until the final proclamation defining their powers and accountabilities was published in the Federal Negarit Gazette. This month, the printouts of the Proclamation have been made available to the public, which is called the Definition of Powers and Duties of the Executive Organs Proclamation No. 1263/2021.&nbsp;One of the major reasons for the restructuring, per the preambles of the proclamation, is the need to establish an organizational structure that allows coordinated work that is efficient and cost-effective, helps reduce wastage and ensures accountability. Previous laws have not been able to establish an accountable organizational structure and designation of institutions and, as a result, it was impossible to ensure the continuity of institutions and uniformity of designation.&nbsp;Accordingly, the organizational structure has tried to classify government bodies into seven major categories, which are:Ministry - A ministry is led by a minister. It is mainly responsible for formulating sectoral policies, strategies and programs, and related matters and oversees and coordinates its implementation. Accordingly, 22 ministries are established per the proclamation. Major changes in this category are: the Ministry of Trade and Industry is divided into two different ministries, which are the Ministry of Trade and Regional Integration and the Ministry of Industry. In addition, the Ministry of Labour and Social Affairs changed its name to the Ministry of Labour and Skills, which under the new structure overtook the roles and responsibilities of the Jobs Creation Commission.&nbsp;&nbsp;Commission - A commission can be accountable to a Ministry, the Prime Minister’s Office or the Parliament. It coordinates the activities of different executive organs, formulates policies and strategies and oversees its implementation. The Ethiopian Investment Commission and the Customs Commission are the noteworthy organs in this category.&nbsp;Authority - An authority performs a regulatory function, issues standards and ensures their compliance with the same. It could be accountable to a Ministry, however, if there is a potential conflict with the activities of an institution to which it is accountable, it could be made accountable to the Prime Minister or other government organs. The Ethiopian Food and Drug Authority is a regulatory organ to note in this category.&nbsp;Administration or Development - An administration or development organ mainly conducts regular development and infrastructure development activities and oversees the same. One major introduction in this category is the introduction of Ethiopian Investment Holdings as a sovereign wealth fund that is independent of the Public Enterprise Holding and Administration and reporting to the Prime Minister. The Ethiopian Entrepreneurship Development is another organ established, which took over the roles and responsibilities of the Federal Small and Medium Manufacturing Industry Development Agency.&nbsp;&nbsp;Service - This is a new designation for government organs. It is used for institutions that are mainly established to provide centralized services necessary for government organs or provide services mainly to citizens. One of the major introductions under this category is the Documents Authentication and Registration Services, which used to be an agency in the past.&nbsp;Office - An office is an institution established for temporary or permanent purposes under special circumstances to conduct mainly activities that require special attention and institutional arrangement by uniformly coordinating different institutions.&nbsp;Institute - An institute is accountable to the relevant Ministry or another government organ that mainly focuses on training, study, research and consulting services. One of the major introductions in this category is the establishment of the Innovation and Technology Gifted and Talented Development Institute, whose powers are to be defined by regulation.&nbsp;&nbsp;Furthermore, one may notice that the number of executive organs that are accountable to the Prime Minister has increased. There are now seventeen executive organs that directly report to the Prime Minister.English Version of Commercial Code PublishedAs part of the economic reform program and to improve the country’s ranking in the World Bank's Ease of Doing Business ranking, the government started the process of updating the <a href="https://www.wipo.int/edocs/lexdocs/laws/en/et/et014en.pdf">six-decade old commercial code</a>. Accordingly, the Parliament adopted the new Commercial Code under Proclamation No. 1243/2021 (“<a href="https://chilot.me/2021/10/25/proclamation-no-1243-2021-commercial-code-english-version/">New Commercial Code</a>”), which came into effect in March 2021. However, the business community, especially foreign investors, has been waiting to get the printouts of the English version of the code. The wait has come to an end this month. The printouts of the English version of the New Commercial Code were made available to the business community.&nbsp;The New Commercial Code has made several changes to the old one, which principally is associated with its incompatibility with the current state of doing business. Many things have changed during the past six decades which made the repealed code outdated and inadequate to regulate current trade developments. Learn more about the changes <a href="https://www.renewcapital.com/resources/blogs/The%20Commercial%20Code%20of%20Ethiopia%20is%20Changing%20How%20the%20Country%20Does%20Business">here</a>.Parliament Approves the Enactment of the Private Employees Pension Proclamation&nbsp;The Parliament enacted a new <a href="https://chilot.me/2021/12/22/private-employees-pension-_draft_-proclamation/">Private Employees Pension Proclamation</a>. This will repeal the decade-old <a href="https://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&amp;p_isn=89585&amp;p_country=ETH&amp;p_count=141">Private Employees Proclamation No. 715/2011</a> as amended by Proclamation<a href="https://chilot.files.wordpress.com/2017/04/proclamation-no-908-2015-private-organization-employees-pension-amendment.pdf"> No. 908/2015.</a> Adopting the new proclamation is required to strengthen and improve private organization employees' pension schemes and funds to ensure sustainability and reliability, benefit citizens better, and finally expand and consolidate to contribute to social justice, industrial peace, poverty reduction and development.&nbsp;As we understood from the final draft of the new proclamation, it has made some changes associated with the compliance requirements of employers and employees, manner of payment of retirement pension and gratuity. Now the new private employees pension proclamation is adopted, it will come into full effect once published in the Federal Negarit Gazette. We will be providing a detailed analysis of the changes introduced in the future.<hr>UGANDAUganda Declines to Renew Membership with the International Coffee Organization&nbsp;Uganda recently announced a two-year suspension of its membership from the International Coffee Organization (ICO), noting that the country needed to put pressure on the organization to address unreasonable terms in the International Coffee Agreement drawn up for member states, such as the unfair tariffs and restrictions imposed on imports of value-added coffee. According to an article in the East African, Uganda’s other concerns are the coffee price volatility, which it says is threatening the incomes of local farmers and sustainability of the coffee sector, unfair membership votes and contributions, and the increasing role of the private sector in the decision making of ICO, among other issues.The International Coffee Organization is the principal body in charge of fostering cooperation between international coffee exporters and importers. The surprising decision Uganda made to suspend its membership with the international body has left coffee farmers disgruntled especially considering Uganda is currently the second largest exporter of coffee in Africa with coffee comprising 22% of the country’s total exports and has a goal to be the world’s third-largest exporter of coffee by 2025 behind Brazil and Vietnam. The Uganda Coffee Development Authority has maintained that Uganda’s withdrawal from the International Coffee Agreement will not hamper coffee trade and export. Uganda can continue to export, but there are concerns that the withdrawal might limit market opportunities.&nbsp;<hr>RWANDAEALA Receives Key Bills Paving Way for Regional Monetary Union&nbsp;The completion of the discussion of three pertinent laws by the legislative arm of the East African Community (EAC) finally came to an end on March 1, 2022 with a plenary session to discuss the inception of the long awaited East African Monetary Institute (EAMI). The EAMI is charged with establishing the East African Monetary Union (EAMU) to create regional economic integration among the six member states of the EAC (Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda). According to a Rwanda Times article, the bills under discussion are:&nbsp;<ul><li style="text-align:justify;">The EAC Standardization, Accreditation and Conformity Assessment Bill, which will provide for standardization, accreditation and conformity assessment of products traded in the EAC to facilitate industrialization development and trade to make provision for ensuring protection of health and safety of society and environment in the community;</li><li style="text-align:justify;">The EAC Financial Services Commission Bill, which will promote integration of financial systems in the EAC and harmonize regulation and supervisory practices in the non-banking financial sector; and</li><li style="text-align:justify;">The EAC Surveillance Compliance and Enforcement Bill, which will have the function of assessing the attainment of macroeconomic convergence by EAC partner states and to regularly monitor and enforce adherence to the macroeconomic convergence criteria by the participating partner states.</li></ul>These bills are critical to finally establishing the EAMI. The EAMI aims to pick up from where the East African Central Bank left off by issuing a single currency by 2024 as a means of achieving the ultimate goal of regional economic integration. These efforts were stifled last month when members of the Council of Ministers failed to attend or send representatives to the sitting, consequently leading to the postponement of the discussion on major business. The delay in decision making has been a recurrent obstacle in finally realizing all the EAC pillars of regional integration.&nbsp;Photo by Imran Mazar

Our take on the legal developments related to the investment landscape in Ethiopia, Rwanda and Uganda

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RENEW’s Legal Corner: March 2022

<h1 style="text-align:center;">Lets #BreakTheBias for International Women’s Day</h1><a href="https://www.internationalwomensday.com/theme">International Women’s Day</a> (IWD) is fast approaching on March 8, 2022, and this year's theme is “Break the Bias” (#breakthebias). The goal for this year’s campaign aims to turn a spotlight on the gender biases people carry around with them, and to actively move forward to collectively create a world free of bias, stereotypes and discrimination.&nbsp;At RENEW, we aim to encourage ourselves and those around us to examine and change our biases. Below is a video we’ve been sharing during <a href="https://www.renewcapital.com/what-we-do/market-building">The Exec’s Program</a> to help highlight the biases many tend to have. Watch the video, answer the riddle and consider sharing it in your community.&nbsp;<div class="raw-html-embed"><iframe src="https://www.facebook.com/plugins/video.php?height=314&amp;href=https%3A%2F%2Fwww.facebook.com%2Fmindspace.me%2Fvideos%2F550888202442564%2F&amp;show_text=false&amp;width=560&amp;t=0" width="1000" height="562" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share"></iframe></div>&nbsp;

International Women’s Day (IWD) is fast approaching on March 8, 2022, and this year's theme is “Break the Bias” (#breakthebias)

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Lets #BreakTheBias for International Women’s Day

<h1 style="text-align:center;">RENEW’s Legal Corner: February 2022</h1>RENEW’s Legal Corner is designed to keep you updated with the regulatory progress and changes&nbsp;happening throughout the different jurisdictions in which RENEW operates. This month has seen several regulatory changes in Ethiopia, Rwanda and Uganda. Below are the highlights:<figure class="image"><img src="/uploads/097_A9519_bd9d899233.jpg"></figure><hr>ETHIOPIA<h3>The Regulation that Defines the Activities and Structure of the Ethiopian Holding Company Comes into Effect</h3>The Ethiopian Holding Company (EIH) was formed as a sovereign wealth fund by Proclamation No. 1263/2021. On January 31, 2022, the regulation that defines its activities and structure was issued in the Federal Negarit Gazette, which in effect brings the EIH to life. The regulation is cited as “The Definition of Objectives and Function of the Ethiopian Investment Holding Council of Ministers Regulation No. 487/2022.” Below are a few things we learned about the EIH:<ul><li>What is EIH? - EIH is a sovereign wealth fund that holds state-owned enterprises under an umbrella. It is structured as a holding company that holds shares, debentures, bonds and securities in enterprises that are in its ownership. In addition to structuring currently existing state-owned enterprises, EIH will also invest in businesses and investment opportunities as it sees profitable.&nbsp;&nbsp;</li><li>Accountability - The EIH will be accountable to the Prime Minister of the country.</li><li>Legal Status - EIH and its subsidiaries will be considered as private business organizations disregarding the shareholding percentage of the government.</li><li>Objectives - EIH is mainly established for the following reasons:<ul><li>To serve as a strategic investment arm of the government;</li><li>To introduce professional management and best corporate governance practices to maximize the value of government assets; and</li><li>Provide a strategic vehicle to attract foreign investment.</li></ul></li><li>Capital - EIH is established with an authorized capital of 100B ETB (approximately $2B USD).</li><li>Source of Funds - EIH sources its funds from:<ul><li>A pool of state-owned assets administered by EIH;</li><li>Returns and revenues of the investment of its assets;</li><li>Proceeds from the sale of its assets;</li><li>Loans and issuance of transferable securities; and</li><li>Other resources allocated to it and approved by the Board.</li></ul></li><li>Governance - EIH will be managed by a Board of Directors consisting of six members appointed by the Prime Minister of the country. The Prime Minister will chair the Board. Each board member will be appointed for a term of three years, which could be renewed. The Board will have a regular meeting every month.&nbsp; Decisions of the board will be made with a simple majority vote, however, in case of a tie, the chairperson shall have a casting vote. EIH will have a CEO reporting to the Board of Directors, who will have an ex-officio non-voting seat on the Board.&nbsp;</li></ul><h3>AfCFTA Hit an Important Milestone to Enhance Intra-African Free Trade</h3>African intra-regional trade accounted for just 17% of Africa’s exports in 2017 (1). This compares with 59% in Asia and 69% in Europe. However, the African Continental Free Trade Area (AfCFTA), which Ethiopia signed along with 53 other African members and subsequently ratified in April 2019, is projected to increase this figure with a potential to lift 30M people out of extreme poverty (2).&nbsp;The agreement’s purpose is to boost trade, economic growth and integration among African countries. It establishes a free trade area that provides member countries with free access to the markets of other members. For that effect, member states are obliged to progressively eliminate tariffs and similar charges on goods and services originating from member states. This month has seen the member states concluding their negotiation on the ‘rules of origin’. The adopted rules could cover 87.7% of goods on the tariff lines of the AU member states.&nbsp;Although trading under the AfCFTA had started officially on January 1, 2021, the problems regarding rules of origin remained unresolved, making it difficult to identify products that could enjoy the preferential tariff regime under the agreement (3). Now the member states have agreed on 87.7% of rules of origin and once member states publicize these rules at the national level, the free trade area is expected to be active.Once fully implemented, AfCFTA will create the largest free trade area in the world measured by the number of countries participating. The agreement connects 1.3B people across 55 countries with a combined GDP valued at $3.4T (4).&nbsp;<hr>UGANDA<h3 style="text-align:justify;">Uganda and Tanzania Ink Final Oil Drilling and Pipeline Deal</h3>Uganda and Tanzania have agreed on the “final investment decision” in a landmark $10B deal for crude oil production in East Africa. TotalEnergies EP Uganda, CNOOC Uganda Limited, the Uganda National Oil Company (UNOC) and the Tanzania Petroleum Development Corporation (TPDC) will all be working together to develop the East African Crude Oil Pipeline (EACOP) that will cross the ten districts in Uganda. The major oil project that is on Lake Albert is expected to yield significant results that boost the energy and mineral development sector. It will mainly involve setting up oil fields, developing the pipeline network in Uganda and exporting the rest of the oil through Tanzania to the coastal ports. The government has also made several infrastructural improvements to the Albertine region where the oil project is based by constructing an airport in Hoima district and completing more than 700km of the road network. According to an article in FurtherAfrica, government geologists estimate Uganda’s gross reserves at 6B barrels, while recoverable oil is seen at 1.4B barrels (5).<hr>RWANDAIMF says Rwanda’s Economic Outlook is Positive in a January 2022 ReportRwanda entered into a three-year Policy Coordination Instrument (PCI) with the International Monetary Fund (IMF) in June 2019. The PCI is a non-financial instrument that any member of the IMF can utilize. It’s designed to help support member countries implement macroeconomic policies and receive IMF advice and guidance, in an effort to facilitate policy reforms and catalyze financing from other, non-IMF sources. As part of the PCI, the IMF visits Rwanda on an annual basis, holds discussions, collects data and prepares a report on the outlook for Rwanda and progress under the PCI.The IMF released its most recent report in January 2022 following its fifth review of the PCI (6). In the report, the IMF states that Rwanda’s medium-term outlook is positive with GDP growth projected at 10.2% for 2021. The economy had strong improvements in 2021 coming out of the COVID-19 pandemic due in large part to the country’s vaccination efforts, continued government support programs and reopening of economic activities. In the medium term, GDP growth is predicted to gradually slow back to 7.5% (similar to pre-COVID levels). That said, the IMF cautioned that Rwanda must still address several issues stemming from the pandemic - namely protracted unemployment and rising poverty, particularly for women - to ensure the country’s economic recovery continues and that the social and economic progress Rwanda has made over the past twenty years is not lost.&nbsp;Under the PCI, policy recommendations from the IMF included a continued focus on fiscal spending to support social policies and recovery from the pandemic, balanced with advancing growth-friendly policies and safeguarding financial stability. In addition, the IMF noted that continued focus on advancing the Sustainable Development Goals, particularly by supporting human capital and climate change-readiness and adaptation, will be key to enabling a sustainable and inclusive recovery from COVID.&nbsp;&nbsp;<h3 style="text-align:justify;"> Rwanda’s National Budget Increased by 16%</h3>The Government of Rwanda has proposed a 16% increase to the national budget in a revised proposal presented to parliament last week. The approximate $610M increase will be geared towards offering support to public institutions and helping them successfully execute their projects in key sectors such as agriculture, health and education. The government’s expenditure policies in fiscal year 2021/22 are guided by the National Strategy for Transformation priorities and objectives (7) with 58.7% of the resources allocated to economic transformation which includes most of the priority private sector areas such as agriculture, energy, hospitality and financial services.&nbsp; Social transformation takes up 27.2%, catering for access to electricity and clean water. The Minister of Finance and Economic Planning mentioned that he is very confident the increase in national spending from the original $366M to $428M will be beneficial to the economy after carrying out numerous surveys on how Rwanda can mitigate the financial loss suffered during the COVID pandemic. The recovery of the different economic activities across the country will ensure a steady and gradual rise to the country’s domestic revenues.<hr>Footnotes:<ol><li style="text-align:justify;">&nbsp;<a href="https://www.brookings.edu/blog/africa-in-focus/2019/02/22/figures-of-the-week-increasing-intra-regional-trade-in-africa/">https://www.brookings.edu/blog/africa-in-focus/2019/02/22/figures-of-the-week-increasing-intra-regional-trade-in-africa/</a></li><li style="text-align:justify;">&nbsp;<a href="https://www.worldbank.org/en/topic/trade/publication/the-african-continental-free-trade-area">https://www.worldbank.org/en/topic/trade/publication/the-african-continental-free-trade-area</a></li><li style="text-align:justify;"><a href="http://www.xinhuanet.com/english/africa/20220130/fc286d5fb2dd405980a48f06ca489019/c.html">http://www.xinhuanet.com/english/africa/20220130/fc286d5fb2dd405980a48f06ca489019/c.html</a></li><li style="text-align:justify;">&nbsp;<a href="https://www.worldbank.org/en/topic/trade/publication/the-african-continental-free-trade-area">https://www.worldbank.org/en/topic/trade/publication/the-african-continental-free-trade-area</a></li><li style="text-align:justify;"><a href="https://furtherafrica.com/2022/02/02/totalenergies-cnooc-make-final-decision-on-10-bln-uganda-tanzania-oil-project/">https://furtherafrica.com/2022/02/02/totalenergies-cnooc-make-final-decision-on-10-bln-uganda-tanzania-oil-project/</a></li><li style="text-align:justify;"><a href="https://www.imf.org/en/Publications/CR/Issues/2022/01/13/Rwanda-2021-Article-IV-Consultation-and-Fifth-Review-Under-the-Policy-Coordination-511923">https://www.imf.org/en/Publications/CR/Issues/2022/01/13/Rwanda-2021-Article-IV-Consultation-and-Fifth-Review-Under-the-Policy-Coordination-511923</a></li><li style="text-align:justify;">&nbsp;https://www.minecofin.gov.rw/news-detail/government-to-spend-frw-38-trillion-in-2021-22-fiscal-year</li></ol>Photo by Imran Mazar

Updates to regulatory changes in Ethiopia, Uganda and Rwanda: February

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RENEW’s Legal Corner: February 2022

<h1 style="text-align:center;">Enabling Rockstars in East Africa!&nbsp;</h1>Though 59 universities produce fresh graduates every year in Ethiopia, a lack of business etiquette and job skills is seen among many of those who aim to enter the workforce. Even if these graduates have the right academic scores, they often lack mentorships and apprenticeships to prepare for the corporate world.&nbsp;One of the focuses of the Government of Ethiopia with regards to its higher education system is to improve the quality and employability of university graduates. RENEW has designed an internship program, launched first in Ethiopia, with the goal of enabling and preparing fresh university graduates for success in their career paths. Our internship program targets fresh graduates from all regions in Ethiopia giving equal opportunity through a diversity conscious and gender smart selection process. Our aim is that interns at RENEW grow as people and professionally through proper guidance in the right career path.&nbsp;“I am proud of how far I have come. I have met talented, easy going, fun, genuine professionals and a great mentor who wants to help me grow at work as well as my life. I am so grateful for my beautiful and new experience here at RENEW.” – Abigael&nbsp;<figure class="image image_resized" style="width:97.32%;"><img src="/uploads/intern_picture_8a9f4ea213.jpg"></figure> Led by a program coordinator, the internship program takes 6 months, shortlisting 10 excellent candidates from marketing, business and economics, legal, and project management studies every year from universities around Ethiopia. Selected interns are provided with onboarding training, business skill development training (communication, negotiation, presentation, work ethic, professional conduct, etc.). This is coupled with technical or project based “on the job training” according to their fields of study and interest, special mentorship sessions with experienced professionals, team outings and CSR activity participation and dynamic research project assignments for different divisions. Other benefits offered to them are appropriate stipends and medical insurances.“When I saw RENEW's flyer for an internship, my gut feeling told me to apply. It has now been more than 4 months since I joined the program, and I have gotten amazing mentorship from senior members of the team and familiarized myself with the professional space.” – Hermela&nbsp;Interns also get a chance to take The Exec’s Program at The Exchange. They are periodically assessed based on KPIs like implementing disciplines, the progress they made in various areas, qualities of their deliverables and the initiative they show to manage up for the team.&nbsp;“For a new graduate, having a chance to get an internship at RENEW has a special meaning. I got the chance to have a practical outlook on the concepts I learned theoretically in my economics studies at the university. It also enabled me to understand more about my strengths and weaknesses that I should keep and improve for my future career.” - SolomonAs RENEW expands to other countries in Africa, we look forward to seeing our internship program enable and empower the youth to be competitive and confident candidates as well as create further job opportunities by collaborating with reputable local universities.&nbsp;&nbsp;

RENEW has designed an internship program, launched first in Ethiopia, with the goal of enabling and preparing fresh university graduates for success in their career paths.

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Enabling Rockstars in East Africa! 

<h1 style="text-align:center;">CBDC: the Next Big Disruption&nbsp;</h1>&nbsp;Digital currencies generally refer to acceptable means of payment completed through electronic forms. The last couple of years have seen a record number of entrants into the digital currency space, which has largely been dominated by cryptocurrencies, whose value seems to keep rising with every bout of human acceptance. In Africa, monthly <a href="https://www.investopedia.com/terms/c/cryptocurrency.asp">cryptocurrency</a> transfers to and from Africa under $10,000 increased 55% over the past year, reaching a peak of $316M in June (1). Also, according to the 2020 Global Crypto Adoption Index from blockchain analytics firm Chainalysis, South Africa, Kenya and Nigeria are among the world leaders in peer-to-peer cryptocurrency trading (2). Accordingly, Nigeria recorded weekly peer-to-peer volumes between $5M and $10M. Kenya and South Africa followed with an average of between $1M and $2M per week (3).<figure class="image image_resized" style="width:100%;"><img src="/uploads/CBDC_de233e6c9b.jpg"></figure>The statistics above solidifies one thing – <a href="https://www.investopedia.com/terms/b/blockchain.asp">blockchain</a> technology is here to stay! And the reality of this statement begs the question of how we can fully maximize the benefits that blockchain technology brings. Over the last couple of years, the biggest issues on acceptance have centered on two main factors. Firstly, the erratic nature of these cryptocurrencies being mined, and secondly, the unregulated nature of these cryptocurrencies, which is where the Central Bank Digital Currency comes in.The Central Bank Digital Currency (CBDC) is a form of blockchain technology that assumes the benefits of having a digital payment system but is particularly used as a virtual form of a country’s fiat currency. Simply put, it is an electronic record or digital token of a country's official currency. The major difference between this and the regular cryptocurrency is that the CBDC is typically heavily regulated by an individual country’s central bank, given it closely represents the country’s fiat currency. The reality is, central banks across the world now face stiff competition with their country’s currency due to the increasingly rapid nature of acceptance of cryptocurrencies. Currently, there are more than 87 countries exploring the possibilities of having their own CBDC (4).&nbsp;African countries are currently closely monitoring the global trends, with Nigeria now leading the pack to become the first African country to create its own CBDC, effectively becoming only the 7th country in the world to develop its own crypto asset, with the U.S. still in the research stage and China currently in its pilot phase.The importance of these digital currencies in Africa cannot be over emphasized, largely due to some of its benefits, the first of which is its ability to facilitate financial inclusion. For example, according to a report by Enhancing Financial Innovation and Access (EFInA), only 64% of Nigerian adults were financially included, while 36% of Nigerian adults (which translates to 38 million) were completely financially excluded as of 2020 (5). An individual country’s digital currency would typically allow rolling out of the USSD (Unstructured Supplementary Service Data) version of the e-currency as an alternative to downloading the digital wallet for people who do not have access to the internet. This would allow for people without any level of sophistication whatsoever to still be able to use the e-payment system.Secondly, and perhaps most importantly, the CBDC helps to create a relatively easier system of payment. In essence, the CBDC is expected to create a more secure, faster and cheaper means of carrying out financial transactions and currency exchange. This could be a major game changer for cross border trade as it could drastically reduce the cost of doing business with other countries as there are typically no middlemen with blockchain technology. An exciting possibility is the creation of one unique digital currency which can be used for cross-border trade in Africa, with acceptance by other African countries. For years the dream has remained elusive for East and West African regional blocs to create common currencies that will improve trade among member states. This could finally start looking like a not too far reality for the region as a lot of African countries have started showing some genuine interest in blockchain technology, and a willingness to explore its potential benefits. For example, in April, the Ethiopian government confirmed that it had signed a deal to create a national database of student and teacher IDs using a decentralized digital identity solution (6). The deal involves providing IDs for 5M students across 3,500 schools which will be used to store educational records. This deal is perhaps the largest deal to be signed by a government and has been making waves in the crypto-asset industry. Akin to this, Ethiopia has also adopted a Digital Transformation Strategy, where the government explicitly underscored the willingness to adopt a decentralized ledger technology that underpins cryptocurrencies. This is specific to the agricultural sector with the aim of benefiting farmers who are currently getting minimal amounts for the hardest work they put in the value chain. The adoption of the technology will allow traceability of transactions and is expected to force companies to ensure that their farmers adhere to Fairtrade Standards. In addition to the agricultural sector, the country’s Digital Transformation Strategy also incorporates the use of this technology in the tourism sector.In conclusion, Africa may become the next big digital currency market – leapfrogging the migration from cash to credit cards, and moving directly into digital currencies. While the emergence of digital currencies presents several challenges in regards to global adoption, due to its privacy and security concerns, it clearly has benefits that cannot be completely overlooked, especially for Africa. We at RENEW are closely monitoring developments, to ensure we can take advantage of opportunities that these developments may create for the IAN in the not-too-distant future. &nbsp;Reference;<ol><li><a href="https://www.dw.com/en/africas-quiet-cryptocurrency-revolution/a-55199637">https://www.dw.com/en/africas-quiet-cryptocurrency-revolution/a-55199637</a></li><li><a href="https://news.bitcoin.com/ukraine-russia-south-africa-nigeria-cryptocurrency-adoption/">https://news.bitcoin.com/ukraine-russia-south-africa-nigeria-cryptocurrency-adoption/</a></li><li><a href="https://blog.chainalysis.com/reports/2020-global-cryptocurrency-adoption-index-2020">https://blog.chainalysis.com/reports/2020-global-cryptocurrency-adoption-index-2020</a></li><li><a href="https://www.atlanticcouncil.org/cbdctracker/">https://www.atlanticcouncil.org/cbdctracker/</a></li><li><a href="https://efina.org.ng/our-work/research/access/">https://efina.org.ng/our-work/research/access/</a></li><li><a href="https://www.appsafrica.com/cardano-launches-blockchain-deployment-in-ethiopia-with-5m-students/">https://www.appsafrica.com/cardano-launches-blockchain-deployment-in-ethiopia-with-5m-students/</a></li></ol>

The Central Bank Digital Currency (CBDC) in Africa and why we are watching closely 

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CBDC: the Next Big Disruption 

<h1 style="text-align:center;">ANDE Helps RENEW-Backed Company Become Gender-Smart</h1>&nbsp;On December 15, 2021, ANDE announced the winners of the Gender-Smart Investing Capacity Building Facility funds, an activity under the ANDE Gender Equality Initiative (AGEI). RENEW, along with four other organizations, were picked to advance their gender lens investing strategies. The funds, provided by the United States Agency for International Development (USAID), targets investors who are committed to advancing gender equality through investments into SGBs. Each of the five organizations are slated to receive up to $30,000 and support SGBs operating in India, Brazil or the East and Southeast Asia, Andean or Eastern African regions.&nbsp;Learn more about this announcement in ANDE’s recent press release: <a href="https://www.aspeninstitute.org/news/press-release/ande-gender-smart-investing/">ANDE Announces Winners of the Gender-Smart Investing Capacity Building Facility</a>.<figure class="image image_resized" style="width:100%;"><img src="/uploads/desta_713214ebe3.jpeg"></figure>

On December 15, 2021, ANDE announced the winners of the Gender-Smart Investing Capacity Building Facility

Gender Equality

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ANDE Helps RENEW-Backed Company Become Gender-Smart

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

Ethiopia is in the Process of Enacting a Data Protection Act 

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Ethiopia is Moving Towards Data Protection 

<h1 style="text-align:center;">RENEW’s Legal Corner: January 2022</h1>RENEW’s Legal Corner is designed to keep you updated with the regulatory progress and changes&nbsp;happening throughout the different jurisdictions in which RENEW operates. This month has seen several regulatory changes in Ethiopia, Rwanda and Uganda. Below are the highlights:<figure class="image"><img src="/uploads/097_A9432_c96da6175e.jpg"></figure><hr>ETHIOPIA<h3>The U.S. Removed Ethiopia from AGOA Effective January 1&nbsp;</h3>The U.S. removed Ethiopia from the African Growth and Opportunity Act (AGOA) for acting against the AGOA statute with the alleged violation of human rights in relation to the war in the northern part of the country (<a href="https://agoa.info/news/article/15941-us-president-terminates-agoa-preferences-for-ethiopia-mali-and-guinea.html">Link</a>). This is following the impending decision passed by the U.S government in November 2021. However, the act has received a lot of criticism from governmental and non-governmental actors. Critics pointed to the adverse effect of the removal including the thousands of jobs created for female workers throughout the country, especially in the garment industry.Following the removal, the Ministry of Trade and Regional Integration is actively working to find alternative markets for Ethiopian products. During the review of the Ministry’s 100 days performance with the Ethiopian Plan Commission, the need to strengthen bilateral and multilateral integrations has been emphasized.<h3>NBE Amends the Forex Retention Directive and Exporters are Not Going to Like it</h3>The National Bank of Ethiopia (NBE) issued a new directive on the retention and utilization of export earnings and inward remittances. The new directive No. FXD/79/2022 has repealed Directive No.FXD/73/2021, which was issued less than five months ago. This is the third amendment to the directive since March 2021. The new directive has made significant changes, which might not be ideal for the retention of account holders in general and exporters in particular. Below are the major changes introduced:<ul><li>Under the new directive, banks are now required to surrender 70% of the foreign currency earnings to the NBE, either from export or remittance. Under the repealed directive, this requirement used to be 50%.</li><li>Similarly, the exporters or the remittance recipients' right of forex retention declined to 20% of the total export earning or remittance. This used to be 40% under the repealed directive.</li><li>The private banks' share of the earnings stood at 10%, which is similar to the repealed directive.</li></ul>This is expected to significantly slow down exports as most exporters are in the export business to generate forex - a scarce resource in the country. It is widely known that most exporters are originally importers who joined the export business to support their import business by using their forex retention rights.<h3>The Government to Approve a Supplementary Budget of 122B ETB due to the War</h3>The Ethiopian Council of Ministers passed a resolution during its regular session held on December 28, 2021. One of the major agenda items at the Council was approving a supplementary budget proposal submitted by the Ministry of Finance for the 2021/2022 fiscal year (running from July 7, 2021, to July 8, 2022). At the beginning of the fiscal year (July 2021), the government approved a 561.7B birr (approximately $12.9B USD) budget. However, as reported by the Ministry of Finance, the war in the northern part of the country demanded additional expenses, which the government couldn’t cover by shifting the budget.&nbsp;As a result, the Ministry of Finance reported that it has readied 122B birr (approximately 2.5B USD at the current exchange rate) as a supplementary budget for the current fiscal year. The budget will be used to rehabilitate conflict-affected communities and finance necessary government functions. This proposal has been presented to the Council of Ministers and received approval, and will now go to the parliament for final ratification.<h3>The Council of Ministers Approved the Formation of Ethiopian Investment Holdings as a Sovereign Wealth Fund</h3>The Council of Ministers approved the formation of Ethiopian Investment Holdings (EIH) as a sovereign wealth fund that holds state-owned enterprises (SOEs) under an umbrella. Part of the government's economic reform program is to increase public sector finance through enhancing the efficiency, transparency and governance of SOEs.&nbsp;&nbsp;EIH, which is currently under formation, will pool the different government resources to one center and will introduce an efficient corporate governance scheme. This, in return, is expected to increase the government’s revenue and serve as a tool which will contribute to the country’s economic growth and enhance the competitiveness of the economy.&nbsp;The Council of Ministers has reviewed the draft regulation, establishing the EIH, and approved its establishment. Consequently, steps are being taken to operationalize EIH but it will not come into existence until the establishment regulation is published in the Federal Negarit Gazette.<hr>RWANDA<h3>AfCFTA; Rwanda’s Performance A Year Later</h3>Trading commenced throughout the African Continental Free Trade Area (AfCFTA) in January 2021. Member states party to the trade agreement have mandatory duties to adhere to the specific responsibilities under the agreement, such as to progressively eliminate tariffs and non-tariff barriers to trade in goods, progressively liberalize trade in services, cooperate on investment, intellectual property rights and competition policy, settle all disputes concerning their rights and obligations, establish an institutional framework for the implementation of AfCFTA and others. Rwanda has made significant strides in implementing AfCFTA thus far, for instance, setting up a dispute settlement body, among others. Rwanda has also set its eyes on diversification by penetrating other African markets. This will be a huge opportunity for the country after registering a whopping $830M of&nbsp; exports within Africa for the greater part of 2021, representing 56% of total exports.&nbsp;Photo by Imran Mazar

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