<h1 style="text-align:center;">Keep Moving, Go Beyond, Be Limitless, Leave a Mark</h1>“Niky, wake up… Niky, wake up… It’s time… Get ready for school… You are late”. Those words from my mother still echo in my mind, and it reminds me of all the hard work, dedication and perseverance put in by my parents to make me the person I am today. Growing up in a small town in India, my parents always exposed me to the best of things, whether it was education or extra-curricular activities. They even went beyond that to get me admitted to one of the best boarding schools in India. I suppose that’s where I started to understand what excellence means and to never be satisfied with mediocrity. Today, I realize that was the start of a strong foundation that was being laid to shape my overall personality.&nbsp;From the beginning, my parents instilled various habits in me like, never restrict yourself, go the extra mile, strive for nothing but the best, be limitless and above all, always be a nice human being. During my boarding school days, I was exposed to various extra-curricular activities like sports (played state-level cricket, table tennis, badminton), music (learned to play multiple instruments and classical singing), which really helped me to understand the meaning of being a team player, paying attention to details and being a leader. As part of my educational journey, I pursued some of the best colleges in India, moving from one part of India to another. I went on to pursue my master’s from the UK (London), which reminds me to always dream big because dreams only come true for those who have the guts to dream them.&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_08_04_at_11_54_24_AM_aa5d55bfb3.png"></figure>Once you finish college, life generally takes a turn and becomes a little more serious as you move towards the next phase in your life, the corporate world. It was a paradigm shift as I started my career in India after returning from London, and I entered an equity research role in Mumbai. When you start working professionally, that’s when you learn the distinction between responsibility and accountability, and that learning brought a lot of change in me. Over the course of five years, I moved into various diverse roles such as investment banking, equity research and private equity. I didn’t realize my first opportunity to move out of India for professional work was knocking on the door, and guess what, it was in Jeddah, Saudi Arabia, to be a part of the private equity team of a large investment firm. At first, I was skeptical about moving, as I was doing fine in India. However, the mindset to never stop learning and go beyond made me decide to move. I knew that the exposure would be fantastic and add a lot of value to my career, and that’s what exactly happened. I gained a lot of valuable experience meeting people from different cultures, learning about different ways of working and upscaling myself as an investment/private equity professional. That experience made me realize you always need to be open to opportunities that come your way, as you never know what transformation can come to your personal and professional journey. As they say, when the roller-coaster starts, just enjoy the ride and every moment of it. So, after that, my journey became exactly like that. Again, a fantastic opportunity came by. I moved to one of the Big 4s (Ernst &amp; Young) in India. All the knowledge gained in Jeddah was the big reason for this shift and constant upscale in my professional life.After 1.5 years at Ernest &amp; Young, a turning point came in my career where I was offered a chance to move to Nairobi, Kenya, with one of the biggest confectionery manufacturers in the East African region. My previous experience had been on the consulting/ service side, and I always wanted to move to the operational side of things with a core manufacturing company. Once again, since it was in Africa, that dilemma of whether or not I should move started to haunt me, as I was doing well, and life was good. However, with the “be limitless” theme, I decided to grab this opportunity and relocate. My four years in Nairobi were beyond words, and I gained a lot of experience both professionally and personally. One evening, when I was reflecting on my decision to move, I was so satisfied and realized that being at the right place at the right time can do wonders for one’s life. I thought if I didn’t take this opportunity, someone else would have, and I might have regretted not doing so. The Nairobi experience changed my profile as a finance/investment professional and added a lot of color to my professional experience.With the philosophy of keep moving, an opportunity from RENEW knocked at my door, offering a fantastic opportunity to move into impact investing by supporting portfolio investments and helping manage financial/business performance. The role was a significant step-up in my career, and the location was in Addis Ababa, Ethiopia. Until then, I loved it in Nairobi and had no intention of moving as things flowed smoothly. However, my instinct, which constantly pushed me to go beyond and be limitless, made me eventually decide to take up the offer.&nbsp;I can confidently and happily say that I made the right move. I still remember my onboarding week, where I visited Addis for three days in February 2021, and my first day in the office was terrific. People at RENEW were so amazing, and right from day one, I felt at home. I interacted with my fellow new employees from different backgrounds and cultures, and I was amazed by the diversity that RENEW brought to the table. I finally joined RENEW in March 2021, and I have thoroughly enjoyed my experience over the last four months. RENEW has been one of the finest SME investing firms in Ethiopia, with a strong track record the previous nine years. The thing I love most about working at RENEW is I get to work on different engagements (investments, portfolio management, training etc.) alongside some of the best brains, thereby creating a significant impact on the SME landscape. I look forward to this journey with RENEW, and I hope to continue to add value.Looking back at my journey from a small-town boy in India to Addis Ababa, Ethiopia, via different countries on my way has been truly life-changing and fulfilling. As I mentioned earlier, my theme for life has motivated me all the way through, and I hope this momentum continues forever.

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Keep Moving, Go Beyond, Be Limitless, Leave a Mark

<h1 style="text-align:center;">An in-depth interview with Samrawit Moges of Travel Ethiopia​​</h1>For more pictures from Travel Ethiopia, download our recent<a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf"> Impact Report</a>, and read an abbreviated version of the following story called “Seizing Open Opportunities Despite Closed Borders” on page 19 of the report.&nbsp;In January of 2020, Samrawit Moges had a thriving tourism business with 25 years of experience and 60 staff. A female business owner and visionary for gender equality, 40% of Moges’ employees are women, and her company was the first in Ethiopia to hire and train female tour guides.&nbsp;&nbsp;In late 2019, she completed RENEW’s Exec’s Program and received an investment from the IAN Women’s Fund, just in time for the global travel and tourism industry to be shuttered. “The hospitality industry has been hit harder than many other sectors,” Moges explained, reflecting on a year of closed borders, grounded airlines and very few inbound tourists.&nbsp;&nbsp;While travel restrictions to Ethiopia have begun to ease, Ethiopian tourism faces a double struggle of security concerns for travelers on top of the health issues that the industry must overcome. Yet, Moges is committed to standing her ground. Her vision is to continue to diversify her business and open new opportunities that will allow her to weather any future storms she and her employees may come against. “I see a bright future because our mentality has changed for the better,” she says. “We’ve already seen improvement from 2020 into 2021; 2022 will be a great year!”&nbsp;Here’s what Samrawit had to say during a recent conversation.<figure class="image"><img src="/uploads/IMG_030_2e0d615e0e.jpg"></figure>First, can you tell me how you experienced the pandemic?&nbsp; As we all know, most sectors have been hit by the pandemic and bombed in terms of finance. The hospitality industry is among them, and I am one of them being a tour operator in Ethiopia.We had rented our vehicles to the Ministry of Health to transport their doctors and medicine. The payment is low and slow coming but it’s helping us. We are paying salaries still, and we had two big opportunities in March and April 2021. 2020, we were supposed to have clients coming but it didn't happen. One of the issues we are facing is a double hit as a result of the issues of security on top of the health issues that other countries are facing.&nbsp;Did you have to close your business? Did it affect your employees and income? We didn't have any intention to close the company. The main issue here for businesses can be rent which we didn't face. I used to go to the office 6 days a week before, but now the marketing and sales team are working from home where we installed internet for them. We also provided transport for anyone that came to the office. We didn't have to close our business.&nbsp;How did you adapt to your new way of working? Did you have to change your business model? Yes, I had taken The Exec’s Program at RENEW, and we were trying to implement things when COVID hit. Since my two other managers took the training with me, we worked to completely adopt the whole training which was very effective. We have implemented standard operating procedures, position agreements and an annual management plan. The only thing that the pandemic restricted us from getting done was forming a board.We sent out promotions and video clips which we disseminated to all our clients, and it showed a coffee ceremony and said: we are going to meet again, stay safe. These shows are still working and active despite the issues we faced.&nbsp;Are you familiar with the phrase “Standing Ground”? What does it mean to you as an entrepreneur? I started this business in 1994 in my bedroom when I lived with my mother. When I opened my office, I thought it was the path for me. I believe in starting small and growing big. My fellow Rotarian had given me his first client. The package they purchased was hyena watching in Harar, and while they were watching this spectacle, a hand grenade was thrown, and my guide died. All people said it was a bad omen for my business. But since tourism is my passion, I had to move on from this. I bought insurance for the very small team I had at that time. There were challenges with the family too, but this made me even stronger afterward. I couldn't give up. It’s all in the mind. If I had stopped, I would have given up this business.&nbsp;One needs to be courageous in what they are doing when faced with struggles. This kept me going and never giving up. I realized nothing could stop me.What was the hardest part of the pandemic for your business? One hard thing was understanding the issue when the pandemic hit. Panic doesn't help anyone. People must know how to tackle a problem. Optimism is one of the best things for the human mind. We stayed home for weeks and thought about “what will I do with my business?”. So, I sat and started reading about it. And of course, Matt and Laura provided a ZOOM call on how to survive during a crisis. I then followed many podcasts which helped me to know about COVID and how to work through it.As you look forward, further into 2021, and beyond the COVID-19 pandemic, what dreams and visions do you now have for your business growth? We always face a problem getting a booking in the Semien area and the demand is very high. I was planning for our own lodge in that area. Even if I invest in this lodge, I need a partner to help me in managing it. I want to take Travel Ethiopia to the highest place. I would like to bring an expat to manage this business and work on taking it to another level.&nbsp;Disclaimer: This blog is provided as a recounting of the IAN’s and RENEW’s interactions with Travel Ethiopia and the happenings at Travel Ethiopia. This blog is not intended as performance data related to the IAN’s investment in Travel Ethiopia. Information about Travel Ethiopia pertains only to Travel Ethiopia and is not indicative of other companies in the IAN’s portfolio or the performance of investments in them. Any discussion of the performance of Travel Ethiopia or its social impact is no guarantee that such performance or impact will be realized by other IAN portfolio companies or other investments managed by RENEW, now or in the future.

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The Renew Capital Angels invested in Queen of Sheba LLC, a woman-led tourism company which partners with Travel Ethiopia PLC in Ethiopia to provide high-quality ecotourism and safari services.

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How Travel Ethiopia Navigated the Pandemic

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An in-depth interview with Samrawit Moges of Travel Ethiopia

<h1 style="text-align:center;">An In-Depth Interview with Valerie Muigai of Kijani Baby</h1>For more pictures from Kijani, download our recent <a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf">Impact Report</a>, and read an abbreviated version of the following story called “Fighting for Women’s Jobs Amidst Uganda’s Strict Lockdown” on page 19 of the report.When the COVID-19 crisis nearly shut down Kijani Baby, the Uganda-based reusable diaper company persisted through every roadblock, ultimately increasing local business, maintaining production and ensuring staff employment and safety, while adhering to regulations amidst one of the world’s harshest lockdowns.&nbsp;Before the world barely knew of a pandemic, Kijani Baby was facing the first of many hurdles. Fabric production in China and imports were halted, abruptly cutting off raw materials for Kijani’s production. Soon Uganda’s very tight lockdowns and transport restrictions paused local operations and sales, while international border closures followed, impeding the business’ ability to fulfill export orders—just as demands for reusable diapers skyrocketed around the world.&nbsp;&nbsp;<figure class="image"><img src="/uploads/Screen_Shot_2021_07_07_at_5_51_16_PM_bc17b00fe8.jpg"></figure>Around every corner, Muigai and team found a creative and resilient solution. When public transportation was banned, they kept the workshop open with staff who lived in walking distance. When private transport for delivery was halted, they shifted to a local online delivery service. When airlines shut down cargo flights and halted exports, they trialed new ways to move products with DHL. “Everyone on the team stood their ground to make sure that the business came out alive on the other side of the pandemic,” Valerie said. “Now it is exciting to see that growth has picked up again, and we can continue to hire more women, expand our production and expand our brand.”Here’s what Valerie had to say during a recent conversation. How did you and Kijani experience the pandemic?&nbsp;It was quite a year. For us in Uganda, we heard about the pandemic from China because that is where we bought our fabric. Quite quickly, the hardest lockdowns in the world came to Uganda. Thankfully, we managed to keep our workshops open because many of our staff lived within walking distance.&nbsp;Even while operating legally, we were stopped by police while dropping our products to our customers nearby. Around April, our suppliers in China became operational again but before then we were working on keeping the company alive and people paid. April to June, we had very low sales. We had to figure out a way to push out the delivery of our items and push out our inventories.We didn’t let go of our staff. Tailors are paid per item so our costs decreased of course, but we didn't have to let go of anyone. I was always in the office where we taught our staff about COVID, gave everybody masks and sanitizers, and worked to keep everybody safe. Even if there was fear at first, we managed to keep everybody employed.&nbsp; &nbsp;Does the term “standing ground” mean anything to you in light of your 2020 experiences?&nbsp;I am a very determined person and quite optimistic, so every time restrictions came, I remember saying “we can move through anything.” But there was a time when basically nothing was working. That was when our air shipment had been sent back to us, private cars had just been banned and shops had just been closed. And I remember feeling like I had to lower my expectations. January and February 2020 were really great months for us; we had a lot of plans for growth, but I realized I needed to shift my priorities from growth to survival, and growth would come afterward.&nbsp; I don't think there was a time we really considered shutting down. We were all determined to find a way to get through this and stay alive. People needed to keep their jobs. And so many people with day-to-day work had lost their jobs. It was so important for us to make sure that our people kept a source of income during the pandemic, and to make sure that we protected the business so that they can keep a source of income after the pandemic. Those were the two goals that I thought of. Growth doesn't matter right now -- we have to 1) stay alive and 2) keep our people paid. In those few months, everybody on the team pulled together to make sure we continued operating. It wasn’t only me, but the team did stand their ground to make sure that we came out alive on the other side. Not alive as people, but as a business.&nbsp; What was your biggest personal challenge?Keeping everything together. I have three kids homeschooling at home, my husband was stuck in the UK and with the uncertainty of the restrictions, I had to keep the business going. I had to be optimistic for my family and employees and not show this side of me just to keep them going.&nbsp;&nbsp; What was your biggest lesson from 2020?The ability to think quickly, change plans, find a way to make things work; this was felt throughout my team. Persistence and creativity. The year put challenges into perspective. I have been running Kijani for six years, but the most challenging times were the first three months of COVID. I hope the future challenges don’t change life as this one did, but it gave me and my team more confidence that if challenges come, we can find a way to go through them.&nbsp; What’s Next for Kijani?It's exciting to see that growth has picked up again. We are excited to see that we can build the export market, especially in the UK, with our brand story -- that the products are made by women and women are paid well, and the product is reusable. I want to hire more women, expand our production and expand the business.&nbsp;Disclaimer: This blog is provided as a recounting of the IAN’s and RENEW’s interactions with Kijani and the happenings at Kijani. This blog is not intended as performance data related to the IAN’s investment in Kijani. Information about Kijani pertains only to Kijani and is not indicative of other companies in the IAN’s portfolio or the performance of investments in them. Any discussion of the performance of Kijani or its social impact is no guarantee that such performance or impact will be realized by other IAN portfolio companies or other investments managed by RENEW, now or in the future.

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An In-Depth Interview with Valerie Muigai of Kijani Baby 

<h1 style="text-align:center;">Season 3 of Chigign, Coming Soon!&nbsp;</h1>Chigign, a reality TV show dedicated to elevating entrepreneurship and angel investing in Ethiopia, is returning to primetime on FANA TV soon.&nbsp;Season 1 and 2 of Chigign were a success, culminating in the show’s angel investors choosing several companies to invest in. The show will be back on the air soon, likely just after New Year’s Day in Ethiopia, in a premium slot on national television.&nbsp;Chigign is a reality TV show dedicated to elevating entrepreneurship and angel investing, with a special focus on female entrepreneurship this season. The show aims to encourage and educate youth and society at large about the importance of innovation, entrepreneurship, private equity, angel investing and the private sector in general in Ethiopia. RENEW is proud to be a sponsor, represented on the panel by our own Laura Davis, and hopes to invest in winning entrepreneurs who pass our due diligence process.<figure class="image"><img src="/uploads/chigign_734a5492c8.jpg"></figure>Visit <a href="https://www.youtube.com/watch?v=GyovqM8acCY&amp;feature=youtu.be">YouTube</a> to view a short program clip or visit the <a href="https://www.chigign.com/">Chigign website</a> to apply to be on the next season for a chance to receive an investment and professional support from experienced angel investors.Show Name - Chigign (Roughly translated to “Emerge”)The Concept - Chigign is a platform for entrepreneurs to gain access to potential capital, management capacity and professional support. Entrepreneurs appear and pitch in a venue that combines the American TV programs “Shark Tank” and “American Idol”. Entrepreneurs who move on through the competition receive coaching from the Chigign team and, in some cases, the judges, with a focus on enhancing the entrepreneurs’ business concepts. The top contestants who make it to the final round will be considered for an investment from the panel's fund. The new season will also include background stories on some of the entrepreneurs and angel investors.&nbsp;Get Involved:<ul><li>Pitch Your Company or Idea - The Chigign team will choose more than 30 entrepreneurs each season and have them pitch their company or idea for a chance to appear on the show.</li><li>Be an Investor - Be a permanent or rotating investor on Chigign. Hear pitches, mentor entrepreneurs and vote with the panel to allocate the fund to finalist entrepreneurs. Not interested in appearing on the show? There are still options to be involved. Reach out via email to learn more (contact information is below).</li><li>Be a Sponsor - The Chigign&nbsp; team is looking for sponsors interested in promoting entrepreneurship and innovation among Ethiopian youth and the society at large. We offer sponsors options to be featured in Chigign events and programming, among a variety of benefits. Contact us to learn more (contact information is below).</li><li>Ecosystem Partner - Do you work with Ethiopian entrepreneurs? We'd love to add value to your program by having your entrepreneurs pitch on Chigign.</li></ul>Contact - Interested in being involved? Email us at renew@renewcapital.com or visit <a href="http://chigign.com/">www.chigign.com </a>for more information.

Elevating Entrepreneurship and Angel Investing in Ethiopia 

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Season 3 of Chigign, Coming Soon! 

<h1 style="text-align:center;">The Opportunities and Challenges of the Transport and Logistics Sector in Ethiopia</h1>With a population of 110 million people, Ethiopia has one of the most underdeveloped transport and logistic sectors in the world, according to the World Bank’s 2016 Logistics Performance Index (LPI) which ranked the country 126 out of 160. The sector faces many challenges in Ethiopia, including a historically very limited private sector involvement (foreign and local) and a lack of integration between government entities, especially the Ministry of Revenue and Ethiopian Shipping and Logistics Services Enterprise (ESLSE). Nevertheless, the sector has significant growth potential by virtue of expected growth in the wider private sector economy (from a low base), expected increase in demand from production sectors for professionalized logistics services, a growing middle class and continuing GDP growth.&nbsp;<figure class="image"><img src="/uploads/transport_bf21d1fc2c.jpg"></figure> Sector Growth OpportunitiesEven though the sector has its challenges, it has significant growth opportunities driven by the following factors:<ul><li>Liberation of the logistics sector – The government initiative to allow foreign investors to participate in the sector is expected to create growth as foreign investors eye entry into the country. There are big international players ready to come to Ethiopia including Dubai ports giant, DP World, which is taking the lead after signing an MOU with the Ministry of Transport to invest $1B in an effort to create a trade and logistic corridor from Ethiopia to Berbera in Somaliland.</li><li>Expected growth of the agriculture sector – The Ethiopian government is emphasizing the potential of the agriculture sector. Since 2019, 121,356 hectares of irrigation schemes have been developed in order to increase productivity and production[1]. Similarly, different initiatives are being taken by the government to create growth opportunities for the transport and logistics sector as products will need to be transported from farmers to the market more efficiently.&nbsp;&nbsp;</li><li>Expected growth of the industrial sector – Despite the related regional disputes, the country is finalizing the Great Ethiopian Renaissance Dam (GERD) which is expected to help resolve the power shortage in Ethiopia and support industrial growth. In conjunction with this, Ethiopia has also built 13 industrial parks throughout the country which require a modern logistics route to move raw materials and ship end products to customers.</li><li>The African Continental Free Trade Agreement (AfCFTA) – In time, the agreement will open doors to the regional market as African countries move to open their borders for more trade within the continent.</li><li>A growing middle income, urbanization and food (inefficiency, price inflation, logistics chain) – There is a large potential in the agricultural goods transport sector since the country is experiencing huge food inflation (22.3% in April 2021[2]) and urban population growth of 4.78%[3]. There is a growing need for efficient logistics services as the market in cities such as Addis struggles to get products efficiently, which could be one big step to solve part of the food inflation challenge the country struggles with. To provide some perspective, 100 kg. of teff is sold for an average price of ETB 5K in Addis Ababa and the same quality product can be bought for ETB 4.2K outside Addis from farmers directly.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ul> Current StateCurrently, the sector is dominated by the government with only a handful of private companies in freight forwarding and the logistics space. The sector lacks smooth integration (between government entities and between government entities and the private sector) and expertise which is causing significant inefficiency. For instance: it takes 40 days to clear inbound goods from seaports in Ethiopia, whereas middle-income countries clear within 3 days on average; and, Ethiopia’s total logistics cost compared to GDP stood at 26% but the middle-income average is between 10 to 15%,[4] showing the country still has a long way to go.The inefficiency in this sector is also affecting the competitiveness of other critical sectors such as exports. For instance, to transport a P20-foot container of garments from Ethiopia to Germany costs 247% more than from Vietnam and 72% more than from Bangladesh[5]. Even when we compare Ethiopia with neighboring countries such as Uganda and Rwanda who are also landlocked, we see that Ethiopia is behind.&nbsp; In 2016, Ethiopia’s&nbsp; LPI was 2.38 and ranked 126 among 160 countries worldwide, whereas Uganda and Rwanda had 2.58 and 2.97 LPI scores and were ranked 58 and 62, respectively.&nbsp; Government Plan and Regulatory FrameworkThrough the Homegrown Economic Reform agenda, the government aims to transform Ethiopia into an industrialized, lower-middle-income country by 2030. The private sector has a paramount role in making this a reality. The government has made significant changes specific to the transport and logistics sector under the new investment laws, which allows foreign investors to participate in packaging, forwarding and shipping agency services (which was previously reserved for domestic investors), railway transport, cable transport, cold-chain transport and freight transport with a capacity of more than 25 tons. But some areas are still closed for foreign investors. For example, per the new investment laws, international air transport service is only allowed in partnership with the government. In addition, foreign investors can only invest in domestic air transport service, cross country public transport service with a seating capacity of more than 45 passengers, and urban mass transit service in partnership with domestic investors without holding majority membership interest.&nbsp;In addition to the improvements to the investment law, the government plans to mobilize ETB 3T ($73B) of investments into the sector over the next ten years in partnership with the private sector. This coupled with the improvements in the investment law will be integral to the growth of the sector for the next decade.&nbsp;&nbsp; The Future of Logistics in EthiopiaThe sector is marked with challenges and lags behind other countries. But the government is determined (and has little choice) to enable the private sector to address the county’s rapidly changing demographic and logistical demands – which is why the sector’s growth potential cannot be ignored.<hr>&nbsp;[1] The Ministry of Agriculture[2] Central Statistics Agency[3] World Bank[4] Compiled from World Bank and The Ministry of Transport[5]<a href="https://www.theafricareport.com/"> https://www.theafricareport.com/</a>&nbsp; &nbsp;

An In-Depth Look at the Ethiopian Logistics Sector

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The Opportunities and Challenges of the Transport and Logistics Sector in Ethiopia

<h1 style="text-align:center;">An In Depth Interview with Eyob Bekele of Desta Garments</h1>For more pictures from Desta, download our recent <a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf">Impact Report</a>, and read an abbreviated version of the following story called “Building Community and Industry Despite a Textile Supply Chain Shutdown” on page 17 of the report.When markets shut down in 2020 and consumers in lockdown across the world no longer ventured to malls to shop for the season’s fashions, the global textile supply chain stalled. Ripple effects were felt hard in countries like Ethiopia, which has been investing for years to grow its textile industry to compete with Asia’s manufacturing hubs.&nbsp;Desta, the textile company in which the IAN invested in 2015, was no exception to these hardships. While managing the setbacks of orders being delayed and canceled, Desta founder Eyob Bekele took seriously the high risk of potential virus spread in the factory, doubling down on Desta’s commitment to corporate and social responsibility to protect the jobs and safety of more than 1,300 employees and their supporting local communities.&nbsp;<figure class="image"><img src="/uploads/eyob_6377d6d2e3.jpg"><figcaption>Eyob Bekele - Image by Ian Christmann: www.ianchristmann.com</figcaption></figure>Here’s what Eyob had to say during a recent conversation.About Eyob’s and Desta’s Experience of the Pandemic... As soon as the pandemic broke out, the major challenge was the cancellation of orders. The second was the stability of workers. Everyone was nervous about how to be in the work environment. We ended up closing the factory for 2 weeks and then came the government policy that said we could not let go of workers. No terminations were allowed. All of that added up to big challenges. Revenues were done. Workers were not stable. And the government policy said that we had to pay salaries.&nbsp;Along with the policy from the government that you were not allowed to terminate jobs, came a policy that said the government was going to be flexible and allow us to use raw materials to produce goods for the local market. The challenge always gives you an opportunity. Because people could not fly, the local market did not have as many resources, materials or products. So that opened up the local markets.&nbsp;Also, thankfully some of our international orders actually increased. The uniforms business helped us get through. Previously, we had orders 6 months in advance. Order flow was a challenge during the pandemic. And we were no longer able to travel to see customers.&nbsp;About Desta’s Expansion... I focused on our expansion in Butajira. We are trying to finalize and organize the Butajira factory. We currently have eight production lines and we are moving to 11. We have a canteen for employees where we make and provide bread and tea. We currently employ 500 in Butajira, making us the largest employer in the area and another 700 at our factory in Addis. This year, we hope to add at least 300 more employees to the Butajira factory.&nbsp;We’ve made a long term commitment to Butajira and are working with the community on several fronts. We distributed masks during COVID. We are currently planning to provide clean water to the community along with educational support and health care. We have started, with our sister company, to move into the construction of a 50-bed hospital. During COVID, we provided 20 hospital beds for the current Butajira hospital.&nbsp;Desta’s COVID-19 efforts... During COVID, we believe that between the Butajira and Addis factory, we have reached more than 200,000 people and communities with COVID-related education and provided more than&nbsp; 150,000 masks to the community free of charge.&nbsp;Pandemic Learnings... 2020 was a challenge all its own. We had to come up with solutions on a day to day basis. We learned how to survive a pandemic including hand washing training and temperature tests for workers. Some of the health efforts will likely remain with us in our factory health practices. It is still not business as usual. Out of the box solutions have helped us survive with production. Flexibility is important. The pandemic has caused us to think differently.&nbsp;Video conference and Whatsapp and telephone have replaced the in person sales meetings. We started a virtual trade show. We now do video chats, virtual tours and virtual audits. Nothing replaces face to face, but we have found a way. Also, travel was a big part of how I learned. Limited travel means limited exposure. To be honest the things I know are the things I saw a year ago. I really miss that piece of travel. It’s a big gap for me.&nbsp;Outlook on the Pandemic in Africa... For me, I do not believe we have not seen the full impact of the pandemic yet. Whatever is happening in the rest of the world, we are yet to see in Africa. So unfortunately we may feel the impact in a year, and we should be prepared for it. Ethiopia is not only experiencing COVID, it has other challenges with economic impact, including the slow devaluation of the currency. We have to prepare for the worst.&nbsp;Commitment to Workers... One thing we decided is that we need to keep our workers. Maintaining the work environment is key. Our employees are the lifeblood of the factory. It may eat into our profits now, but it is key that workers who have been trained stay with us. That is our priority right now.&nbsp;Desta’s Vision... What we have done in 2020, we will continue to do. Our vision is to be the #1 garment facility in Ethiopia, and the preferred partner for garment makers. We continue to be committed to compliance with many different standards. In 2020, we achieved ISO 9000 certification. We are the only one in East Africa with STeP OEKO-TEX certification.&nbsp; Disclaimer: The information included in this blog is provided as a recounting of the IAN’s interactions with Desta and the happenings at Desta. It is not intended as performance data related to the IAN’s investment in Desta and is not indicative of other companies in the IAN’s portfolio, their social impact or the performance of investments in them. Any discussion of Desta’s achievements or social impact is no guarantee that such outcomes or impact will be realized by Desta in the future, or by other IAN portfolio companies or other investments managed by RENEW, now or in the future. &nbsp;

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Renew Capital Angels invested in Desta PLC, a textile and apparel manufacturing operation located in Ethiopia. The company produces and exports fabric and garments and provides cut-and-sew, knitting and embroidery services to domestic and international clients. Desta is committed to fair treatment of its employees and adherence to guiding principles of sustainability, setting it apart from the trajectory this industry has taken in many other low and middle-income countries.

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An In Depth Interview with Eyob Bekele of Desta Garments

<h1 style="text-align:center;">The Stretch - My Journey to RENEW</h1>Have you ever faced your limit? The limit of your strength, your patience or your capacity to work? Sometimes we arrive at a place where we look up from our desk and we ponder, “Is there more to life than this? Is there something else that would give my life more purpose, meaning, joy and balance?” Some days we see our limits, and it is never easy to accept the distance between what we can do and what we want to do. “This is as far as I can go” is a statement of resignation that evokes frustration, grief and discouragement, but we often go through this for a good purpose. This purpose may be to better understand our limited capacity as human beings so that we may be humbled. When we are faced with our limits, we have two choices: to resign and say "this is as far as I can go" or respond to the call to expand.&nbsp;This call has been an integral part of my journey to Ethiopia that has become the enlargement of my “tent”, the lengthening of my cords and the strengthening of my stakes.<figure class="image"><img src="/uploads/Picture1_Fotor_126eff1ff0.jpg"></figure>I have become acutely aware that we should not be limited to what we already have. We need to try new doors and accept that this expansion requires work. Indeed, this growth does not come to the sluggish. This speaks of seeking new opportunities, without forsaking the old ones - it's adding, not replacing. Growth brings along new challenges, concerns and needs that will arise, but we must allow this work to happen. The inconveniences, sacrifices, difficulties, heartaches and burdens you are carrying will all increase, but the rewards will be far greater. We need to feel the strain if the work is going to make an impact. These burdens are put on our shoulders for a reason, they stretch us as we learn to lay down our own rights for the sake of others. In the process of growth, we simply can’t stop at what we think we can do, because if we stop there, we will not see the possibilities. We are being called not to hold back but to sacrifice in our quest for significance.Most of us like the idea of being significant, to move from getting to giving. The challenge we face is to ensure that we do not wait until our life is half over before we work towards significance. We go through life focused on success that is represented by wealth, recognition, power and status. The reality is that true significance requires us to focus on the opposite of each of these symbols.The opposite of accumulating wealth is generosity with our time, talent, treasure, and touch (reaching out to support others). The opposite of recognition is service. The opposite of power and status is relationships. If we just focus on significance (generosity, service, and relationships), we will always be amazed at how much success will come our way.Life is all about the choices we make as we interact with others. We can choose to be serving or self-serving. Life constantly presents us with opportunities to choose to love and serve one another.Leadership is loving our mission, loving our customers, loving our people, and loving ourselves enough to get out of the way so that other people can be magnificent.This is why I removed my stakes, stretched my tent and moved to Ethiopia.

Perspectives

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The Stretch - My Journey to RENEW

<h1 style="text-align:center;">Standing Ground with Effoi Pizza</h1>Look for RENEW’s latest Impact Report next week! This year, we’ll explore what it was like for our investors, entrepreneurs and our team to stand our ground during the pandemic in East Africa. The report will feature key statistics and amazing photos and stories from our work in East Africa.In anticipation of the Impact Report, we wanted to share the story of one entrepreneur who more than stood his ground in 2020. Meet Tsega Wubishet (aka Gigi) of Effoi Pizza. Effoi Pizza, a bustling pizza operation in Addis Ababa, now includes 6 branches and more than 190 employees. Gigi previously participated in RENEW’s Exec’s Program, which is how we came to know and love him. So sit back, relax and enjoy how Gigi describes in his own words what it was like to stand his ground and grow his company in 2020.<figure class="image image-style-align-center"><img src="/uploads/gigi_0_954008b5a7_026315a9c4.jpg"></figure>How did you and your company experience the pandemic?By March 2020, Ethiopia recorded it’s first COVID-19 patient and everyone was washing [their] hands, and all the necessary actions were being taken.At Effoi, we initially decided to close in-restaurant dining. By observing the precautions, we continued with takeaway and pizza delivery. The government passed laws requiring clubs and bars to close, but restaurants could stay open at half capacity, with 3 people at a table. We followed instructions and business was back. With the rules, we still managed to pull through that period, mostly with delivery.As an entrepreneur, the one thing I learned is that nothing is certain. We can have 1 year, 5 year strategy, but that is something we keep in our heads and if that doesn’t work, you have to adapt. As long as you have a growth mindset in your head, you come up with new ways to get things done. It was actually good for my business. It [the pandemic] helped me think a lot.Are you familiar with the phrase “Standing Ground”? What does it mean to you as an entrepreneur?Standing ground was actually something I was contemplating in 2020 as I was working on our Entoto project because I was working among trees. It’s a matter of having deep roots in the community. Also as you grow, you have to fortify your system, thicken your trunk, then you can weather the storm. You always sway. That’s why a tree doesn’t break. When you do that, you can consider yourself standing ground. But a tree cannot be healthy by itself, you need to support the entire ecosystem. You cannot stand on your own. You have to support others around you. That tree provides service to the community.Note: Entoto Mountain overlooks Addis and has recently been remade into a beautiful, tree filled recreational area where visitors can take a long hike on a paved bike path and enjoy some of Ethiopia’s best brands, including Effoi Pizza.What is the current state of your business?Business is higher by 50% [compared to] pre-pandemic. We are used to seeing improvements on a weekly and daily basis. We are always breaking records, which means we are always improving. Pandemic slowed down our improvements, but now we are back, and we are breaking records.As you look forward, further into 2021, and beyond the COVID-19 pandemic, what dreams and visions do you now have for your business growth?In the coming 5 years, life will continue. The vaccine will help with that. For Ethiopia, once the vulnerable portion of the society is vaccinated, the cases will go down. This will continue and we will go back to normal. And the young people will always want to go out and dine and enjoy.What did you take away from RENEW’s Exec’s Program?I am grateful to have attended [The Exec’s Program]. I now know how Effoi can and should grow. I may not have had the time to sit and implement everything we were taught, but I now know what is needed.Make sure to check out our Impact Report which will feature more stories of resilience in East Africa.

An Interview with Tsega Wubishet in the Entoto Forest

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Standing Ground with Effoi Pizza

<h1 style="text-align:center;">RENEW's 2020-2021 Impact Report</h1><a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf">Read our 2020-2021 Impact Report</a>RENEW announces our 2020-2021 Impact Report. This document is shareable and documents RENEW and the Impact Angel Network’s investment journey through 2020, the pandemic, and how our entrepreneurs responded and stood their ground.Please share this with anyone who might be interested in what we’re doing in Africa.&nbsp;<figure class="image"><a href="https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d.pdf"><img src="/uploads/RENEW_IR_2021_social_IG_khaki_big_map_58a726bf84.png"></a></figure>&nbsp;

RENEW and the Impact Angel Network’s Investment Journey Through 2020

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RENEW's 2020-2021 Impact Report

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