<h1 style="text-align:center;">10 Years of Blended Finance</h1>This month, we continue our celebration of operating in Ethiopia for 10 years with a special focus on lessons learned from our blended finance model. In case you missed previous posts in the series, you can find them here:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Photo%20Journey%20%20Ethiopia%20Then%20%20%20Now%20%20A%20Tribute%20to%20a%20Cooking%20Pot">Photo Journey: Ethiopia Then &amp; Now. A Tribute to a Cooking Pot </a>(March 2022)</li><li><a href="https://www.renewcapital.com/resources/blogs/10%20Years%20of%20Changes%20in%20Ethiopia%20%20What%20Do%20the%20Numbers%20Tell%20Us%20">10 Years of Changes in Ethiopia. What Do the Numbers Tell Us? </a>(April 2022)</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_05_12_at_10_19_18_AM_de03a9629b.png"></figure>RENEW operates what’s called a blended finance (BF) model, which involves the private sector partnering with donors to address a development challenge that has commercial potential. In RENEW’s case, we aim to accelerate the formation of capital for growth-oriented small and medium enterprises (GO-SMEs) and strengthen the investment ecosystem in Africa. Our partners include groups like Global Affairs Canada (GAC) and USAID among others. In each project we take on, we aim to achieve leverage, which means attracting more private capital than donor funding that was used to support the project. We also aim to strengthen the investment ecosystems by developing pipeline for investors, organizing local capital, and improving the investment environment. We also work on women's economic empowerment and climate-change by helping companies become climate and gender-smart. After 10 years of working on our model in Ethiopia, we’re happy to say we’re rapidly expanding into the region. Looking back, we wanted to share the eight biggest lessons we learned from implementing our blended finance model in Ethiopia.&nbsp;<ol><li>FIND A BALANCE WITH MONITORING AND EVALUATION AND REPORTING: With BF projects, implementers will serve two masters that require robust and specific reporting. Obtaining timely and accurate financial statements from portfolio companies and other non-investee SMEs was a challenge. &nbsp;Lesson Learned: During the project planning stage, be careful what you sign up for in terms of reporting. Try to create as much alignment and overlap between the reporting requirements for your different clients to lessen the burden.</li><li>PERSIST ON THE OUTCOMES, BE FLEXIBLE ON THE ACTIVITIES AND OUTPUTS: Investing in Africa is relatively new for Western governments and investors. We’re learning that some approaches that worked for one country could be unsuccessful in another. &nbsp;Lesson Learned: Make sure your donor partner and your investors are flexible and allow you to pivot as you begin implementation and apply lessons learned throughout the project, even if that means adjusting how you get there. Further, be diligent in documenting your failures and reviewing them to extract lessons learned. For many investors right now in Africa – the early ones like those supported by blended finance – this can be extremely valuable for the larger community and can catalyze more capital.</li><li>DON’T BE AFRAID TO TRY SOMETHING RADICALLY NEW: Building on the idea of flexibility, be willing to try something totally radical. One component of the project from the planning phase to expand our reach in Ethiopia was “investment hubs” in larger cities outside of Addis Ababa 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, there was little traction. Instead of continuing down a failed path, someone came to a more radical idea to reach the masses; an edutainment show – Chigign Tobiya, which is like Shark Tank or Dragon’s Den meets American Idol, customized for Ethiopian culture. We soon went from minimal touchpoints in four cities outside of Addis with only a few stakeholders, to a reported 40 million viewers that raised excitement for entrepreneurship and the formation of local angel networks. Lesson Learned: Be open to trying something radical if the status quo is not working and you may just end up unlocking impact at a larger scale than you thought possible.</li><li>MONEY TALKS WITH POLICY REFORM: Due to the sheer volume of SME transactions we closed in Ethiopia, we became a de facto expert on investing in a country where this is very hard to do. This gained us credibility and a seat at the table when the Ethiopian government was updating their investment code. Our track record of bringing FDI into the country allowed us to help influence several changes that will have a significant impact on the investment and entrepreneurial ecosystem.</li><li>STAY THE COURSE, DON’T GET PULLED AWAY FROM YOUR SWEET SPOT: It’s tempting to chase grant dollars and get pulled into work beyond your sweet spot, or your general good investment sense. For example, it’s easy to become infatuated with social enterprises that have a compelling story, but no real investment case. Lesson Learned: Be disciplined with your investment model and don’t sacrifice longer-term sustainability of the business for near-term soft funding and praise.</li><li>EXTEND THE TIMELINE: SMEs take a long time to realize impact and growth from investments. You might invest in a company in year four of a five-year project and, as a donor, never see the benefits of that initiative. The market and the country are also very dynamic, and the entire private sector might be in an economic slump right at the end of your project, which hurts your numbers. &nbsp;Lesson Learned: 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.</li><li>80/20 RULE: FOCUS ON A FEW GROWTH COMPANIES, VERSUS TRY TO HELP EVERYONE: Not 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. &nbsp;Lesson Learned: 80% of the impact and the results will come from 20% of the SMEs you support under the model. Focus on the 20% and those who are equipped to grow and create impact at scale.</li><li>BE PREPARED TO EDUCATE ALL STAKEHOLDERS, MULTIPLE TIMES – YOU’RE LIVING IN THE “MIDDLE”: Some of the reporting, forms and requests we received made no sense in the greater context in which the project operated. Some, in the donor community, have said we are only making rich people richer. Some SMEs thought we were grantmakers and approached us as such. Many investors are ignorant to Ethiopia’s private sector potential. The bottom line: you must constantly educate because development is so conditioned to fall in line with specific expectations. Lesson Learned: Be prepared to be a project manager and an educator to all program beneficiaries involved – all the time.</li></ol>To read more lessons learned from other key stakeholders in our blended finance model, including investors, donors and entrepreneurs, download our <a href="https://latest-api.renewcapital.com/uploads/ABG_Program_Overview_and_Lessons_Learned_3ebb258c22.pdf">Accelerating Business Growth Project Report.</a> &nbsp;

8 Lessons learned from implementing a blended finance model in Ethiopia

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10 Years of Blended Finance

<h1 style="text-align:center;">RENEW’s Legal Corner: April 2022</h1>Our take on last month’s legal developments in the investment landscapes of Ethiopia, Rwanda and Uganda.<figure class="image image_resized" style="width:100%;"><img src="/uploads/097_A2846_254237521f.jpg"></figure><hr>ETHIOPIAA Startup Proclamation that Incentivizes Startups and Investors is in the MakingEthiopia is in the process of enacting a Startup Proclamation that aims to create an innovative ecosystem that is able to promote innovation and job creation. The proclamation that is currently in the draft stage is expected to bring solutions to some of the challenges that startups and innovative businesses face in Ethiopia including barriers to entry and exit, administrative challenges, and access to finance.&nbsp;One of the major measures taken by the Startup Proclamation is incentivizing angel investors to invest in startups and innovative businesses in Ethiopia. The incentives to such investors include tax breaks on capital gains tax and allowing debt investment, among others. [We will be publishing a white paper next week on angel investing in Ethiopia, and will include details on how the Startup Proclamation will likely impact angels.]Road Transport Proclamation in the PipelineThe Ethiopian Ministry of Transport and Logistics released a draft Road Transport Proclamation (Draft Proclamation), which, once enacted, will repeal the nearly decade and a half old Transport Proclamation No. 468/2005 (Transport Proclamation). The revision is needed in order to restructure the road transport sector in a manner that makes it competitive, safe and efficient and cognizant of the economic and social developments of the country. Below, we have summarized some of the major changes that are proposed by the draft proclamation as compared to the current one.Railway Transport Sector RemovedThe current proclamation regulates almost all forms of land transport including railway transport and their operators. However, in reality, this hasn’t been the case since 2017. With the enactment of the Railway Transport Administration Proclamation 1048/2017, the sector has been removed from the Transport Proclamation. Reinforcing that decision, the draft proclamation removed the regulation of railway transport from the scope of application.&nbsp;Maritime Transport Sector RemovedSimilar to the railway transport sector, the maritime sector administration has been part of the Transport Proclamation. However, this has been removed from the transport sector and a separate regulation has been set up per the Maritime Sector Administration Proclamation No. 549/2007. Similarly, the draft proclamation reinforced that decision and left the maritime sector out of the scope of the transport sector regulation.&nbsp;&nbsp;&nbsp;Establishment of the National Road Transport CommissionUnder the current Transport Proclamation, powers in relation to regulating the transport sector are given to the Transport Authority, which is empowered to promote an efficient, adequate, economical and equitable transport system. The new draft proclamation changes the name of the regulator to the National Road Transport Commission, which will have similar mandates to the Transport Authority. However, since there is a need to tie the works of the regulatory body with cross-border activities and neighboring countries, the decision is being taken to elevate the body to a commission.The Use of Technology&nbsp;The draft proclamation emphasizes the need for integrating technology into the transport sector, which is also one of the major reasons for the need to revise the current Transport Proclamation. The use of technology is mainly introduced in relation to data collection and dissemination. The draft proclamation provides for the establishment of a data center for such purposes.&nbsp;<hr>UGANDAChanges in the Coffee Sector Continue to Raise Concern&nbsp;A recent deal between the Ugandan government and Uganda Vinci Coffee Company Limited (UVCC) to set up a coffee processing plant in Uganda has raised concerns based on the exclusive rights given to the company to purchase all the Ugandan coffee to the exclusion of other players in the coffee sector. UVCC has been given free land in the Namanve Investment Park on a 49-year lease agreement and has been granted priority rights over the purchase of coffee to ensure its supply. There is also concern around the tax exemption extended to the investor. According to an article in the <a href="https://www.monitor.co.ug/uganda/news/national/inside-multibillion-coffee-deal-govt-signed-with-uvcc-3769446">Monitor</a>, the agreement, which lasts for a 10 year period, states that ‘the exemptions shall extend to taxes and impositions applicable to all the activities of the company and its foreign staff in respect to the export of green coffee beans.’It further states that ‘where no exemption from tax is allowed under the law of Uganda or exemption provided is inadequate to provide the company with comprehensive relief from taxes or other impositions, then the government undertakes that it will bear the cost of all taxes.’ In effect, this ensures the company will not have to pay any taxes and puts taxpayer money at risk for a deal they had not previously been made aware of or approved.&nbsp;This agreement comes after the recent decision of the Ugandan government to withdraw its membership from the International Organization of Coffee Exporters where it previously has been a pivotal member. The timing also aligns with the new National Coffee Bill passed in August 2020, which requires the registration of coffee farmers and, according to the Monitor, has not been well received.&nbsp;<hr>RWANDAImproved land rights for foreign investors may increase Rwanda’s attractiveness&nbsp;&nbsp;In an effort to position Rwanda as an entrepreneurial hub of Africa, significant changes continue to be made to the country’s laws in order to attract investments from all parts of the world. The new amendments to the land law n° 27/2021 of 10/06/2021 will likely play an instrumental role in achieving this. New land rights regarding state land leases and land concessions were revised alongside the existing rights that apply to nationals and foreigners in Rwanda.Under the new amendments, an <a href="https://www.collinsdictionary.com/dictionary/english/emphyteusis">emphyteutic</a> lease that initially stipulated a lease term of 49 years for investments and 20 years for a residential house extended the term to 99 years for both types of lease. This will likely encourage investors.&nbsp;Regarding freehold titles, historically a foreigner was only allowed full and exclusive rights to land by virtue of international bilateral agreements between Rwanda and other states, if they co-owned the land with a Rwandan citizen who had at least a 51% ownership stake, or were apportioned land in a special economic zone. The new revisions to the land law grants freehold rights to foreigners if approved by a presidential order in exceptional circumstances of strategic national interest. Though this is undefined in the new land law, and no such presidential order has been issued yet, the hope is that the order would cover all strategic investment undertakings under the new investment laws.&nbsp;The additional inclusions to the land law consist of land concession that entails use of private state land for a period not exceeding 49 years for strategic investment like forestry, agriculture and livestock, among others. An article in <a href="https://www.newtimes.co.rw/opinions/foreigners-rights-land-rwanda-new-land-law-and-its-impact-investment">The New Times Rwanda </a>stated that “All projects of national importance are deemed as strategic investments, such projects focus on special impact to the development of the country and its people.” The article further details the state lands lease which is “a State private domain land lease agreement between the State and an investor for strategic investment in construction of infrastructure for commercial purposes such as trade centers, hotels, real estate, restaurants, public parks, tourism sites, schools, hospitals passengers or goods transportation stations and industries.” The lease term is 99 years and can be renewed pending fulfillment of the investor’s tax obligations and diligent land conservation.&nbsp;

Our take on last month’s legal developments in the investment landscapes of Ethiopia, Rwanda and Uganda

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RENEW’s Legal Corner: April 2022

<h1 style="text-align:center;">10 Years of Changes in Ethiopia. What Do the Numbers Tell Us?</h1>&nbsp;RENEW is celebrating our 10th year of operating in Ethiopia. Read our March blog here: <a href="https://www.renewcapital.com/resources/blogs/Photo%20Journey%20%20Ethiopia%20Then%20%20%20Now%20%20A%20Tribute%20to%20a%20Cooking%20Pot">Photo Journey: Ethiopia Then &amp; Now. A Tribute to a Cooking Pot</a><figure class="image image_resized" style="width:100%;"><img src="/uploads/IMG_6706_7aa2e8c866.jpg"></figure>In the spirit of continuing our celebration of RENEW’s 10th year in Ethiopia, we have compiled the economic developments of the country when we opened in 2012 (or the year just prior) and the current year (or the most recent reported). The following information is based on data provided by the National Bank of Ethiopia. Figures may vary slightly from other publically reported sources.<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_23_44_PM_ca851c6db6.png"></figure>Ethiopia is currently home to the second largest population in Africa (next to Nigeria) and the 12th largest population in the world. The natural rate of population increase is 2.1%, which makes the country one of the fastest-growing populations in the world. Ethiopia is also one of the youngest countries in the world with a median age of 18 years old. As a result, the government has positioned Ethiopia to be a destination for labor-intensive manufacturing sectors like textile. However, the textile sector’s future is uncertain due to the recent suspension of Ethiopia’s status as an AGOA country and other factors. Because of the suspension, Ethiopia currently does not have duty-free access to the U.S. market for certain goods and services manufactured in Ethiopia, such as textiles. The government is putting all its efforts into finding alternative markets, one of which is the African Continental Free Trade Area.<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_26_34_PM_b16d114be6.png"></figure>During the past decade, Ethiopia has recorded one of the fastest rates of economic growth in the world. Although the country’s development has slowed down during the past couple of years due to the outbreak of COVID-19 and internal conflicts, the country still managed to grow at the rate of 6.3% in 2021 according to reports from the country’s central bank.The main drivers of GDP growth for the past 10 years have been public capital investments and population growth. In 2020/21 alone, the construction industry registered 6.6% expansion with a 72.2% share in industrial output of which construction of roads, railways, dams and residential houses played a significant role.&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_27_06_PM_ece572d4a6.png"></figure>The overall economic growth in Ethiopia is highly associated with the performance of the agriculture and service sectors. However, the Ethiopian economy, which previously was highly dominated by the agricultural and service sectors, is showing progress towards industrialization. The share of agriculture in the GDP is specifically declining, whereas, the share of the industrial sector almost tripled within the past 10 years.<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_27_47_PM_76038c0337.png"></figure>The GDP per capita, which is a proxy to measure wealth, has tripled in the last 10 years. However, due to recent sanctions and the war in Ukraine, food inflation has recently spiked, a factor which is putting significant economic strain on the poor.&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_28_20_PM_eb59b436e7.png"></figure>Ethiopia’s balance of trade shows consistent deficits mainly attributed to the imbalance in merchandise trade. Small production and quality of exportable goods and logistic difficulties are major contributors to this issue.&nbsp;Focusing on merchandise trade, the main export items from Ethiopia are coffee, gold, flower and oilseeds, although the share of oilseed exports is expected to decline significantly as a result of the war in the northern part of the country which is the agricultural center for oilseeds. The major destination for Ethiopian products is Europe with 41.3% of Ethiopia's total export of goods, with Switzerland being the major destination with 45.4% of the total export to Europe. Asia is the second largest destination with 31% of the total export of goods, of which Saudi Arabia holds the major share with 18.7% of the total exports to Asia, followed by U.A.E, India and Japan. Exports of goods to Africa currently represent only 17.4% of the total export. This, however, is expected to increase following the operationalization of the African Continental Free Trade Area. Ethiopia’s exports to the Americas constitute 9.4% of total exports of which 7.6% is destined for the U.S., which is expected to be significantly impacted as a result of Ethiopia’s suspension from AGOA.&nbsp;&nbsp;The main import items to Ethiopia on the other hand are consumer goods, accounting for 38.5% of the total imports, capital goods accounting for 27.2%, and fuel, which accounted for 13.6%. The imports mainly originate from Asia with 61.3% of the total imports originating from the continent. China and India are the major contributors with 22.86% and 12.32%, respectively. European-originated items represent 22% of the total imports, of which 2.8% is from Ukraine, which is expected to be affected by the recent Russia-Ukraine war.&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_29_19_PM_d633a10583.png"></figure>Inflation in Ethiopia has soared during the second half of 2021. This is mainly attributed to the war in the northern part of the country and the widening difference in the foreign exchange market between the official exchange rate and the parallel market. <a href="https://www.renewcapital.com/resources/blogs/What%E2%80%99s%20Behind%20the%20Soaring%20Inflation%20in%20Ethiopia%3F">Read RENEW’s blog </a>about the different measures taken by the government during the past nine months in order to control inflation.<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_30_12_PM_049b6bdde8.png"></figure>In 2017, the central bank raised the minimum interest rate on savings and time deposits from 5% to 7%, leaving the lending interest rate on loans and advances to be determined by commercial banks freely. However, the skyrocketing inflation has kept the real rate of interest at -16.6% on savings and -10.35% on lending.&nbsp;&nbsp;<figure class="image image_resized" style="width:100%;"><img src="/uploads/Screen_Shot_2022_04_07_at_2_30_58_PM_06c3a3ca91.png"></figure>The ETB has largely been controlled by the Ethiopian central bank. While the exchange rate has generally devalued, the parallel/black market rate, which often represents a more accurate real rate, is much higher today, near a 25% difference from the formal market. This is largely due to a weak manufacturing base and export market for the country. The government has also drained foreign reserves to pay for the Grand Ethiopian Renaissance Dam. As a result, the country has only 2.2 months of foreign currency reserve.&nbsp;

As we celebrate our 10th year operating in Ethiopia, we plan to take time each month to bring your attention to interesting data, stories, partnerships or other analysis of the changes and journey of RENEW. 

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10 Years of Changes in Ethiopia. What Do the Numbers Tell Us?

<h1 style="text-align:center;">Women’s History Month 2022</h1>To finish Women's History Month this year, we're highlighting notable female figures from Ethiopia, Rwanda and Uganda that have done or are doing historical things.<figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/53E5hUxm9MMwFV39X8eHHT_9tc8SsfdY8qfNIO8k0ssunKfIX_6BqAcu1hytG-l5dYBAHjNISLMjkvmW1HO0bm2xb00ubwRaT47W_1BeG9oU2HFDcgb29sgYekyhkjGnHJ8Vcvaa"></figure>ETHIOPIAMulumebet Emeru - Africa’s First Female PilotEthiopian Mulumebet Emeru became Africa's first female pilot in1934.&nbsp;“I was overwhelmed. It was a tremendous thrill though I did not realize at the time… that I was Africa’s first woman pilot. But with the war, I gave up flying. Indeed I got married…I would fly several times a week – always over Addis. It was an unusual experience and my friends all envied me.” (Quoted from Selamta, the in-flight magazine). (1)Although her piloting career was cut short by the Italian invasion of May 1936, she remains historic in the hearts of millions. She is also the grandmother of Aman Adinew, owner of METAD Coffee, one of RENEW’s first portfolio companies. After World War II, she was given farmland in Disamo and Harar where wild coffee was growing. She built the Harar farmland into a coffee estate, solidifying the family’s connection to the land and coffee cultivation.<figure class="image image-style-align-center image_resized" style="width:100%;"><img src="/uploads/Wro_Mulumebet_b4bd82fae6.png"></figure>RWANDAChristelle Kwizera - Founder of Water Access RwandaChristelle Kwizera founded Water Access Rwanda in 2014 to address water scarcity and youth unemployment in Rwanda one year before she graduated magna cum laude in mechanical engineering.Under her leadership, Water Access Rwanda is recognized as an innovator in the water sector. It was the first from Rwanda to win the Africa Entrepreneurship Award and the EDF Pulse Africa Award. She leads by example. Christelle was selected as a 2014 MILEAD fellow, recognizing her as an emerging African woman leader among more than 1,200 applicants. (2) Her story and journey continues to be a source of inspiration.&nbsp;<figure class="image image_resized image-style-align-center" style="width:75%;"><img src="/uploads/Christelle_Kwizera_8a77c52dfb.jpeg"></figure>&nbsp;UGANDAWinnie Byanyima - Executive Director of UNAIDS&nbsp;Winnie Byanyima is an aeronautical engineer, politician, human rights activist, feminist, and diplomat.She is a passionate and longstanding champion of social justice and gender equality and she currently leads the United Nations’ efforts to end the AIDS epidemic by 2030. Previously Winnie led the establishment of the African Union Commission’s Directorate of Gender and Development and also served as Director of Gender and Development at the United Nations Development Programme. She founded the Forum for Women in Democracy, an influential Ugandan nongovernmental organization, and has been deeply involved in building global and African coalitions on social justice issues. Winnie has seven given names, one of which is Kyegiragire, which means “I can make myself whatever I want to be”, a name which she says has shaped her attitude to life! She co-founded a 60-member Global Gender and Climate Alliance of civil society, bilateral and multilateral organizations and chaired an UN-wide task force on gender aspects of the Millennium Development Goals, and on climate change. (3)<figure class="image image-style-align-center image_resized" style="width:75%;"><img src="/uploads/winnie_new2_1440x350_bd814c7e90.png"></figure> &nbsp;&nbsp;&nbsp;<hr>(1) <a href="http://www.planetethiopia.com/gallery/image/CQ">http://www.planetethiopia.com/gallery/image/CQ</a>(2) <a href="https://svai.africa/our-people/christelle-kwizera/">https://svai.africa/our-people/christelle-kwizera/</a>(3) <a href="https://www.unaids.org/en/aboutunaids/unaidsleadership/bios/winnie-byanyima">https://www.unaids.org/en/aboutunaids/unaidsleadership/bios/winnie-byanyima</a>&nbsp;

Finishing  Women's History Month this year

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Women’s History Month 2022

<h1 style="text-align:center;">Photo Journey: Ethiopia Then &amp; Now. A Tribute to a Cooking Pot</h1>I remember moving to Ethiopia. It was the end of February 2012 and my second time to set foot in the country, a beautiful and complex nation of more than 80 ethnicities, the birthplace and home to (in my opinion) the best coffee in the world and the only country on the continent of Africa that has never been colonized, yielding a pride and strength one cannot ignore. &nbsp; &nbsp;I was supposed to arrive, find a place to live and put together a plan for a week-long trip for some of our earliest investors, all in the span of less than a week. We now call those trips “Econ-Tourism Trips”, a phrase coined by one of our earliest members, Dr. Andrew Umhau, who also happened to be on that first trip with four other investors. I have very little recollection of how I pulled this first trip off, other than the day they were scheduled to come to my new apartment for dinner. I spent a good part of the day as we drove from one business appointment to the next, scanning the side of the road as we drove, trying to find a cooking pot to buy so that I would be able to cook the dinner. We had spaghetti that night, and I think it turned out ok, but thankfully my dinner menus have gotten more complex for our investors as the years have gone by.<figure class="image image-style-align-center image_resized" style="width:100%;"><img src="/uploads/pot_ff0cc7448f.jpeg"></figure>Today, no one, not even my housekeeper, sees much value in that beat-up old pot, but I’ll likely keep it forever because it represents so much to me about myself, the world, RENEW and Ethiopia, then and now. A lot has changed, and over the next year, we plan to shed light on and celebrate some of these changes.&nbsp;But first, I am grateful that what we believed 10 years ago is still very true today. The following key factors still motivate the RENEW team today and I believe will for the next decade, plus:<ul><li>That Africa’s future lies in its private sector and that many of the problems that aid and charity are trying to fix will be significantly reduced once the private sector is thriving.&nbsp;&nbsp;</li><li>That SMEs are the core of a healthy private sector - when SMEs are strong, an economy is strong. Globally, SMEs create more jobs and support other businesses better than any other business type.</li><li>That with good management and “smart” capital, SMEs can grow to become market leaders that attract capital, create jobs, and drive impact outcomes and economic growth.&nbsp;</li><li>That we are all responsible for gender equality, inclusiveness and climate action and African SMEs can play a key role.&nbsp;</li></ul>There will be plenty of time over the next 12 months to compare the Ethiopian economy, then and now, to celebrate our development partnerships, portfolio and impact and to tell you of our lessons learned. But in the meantime, I thought I would leave you with some photos from the past 10 years.&nbsp;<hr><h1 style="text-align:center;">2012</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/5R4tG5JksNrrdRpg98uJzcqKSpApHcQMG3RELX2GFgW0g6sfgxBT1xCN-Yadn48AjUj_a__ENnm9_KoWVF9PhxoIcqW3JB_5NvUQco-A5xsgZerZLF5B7rNrOTcqk4qZG_Pe3P-p"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/Onuu48Zar1mCU3n5JhKB09NCcWAeuN9ud9O7kFco1MdDmEKedPoD1s7Qb1eSTh15e40sU8wQwqo_mJ6cxE2k8T-tz1QZFL1j_zzMw02UcRywhRFQTjEisGTbNxmcrOkZatk94veH"></figure><h1 style="text-align:center;">2013</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/Y03QSolEETMLTdxqlEx5elyilbbCmkY8AGRLqGoITrZGffijUgeP7O_Nw1UrHX-uhJMXYJSR-ldTT7eGSm4LuHGkBF5DyON5C-0C78e9M6Io8M0aXPOGF1j9vJLlL1OmdjcKt28q"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/mkwYgipM4HiIBeT6TAsLYDZcqDYeVy22wgNukEO_MG2J1X-1koziFylg-h5LuOsJ1KowFekdEidNEzcJq5KZb0Npyq1v7YBXGrHX0CaHpz4O7GS1TQKcFJJHftWO6ukUWxObA2MX"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/QMmdZHnf_mGGuG6jq3OJXmdmwiOuQ16RFqK2jECddMJF7D2nSTXhCpjphCpFqUiNecqt0q4SzxmH_9anc3yXirU1FrdvMwVNpAMLHAvmMlBA0wJjXfKbARIf2ludvLxoSCfgVGbK"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/96UIi59wLvWy2YkYzSwGHDtz55OmobgVIwdxY9-vp6nYr8PscXpAqW5VpXVNVl_jc8I6hdzltEZQ3E8OPIaMN3ja35QBlE_oW-ESiBdC9UKp6RzUYlglQ4587wSTHjgZ2WTJ5jyE"></figure><h1 style="text-align:center;">2014</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/Eg4R_dd3WpRLUAgsQQgFijiwnTy8DeD8ar99-DYJ_WMXymTjzbiNzY29W_WJAekVkRBGoL1Yk7tRVEke6aBDQOQMwcN1eXggnPRLi9tcgFddJM_6qh320M5mfcdAqZWMt8CTNil5"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/ikXkEtws52P-Cs0nWPKeYrMFrFE48Sio7KrRhx5bTxvjkCXNeMICm6NHaX0NIkOFRhE9XC6rerA-wsQ_27g6wIj1cbYweqR8d_1N99ArhPt4YUxkL24BZ_sY0FiOjWp7n3rb592L"></figure><h1 style="text-align:center;">2015</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/EEyX0t_QWTTFtRe4UhL30DTkovSP8qV3wfLdl_YoEdippG9ShVY6tdFMz3KG932wLpvM0Q9TzNi0ZSTzhNT9u4GEQN6Z9oSOWO30WlOzwgLqCwxBy1tkYQL8pzZLxiFzFC0oD_he"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/IE7_wGjFCwwtjMJ7SM7Mbxn8vqPqCr4zmqPjUbLnBqZX7IAZeiy40WQIteWZYXvKL8p6b1oDTRuX-JdroCI1mqbEumAgkcFrA0dawwKnS9hIYZo1uNnS5GxYYTqIniXHmRe-lZGY"></figure><h1 style="text-align:center;">2016</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/nFnPdduIX3vazhoEeo1wUQvPZfOXLNGNLb7VwMi7QvqmS7Sk0H7IEgspNq7sInWVQI1lpPL1yFHpCsamDUP5ahbQY97Q0_2mK3Nz3c2A7ejxBi5w_bqk9v80JjVtFcOKQrv9PmsS"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/80R-hFPh1HQJVMF2IdTSOFGKHRKjhoKcbEJSYZZAndskd8w9siV9gxy7enmha87wCjZxINQHbo9mR0Qvc61wSPBDU_BiAqnz3qNn13ggK70ay7b-FLr_1i5wufNHfYEIdhBopIIt"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/cqhEG_Pn0FgeXdEx3ogCs0gUawZcZAtEeCRi3Jn-vX6q3zitlmWMvv_TdQJD9JVH-DuWzRRd0ToeyEJDGEaDwSRD6o4mAr2k7wQAnJApBAqGC_RpP4ImOa2h4hIY39rlTmycknIM"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/i5mgBXNn9ghKVWsJcT-7BcadAsSUEGvVztM3wUxIXudJCON048syqxod0mvoEB0yqo-ucXhDZWqHCZmGhgu9MsRbIldTI7QftBUp1gRaPDktbpfqBnX4i6ykA0V-yGPrjLQoVHme"></figure><h1 style="text-align:center;">2017</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/mJjgzslhW2v9uXyWv7x_pWJHpi9BQBke_W4mq7Kfg5DtObMr7kZnR6gdyWkOd0IbHYt5GvmSj_ivZS1ySvqmRuIJ8nygZKorkqZLANzJQJOIhH5jwE6c3QI3NgDWKN_FBc83wz5R"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/xw6lgKjrK7IZJTMcCkEztf2O-lWCgceK3cIuNkI_LXO-MkgBM1yrEZi26XkG9Z9M9sE-LLcZBfKIKohl8iyuYpMOas_XmUKWV3bosTxfONbVCcBu-78dcgpMkTg1avIveECycZ0w"></figure><h1 style="text-align:center;">2018</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/sR30wmyVMtlbbbyRoms_kagSqdpQxupu1XSh78Fr_8RklaTyUGVGcsnreo2vCFU79WG4Cm9j53SY2UjD-ul2j1uYjbKslx5H3AOzZqNwGB4ErhyJ_N-8Gvdy_X46NR_IB9O3ttR0"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh4.googleusercontent.com/KojdJCugd8DjySdJ4f6oq7pd0dJwKH0FC1Ulc79l3FN6ShRMRI8Rjh1NXQUNwtebsA5JUcFLXa8oJP0vrI9QbM_PP4Q9HC68VwYZlvurOBGFvDbfe0yNwrcr92z0YQJ72y4F-EwT"></figure><h1 style="text-align:center;">2019</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/0Niow17IG6ACfuH1DqU6UeoSquuyvqtByutjpJIuGyUrnqTJYGKTkc9Kh317gp_1wspxD997WvusFMGLZ5r5qmJ2rEEw3i3DXXbN-sikFEA8PY1EGEuXqUyo9ZSTp9TvRufIwhHD"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/snqeoaamzqoMv1MvAgx0ZzReI5Vlp-qmLME5q-NiNLel53_hId0YGMetdBH7pikoLxxuOVBNUC95B2St2mMh7bR3wIthfagV14AEvoUb2RS4lT5VZc7tRkNjoKYCgeXKD2SXeD8q"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/qffEfsxkizxRUpdZ-oMEh8OcEOb0KwohvrZiUgS-pVfxX8ro2uEJN-Nj246TNi_0jFuem5fiUdrpF_N6GdWIc3Ez4r5U3OBX4FsyluCbTlFYuoFZOOUGjU5uoBmKojtLCr3MhY3D"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/ESLmF4MBL13UbK2RE_TDODh9ZcN64_TaR9BuvdtIgIJZ2jB5BssIoa32KeUtaJAdmQfBmBAwhgXAxuZ7gQpwPqdgVVR8fFWovEw-RLrN6CZjqnX2rIDLJPlLOXyMmrSWeSoq5ftU"></figure><h1 style="text-align:center;">2020</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/IPGXYcTFrolAXijFGYwWB1u2LiUQB5lq2IHdS1h4SFA7Edurx3clPUaj9AAnHr0cEttqhoSlTFtlHyqFSgwSIZZZRsQQUntv58Gk2AH69yS-eNNKP5GGHPsggwD6VUIBdy6GVca8"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/pB-JoiN24-jv3dltKojsNYHPcAC3qDILNJj7qtdy_JrnFifyqSU7rgdzUSImFgF4OFUV58SXMLEEiCXaC7UmSGdh8_ww7BENKyvXo_0ciMHdZ_95YzTSdxd1vw5L6FIcihWSWymO"></figure><h1 style="text-align:center;">2021</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh5.googleusercontent.com/WZHEfuMnq9UYZdtTvSydNCRXq3o5l0jhB0NGBc7IgYmTR6YJ3WpXEz67fD-UEuSrMdoRJ0ZL77HlRkdbYmzpIWi6w7ryPUcoM6izT5F6lQtT3lBFZavbRIRMDS-_8MKceQA4HSS0"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/wsWSMUxuL7XqWIG3R-WF3zXsJgi82nRLj1K83bimelDeC1PSDLBfpfnN0WoE-U83efIbyG3lTGn8A6tncp1CPDUcZtBhqzjRRPnfpno9iKs1UEq3yorZ1avjEr2tSRFHNW5MO4CV"></figure><h1 style="text-align:center;">2022</h1><figure class="image image_resized" style="width:100%;"><img src="https://lh3.googleusercontent.com/WVTUjNNmNcyG0s0tTQzZhCtDg-fxjhvxgRSvQJ1qfxDHilvjDOO7zLryYv-RTGe_xNoma1JqqNoyhCEH0t37eZVfNomtFaDNQct4EszxdJKLj3vhADtzDPfiYmvpZMlCJCJevtp1"></figure><figure class="image image_resized" style="width:100%;"><img src="https://lh6.googleusercontent.com/b7CH7LwU0AUJ8lB8p7U0Qh1NNjURVbWobQYid9syPzLmGGi7gr7wTP_Ei_ubqsGw-6v_miriDt1FpaZDD5xBV0MDGJxRtRbWP1i341em0iKCA6dzbCutGkl9zijbrsWhvmNC5Yi4"></figure>&nbsp;

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Photo Journey: Ethiopia Then & Now. A Tribute to a Cooking Pot

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

Roadrunner Technology Solutions to Expand in Ethiopia

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 Press Release: Roadrunner Technology Solutions to Expand in Ethiopia

<h1 style="text-align:center;">Creating a Gender-Smart Workspace&nbsp;</h1>An Interview with Yemsrach Chanyalew, Deliver Addis’s HR and Admin Manager&nbsp; In celebration of International Women’s Day and RENEW’s commitment to gender equality in our organization and throughout the work we do, we recently spent time with Yemsrach Chanyalew, who works for Deliver Addis, one of our portfolio companies. Yemsrach is the company’s HR and administration manager, and she spoke to us about her journey to become an executive and the gender biases she’s encountered along the way.<figure class="image image_resized image-style-align-center" style="width:624px;"><img src="https://lh4.googleusercontent.com/gJgERPhWYPY6dAJX0XKAFN2W9AvnRIyxVqrCH4kvZMZHGfGddXT2HHblejfT0iGOjBuQvZDlQ_ap22vQaRKuFPaLqxAg9vYcqEKazC6yFIAT0c_qfOVP8wcgWyMPnaqcdbyEpET3"></figure>This is what Yemsrach shared about her journey.&nbsp;“I graduated with a degree in theatrical art from Addis Ababa University, and though I had an interest in theatrical art, I did not pursue it professionally. To survive, I pledged to myself I would enroll in different sectors to survive and get a job that pays well. I was a full-time sales representative for 11 months at a trade and advertisement company. As time passed I wasn’t able to continue due to health issues. In that role, I spent the day outside in the sun and I found the tasks to be difficult as a female. After that, I joined other companies and worked as a secretary and office manager and then as an office coordinator and HR coordinator at a restaurant.&nbsp;I then decided to become self-employed and to start my own business. I opened a mini-market. I took a risk starting a business when neither I nor my family had any background in the business world. I invested my all. I didn't have a plan B and in the end, I was left empty-handed two years later. But I didn't give up. After closing my business, I joined a new company as an HR assistant and administrator and worked there for almost a year. This was around the time when the pandemic hit. While I was doing market research I landed at Deliver Addis.”Moving deeper in the interview Yemsrach shared what she enjoys the most in her work and her inspirations to work harder. She also shared her future plans and visions for the ecosystem. “I enjoy tasks that are challenging. I love how challenging my work is at Deliver Addis. I'm strict by nature and in a way that makes me enjoy what I do, and I know I can execute it well. I always had an interest in art when I was younger but as I grew throughout my journey in many different work environments I grew more interested in HR. It matched really well with my personality, and it inspired me to pursue it more at greater heights. I'm now doing my second degree in business management and I will graduate this year and then I plan to do my MBA in HR. I have a big vision to open my own training center, where people can practically learn and practice the skills that can help them become professionals in a gender-smart ecosystem.”<figure class="image"><img src="/uploads/097_A2791_970ace6fc4.jpg"></figure>She shared her perspective on why gender equality issues are often overlooked in the workspace.&nbsp;“I think we don’t openly discuss gender equality and its underlying issues openly as a community, and I believe the reason is often culture. The way we were raised or the culture we were raised in has a major contribution to how gender biases are handled in the community. We need to have open and honest discussions on the issues. It would be great if there were associations or specific departments in companies or organizations that mainly focus on issues surrounding gender biases in the workspace.”Stay tuned in the next few months to learn more about resources RENEW has been developing to help companies like Deliver Addis on the journey to becoming gender-smart. Photo by Imran Mazar | <a href="https://www.pexels.com/@timmossholder?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Tim Mossholder</a> from <a href="https://www.pexels.com/photo/male-and-female-signage-on-wall-1722196/?utm_content=attributionCopyText&amp;utm_medium=referral&amp;utm_source=pexels">Pexels</a>

An Interview with Yemsrach Chanyalew, Deliver Addis’ HR and Admin Manager.

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Creating a Gender-Smart Workspace 

<h1 style="text-align:center;">From Enterprising Adventurer to Adventurous Enterprises</h1>I come from a family of adventurers. They gave me both a passion for new experiences and, from an early age, the privilege and opportunity to travel broadly. It was these adventures to distant lands that brought me close to people.At five years old, I played with joyful Shuar children on the banks of the Rio Upano in Ecuador and, at eight, sat in a field overnight through an earthquake with frightened families in Turkey. It was experiences like these that showed me that no matter where we are from or what our situation, we have more in common with each other than not. I also came to realize the power of connecting with another human being, of trying to understand each other, and the gift of shared laughter.<figure class="image"><img src="/uploads/Screen_Shot_2022_03_07_at_12_26_35_PM_1e774fe22f.png"></figure>Through these adventures, I have learned what it means to be a global citizen and the responsibility that entails. While we are more alike than different, we are not all born into equitable circumstances and provided with the same share of opportunities. These experiences also showed me that we can learn the most when we are willing to step into the unknown, when we are prepared to listen rather than speak, to learn with humility, and laugh at ourselves when we fall down.&nbsp;This passion and curiosity has fueled my journey. It has led me down many delightful paths I could never have imagined, and ultimately, brought me here, to RENEW. With all that the world and its people have given me so far, it is my hope to lead a life of empowering others to chase their own adventures and reach for their own dreams, and maybe even fall into a puddle or two and roll out with a smile on their face.A persistent theme throughout my endeavors to address inequities is the limitations imposed by lack of capital, whether that be monetary or human. We can dream as big as we want and work as hard as we can, but without the right resources and support, only a fortunate fraction of us will succeed, no matter our brilliance or drive. Recognizing this led me to the field of impact investing, to put capitalism to work for good.While in graduate school, I developed a regional expertise and focused my research on Ethiopia and the greater Horn of Africa. Looking beyond the great coffee, phenomenal food, and wonderful people, which is reason enough, I chose this concentration because I truly believe in the country’s potential to be a driving force for economic and political development in the region.Graduating in the onslaught of the pandemic, I was fortunate to be offered a position at a Europe-based impact investment firm focused on agricultural SMEs in the most underdeveloped countries. This gave me the hands-on impact investing experience I sought but left me yearning to put boots on the ground -&nbsp; and ideally, breathing in the mountain air of Addis Ababa every morning.&nbsp; On a crisp October morning in 2021, this became a reality as I stepped off Ethiopian Flight 575 and took the first deep breath of my next adventure. I haven’t missed a morning buna since.

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From Enterprising Adventurer to Adventurous Enterprises

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

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