<h1>Along the Road of Impact Investing</h1>Longtime Renew Capital COO Emily Ziethen Reflects on the Firm’s Ten-Year JourneyA significant amount of change, growth and development can happen over the course of a year, let alone over the course of a decade. It is with pride and a bit of nostalgia that I reflect on the 10 years since my journey to Renew Capital began. It started two years before my arrival at the company with my graduation from Loyola University Chicago, an institution which inspired me to “go forth and set the world on fire.” But my ignition was certainly that of a slow burn - it would take an internship with the U.S. Commercial Service (wherein I first discovered how SMEs can bring about private sector growth) and several years working at a U.S.-based private venture capital firm (wherein I observed how private capital investments can move economies) for me to find the perfect niche for my interests and passion for leaving the world a better place - the field of impact investing.&nbsp;&nbsp;&nbsp;When I first came across Renew Capital in September 2014, my knowledge of impact investing could be best described as basic. I had completed a bit of internet research on the (then) somewhat nascent but quickly burgeoning field of impact investing, and I was immediately hooked on its long-term potential in shifting folks away from the traditional aid paradigm and towards a sustainable approach that could create tangible change.&nbsp;<figure class="image"><img src="/uploads/First_Trip_to_ET_2_efe0285fa5.JPG"></figure>What ultimately convinced me to make the leap was meeting with the firm’s managing partners, Matthew and Laura Davis, and seeing how they were (and continue to be) the living embodiment of Renew Capital’s guiding statements. I was inspired by their vision to build the best and most successful investment firm in Africa and change the way the world sees Africa - from a place of giving to a place of investing. To welcome the challenge of being trailblazers and see opportunities where others see problems. It was a call to action that I simply could not ignore; I joined the team as an investor relations analyst, supporting the growth of the Impact Angel Network (now Renew Capital Angels) and the execution of our blended finance consulting projects.Today, I’m proud to see how much this concept has, in fact, caught fire, as noted in the 12 portfolio companies and thousands of entrepreneurs in Ethiopia, Uganda, Rwanda and beyond that Renew Capital and its Renew Capital Angels have fueled through a combination of capacity training and capital investment.My eight-year anniversary coincides with Renew Capital’s ten-year anniversary on the ground in East Africa and with its rebrand. Last month, RENEW became Renew Capital to better depict its goal of entering half of Africa’s 54 countries by 2027. This rebrand also includes the use of a deeper, more fiery shade of orange in its marketing materials - which symbolically represents the firm’s own journey of change and development. I’ve witnessed Renew Capital grow from a small but steady flame to a virtual wildfire of ambition. And all the while, I’ve seen the firm continue to strike an equitable balance between seeking to generate positive financial and social returns.&nbsp;&nbsp;&nbsp;<ul><li>Renew Capital seeks to create a cadre of&nbsp;“investment-ready” SMEs that are able to quickly scale and become market leaders through a variety of capacity-building training programs (i.e., PE Investment Bootcamp, The Exec’s Program, CFO100 Program, etc.), as well as group and one-on-one coaching.&nbsp;</li><li>Renew Capital seeks to&nbsp;build local ecosystems and&nbsp;crowd-in private investment through the creation of innovative financing structures and mechanisms, educating investors about the opportunities in Africa and ultimately adding “rungs” to the local capital market that are otherwise missing - be it through local angel networks, international angel networks, blended-finance investment vehicles, etc.&nbsp;</li><li>Renew Capital seeks to support&nbsp;gender equality and&nbsp;women’s economic empowerment by encouraging SMEs and other fund managers to create gender-smart SME portfolios by using the newly launched&nbsp;<a href="https://sg2x.squarespace.com/entrepreneurs">SG2X Playbook</a> - a publicly available toolkit for SME investing.&nbsp;</li></ul><figure class="image"><img src="/uploads/ac80aeec_6c9d_4cb2_b08f_2d63de23a50d_668183c6c0.JPG"></figure>Turning Challenges Into Opportunities&nbsp;There are still persistent and well-known challenges that SMEs must face and surmount across the East Africa region, including in Ethiopia. When Renew Capital began operations in Ethiopia in 2012, it was one of the fastest growing economies in the region. However, we believe Ethiopia’s private sector has been and remains constrained from achieving explosive, sustainable growth due to a lack of access to finance and a dearth of well-trained middle managers and executives (i.e., the missing middle, which tends to impact SMEs in particular). These capital and human capital gaps comprise the country’s “missing middle.”&nbsp;At the same time, the country faces an ever-changing and uncertain regulatory environment – Ethiopia's Ease of Doing business score in 2019, a ranking developed by the World Bank, was 159 out of 190. This means the business and investment ecosystem is simply not equipped to help the country's private sector take off and grow, which in turn can disincentivize entrepreneurs and investors from seeking to test and grow innovative business ideas.&nbsp;But what is so exciting about these identified problems is that we can turn them into opportunities. In fact, we are starting to see real indications that the government of Ethiopia is willing to explore the liberalization of the economy. For example, the country’s Homegrown Economic Reform agenda seeks to transform Ethiopia into an industrialized lower-middle-income country by 2025, which the Government of Ethiopia hopes to bring about through “structural reforms [that] aim to address bottlenecks inhibiting private sector growth” and “sectoral reforms [that] aim to address market failures and sectoral regulatory and investments constraints”1. We are starting to see the effects of this change in mindset with the opening of priority sectors to foreign investors, including manufacturing, agriculture and agro-processing, pharmaceutical, textiles and apparel, leather, tourism, information and communications technology, mining and power. The financial services sector has recently joined that list (pending final legislation, the NBE and Council of Ministers have adopted a plan to open it). We can see this change manifest in everyday life, from the growing Addis Ababa skyline to the conversations Renew Capital has with stakeholders in and outside of the country. There is a general excitement and hope for the country's potential that is electrifying to be around.&nbsp;<figure class="image"><img src="/uploads/fe35238d_8ef8_4be7_a741_94fd1292f00a_8364b72036.JPG"></figure>Always Moving Forward&nbsp;The investment and development strategy that Renew Capital is implementing today is not the same as the one we were pursuing eight years ago. In fact, it’s fair to say our current investment strategy has been years in the making. We have been consistently testing ideas, questioning assumptions, validating approaches and learning from our mistakes. That strategy has paid off. As of June 2022, our angel portfolio has received 15 investments from Renew Capital Angels, mobilized $38M in capital and supported just under 3,000 full and part-time jobs across two East African countries. &nbsp;None of this would have been, nor continue to be possible without the support of our development partners – Global Affairs Canada, USAID, MercyCorps, ACDI-VOCA, DAI, AGRA and many others – who have helped support Renew Capital as we have worked to perfect our blended finance (BF) model. For those who are unfamiliar, the purpose of BF is, simply put, to leverage public sector funding in order to crowd in private sector capital that would otherwise not enter into the space (namely, due to the risky nature of the market). As such, Renew Capital’s BF projects generally try to build the local ecosystem through capacity building training programs for executives, managers and owners of SMEs in Sub-Saharan Africa; policy and advocacy work; and capital market formation activities that generate “investment-ready” pipeline and lower the costs of investing for Renew Capital Angels and other interested investors.&nbsp;&nbsp;And it has been such an honor to be part of Renew Capital’s journey these past eight years, helping to design our firm’s strategic approach in how we implement said ecosystem and infrastructure building mechanisms.&nbsp;&nbsp;I am hopeful and I truly believe that Africa is the next investment frontier and that, through concerted and intentional efforts made on the part of the donor and investment communities, we can shift away from the traditional aid paradigm to a sustainable, market- and growth-oriented mindset that is rooted in leveraging public and private dollars to their fullest potential. I believe Africa's private sector is becoming recognized as an engine for economic growth, and that we'll see a thriving and resilient middle class, as well as inspired and successful entrepreneurs creating SMEs generating millions of good jobs for men and women. In a word, I believe Africa's private sector represents real hope for the continent’s estimated 1.4 billion inhabitants.&nbsp; &nbsp;<hr>1) <a href="https://www.mofed.gov.et/media/filer_public/38/78/3878265a-1565-4be4-8ac9-dee9ea1f4f1a/a_homegrown_economic_reform_agenda-_a_pathway_to_prosperity_-_public_version_-_march_2020-.pdf">https://www.mofed.gov.et/media/filer_public/38/78/3878265a-1565-4be4-8ac9-dee9ea1f4f1a/a_homegrown_economic_reform_agenda-_a_pathway_to_prosperity_-_public_version_-_march_2020-.pdf</a>&nbsp;

Longtime Renew Capital COO Emily Ziethen Reflects on the Firm’s Ten-Year Journey

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Along the Road of Impact Investing

<h1>Speaking Up and Stepping Up</h1>A Self-Confidence Seminar by the ARISE Program Helps Women in Agriculture Assert Themselves in Business&nbsp;Women represent a large percentage of the agricultural workforce yet there is a gap in access to finance and training that makes women-led agribusinesses more vulnerable to shocks like COVID-19 and the impact of climate change on farming. In 2021, the Alliance for Green Revolution (AGRA) and Renew Capital partnered up to support women in agribusiness through the&nbsp;<a href="https://www.renewcapital.com/newsroom/ARISE%20Re-Launches%20The%20Last%20Week%20of%20September%202022%20">African Resilience &amp; Investment Series for Women Executives (ARISE) Program</a>, which boosts resilience through capacity building in areas such as business financials; sales and marketing; and investment preparedness.&nbsp;The following is the first in a series of blogs detailing ARISE’s most recent training sessions. The next set of those same sessions kicks off November 16. ARISE encourages women in agribusiness to sign up and to join AGRA’s business management on the&nbsp;<a href="https://value4her.hivebrite.com/">Value4HerConnect</a> portal.&nbsp;Those sessions are listed here:&nbsp;<ul><li>Enhanced Investment Preparedness: November 16</li><li>Enhanced Investment Seminar: November 29&nbsp;</li><li>Confidence, Self-esteem and Ambition Setting Seminar: November 30</li><li>BDS Providers Seminar: December 14 - <a href="https://agra-org.zoom.us/meeting/register/tZIocOurrDwpG9ZFNYZR23g5Y3RDIZGoz_VD" target="_blank" rel="noopener noreferrer">Register Here</a></li><li>Enhanced Pitch Coaching Session: December 15 - <a href="https://agra-org.zoom.us/meeting/register/tZAocemhrjojGNJNu03M_J2WBv4cyF_eNnpZ" target="_blank" rel="noopener noreferrer">Register Here</a></li></ul>While there are always exceptions to the rule, inequitable male-dominated power structures have existed throughout human history, and that has certainly been the case in many African societies. Often, it happens under the guise of benevolent intentions and institutions such as marriage, religion, education, division of labor and protection. Today, despite major growth in the number of women-led businesses on the continent, old attitudes about women’s capabilities and societal roles still take a toll on women's willingness to take risks and make entrepreneurial decisions that can take them to new levels of economic empowerment and leadership. Women participate in and own many agribusinesses in Africa, but their businesses tend to be small and don’t often operate as an alliance.&nbsp;Now, in an effort to mitigate these historic dynamics, entrepreneurial ecosystem builders are focusing on increasing women entrepreneurs’ chances of accessing finance and helping them build on other soft and hard business skills that will, in turn, empower them to scale their businesses.&nbsp;<figure class="image"><img src="/uploads/Confidence_Session_2x_940e30271b.jpg"></figure>“Being on the investment side, it’s unfortunate to see the number of women-led and -owned companies who drop off during the investment appraisal process due to lack of self-confidence,” said&nbsp;Renew Capital senior investment manager Diana Njuguna, who is helping to lead the ARISE program. “It’s time for women entrepreneurs to rise up, articulate their ambitions and take advantage of opportunities that would support their businesses to scale.”One of the new additions to the 2022 course was a preliminary seminar titled Confidence, Self-Esteem and Ambition Setting, hosted by Njuguna and two of Renew Capital’s other African women staffers, Senior Investment Manager Dagmawit Shiferaw and Senior Project Manager Samrawit Geremew.&nbsp;&nbsp;"We want to tell you that believe it or not, support organizations like AGRA, investors like Renew Capital, peers like the men that display more confidence than you in the business arena, have a lot of respect and admiration for you as women entrepreneurs who are consistently pushing multifaceted boundaries and running a business with much potential to impact food security, job creation and economic growth for the continent, so rise to the occasion throughout your entrepreneurial journey,” Geremew told the participants. &nbsp;A Safe Space for Sharing&nbsp;Inversely, a lack of self-esteem can cause an entrepreneur to have trouble accepting feedback, setting boundaries, and taking care of their own needs, all of which contribute to the so-called “imposter syndrome,” in which a qualified and talented individual - usually a woman - doubts their abilities and feels like an imposter, not belonging in the space.“Your success is determined by how confident you are. Business is like a game of sport, so you have to go out and win, and if you are doubting yourself already, then you are less likely to win,” Shiferaw told the group.&nbsp;<figure class="image"><img src="/uploads/LWN_4477_888f08a91c.jpg"></figure>The women attending the session are no strangers to these concepts.“Lack of confidence gives me trouble when I need to speak about my business. I am often overshadowed by people, especially males, who are confident in expressing themselves,” noted Piloya Innocent, the head of the Ugandan agribusiness company Ayandwe Foods, recognizing that women are less likely to put themselves out there by applying for big opportunities or voicing an idea that might get shot down. “I am learning to speak up, and learning along the way where I can.”And while there are real social and political barriers that can hinder women’s success in business, a huge part of rising to the challenge requires mind over matter.“When I look back at the times when I was not confident, I realize it's all in the head, and in the end, it is about reframing our internal conversations with ourselves,” commented Charity Ndegwa, one of the agribusiness owners in attendance. She encouraged the group to remember that they are already doing something great by running these businesses: “We should take up space accordingly.”Toward the end of the workshop, the women were challenged to articulate “ambition statements,” which they can repeat daily as a way of reaffirming their goals and giving them the confidence they need to direct and fully integrate their employees in the company’s mission. &nbsp;Joy Mary Lwanga, owner of Shalom Organic Farm in Uganda, thanked Renew Capital’s trainers with a self-affirmation that simultaneously reaffirmed them.“I am a risk taker, I am ambitious, and I am learning to be confident.” she said.&nbsp;&nbsp;

A Self-Confidence Seminar by the ARISE Program Helps Women in Agriculture Assert Themselves in Business 

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Speaking Up and Stepping Up

<h1>RENEW’s Legal Corner: November 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/097_A2846_254237521f.jpg"></figure>ETHIOPIA&nbsp;Franco-Valuta Beneficiaries Are Expected To Show The Source Of Their Hard Currency Going Forward&nbsp;In April 2021, the Ministry of Finance (MoF) allowed importers to import basic commodities using the Franco-Valuta scheme without any requirement for verification of the source of their hard currency. This decision was made due to the inflation that is impacting the country’s economy. By allowing importers to import basic commodities without complying with the strict banking procedures, it was expected to increase the importation of basic goods into the country. However, in less than a year, the government reversed this decision. Starting from this month, importers are required to show the source of their hard currency to the National Bank of Ethiopia (NBE) to import goods through the Franco-Valuta scheme. The NBE has come up with this decision to control the parallel foreign currency market in the country. According to NBE, beneficiaries of the Franco-Valuta scheme are getting hard currency from the parallel market, and the requirement of verification is expected to alleviate this problem.&nbsp;&nbsp;Ministry of Finance Bans the Issuance of Letters of Credit For 38 Import ItemsThe Ministry of Finance (MoF) has banned the issuance of letters of credit for 38 selected import items. In a circular letter to the National Bank of Ethiopia (NBE), the MoF has ordered the denial of foreign currency issuance for these items, which was made effective on October 17, 2022, and will stay indefinitely. The restriction was imposed on the products as they were not found to be priority items. The prohibition spans a range of items, including processed foods, beverages, artificial jewelry and flowers, bottled water, fruits, carpets, hand and wall watches, human and artificial hair, perfumes, fireworks, bags, umbrellas, seafood, cigarettes, and others. Automobiles imported by private companies are likewise subject to the restriction. This ban will affect the nation both positively and negatively. It will have a detrimental impact on several business communities that are involved in the importation, wholesaling, supermarket business, and retail of the 38 items listed. It also has the potential to increase contraband trade. The prohibition will, however, assist the nation in obtaining foreign currency for imports of high importance, such as medicine and basic commodities, support the expansion of domestic enterprises, and reduce illegal money transfers related to the selected commodities.&nbsp;Trade and Investment Divisional Court Inaugurated in Addis&nbsp;The Federal Court of First Instance officially launched a divisional court solely focused on trade and investment. The court is composed of 11 hearings that deal only with construction, investment, banking, and insurance cases. Five of the hearings under the classification hearing are assigned to commercial matters, and the other five hearings are assigned to banking and insurance matters. The remaining hearing is assigned to deal with construction-related issues. The court is composed of 14 judges and five assistant judges. Although the court was inaugurated this month, the trial was started in June 2022. The bench is anticipated to improve service delivery in issues relating to business, banking, and insurance. Having a separate division court focused solely on trade and investment has a positive impact on enabling businesses in Ethiopia to operate more efficiently and productively by reducing the amount of time and money businesses are required to devote to dispute resolution.&nbsp;<hr>UGANDA<a href="https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166">BLB and FIDA Uganda partnership to prioritize women’s land rights</a>At the recent Legal Aid Open Day held in Luweero, the pertinent issues that arose for discussion during the legal clinics concerning women’s land rights included&nbsp;sensitizing women and youth, who are adversely affected the most during land disputes, about land ownership and offering legal support to these vulnerable groups in order for them to obtain unequivocal rights to their parcels. According to an article in the New Vision, a Memorandum of Understanding between the Buganda Land Board (BLB) and the Uganda Association of Women Lawyers (FIDA Uganda) will purposely be driven towards obtaining justice for women and youth over contested plots of land. Furthermore, emphasis will be placed on securing or registering their tenancies and understanding the different rights that come along with the specific type of tenancy held.&nbsp;This partnership seeks to address pertinent issues such as the certificates of occupancy that are conclusive evidence of ownership and rights to the land. It is also a beneficial partnership with the land board which is entrusted to manage some of the biggest parcels in the Buganda Kingdom. The two parties have a duty to educate the women and youth on their tenancy rights on land which will contribute to the reduction of perennial land disputes in the country.<hr>RWANDARwandan corporate lawyers to play a role in economic growthRwanda is on track to establish itself as a top investment and tourism destination in Africa by providing several incentives and legislative amendments to attract more foreign investments. With that comes a number of transactional agreements and laws that need to be accurately structured in order to ensure compliance with domestic laws and also provide a precedent for other investment agreements. It is essential that the whole entrepreneurial and investment ecosystem realize the role of lawyers in structuring major deals, drawing up laws, amending legislation and facilitating dispute resolution while completing the deal.&nbsp;In a New Times article, Felix Manzi, the Director of the CERTA Center for Law and Innovation, a new initiative with the purpose of blending Rwandan legal expertise with innovation and creation, stated that lawyers play a very pivotal role in Rwanda’s economic prowess. He noted that “the entire African continent is trying to attract FDI” and lawyers should equip themselves with the requisite knowledge to understand certain concepts regarding innovation and creation. He also noted that there may be an evident lack of skilled manpower to deal with legal advice and representation in this field which will consequently lead investors to reallocate their funds to a more equipped jurisdiction like Kenya2.Rwanda needs to train and maintain an efficient and competent legal fraternity that can compete within the East African regional bloc and also handle all the legal related tasks that come along with the rapid rate of growth and development which the country intends to achieve. &nbsp;&nbsp;<hr>1)<a href="https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166">https://www.newvision.co.ug/category/news/blb-fida-uganda-launch-partnership-to-champio-146166</a>2)https://www.newtimes.co.rw/article/2023/news/business/competent-business-lawyers-crucial-in-rwandas-economic-voyage-experts

Our take on developments in the investment ecosystems of East Africa: November

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RENEW’s Legal Corner: November 2022

<h1>World Cities Day: Growing Sustainable Cities through Impact Investment</h1>Innovations like ridesharing apps improve traffic, safety, time management and the environmentAny public transportation user in Kampala, Uganda has gone through it. They head out for work or a meeting, knowing they must plan ahead for busy traffic and other sprawling city logistics. A broken and outdated transportation system is one of the biggest obstacles to getting anywhere or anything done in an efficient fashion, and sometimes it’s downright dirty and dangerous.&nbsp;It’s common for commuters to walk down a muddy footpath following a massive rainstorm to catch the commonly used Ugandan taxi after hours of waiting inline, a 14-seater ride-sharing minibus, only to find issues such as broken windows letting the wet weather pour onto a seat that was already covered with years of dirt and grime. Nobody wants to show up in their work clothes looking damp, dirty and unkept, and it's even harder for people traveling with children in the tropical germ petri dish this mode of transportation can be.&nbsp;In theory, these kinds of taxis are more efficient than regular buses or individual cabs because they are relatively affordable and they go to many parts of the city. However, in a system where drivers are often undertrained, underpaid and under pressure to meet revenue quotas, they tend to overload the vehicles and drive too fast, ignoring traffic laws. It doesn't help that the vehicles they’re driving are often in dangerous mechanical condition. By the time commuters arrive at their destination, they’re likely to show up tired, tattered, distracted and probably even late to their appointments.&nbsp;To round it off, the threat to one's personal security is always a cause for concern. As with many parts of the world, long-standing misogynistic attitudes make women especially vulnerable to predatory behavior, which is largely unmonitored and unregulated in the transportation network. Before boarding, they often take extra precautions such as writing down the license plates and sending them to loved ones, as well as making a mental note of the driver and every passenger with whom they will travel.&nbsp;<figure class="image image_resized image-style-align-center" style="width:74.28%;"><img src="/uploads/World_Cities_Day_9cd762bc99.png"></figure>As cities grow, the pressure on public transport is evident, especially across East Africa, where much of the road network is still under development. October 31st marks the United Nations’ World Cities Day, which aims to promote and inspire action around sustainable urban planning by advancing international cooperation and addressing the challenges created by the rapid growth of cities. This year’s theme is “Act Local, Go Global.”&nbsp;That’s a concept Renew Capital is embracing in Kampala with a recent investment in&nbsp;<a href="https://easymatatu.com">Easy Matatu</a>, a ridesharing app that connects&nbsp;commuters in Africa to safer, more reliable and cleaner transportation, allowing them to book rides in advance on better-maintained minibuses at their closest pick-up location through a mobile app or offline through a USSD code. Easy Matatu also takes alternate routes to avoid the traffic.&nbsp;Andrew Lema and his co-founders created the company while reflecting on their own struggles getting from Kampala’s outskirts to its city center for work. The team realized that they could digitize this part of the economy not only to solve their own need, but to help other public transport users as well.“Eighty percent of transit rides in Kampala and in most African cities happen in informal transport. In Kampala, that’s two million people every day; in Nairobi, that’s three to four million people a day that are using informal transportation,” Lema told Renew Capital.&nbsp;Through their initial market research, the founders discovered that the drivers want a better system as much as the people they transport.&nbsp;<figure class="image"><img src="/uploads/Easy_Matatu_2x_d0836b4fc5.png"></figure>“Once we started speaking with [minibus drivers], we realized that the whole ecosystem is a mess. They pretty much live hand to mouth and all these things affect how they behave,” Lema explained. “We realized that what we needed to do was beyond just building an app that connects people from point A to point B. Public transportation as a whole in Africa's cities needed to be reformed or disrupted, and technology really presented the best tool to do that.”Easy Matatu’s initial engagement with Renew Capital began in April, advancing to an official investment from the firm in August, and Lema confirms this entire process has helped the ride sharing app plan and scale in a quicker, more efficient manner.&nbsp;“Renew Capital is impact driven, and really understands the impact Easy Matatu can have on Africa’s cities, on millions of people, millions of commuters, millions of drivers,” Lema said.&nbsp;A Popular Alternative for Women Riders&nbsp;Easy Matatu’s data already shows that women are among the most common users, and also the ones experiencing the biggest social impact. Eight out of 10 of their repeat riders are women who have embraced the transportation option for its reliability in providing a safe and more convenient ride at a fixed price.&nbsp;“It just eliminates that whole safety issue for us because now I know that there are people looking out for me,” said Pamela&nbsp;Kaliisa, Easy Matatu’s head of customer experience, noting that safer and greater freedom of movement is just one of the ways her company helps to liberate women.&nbsp;Even though Easy Matatu might carry a higher fare than some public transportation, the fixed prices contribute to its reliability, helping her to budget for what she also considers an investment in time gained from a shorter commute. That appeals to African women who generally carry the bulk of childrearing and household duties alongside their jobs.&nbsp;“I can use that time to be more productive in my work or my personal life because I don’t have to stand by the roadside for two hours to wait for a vehicle to take me where I’m going,” she added.&nbsp;Finally, she says she’s excited to be part of a start-up company that deviates from traditional ones by recognizing the value of offering professional growth to workers who are young, female or both.&nbsp;“They truly empowered me,” she said. “This company is open to creating opportunities for people like me.”The Private Sector as a Tool of Sustainable Public TransportationAs for his hope for the future of the transportation industry in Kampala in the next 10 years, Lema acknowledges that the sector will only be managed once the government creates a partnership with private actors for collaborative solutions. Such solutions will mean merging the current informal methods with modern technology to ensure a more efficient system.According to the Uganda Bureau of Statistics, Kampala has a population of up to two million people in the daytime, owing to commuters coming into the city from surrounding districts for formal and informal business and school, among other reasons. It takes but a glance of Kampala during rush hour to note that the threat of over-pollution is imminent, not only from the number of vehicles and motorbikes, but from their mechanical condition as well.<figure class="image"><img src="/uploads/shutterstock_1017679978_20ba2a3f53.jpg"></figure>Despite the complications the sector is facing, the government is continuously improving to meet the needs - and indeed, complement the work - of current actors in the sector, with the goal of furthering improvement in the sector, one small section at a time. This month, Uganda’s&nbsp;Ministry of Science, Technology and Innovation unveiled a plan to invest massively in electric transport, including buses and motorcycles, aimed at driving down emissions.&nbsp;Cities as densely populated as Kampla would need bigger transit options such as metro and train lines to keep up with their growth, but Renew Capital Senior Consultant Andrew Larsen affirmed that electric motorcycles and ridesharing programs&nbsp;can still reduce greenhouse gas emissions and ease travel both within urban areas and in rural communities.&nbsp;“According to the World Bank, 60% of sub-Saharan Africans live in rural areas, but infrastructure is going to grow from the cities out - that’s why electric motorcycles, small trucks and lighter vehicles, which are agile on unfinished or unpaved roads, are an important component for human mobility, small-scale deliveries and creating strong urban-to-rural market linkages,” he said.&nbsp;Investing in transportation will be a consistent area of focus as Renew Capital expands the scope of its work. The firm currently has a presence in Ethiopia, Uganda, Rwanda and Kenya, and it aims to have a presence in half of Africa’s 54 countries by 2027. Easy Matatu, which also hopes to start services in other African countries, was one of Renew Capital’s first transportation investments.&nbsp;“That includes human mobility as well as tech-enabled logistics,” said Larsen, noting that the firm is developing a range of potential investments in partnership with global development agencies such as USAID.&nbsp;“Whereas Easy Matatu makes getting to work, school or other errands safer and more efficient, much can also be done to improve key supply chain issues like last-mile delivery of fast moving consumer goods (FMCG), business-to-business (B2B) logistics and even first-mile transportation.”According to&nbsp;FAO, in sub-Saharan Africa 200M metric tons of food is wasted annually between farmers and consumers. About 18% of that can be attributed to poor logistics solutions. Reducing these logistics-related losses by just one percentage point has the potential to save an additional 2M metric tons of food annually. For context,&nbsp;USAID’s Bureau of Humanitarian Assistance distributed 1M metric tons of food to sub-Saharan Africa in 2021, according to the agency’s annual report to Congress. Improving logistics is not just about building more efficient commercial linkages, it also has the potential to increase food security throughout the continent.&nbsp;“As the continent grows, logistics and transportation represent one of the biggest impediments to Africa’s economic growth, but they also represent the biggest opportunity for private sector innovation, especially because the governments will likely come up short in the near term in infrastructure development,” Larsen said. “They can’t move fast enough to meet the growing demands of the East African transportation sector. We can’t solve infrastructure problems in 10 years or less. These challenges will be overcome little by little. In the meantime the private sector innovators that can develop solutions without immense infrastructure development will be the medium-term winners.”Looking to Africa’s Future&nbsp;For now, Renew Capital is excited to see where tech platforms like this will take Africa’s growing population. With its upcoming plans for expansion to other African cities, Easy Matatu is already embodying this year’s UN World Cities Day motto of acting locally and thinking globally.&nbsp;“What we are doing in Kampala and what we are working towards in other African cities is a solution that can actually help to resolve everything from pollution and congestion to safety, improved income resulting from the defined fixed prices and a better work-life balance that leaves time for one's larger ambitions,” said Kaliisa.&nbsp;&nbsp;

Innovations like ridesharing apps improve traffic, safety, time management and the environment

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 World Cities Day: Growing Sustainable Cities through Impact Investment

<h1>On World Food Day, Renew Capital Reflects on Famine Mitigation</h1>At the intersection of academia, technology and investing, ag experts and companies come together to address shortfalls in food production and distribution, as well as potential growth. Whether she’s comparing satellite imagery to the crops she's traversing with farmers by foot as she heads up the Africa section of NASA's food and agriculture program, talking to her restaurateur-turned-farmer mother about her yields in Uganda, or teaching classes at University of Maryland, in the United States, 2020 Africa Food Prize winner <a href="https://geog.umd.edu/facultyprofile/nakalembe/catherine">Dr. Catherine Nakalembe</a> is constantly thinking about how civil conflicts, the war in Ukraine, trade barriers, disruptions to last-mile delivery and climate change are contributing to a looming famine which could become the worst East Africa has seen in decades. She’s also thinking about the communities behind the related data she’s analyzing.&nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_10_19_at_5_12_42_PM_1_2ec373e657.jpeg"></figure>“These are actual people who have worked so hard, and everything gets completely scorched by the sun or washed away by the rain,” she told Renew Capital. “There are these tools that you could use to predict, to give some sort of guidance, some sort of early warning— two weeks, four weeks, six weeks before.”&nbsp;Used in consultation with government agricultural divisions and farming cooperatives across Africa, her team’s research and tools do precisely that. She applauds the efforts of other African researchers, scientists, and organizations in building out solutions that leverage the insights from satellite data and feed into the goal of greater food production and access.&nbsp;<figure class="image"><img src="/uploads/291146909_huge_a9fb009976.jpg"></figure>On Sunday, the United Nations Food and Agriculture organization will observe World Food Day 2022 with the motto “No One Left Behind.” Renew Capital is taking that day to reflect on how its own work as an Africa-focused impact investment firm can contribute. Renew Capital operates on the premise that the private sector can spark innovation and competition; create more sustainable jobs; lower consumer costs; drive policy change and greater trade; and ultimately have positive, more equitable impacts on the lives of diverse communities. Last month, the firm closed a package of tech and tech enabled companies that included investments in <a href="https://inputi.market/">Inputi</a> and Quest Digital Finance’s <a href="http://akellobanker.com/">Akellobanker</a>, two digital platforms from Uganda embracing and implementing the kind of innovation &nbsp;Nakalembe wants more people to be able to access.&nbsp;Investing in Small Farmers and Rural EntrepreneursInputi is an online marketplace, aggregator and distributor for farm inputs. Through versatile digital platforms, it delivers quality crop and livestock inputs such as fertilizers and pesticides to 1,000 rural agro shops, 20 dairy cooperatives and 12 meat cooperatives, sending them directly to buyers or to regional agro and vet shops at a fixed transportation cost. Inputi is projecting 50% growth in the coming year and, with investment from Renew Capital, it hopes to profile and aggregate input dealers, farmers and farmer groups to provide linkages in trade and to financial institutions and insurance firms.&nbsp;<figure class="image"><img src="/uploads/Inputi_5_d6607c024c.jpg"></figure>“We cannot eliminate famine caused by climate change, but we can mitigate that by improving food distribution systems,” Inputi chief executive officer David Lukwago told Renew Capital. “The private sector plays a critical role in building efficient, effective and sustainable means to move food from one point to another point where the food is needed. Sustainability can be achieved if the private sector is fully empowered and brought to the table of food security.”&nbsp;Nakalembe believes an input platform like this one can be faster and more efficient than systems coming from the government because they are less encumbered by bureaucratic red tape and are driven by consumer demands.&nbsp;“You could explore one thing and try it for a few months, and if this doesn't actually turn out to be working really well, a company has that flexibility to reevaluate their model,” she said, noting that regular outreach into the communities through organizations such as farming cooperatives can be key to building trust and setting up a system where both sides inform each other of latest trends and best practices in their business models. In fact, she noticed in her own in-person field visits that farmers thrive on opportunities to share with each other about what crops are proving to produce the highest yields or offer the most nutrition.&nbsp;Eventually, Inputi hopes to do exactly that. As it stands, farmers are essentially telling suppliers what fertilizers or pesticides they need by what they end up requesting, something that in time could lead to higher quantities of organic inputs, Lukwago says. At the same time, they’re trusting that the platform will give them reliable information about when those inputs will hit the agri shop closest to them so that they don’t waste precious time and fuel trying to get there, only to come up empty-handed. Early warning sign data is also on the horizon, and that could be instrumental in helping farmers shift what to grow or how much to store, versus how much to send into the broader market.&nbsp;Over the coming 10 to 20 years, the next one billion people will be on the African continent, said Lukwago, referencing the region’s rapidly growing population. “Demand for food is going up but food productivity is actually declining. The only way to solve this problem is to bring technology onto smallholder farms to help us leapfrog all these other broken pieces along the value chains.”&nbsp;<figure class="image"><img src="/uploads/273131299_789512975326040_4991063558167214495_n_06e58c53b4.jpg"></figure>But it’s impossible to move forward with buying many inputs without the credit to do so. That’s where products like Akellobanker come in. Run by Ugandan tech company Quest Digital Finance, this platform helps&nbsp;savings and credit cooperatives (SACCOS) and micro-finance institutions to digitize reporting and accountability records that de-risk small farmers, making it easier for them to obtain formal bank accounts and the larger options for credit that come with them.&nbsp;Akellobanker hopes to eventually deliver bundled products and services to farmers and entrepreneurs and other value chain actors on credit. Renew Capital’s investment will help Akellobanker expand its reach to more than 100 cooperatives serving over 100,000 farmers and micro, small and medium enterprises (MSMEs) in Uganda. Akellobanker hopes to integrate over 350,000 farmers and entrepreneurs into the digital economy and use data to deliver desired products and services on credit.Breaking with traditional banking and lending, which has a high barrier to entry throughout Sub-Saharan Africa, Akellobanker team lead Jean Onyait says this platform makes the financial sector more accountable to consumers.&nbsp;“If you look at finance 10 years ago, commercial banks were the owners of financial inclusion. But five years ago, fintech— small financial technology companies—came over and showed banks that we were able to break through places they weren’t reaching,” says Onyait. “That’s breaking a monopoly and creating healthy competition, which goes a long way in reducing prices and making services much more affordable for the local communities.”Partnering Up for Greater Training and Information SharingOne of the ways Renew Capital sets itself apart from other investment firms is that it blends money from its Renew Capital Angels network with funding from multilateral institutions and government agencies, such as the U.S. Agency for International Development (USAID) and the Government of Canada, to test different strategies for better business; mobilize capital for SMEs and the missing middle; and ultimately shift policy making toward investment in SMEs as the agents of change in advancing international development goals. At the same time, Renew Capital bolsters this effort by partnering with non-governmental agencies to develop and deliver robust executive business training, private equity training and one-on-one coaching sessions to prepare SMEs to receive financing and grow into market leaders.&nbsp;The non-profit organization the Alliance for Green Revolution in Africa (AGRA) partners with Renew Capital to provide the firm’s executive training to African women in farming. The upcoming Enhanced Accelerated Women Exec’s Training, to be facilitated in partnership with Renew Capital and AGRA, begins on October 17 and ends on October 21. The five-day training aims to help female agri-business owners learn how to create a disciplined accounting and financing function; how to generate, read and analyze financial statements; and how to manage a 13-week cash flow. It will also help them understand the core components of and the differences between topics such as marketing and sales functions.AGRA’s Head of Partnership Jennifer Baarn, who works in Africa and represents the diaspora by way the Caribbean nation of Suriname, manages the AGRA Africa’s premium Food Systems Forum. She says these trainings are key to helping entrepreneurs not only navigate their businesses but the entire agri-investment ecosystem in which they are trying to produce and distribute their food products.&nbsp;Part of her job is to help AGRA stakeholders be they government agencies, multilateral institutions, non-governmental organizations and impact investment firms recognize that private enterprise encompasses a wide array of activities.“When it comes to private sector, we often think about big multinationals and well-established retail chains. But in essence, everybody who puts their own capital and equity at risk is in the private sector, isn’t it?” she says. “So our small smallholder farmers, small traders and transporters -&nbsp; the middle men, small-skill processors or even vendors on the side of the road with their frying pans full of mandazi (fry bread).”&nbsp;Investing for Immediate and Long-term ImpactBaarn’s colleague,&nbsp;<a href="https://agra.org/zt_team/dr-jean-jacques-mbonigaba-muhinda/">Jean Jacque Muhinda</a>, a Rwandan agricultural engineer and soil scientist who serves as AGRA’s East Africa regional head, says investments in areas like food production and distribution cancontribute to stabilizing regions even as they are facing internal conflicts.&nbsp;“Some of these local conflicts emerge because of a lack of opportunity, such as a lack of employment opportunities for young people, a lack of resources and a lack of equity and inclusivity,” said Muhinda. &nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_10_14_at_9_49_38_AM_6949fb74f5.jpeg"></figure>And while one country in a geographic region or one area within a country may be facing a food shortage, another country or region might have a food surplus. Investments in the right planning tools and last-mile delivery services can help to balance those scenarios. This month, for example, the news media has been reporting on famine in Somalia and parts of Uganda, but the United States Department of Agriculture reported that Ethiopia is now the second largest producer of wheat on the continent, after Egypt.&nbsp;“I've been reflecting with my organization and my colleagues trying to understand really why we Africans and African countries, especially in East Africa, are affected by a conflict that's taking place 7,000 kilometers away,” said Muhinda, referring to a shortage in grain and wheat imports due to the conflict in Ukraine, one of the world’s largest wheat exporters. “This is a wake up call. In the next four or five years, Ethiopia can be self-sufficient in terms of wheat, rice and oil seed production. It also has the potential for feeding the rest of the countries in the region in a value chain where they have comparative advantage.”<figure class="image"><img src="/uploads/INPUTI_IMAGES_29_e0fe6e4a83.jpg"></figure>All of these advances align with Renew Capital’s ambitious goal of promoting growth in small and medium enterprises across half of Africa’s 54 countries by 2027.“With blended finance commitments in place to fund Renew Capital for the next seven years, the timing is right for the firm to make a big push forward,” Renew Capital co-founder and chief executive Matthew Davis said.&nbsp;“We strongly believe Africa’s private sector is the future of the continent, and we are more committed to our mission to grow companies, build nations and leave a legacy than ever,” managing partner Laura Davis said.&nbsp;– Don’t miss the upcoming&nbsp;<a href="https://agra-org.zoom.us/meeting/register/tZEpdOGgrTMoH90mY1F3qvShTQW-UhzrO_UY">Enhanced Accelerated Women Exec’s Training</a>, to be facilitated in partnership with Renew Capital and AGRA October 17 to October 21. &nbsp;

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On World Food Day, Renew Capital Reflects on Famine Mitigation

<h1>Press Release: Quest Digital Finance Connects the Unbanked to Formal Credit Systems</h1>Renew Capital Angels invests in the firm’s Akellobanker platform for financial inclusion and agricultural growth&nbsp;<a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Akellobanker_0c77041f0e.pdf">Download the Full Press Release</a>&nbsp; Kampala, Uganda, October 14, 2022 – Uganda is home to 25 commercial banks, four microfinance deposit-taking institutions (MDIs), three credit institutions and more than 300 non-deposit-taking microfinance institutions (MFIs). However, according to the 2018 Finscope Survey, which is published by the think tank&nbsp;Financial Sector Deepening Uganda, an estimated 89% of the adult population is still “unbanked,” meaning that they don’t have an account with a formal banking institution. Not only that, the economic data collection website Trading Economics estimates that 74.45% of Uganda’s 45.7 million inhabitants live in rural areas.<figure class="image"><img src="/uploads/273131299_789512975326040_4991063558167214495_n_715387d09e.jpg"></figure>Lacking access to banks and the credit they offer hinder these populations’ ability to access the basic commodities and resources needed to build successful businesses. And yet, these days smallholder farmers and other entrepreneurs in rural and periurban Uganda are finding it’s not the plow, but rather the smartphone, that goes before the horse. Quest Digital Finance, a Ugandan tech company, is changing that by placing the power of banking and service delivery in the palms of the farmers and entrepreneurs using its digital platforms.&nbsp;The platform enables SACCOS (Savings and Credit Cooperatives) and micro-finance institutions to achieve end-to-end digital transformation and hence, improve reporting and accountability which derisks these entities. Consequently, they are able to access credit from financial institutions. Akellobanker hopes to eventually deliver bundled products and services to farmers and entrepreneurs and other value chain actors on credit.&nbsp;Renew Capital, an impact investment firm growing small and medium-sized businesses in East Africa through its Renew Capital Angels investor network, is now furthering that effort by providing the funds Akellobanker needs to expand its reach to more than 100 cooperatives serving over 100,000 farmers and micro, small, and medium enterprises (MSMEs) in Uganda. Akellobanker will focus on its digitization agenda of integrating over 350,000 farmers and entrepreneurs into the digital economy and using data to deliver desired products and services on credit.&nbsp;“If you look at finance 10 years ago, commercial banks were the owners of financial inclusion. But five years ago, fintech—small financial technology companies—came over and showed banks that we were able to break through places they weren’t reaching,” says Jean Onyait, Akellobanker’s team lead. “That’s breaking a monopoly and creating healthy competition, which goes a long way in reducing prices and making services much more affordable for the local communities.”“The market potential and long-term commercial viability of Akellobanker attracted Renew Capital, particularly as the need to access finance increases,” says Renew Capital Head of Shared Growth Services JC Oelofse. “Developing a digital platform that aggregates financial data generated by the unbanked to provide easy access to credit is a key lever of growth in the informal sector. This credit from financial institutions facilitates sales of inputs to grow the informal economy and brings a well-defined impact case.”&nbsp;&nbsp;About Renew CapitalRenew Capital is an Africa-focused impact investment firm that backs innovative companies with high-growth potential. With a presence in Ethiopia, Rwanda and Uganda, Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact. Since the establishment of the network in 2012, the Angels have been actively investing in the region, mobilizing millions of dollars into Africa's middle market.&nbsp; &nbsp;

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Quest Digital Finance, under the name AkelloBanker, deploys digital platforms that foster digital access to agri products and services on credit for millions of low-income earners. The company’s platform facilitates sales of inputs, provision of advice to farmers on agronomical practices and aggregates farmer data to facilitate provision of credit from financial institutions.

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Renew Capital Angels invests in the firm’s Akellobanker platform for financial inclusion and agricultural growth 

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Press Release: Quest Digital Finance Connects the Unbanked to Formal Credit Systems

<h1>Press Release: Inputi Receives an Investment to Grow Smart Technology for Food Security</h1>Renew Capital Angels want to see the private sector put more food on African tables.&nbsp;<a href="https://latest-api.renewcapital.com/uploads/FINAL_Press_Release_Inputi_00cfaad0fb.pdf">Download the Full Press Release</a>KAMPALA, Uganda, October 11, 2022 —Food security. It’s a challenge in many parts of the world, especially as global supply chains break down and environmental imbalances leave lands barren. The Ugandan tech company Inputi is improving the odds in its region with funding from Renew Capital, an impact investment firm growing small and medium-sized businesses in East Africa through its network of investors, Renew Capital Angels.&nbsp;Inputi is an online marketplace, aggregator and distributor for farm inputs. Through versatile digital platforms, it delivers quality crop and livestock inputs such as fertilizers and pesticides to 1,000 rural agro shops, 20 dairy cooperatives and 12 meat cooperatives, sending them directly to buyers or to regional agro and vet shops at a fixed transportation cost. Inputi is projecting 50% growth in the coming year and, with the Renew Capital investment, it hopes to profile and aggregate input dealers, farmers and farmer groups to provide linkages in trade and to financial institutions and insurance firms.<figure class="image"><img src="/uploads/INPUTI_IMAGES_24_2000px_f11f0a57a9.jpg" alt="Two farmers offloading fresh agricultural produce from a lorry in Kampala, Uganda, showcasing local farming practices and food distribution."></figure>“We cannot eliminate famine caused by climate change, but we can mitigate that by improving food distribution systems,” says Inputi chief executive officer David Lukwago. “The private sector plays a critical role in building efficient, effective and sustainable means to move food from one point to another point where the food is needed. Sustainability can be achieved if the private sector is fully empowered and brought to the table of food security.”&nbsp;“We are excited about the end-to-end value chain connectivity solution for crop and livestock farmers that Inputi is building. This solution delivers agri inputs to the farmer at an affordable cost while providing farmer-centric training to create a thriving agricultural ecosystem sustainably,” says Renew Capital Head of Shared Growth Services JC Oelofse.

inputi.market

Inputi is an online marketplace serving individual farmers (directly or through agro/vet shops), cooperatives, buyers and processors. The Company delivers quality crop and livestock inputs at a fixed transportation cost, and also profiles and aggregates input dealers, farmers and farmer groups to provide linkages.

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Renew Capital invests in Inputi, a Ugandan agritech startup enhancing food security by connecting farmers with vital agricultural inputs through an innovative online marketplace.

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Press Release: Inputi Receives an Investment to Grow Smart Technology for Food Security

<h1>Renew Capital’s East Africa Investment Survey Results</h1>At Renew Capital, we believe that Africa's economic potential hinges on its ability to develop and expand its small and medium enterprises (SMEs), especially as it rolls out its African Continental Free Trade Area.&nbsp;In an effort to confirm gaps and needs for entrepreneurs, Renew Capital launched an&nbsp; East Africa Investment Survey recently. The responses from more than 300 companies across the region confirmed that Renew Capital’s gender-smart ecosystem-building work remains crucial and is helping us further refine our capacity building efforts.&nbsp;The top three findings from the survey are:<ul><li>Women-owned Company Growth Lags Behind -&nbsp;The survey showed that female entrepreneurs continued to lag behind their male counterparts in building high revenue companies.&nbsp;Male-owned companies in the sample were able to hire more employees and began experiencing higher revenues at an earlier phase. While majority female-owned companies appeared to catch up as they grew, they fell behind in revenue again by the time they reached maturity.&nbsp;</li><li>Companies are Missing Regional Trade Opportunities&nbsp;-&nbsp;Approximately half of the companies in the sample have yet to take advantage of the broader regional market through cross-border trade. In addition, SMEs reported difficulty accessing capital and&nbsp;consistently reported access to markets as one of the most significant barriers to growth. Infrastructure issues and skilled management were also frequently reported as primary barriers to growth.&nbsp;</li></ul><figure class="image"><img src="/uploads/Regional_Trade_by_Country_fa0255669d.png"></figure><figure class="image"><img src="/uploads/Barriers_to_Growth_0c47a7fb64.png"></figure><ul><li>No Surprise, Entrepreneurs are Optimistic&nbsp;-&nbsp;Despite these barriers, entrepreneurs remained optimistic about the economic outlook. Most companies expressed a basic level of security about economic prospects within their countries as well as across the region. Even politically, few companies predicted that the economic situation in their country or region would deteriorate.</li></ul><figure class="image"><img src="/uploads/Regional_Economic_Outlook_444d1991db.png"></figure>&nbsp;Survey respondents were asked questions along six dimensions: Access to Capital; Growth and Trade; Gender Equality; Climate/Environmental Sustainability; Management Capacity; and Outlook on the Future. Respondents include 323 unique companies that have headquarters in Ethiopia, Kenya, Rwanda,&nbsp;Tanzania, Uganda and Zambia. The full results are available&nbsp;<a href="https://renew-new-api.madtechet.com/uploads/Investment_Survey_Report_Aug_2022_34abc5dac8.pdf" target="_blank" rel="noopener noreferrer">here.</a>“Surveys like this are integral to Renew Capital’s decade-long effort to refine our management capacity building offerings, support ecosystems and grow the missing middle of the African economies,” said Renew Capital Managing Partner Laura Davis.&nbsp;This blog post and the August 2022 East Africa Investment Survey report were authored by Raisa Chowdhury, senior consultant and monitoring and evaluation lead.&nbsp;

Survey Results  confirm need for capacity building, additional support for women entrepreneurs and an opportunity for regional trade.


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Renew Capital’s East Africa Investment Survey Results

<h1>RENEW’s Legal Corner: October 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/LWN_6417_94da49e087.jpg"></figure>ETHIOPIAEthiopia Positions to Open The Banking Sector To Foreign Investors&nbsp;The Ethiopian Council of Ministers approved the draft policy on opening the banking sector to foreign investors. In Ethiopia, the finance sector, which includes banking, insurance, and microfinance, has been among the protected areas closed to foreign companies. The government of Ethiopia has decided to amend laws to allow foreign investments in the country’s banking sector. Once the new policy is published, the preparation of other legal frameworks like proclamations, regulations, and directives will follow. The NBE is already revising the existing banking business proclamation, and the long-lasting Banking Service Code is also expected to be amended accordingly.&nbsp; The newly approved policy allows foreign banks to enter using four commercial modalities. Foreign banks can open subsidiary arms in Ethiopia, open branches in Ethiopia, and will also be allowed to acquire shares in existing local banks. Based on this policy, foreign banks can acquire up to a 30% direct stake in local banks. Foreign individuals are allowed to acquire up to 5% and foreign non-bank investors are allowed to acquire up to 5% in any local bank. However, the policy excludes insurance and microfinance from the scope of activities open to foreign investors. The change Ethiopia is making in opening up the sector to foreign investors will enable it to support the sector’s services with technology, enhance the networking of the country’s economy with the international market, improve the forex shortage, and strengthen the competitiveness and efficiency of the finance sector.&nbsp;A New Limit On Birr And Forex Holdings Is Introduced&nbsp;The National Bank of Ethiopia (NBE) has issued a directive to limit the amount of birr and foreign currency held in the territory of Ethiopia. The Directive FXD/81/2022, entered into force on September 5, 2022, states that it has become necessary to limit the Birr holding amount for a person entering into and departing from Ethiopia, and sets conditions, limitations, and circumstances under which an Ethiopian, a resident of Ethiopia, and a non-resident or any other person may process and utilize foreign currency. According to the Directive, a person entering into and departing from Ethiopia may hold up to a maximum of Birr 3,000.00 (Birr Three Thousand) per trip to and from Ethiopia, and a person residing in Ethiopia entering the territory of Ethiopia shall convert all foreign currency he/she is carrying at an authorized forex bureau for the equivalent sum in Birr, or deposit to his/her foreign currency account within 30 days of entry to the territory. The directive also sets a time limit for holding and conversion of foreign currency for foreign nationals of Ethiopian origin or Ethiopian nationals not residing in Ethiopia who enter into the territory carrying foreign currency.The Government Has Introduced A New Directive For Imported Personal AppliancesThe Ministry of Finance has introduced a new Directive regarding taxation of personal appliances (i.e.,&nbsp;<a href="http://www.ecc.gov.et/web/guest/%E1%88%98%E1%88%98%E1%88%AA%E1%8B%AB%E1%8B%8E%E1%89%BD/-/document_library/iqHSSioaLJqF/view_file/911902?_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_iqHSSioaLJqF_redirect=http%3A%2F%2Fwww.ecc.gov.et%2Fweb%2Fguest%2F%25E1%2588%2598%25E1%2588%2598%25E1%2588%25AA%25E1%258B%25AB%25E1%258B%258E%25E1%2589%25BD%3Fp_p_id%3Dcom_liferay_document_library_web_portlet_DLPortlet_INSTANCE_iqHSSioaLJqF%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview">Personal Appliances Import Directive No. 923/2022</a>, hereinafter the “Directive”) this month. This directive is more restrictive on importation of personal appliance goods compared to the previous law. The categories of goods which have duty and tax-free privilege are reduced from 102 categories to 16 categories under the new law. In addition, persons who accept a personal appliance as a gift shall pay a 30% income tax if they do not have a tax identification number. Furthermore, individuals are not allowed to receive a personal appliance product more than two times in a year. The Directive mentions the main purpose for the amendment is to fight illegal activities which are impacting the import trade negatively and the introduction of this Directive is expected to alleviate this problem.&nbsp;NBE Has Come Up With A New Insurance Directive&nbsp;&nbsp;The Ethiopian government is introducing big changes to the financial sector.&nbsp; Recently, the fintech and banking sectors have opened for the private sector and foreign investors. In September, the National Bank of Ethiopia (NBE) came up with another big move which greatly impacted one of the financial sectors in the country, the insurance sector. NBE introduced a new directive for insurance companies. Under&nbsp;<a href="https://nbebank.com/wp-content/uploads/pdf/directives/insurancebusiness/scan0054.pdf">Minimum Paid-Up Capital for an Insurance Company Directive No. SIB 57/2022</a> (hereinafter the “Directive”), the minimum paid up capital for new insurance companies has increased to ETB 400 million from the previous ETB 60 million amount. In addition, the Directive introduced provisions which impact the current operating insurance companies and new businesses which will join the sector. Increasing competition in the sector and enhancing the retention capacity of insurance companies are mentioned as the key rationales for introducing the new Directive.&nbsp;&nbsp;&nbsp;The Agricultural Sector Is Expected To Benefit From The Supplier Credit Scheme&nbsp; The agricultural sector contributes the lion’s share to the Ethiopian economy. However, investors engaged in this sector used to complain about its neglect from access to finance and credit for a longer period. To their satisfaction, NBE has introduced a new&nbsp;<a href="https://nbebank.com/wp-content/uploads/pdf/directives/insurancebusiness/scan0054.pdf">Minimum Paid-Up Capital for an Insurance Company Directive No. SIB/57/2022</a> which allows supplier credit for importers of agricultural machines/inputs. In addition, liquefied petroleum gas importers are also mentioned as the beneficiary of the supplier credit under the directive.&nbsp; However, the directive sets a maximum cap on the borrowing capacity of the importers. The debt-to-equity ratio of the company may not exceed 60:40 of the registered capital in the business license. If the importers fulfill the rest of the document requirements stipulated under the directive, they can benefit from the supplier credit scheme. The introduction of this directive is expected to increase agricultural productivity and to modernize the agricultural sector.&nbsp;&nbsp;<hr>UGANDAEU Resolution on EACOP Causes Stir Amid Progress on Oil PipelineAn emergency resolution passed last month by the EU parliament has come under heavy scrutiny by the citizens of Uganda at large. The resolution passed by a majority of the house in essence seeks to halt operations of Uganda's oil projects in particular the East African Crude Oil Pipeline (EACOP) and Tilenga.&nbsp;The legislative body of the European Union bases this decision on the insistence that there should be a feasibility study for the span of 12 months to ‘identify an alternative route that would preserve the environment and consider other projects based on renewable energy,’ as mentioned in an article by the Independent Uganda. The body has gone ahead to request that&nbsp; drilling activities should not commence around protected green areas such as the Murchison Falls National Park. They also requested that human rights violations such as arbitrary arrests of activists and inadequate compensation for those expropriated from their land by EACOP be remedied.This decision was met with a lot of dismay by the Uganda government who have said it is rooted in hearsay and misinformation about the realities of Uganda’s pipeline projects. The Minister of State for Energy and Mineral Development stated this month in regard to the route that ‘the Hoima- Tanga route was selected as the best route&nbsp; for Uganda after careful evaluation based on the best pipeline routing principles. In addition, Uganda has up-to-date stringent laws on the environment and protected areas, which are strictly followed in developing oil and gas projects.’While addressing the concerns on human rights violations and compensation for Projected Affected Persons (PAPs), the minister stated that ‘a specific Human Rights Impact Assessment (HRIA) was undertaken and measures were put in place to address any potential adverse effects on land-based livelihoods.’ He also added that EACOP in Uganda affected 3,648 PAPs as opposed to the alleged 100,000 that the EU parliament had projected and 2,662 have already signed compensation agreements with 1,977 fully paid already.3<hr>RWANDANew Land Law To Outline Different Avenues For Dispute ResolutionMatters of land conflicts related to boundaries and systematic land registrations under the new&nbsp; Law n° 27/2021 of 10/06/2021 governing land will now be handled by the National Land Authority and Districts or the City of Kigali. This was an evident switch from the earlier mass land registration from 2008 to 2013 where over 12M parcels were registered in the Land Administration Information System (LAIS). The new land law outlines the process of handling land disputes and enables the National Land Authority and local government institutions to make decisions on disputes related to boundaries and systematic land registration only.According to an article in The New Times, ‘Disputes outside of that scope do not fall under the powers of the National Land Authority. For example, land transfer disputes are not included in the new law because the transfer contract is signed between individuals and does not directly engage the institution. To implement this provision, Ministerial Order No 004/MoE/22 of 15/02/2022 determining modalities and procedures for resolution of disputes related to land boundaries and systematic land registration was published to set procedures to be followed when a person is filling the land case.’The new law emphasizes alternative dispute resolution as an effective remedy to these disputes but also gives the parties the option to pursue court proceedings as is their constitutional right. It has also enabled the courts to reduce the backlog of land disputes appearing before them which had proven to be a deterrent to effective and fair justice earlier in the year.Merits Of The ACFTA For Women And Youth In TradeThe African Continental Free Trade Area (AfCFTA)’s Protocol on women and the youth is a significant step in the right direction towards Intracontinental trade having included the two most dominant demographics in the trade industry. The protocol is being mulled over by the body’s Secretariat putting into account the immense contribution of youth and women to the continent’s economic growth. According to the Secretary-General of the AfCFTA Secretariat, Mr. Wamkele Mene, ‘they are the drivers of the African economy. SMEs run by women account for close to 60 percent of Africa's GDP, creating about 450 million jobs.’&nbsp;He also stated, in response to what the AfCFTA offers women who contribute to 70 percent of informal trade in Africa, that ‘we offer scale. Women will now be able to expand their market and have access to new markets in East Africa, in Southern Africa, in Central Africa. We offer an opportunity to expand into a market of 1.3 billion people with a combined GDP of $3.4 trillion.’Despite this protocol still being in the negotiation stage, the studies conducted to create inclusive legal provisions for youth and women within this protocol will offer a myriad of opportunities for young Africans developing cutting edge technological solutions for everyday problems and deviate from the traditional trade agreements that seemingly benefited mainly larger corporations. &nbsp;&nbsp;<hr>&nbsp;<a href="https://www.independent.co.ug/eu-resolution-on-eacop/">1) https://www.independent.co.ug/eu-resolution-on-eacop/</a>2) &nbsp;<a href="https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/">https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/</a>3) &nbsp;<a href="https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/">https://chimpreports.com/uganda-eu-resolution-on-eacop-hinged-on-hearsay/</a>4) <a href="https://www.newtimes.co.rw/article/1494/news/business/land-disputes-now-resolved-differently-pursuant-to-new-land-law-in-rwanda">https://www.newtimes.co.rw/article/1494/news/business/land-disputes-now-resolved-differently-pursuant-to-new-land-law-in-rwanda</a>5) https://www.un.org/osaa/news/what-afcfta-holds-women-and-youths-20226) https://www.newtimes.co.rw/article/1329/news/business/why-the-afcfta-protocol-on-women-and-youth-in-trade-is-indispensable&nbsp;