Renew Capital is dedicated to helping startups navigate the risks and challenges of geographic expansion in Africa. Through in-depth research, local partnerships, and risk mitigation strategies, Renew Capital empowers startups to expand into new markets with confidence and drive growth.<h1>Entering New African Markets</h1>A quick guide to Renew Capital's strategic market entry support for startups<figure class="image"><img src="/uploads/Map_bca9f0db7b.png" alt="Map of Africa showing the countries where Renew Capital operates, supporting early-stage startups with growth potential in Africa."></figure>Geographic expansion can be an exciting opportunity for startups and their investors to reach new markets, tap into additional customer bases, and drive growth. However, it also comes with inherent risks and challenges that need to be carefully addressed. This is mostly due to the data-deprived environment which characterizes most African markets. At Renew Capital, we are dedicated to helping startups navigate these risks and develop effective strategies for successful geographic expansion for our portfolio companies, driving growth for the companies and increasing potential positive returns for our investors.<h2>Conducting In-Depth Research</h2>Before expanding into a new geographic region, we conduct in-depth research to understand the target market's dynamics, customer preferences, competitive landscape, regulatory environment, and potential barriers to entry. Renew Capital’s team is on the ground in eight African countries including Ethiopia, Kenya, Mozambique, Rwanda, Sudan, Tanzania, Uganda and Zambia.&nbsp;Our ground game provides the research team with insights and knowledge straight from those markets. We conduct customer interviews, meet with regulators and governments, and research existing resources on topics relevant to our portfolio companies. This helps our portfolio companies make informed decisions and tailor their expansion plans to specific market conditions.Also, Read: <a href="https://www.renewcapital.com/newsroom/diving-into-kenyas-startup-ecosystem-with-mwikali-muia" target="_blank" rel="noopener noreferrer">Diving into Kenya's Startup Ecosystem with Esther Mwikali</a>&nbsp;<h2>Developing Local Partnerships and Networks</h2>Our team members on the ground help us to understand and develop local partnerships and networks. We recognize that entering a new market requires a deep understanding of the local culture, business practices, and customer behavior.<h2>Mitigating Risks</h2>Risk mitigation is another critical aspect of our approach. We work closely with our portfolio companies to identify and assess potential risks associated with geographic expansion, such as regulatory compliance, currency fluctuations, political stability, and operational challenges. By developing risk management strategies and contingency plans, we help startups mitigate these risks and ensure a smoother expansion process.<h2>Empowering Startups</h2>Ultimately, our goal is to empower startups to expand into new geographies with confidence. By providing them with comprehensive support, strategic guidance, and access to our network of resources, we enable them to navigate the risks associated with geographic expansion and seize the opportunities for growth.Are you an ambitious entrepreneur seeking to fuel your startup's growth? Apply to be part of&nbsp;<a href="https://venturelab.renewcapital.com/2/">Renew Venture Lab</a> where you’ll receive investment opportunities and expansion support to take your startup to new heights.<a href="https://venturelab.renewcapital.com/2/">Apply here</a>

A quick guide to Renew Capital's strategic market entry support for startups


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Entering New African Markets

Gain insight into the startup scene in Sudan amidst conflict from Nour Tawfig, Renew Capital’s investment and project manager for Sudan, as he shares his unique perspective on the potential of the Sudanese startup ecosystem.<h1>Sudan: Gaining Perspective from Nour Tawfig</h1>Opposing sides in Sudan began fighting earlier this year, uprooting nearly three million people. Almost 700,000 have fled to neighboring countries according to IOM. Renew Capital’s investment and project manager for Sudan, Nour Tawfig, who was born and raised in Sudan and is currently based in Egypt, talks about his journey in investment management and shares his unique perspective on the current situation in Sudan.<figure class="image"><img src="/uploads/new_image_7eb88c9b9d.png" alt="Nour Tawfig, Renew Capital's Sudan Project Manager, discusses Sudan's startup ecosystem and Renew Capital's investment in early-stage startups across Africa."></figure><img>Q. Briefly share your background and how you came to investment management.I have a finance background and have worked in the corporate finance sector, focusing on investments in startups and SMEs. Over the past five years, I have raised funds from angel investors to support startups and SMEs in Sudan mainly through profit sharing models, primarily in agriculture and healthcare industries. I have also been involved in the startup ecosystem by working with accelerators and a Y Combinator-backed startup. Currently, I am pursuing a more structured and institutionalized path in investment management.Q. What industries have been standing out in the local Sudanese ecosystem in recent years?Fintech is a particularly active sector, with startups developing innovative financial products and services such as mobile banking apps and online payment platforms. Agritech is also growing, with startups working on solutions to improve crop yields and promote sustainable agriculture. In addition, ride-hailing, e-commerce, and logistics startups have seen success, capitalizing on the absence of major players like Uber and Careem due to previous sanctions. While the Sudanese startup ecosystem shows great potential due to its young population and abundant resources, more work is to be done in that space as well as the ongoing war and economic instability pose challenges to its growth and stability.Q. What is the current state of the investment scene in Sudan?Before the war, the investment scene in Sudan showed signs of growth with active investors, including local angels, Sudanese venture capital funds, and international venture capital funds, focusing on the startup ecosystem. Fundraising activities had seen significant increases, with some startups raising millions of dollars from various investors. Currently, amidst the war, the agricultural sector is one of the most active areas for investment in Sudan. Efforts are being made to raise funds for agritech startups that can improve crop yields and harvesting, particularly in areas unaffected by the war.Q. What is something that you want people to know about Sudan?Sudan has a rich history and culture and holds the potential to become a great nation. However, realizing this potential requires unity, and setting aside divisions that hinder progress. With 68% of Sudan's population being under the age of 30, recognizing the potential of young people and investing in their education, skills, and leadership capabilities will not only contribute to their personal growth but also enable them to actively participate in nation-building processes.Q. What is one principle you live by that guides your work and life?One guiding principle that shapes both my work and personal life is the commitment to always do what is right, even in the face of difficulties. This principle serves as a compass for making tough decisions, upholding my beliefs, and living a life that fills me with pride. While it may not always be the easiest path to follow, doing what is right is crucial for maintaining personal integrity and cultivating a deeply fulfilling existence.I strongly resonate with the idea that "easy choices, hard life; hard choices, easy life," as it underscores the importance of embracing the challenges that come with making the right choices. By adhering to this principle, I strive to navigate both professional and personal circumstances in a manner that reflects my values and contributes positively to my overall well-being.

Nour Tawfig, Renew Capital’s investment and project manager for Sudan, as he shares his unique perspective on the potential of the Sudanese startup ecosystem.

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Sudan: Gaining Perspective from Nour Tawfig

<h1>Demystifying Investment in Africa</h1>Exploring Capital and Startups in the African Entrepreneurial LandscapeRaising funds can be a significant challenge for entrepreneurs, particularly in Africa's complex investment landscape. As the African startup ecosystem continues to grow, it is crucial to demystify the investment process and understand the factors that influence funding opportunities.<figure class="image"><img src="/uploads/1_df43145fda.png" alt="Webinar featuring Renew Capital co-founder and Badili eCommerce founder discussing African startup funding."></figure>Join us for "Show Me the Money," part of our Demystifying Private Investment chat series on July 11, from 4 pm to 5 pm EAT to gain valuable insights from industry experts on capital trends, types of investors and the types of startups that are receiving funding in Africa.Register&nbsp;<a href="https://share.hsforms.com/1AKSHWrVmQCCaTfd88kfaeAee4rj?utm_campaign=Show%20Me%20the%20Money%20July%202023&amp;utm_medium=email&amp;_hsmi=265114055&amp;_hsenc=p2ANqtz-86psekWA0XZetctov9V4GqyAaBOAdKKeoT_w_TEgKifUDLGPJGhrTcL_Xe088H30MPxosGh5JIYG8GQDkyW_4_xqn3FomFB2CF15MhfUzmmbJHSxs&amp;utm_content=265114055&amp;utm_source=hs_email">here</a>.&nbsp;&nbsp;Key topics to be covered:<ul><li>Capital in Africa: Gain a comprehensive understanding of capital movements and which ventures it fuels. Explore the African investment ecosystem to grasp its dynamics and potential.</li><li>Startup Spotlight: Discover the types of startups that attract capital in Africa. Learn about the key factors that make startups appealing to investors, such as market potential, team capabilities, and innovative business models.</li><li>Types of Capital: Explore the various forms of capital that drive growth in Africa, including venture capital, private equity, impact investments, and grants. Understand the unique characteristics and benefits of each type.</li><li>Investor Insights: Understand the diverse investor types shaping the financial landscape in Africa. Learn about their investment preferences, risk appetites, and strategic priorities. Tailor your strategies to attract the right investors for your startup.</li><li>Fireside Chat: Hear from industry professionals who have firsthand experience in running and investing in startups. Matt Davis, Managing Partner at Renew Capital, and Rishabh Lawania, CEO and Founder of Badili, will share their insights, challenges, and successes in the African entrepreneurial landscape.</li></ul>Register&nbsp;<a href="https://share.hsforms.com/1AKSHWrVmQCCaTfd88kfaeAee4rj?utm_campaign=Show%20Me%20the%20Money%20July%202023&amp;utm_medium=email&amp;_hsmi=265114055&amp;_hsenc=p2ANqtz-86psekWA0XZetctov9V4GqyAaBOAdKKeoT_w_TEgKifUDLGPJGhrTcL_Xe088H30MPxosGh5JIYG8GQDkyW_4_xqn3FomFB2CF15MhfUzmmbJHSxs&amp;utm_content=265114055&amp;utm_source=hs_email">here</a>. Don't miss this opportunity to demystify funding in the African entrepreneurial landscape and take your journey to new heights. We look forward to seeing you there!

Exploring Capital and Startups in the African Entrepreneurial Landscape


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Demystifying Investment in Africa

Esther Mwikali, an investment and project manager in Kenya with a degree in Economics and Finance from Kenyatta University, is highly experienced in Kenya's startup ecosystem. At Renew Capital, she uses her expertise to oversee investment opportunities. Discover more about Mwikali's journey to impact investing and Kenya's entrepreneurial scene.<h1>Diving into Kenya's Startup Ecosystem with Esther Mwikali&nbsp;</h1>Meet Mwikali Muia, a mover and shaker in the startup scene of Kenya. As part of the power team at Renew Capital, she's turned her passion for helping young businesses into a thriving career in impact investing. Join us as Mwikali gives us an insider’s perspective of Kenya's bustling startups and exciting growth sectors.<figure class="image"><img src="/uploads/1679385909972_af9fef563a.jpeg"></figure>Q: What initially sparked your interest in impact investing?A: I had my eureka moment back in 2017 when I joined Meta. As Head of Community, and later as General Manager, I saw first-hand the tough road startups had to walk to connect with investors. That really stoked my curiosity and nudged me toward the investment side of things. I plunged headfirst into books and conversations with seasoned investors to build my knowledge from the ground up. Eventually, I joined Renew Capital, a company dedicated to investing in African companies and supporting their growth. Renew Capital's approach of walking alongside startups and providing genuine support resonated with me. I believe in the impact and potential of these companies, and Renew Capital aligns perfectly with my passion for supporting firms through investments.Q: What is one key aspect or unique characteristic that you believe people should know about when it comes to impact investing in Kenya?A: When it comes to impact investing in Kenya, it's crucial to recognize the country's vibrant and resilient entrepreneurial spirit. Kenyans have a strong determination and a "hustler" mindset, willing to work hard, pivot, and overcome challenges. The people of Kenya embrace innovation and possess a curiosity that drives them to explore new ideas and technologies, leading to the success of startups in sectors like fintech, healthcare, and agriculture. A great example of this is the growth of MPESA. Kenya also has a strong sense of community and trust, which plays a significant role in the investment and startup scene. Collaboration and support are fundamental, with entrepreneurs relying on their networks, family, and friends for initial capital. Moreover, Kenya's commitment to education and continuous learning, along with its strong reading culture, contributes to its innovative and entrepreneurial landscape. Overall, investing in Kenya provides an opportunity to tap into a dynamic market driven by passionate individuals, a sense of community, and a relentless pursuit of success.Q: Which industry or startup scene excites you the most?A: I find the tech-enabled startup scene most exciting, with various industries catching my attention. However, I can't single out a favorite industry because each day I come across different companies that teach me something new. Fintech has been a standout in recent years, but I encounter new and innovative companies every day. Proptech, for instance, fascinates me as they find innovative ways to address the increasing number of apartment complexes and offer affordable housing solutions. While I appreciate the exciting and shiny industries, I also have a deep passion for the homegrown sectors that are essential for our continent's development. Education, healthcare, finance, manufacturing, and agriculture are crucial areas that require innovative solutions to support the growing population and provide quality services to low-income households.Q: Is there something interesting or surprising about yourself that most people would not know?A: I grew up on a farm in Kenya. This experience instilled in me a strong work ethic, responsibility, and adaptability. I developed project management skills by overseeing tasks related to caring for animals. It also gave me a deep connection to nature and a love for the environment.

Kenya's vibrant entrepreneurial spirit and unique characteristics of the investment environment. 

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Diving into Kenya's Startup Ecosystem with Esther Mwikali 

With boundless possibilities and a growing entrepreneurial spirit, Africa's SMEs are driving innovation, creating jobs and paving the way for a prosperous and inclusive future.<h1>African SMEs: Driving Transformation, Empowering Youth and Promoting Equality.</h1><figure class="image image_resized" style="width:100%;"><img src="/uploads/METAD_farm_happy_staff_722528d469.JPG"></figure>Africa is rapidly emerging as the new frontier for business, brimming with immense possibilities and opportunities, with SMEs playing a central role in driving this narrative forward. Lesley Lokko, curator of the&nbsp;<a href="https://www.theguardian.com/culture/2023/mar/26/architect-lesley-lokko-venice-biennale-ghana-africa-wakanda-david-adjaye">2023 Venice Architecture Biennale&nbsp;</a>and prominent entrepreneur who founded the African Futures Institute, eloquently captured the prevailing sentiment in Africa by affirming the widespread belief that "It is our time." This sentiment is resonating across the continent, igniting optimism and resolute determination.Africa's young population and the role of SMEsWith a youthful and dynamic population, Africa has a tremendous opportunity for job creation and economic growth through SMEs. The continent's median age of 19 highlights the potential of its young workforce. SMEs already account for approximately 80% of jobs in Africa, making them critical for socio-economic development. Moreover, by harnessing the entrepreneurial spirit of the continent, young people can actively participate in Africa's progress.SMEs as drivers of innovation and sectoral growthSMEs play a crucial role in&nbsp;<a href="https://www.renewcapital.com/newsroom/africas-entrepreneurial-spirit-innovation-creativity-and-resilience">driving innovation</a> and filling gaps in key sectors. They bring agility and creativity to effectively introduce new ideas and approaches to address challenges. By building successful businesses, African entrepreneurs actively shape the future of their communities and contribute to the overall development of the continent.Empowering women and promoting gender equalityA positive trend across African countries is the increasing involvement and recognition of the pivotal&nbsp;<a href="https://www.renewcapital.com/newsroom/renew-capital-launches-isua-network-for-women">role of women in the business sector</a>. As entrepreneurs, women are stepping forward, demonstrating their readiness to make a positive impact and shape the future of their communities. This progressive shift promotes gender equality by providing women with equal opportunities for economic participation and leadership roles.Supporting African SMEsAt Renew Capital, we recognize the potential of Africa as a thriving hub for businesses. By providing support and guidance to entrepreneurs, we aim to unlock their full potential and pave the way for a prosperous and inclusive future in Africa.

With boundless possibilities and a growing entrepreneurial spirit, Africa's SMEs are driving innovation, creating jobs and paving the way for a prosperous and inclusive future.

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African SMEs: Driving Transformation, Empowering Youth and Promoting Equality

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa.&nbsp;<h1>Top 5 Skills For Aspiring Investment Analysts In Ethiopia</h1><figure class="image"><img src="/uploads/IMG_20230623_WA_0001_43931c8652.jpg"></figure>As the Ethiopian startup ecosystem grows and the investment scene opens up, it's an exciting time for aspiring investment analysts. To capitalize on emerging opportunities, it's essential to develop the following skills:Technical Knowledge&nbsp;As an investment analyst, you need a deep understanding of subjects such as statistics, finance, and economics. Developing multidisciplinary knowledge will be advantageous in the investment field.&nbsp;Data analysisData analysis is a crucial part of an investment analyst’s job. This skill enables you to add value to raw data, providing reasoning and suggestions based on the information gathered. Additionally, mastering tools like Excel, which is commonly used by companies, will prove beneficial.Time ManagementEffective time management is vital for investment analysts. It involves planning and organizing tasks, estimating their duration, and setting deadlines. Utilizing a calendar and mapping out weekly priorities can help you visually track time and ensure that you are meeting deadlines.CommunicationThe ability to convey information cohesively, both verbally and in writing, is essential for investment analysts. It's crucial to tell a compelling story that resonates with your audience. Understanding your audience is key to effective communication.ResearchThe internet is a valuable resource for developing technical knowledge and finding answers to questions, especially when access to education and information is limited. Leveraging the internet effectively will enhance your skills and understanding in the investment field.Developing these skills will help you get started in the investment sector. However, continually honing and combining these skills throughout your career will maximize your potential. For example, blending research with technical knowledge and communication skills can help you create high-value presentations. Remember that these skills require rigorous practice, passion, and discipline. By developing these skills, aspiring investment analysts can contribute to the growth of the Ethiopian investment sector.

Renew Capital's Junior Investment Analyst, Biruk Anteneh, shares valuable insights on the skills needed for a career in investment analysis in Africa. 


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Top 5 Skills For Aspiring Investment Analysts In Ethiopia

On World Refugee Day, join us in celebrating resilience, as we explore the transformative power of investing in refugees and their host communities, driving integration, and building a more inclusive and prosperous future together.<h1>Refugee Lens Investing: Empowering Refugees in Ethiopia&nbsp;</h1>Celebrating World Refugee Day<img src="https://lh4.googleusercontent.com/sHWxhw4wWeiaC9R3o8UcqXfxSM_NwGomieviSeGASh9qRd_dcny9jeX35nbSSDh2vgeKpVeIrUosf_l2NotwHLYTgMQyf5TknQHihHCl24mqJ3irmpqq1wsGpkyEHrO7dGY1ztx33x53GdSgqtC_mCw">Garment worker at a factory near Debre Birhan, Ethiopia. The factory serves international clients supports vulnerable women, including IDPs, refugees and disabled people through training, employment, housing and other benefits. Photo courtesy of Mariah Grubb.Today is World Refugee Day, a day to celebrate the resilience and strength of refugees around the world. It is also a day to raise awareness of the challenges that refugees face and encourage commitment to supporting their long-term integration. Ethiopia is a country that has been welcoming refugees for centuries. While the exact numbers are challenging to ascertain, as of February 2023, Ethiopia was estimated to have&nbsp;<a href="https://reliefweb.int/report/ethiopia/ethiopia-humanitarian-response-plan-2023-february-2023">4.6 million</a> internally displaced people (IDPs). Furthermore, according to UNHCR, there are 916,436 registered&nbsp;<a href="https://data.unhcr.org/en/country/eth">refugees</a> in the country.Refugees in Ethiopia face many challenges, including poverty, lack of access to education and healthcare, and discrimination. However, there are also many opportunities for refugees to rebuild their lives and contribute to their host communities. One way to support refugees is through refugee lens investing (RLI). RLI is a type of impact investing that focuses on investing in businesses that support both refugees and their host communities to enhance integration and improve the overall economic well-being of the community.&nbsp;Additional information about the RLI framework and criteria can be found on the&nbsp;<a href="https://refugeeinvestments.org/resources/refugee-lens/">Refugee Investment Network</a>’s (RIN) website.With Renew Capital’s signature ‘Invest+Impact’ model, we are constantly exploring new and innovative impact investment frameworks and models. This resulted in a recent collaboration with RIN to conduct a landscape analysis and develop a&nbsp;<a href="https://refugeeinvestments.org/resources/creating-a-roadmap-for-refugee-lens-investing-in-ethiopia/">road map for RLI in Ethiopia</a>.&nbsp;Despite concerns that refugees are seen as burdens, Renew Capital's research supports the evidence that they bring significant benefits to host communities. Refugees are hardworking, committed individuals who bring new knowledge, skills, and dedication to the workforce. Integration of refugees fosters inclusive economic growth, cohesion, and stabilization. Cultural exchange and knowledge sharing enrich societies, promoting innovation, understanding, and tolerance.&nbsp;On World Refugee Day, join us in learning more about refugee lens investing and how we can collectively create a more inclusive and prosperous world for all, where refugees are empowered to rebuild their lives and contribute to the growth and well-being of their host communities.

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Refugee Lens Investing: Empowering Refugees in Ethiopia

<h1>Rwanda, a Rising Star in Africa's Economic Landscape</h1>Exploring Rwanda's startup ecosystem&nbsp; <img src="/uploads/IMG_6194_4c08eb0359.jpeg"> Rwanda, the land of a thousand hills, is a vibrant nation with a population exceeding&nbsp;<a href="https://www.worldbank.org/en/country/rwanda/overview">13 million</a> people and an estimated&nbsp;<a href="https://www.worldeconomics.com/Country-Size/Rwanda.aspx#:~:text=The%20official%20estimate%20for%20Rwanda's,in%20puchasing%20power%20partity%20terms">GDP of $32 billion</a> (in purchasing power parity terms) as of the end of 2022. Rwanda has been recognized for its efforts in promoting&nbsp;<a href="https://www.elibrary.imf.org/view/journals/002/2017/214/article-A002-en.xml?rskey=S8MnHZ&amp;result=70">gender equality</a> and has made considerable strides in creating a favorable business environment.&nbsp; In 2023, Renew Capital officially launched operations in Rwanda, a step that strengthens our commitment to&nbsp;<a href="https://www.renewcapital.com/companies">investing in growth-oriented businesses</a> across Africa. In this blog we explore the country’s entrepreneurial landscape, thriving sectors and development strategies.Ease of Doing BusinessThe World Bank's "Ease of Doing Business” report ranked Rwanda 29th in 2019 and 38th in 2020 out of 190 economies worldwide. According to the&nbsp;<a href="https://rdb.rw/rwanda-maintains-2nd-position-in-africa-in-2020-world-bank-doing-business-report/">Rwanda Development Board</a>, the reforms captured and reflected in these four indicators strongly impacted its regulatory business environment.<ul><li>Starting a business: Rwanda has made it easy for people to start a business by offering newly formed SMEs a two-year trading license tax exemption.&nbsp;</li><li>Building permits: Rwanda's ranking in the domain of construction permits experienced a notable jump of 25 points, advancing from 106th position in 2019 to 81st globally in 2020 thanks to the accelerated process for acquiring water and sewage connections and the enhancement of building quality control through a mandatory liability insurance requirement for all construction professionals.</li><li>Electricity supply: The upgrading of Rwanda’s power grid infrastructure has increased the dependability of the country’s electricity supply. This has resulted in an improvement in Rwanda's ranking from 68th to 59th worldwide.</li><li>Contract enforcement: The most remarkable progress was observed in the enforcement of contracts, with Rwanda leaping from the 78th to 32nd place globally. This jump was largely attributed to the introduction of a new small claims procedure and a reduction in court fees.</li></ul>Other additional investment benefits offered by the government include:&nbsp;<ul><li>Free business registration</li><li>Highly digitalized and efficient administration (only six hours to register a business)</li><li>One-stop center for investors with dedicated investment acceleration and aftercare team</li><li>No restrictions on foreign ownership</li><li>No restrictions on capital flows</li><li>Capital gains exemption on sale or transfer of shares</li></ul>Economic Landscape Rwanda's&nbsp;<a href="https://rdb.rw/about-rdb/#overview">investment climate</a> is one of the most attractive in Africa. The Rwanda Development Board (RDB) is playing a significant role in attracting and facilitating investment. RDB's key services include one-stop center services (business and investment registration, visa facilitation, tax incentives management, etc.), investment promotion, investment deals negotiation, tourism and conservation and private sector skills development.&nbsp;Rwanda's&nbsp;<a href="https://www.minecofin.gov.rw/fileadmin/user_upload/Minecofin/Publications/REPORTS/National_Development_Planning_and_Research/Vision_2050/English-Vision_2050_Abridged_version_WEB_Final.pdf">Vision 2050</a> is the country’s long-term development strategy which seeks to transform the country into a knowledge-based, high-income country by 2050. This strategy offers various investment opportunities in sectors such as education, technology, infrastructure and health. Rwanda has made significant&nbsp;<a href="https://www.afdb.org/en/news-and-events/press-releases/africas-economic-growth-outpace-global-forecast-2023-2024-african-development-bank-biannual-report-58293#:~:text=Africa's%20pre%2DCovid%2D19%20top,%2C%20and%20Tanzania%20(5.6%25)">progress</a> toward achieving its Vision 2050 goals, and the country is now considered to be one of the fastest-growing economies in Africa. Major Sectors in RwandaThe&nbsp;<a href="https://rdb.rw/invest/">manufacturing sector</a> in Rwanda is still small but steadily growing at an annual rate of 7%.&nbsp; Rwanda's strategic position aids cross-border trade, particularly within East and Central Africa's estimated 268 million population. This has led to increased trade volumes.&nbsp;<a href="https://rdb.rw/invest/">Key exports&nbsp;</a>include beverages, dairy products, processed food and construction materials.Agriculture is the primary occupation for 70% of Rwanda's inhabitants. The agricultural sector accounts for 29% of Rwanda's GDP. Limited availability of farmland has prompted the nation to prioritize the enhancement of crop productivity, focusing on high-yield produce like maize, potatoes, wheat, beans, peas, cassava and soya.Rwanda has implemented the ICT for Rwanda Agriculture policy (ICT4RAg), with the aim to stimulate cooperation between ICT and agricultural sectors. This collaboration seeks to develop solutions in areas such as weather forecasting, pest and disease management, storage infrastructure, market accessibility, soil health and nutrient analysis, teaching innovative farming techniques, facilitating funding and credit services, and controlling pollution.Gender EqualityRwanda stands out globally for its efforts in advancing gender equality and women’s empowerment, particularly in political participation. The&nbsp;<a href="https://www.worldbank.org/en/country/rwanda/overview">parliamentary elections</a> in September 2018 saw women fill 61% of seats. The&nbsp;<a href="https://www.ipu.org/news/voices/2022-10/how-did-rwanda-become-no1-gender-equality">proportion of women members&nbsp;</a>of parliament is at 61.25% today, way above the current global average of 26.4%.Internet Penetration&nbsp;Rwanda’s&nbsp;<a href="https://datareportal.com/reports/digital-2023-rwanda">internet penetration</a> rate stood at 30.5% of the total population at the start of 2023.Mining SectorRwanda's primary mineral&nbsp;<a href="https://rdb.rw/invest/">exports</a> include tin, tantalum, tungsten ores, as well as some gold and gemstones. The sector offers opportunities in ore processing and diversification. In 2015, mining generated $149 million in foreign exchange.&nbsp;Electricity AccessRwanda has achieved one of the world's fastest rates of population&nbsp;<a href="https://documents1.worldbank.org/curated/en/819241600653622828/pdf/Rwanda-Energy-Access-and-Quality-Improvement-Project.pdf">electrification</a>, increasing from 6% in 2009 to about 54% in March 2020. Globally, Rwanda's electrification progress from 2010-2016 ranked 11th, and third in Africa.<figure class="image"><img src="/uploads/Whats_App_Image_2023_02_20_at_17_00_20_33f6a86db5.jpeg"></figure>Entrepreneurial GrowthRwanda has made great strides in entrepreneurship, with a significant number of startups being launched in the country. The country has put in place strong institutions, a strong judicial system and enacted economic transformation strategies. The ecosystem of enterprise support providers is growing fast, marked by new openings of coworking spaces, incubators, accelerators, universities and youth entrepreneurship programs. The central stakeholders in the innovation ecosystem are primarily putting their efforts toward entrepreneurship education, SME finance and networking opportunities.Rwanda's robust economic growth, ease of doing business, commitment to development strategies and gender equality are among the reasons Renew Capital has opened its doors in Rwanda. As the country continues to make strides toward its Vision 2050, opportunities will continue to expand.&nbsp; At Renew Capital, we're passionate about nurturing growth-oriented businesses. Visit our&nbsp;<a href="https://www.renewcapital.com/companies">companies page</a> to learn more.&nbsp;

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Rwanda, a Rising Star in Africa's Economic Landscape

<h1>Blended Finance: A Key Mechanism for Mobilizing Private Capital for Public Good</h1>Addressing today’s development challenges requires a fusion of creativity and collaboration. That's where blended finance comes in. According to Convergence, blended finance is the use of catalytic capital from public or philanthropic sources to increase private sector investment in sustainable development.&nbsp;<a href="https://www.renewcapital.com/">Renew Capital</a>, an Africa-based impact investment firm, partners with development agencies such as Global Affairs Canada and USAID to achieve leverage through a blended finance model.<figure class="image"><img src="/uploads/IMG_6247_aa8948edf2.JPG"></figure>“Blended finance is critical to achieving sustainable impact in Africa. We're committed to strengthening the investment ecosystem by developing pipeline for investors, organizing local capital and improving the investment environment. We also promote women's economic empowerment and address climate change by helping companies become more climate and gender smart,” says Renew Capital Managing Partner Laura Davis.Renew Capital has implemented its blended finance model in Ethiopia for more than a decade. Here, they share their eight biggest lessons learned in blended finance. These lessons are paving the way for Renew Capital’s rapid expansion across East Africa, and are key for any organization looking to implement blended finance.<h2>A Decade of Lessons in Blended Finance</h2>LESSON 1: FIND A BALANCE BETWEEN MONITORING AND EVALUATION AND REPORTINGImplementers of many blended finance projects face the ongoing challenge of serving two masters which both require robust and specific reporting. Additionally, obtaining timely and accurate financial statements from portfolio companies and other non-investee SMEs required for reporting can become a challenge.&nbsp;&nbsp;Tip:&nbsp;During the planning stage of a blended finance project, be intentional in what you agree to in terms of reporting. Creating alignment and overlap of reporting requirements for your different stakeholders will lessen the burden of monitoring and evaluation during implementation.LESSON 2: PERSIST ON THE OUTCOMES, BE FLEXIBLE ON THE ACTIVITIES AND OUTPUTInvesting in blended finance projects in Africa is a relatively new initiative for government and donor partners. Some approaches that work well in one country may be unsuccessful in another. It’s important to stay focused on the outcomes, remain nimble in the activities and apply lessons learned as you go.Tip:&nbsp;Make sure your donor partner and your investors are flexible and allow you to adjust activities and pivot plans as you begin implementation and apply lessons learned. Be diligent in documenting your failures and reviewing them to extract lessons learned.LESSON 3: DON’T BE AFRAID TO TRY SOMETHING RADICALLY NEWBe willing to try something totally radical. One component of our blended finance project in Ethiopia was to expand our reach to “investment hubs” in larger cities outside of Addis Ababa and to educate SMEs on investing, sourcing deals and creating valuable business networks. Due to unrest, logistics and a lack of local partners in these cities, our efforts had little traction. Instead of continuing down a failed path, we pivoted to a new, radical idea to reach the masses— an edutainment show customized for the Ethiopian culture and aired during prime time on Friday evenings. We soon went from minimal touchpoints in four cities outside of Addis with only a few stakeholders, to millions of viewers. By trying something new we were able to raise excitement for entrepreneurship and the formation of local angel networks.&nbsp;Tip: Be open to trying something radical if the status quo is not working. You may end up unlocking impact at a larger scale than you ever thought possible.LESSON 4: MONEY TALKS WITH POLICY REFORMIn 2022, Renew Capital celebrated 10 years of investing in Ethiopia. “Despite the challenges of investing in Ethiopia, Renew Capital has so far invested in 12 companies here,” says Laura. “This gained us credibility and a seat at the table when the government was updating the investment code and creating the Startup Proclamation. Our track record of bringing Foreign Direct Investment (FDI) into the country allowed us to help influence several changes that will have a significant impact on the future of the investment and entrepreneurial ecosystem.”Tip: Establishing a solid track record in a challenging investment environment can lead to valuable opportunities for influence and collaboration. We believe many African businesses can be attractive investments. If investors have a clear path to invest in them, they will. By blazing this trail, we hope to inspire others to invest in Ethiopia and other emerging markets with confidence and purpose.&nbsp;LESSON 5: STAY THE COURSE, DON’T GET PULLED AWAY FROM YOUR SWEET SPOTAs an investor there is a temptation to pursue grant opportunities or venture into areas beyond one's expertise or investment goals. Social enterprises with an alluring narrative, but no real investment case, can be particularly captivating. Nevertheless, it is crucial to stay focused on investment strengths and avoid sacrificing long-term sustainability for short-term funding and recognition.Tip:&nbsp;It's easy to be distracted by soft funding and grant dollars, but it's essential to remain disciplined with your investment model and focus on longer-term sustainability. Stay the course.LESSON 6: EXTEND THE TIMELINEInvesting in SMEs requires a long-term approach, as realizing impact and growth can take several years. External factors such as market and economic conditions can also impact success. Committing to long-term goals can help overcome these challenges and create greater value over time.Tip:&nbsp;Work with your donor to find ways to either extend the project or the reporting period to get a truer sense of the long-term positive impact of a blended finance model.LESSON 7: 80/20 RULE: FOCUS ON A FEW GROWTH COMPANIES, VERSUS TRYING TO HELP EVERYONENot everyone is meant to be an entrepreneur, and blended finance interventions need to realize this. You’ll figure out quickly which entrepreneurs have the capacity to take on financing and scale.&nbsp;&nbsp;TIP:&nbsp;Be aware that 80% of the impact and results will come from 20% of the SMEs you support under a blended finance model. Focus on the 20% and those who are equipped to grow and create impact at scale.LESSON 8: BE PREPARED TO EDUCATE ALL STAKEHOLDERS, MULTIPLE TIMESBlended finance is still relatively new to some stakeholders and you may need to educate them as they may not fully understand the ins and outs of blended finance.&nbsp;Some of the reporting, forms and requests will make little sense in the greater context in which the project operated. Some in the donor community will say blended finance projects are only making rich people richer. Some SMEs will think of and approach investors as grantmakers. And many investors will be ignorant of Africa’s private sector potential.Tip:&nbsp;Be prepared to educate stakeholders to dispel misconceptions and recognize the potential of the private sector in developing economies.Download Renew Capital’s<a href="https://latest-api.renewcapital.com/uploads/ABG_Program_Overview_and_Lessons_Learned_3ebb258c22.pdf">&nbsp;Accelerating Business Growth Project Report</a> for additional lessons learned from other key stakeholders in our blended finance model.