<h1 style="text-align:center;">Press Release: Roadrunner Technology Solutions Attracts Investors Despite Challenges</h1>&nbsp;<a href="https://latest-api.renewcapital.com/uploads/Press_Release_Roadrunner_FINAL_f7a7e698b8.pdf">Download the Full Press Release</a><hr>&nbsp;Roadrunner Technology Solutions Attracts Investors Despite Domestic and Global Challenges&nbsp;Denver, CO and Addis Ababa, Ethiopia, November 19, 2020 -- Despite the global COVID-19 pandemic and domestic challenges in Ethiopia, 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 is pulling ahead to become one of Ethiopia’s largest and fastest-growing e-commerce platforms. This strong growth has helped the company attract a follow-on investment from RENEW’s <a href="https://renewcapital.com/what-we-do/investing">Impact Angel Network</a> (IAN) and attract interest from a number of venture and equity investors eyeing the tech sector in Ethiopia as an up-and-coming opportunity in Africa. Deliver Addis is a pioneer in the e-commerce space and has been delivering since 2015. Over the past three years, the Company has expanded significantly, delivering food to tens of thousands of consumers from 140+ restaurants and, through its online marketplace, is now selling groceries, flowers and other consumer goods.Since receiving an initial investment from the IAN in 2017, the company has expanded their online offerings and their delivery capabilities. Since April, the company has been growing at an impressive rate and has been able to acquire new customers throughout the pandemic, which has caused a major cultural shift with consumers ordering food rather than eating in a restaurant. The company has been supporting economic recovery initiatives throughout COVID-19 for small and medium-sized enterprises (SMEs) by expanding their range of products and services. Deliver Addis has also been continuously improving on their technological capability to help customers discover better places and products around them, as well as expanding and enhancing their current fleet and logistical capabilities.&nbsp;<figure class="image"><img src="/uploads/rr_press_release_0_16642eabe2.png"></figure>"E-commerce and companies like Deliver Addis are seeing a rise in demand around the world due to COVID-19,” noted RENEW’s CEO, Matthew Davis, recently. “But, even without this, the company is growing as Ethiopian consumers are coming online and the world’s 12th largest populated country begins to privatize key sectors of their telecom and banking sector. Because of this, Deliver Addis and Roadrunner are well-positioned to capture a market we believe will continue to experience considerable growth in the coming years."“The future looks bright for Deliver Addis as we continue to focus on customer acquisition and provide high-quality services to our customers in Ethiopia,” said Founder and CEO of Deliver Addis, Feleg Tsegaye, recently. “We’re grateful for the Impact Angel Network’s continued commitment to our vision and growth as we continue to grow the leadership team and create additional employment opportunities for youth and vulnerable groups."The investments made by the Impact Angel Network have been made possible because of RENEW’s partnership with <a href="https://www.international.gc.ca/global-affairs-affaires-mondiales/home-accueil.aspx?lang=eng">Global Affairs Canada</a> (GAC). RENEW’s blended finance partnership with GAC aims to support high potential, responsible SMEs in Ethiopia, 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 Ethiopian economy.About the Impact Angel Network and RENEWThe <a href="https://renewcapital.com/what-we-do/investing">Impact Angel Network</a> is one of the most active private equity investors in Ethiopia. Its members seek to achieve both significant positive social impact and financial returns through investments in small and medium enterprises (SMEs) in Africa, a proven engine of economic growth and job creation that often lacks capital due to their size. RENEW and IAN members believe that targeting employment through SMEs is, dollar-for-dollar, the most effective and sustainable way to reduce poverty.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims to promote sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.&nbsp;###&nbsp;To find out more, please visit <a href="https://renewcapital.com/">www.renewcapital.com</a>.

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Press Release: Roadrunner Technology Solutions Attracts Investors Despite Challenges

<h1 style="text-align:center;">Ethiopia Accedes to the New York Convention</h1>In a positive step towards attracting increased foreign investment, Ethiopia has adopted the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly known as the “<a href="http://www.newyorkconvention.org/">New York Convention</a>”. The New York Convention is an international treaty created by the United Nations in 1958 and is widely considered the foundation for international arbitration. Ethiopia, which will officially become party to the Convention on November 22, 2020, is the 165th nation and 33rd African nation to accede to the Convention <a href="https://www.renewcapital.com/blog/2020/ethiopia-accedes-new-york-convention#item1">1</a>.The New York Convention has two primary functions. First, it requires courts in signatory states to enforce arbitration clauses in legal agreements. In other words, when parties to a contract have agreed to resolve a dispute through arbitration, that agreement must be upheld and a party cannot try to circumvent that by instead bringing the dispute to a court <a href="https://www.renewcapital.com/blog/2020/ethiopia-accedes-new-york-convention#item2">2</a>. Second, it creates the basis for enforcing arbitral awards in another country <a href="https://www.renewcapital.com/blog/2020/ethiopia-accedes-new-york-convention#item3">3</a>. Let’s look at an example of this.&nbsp;<figure class="image"><img src="/uploads/new_york_convention_0_cdcf5b55a9.png"></figure>A party from a country that has not adopted the New York Convention (Country X) and a party from the United States (which has adopted the Convention), enter into a commercial agreement. In that agreement, they choose to resolve disputes by arbitration in the U.S. A dispute arises, the parties go to arbitration, and the U.S party “wins” the arbitration. Unless the party from Country X has assets in the U.S., the arbitral award will likely not hold much value. This is because there will not be an easy, surefire way for the U.S. party to enforce that award in Country X, where the other party’s assets are located. Having the award doesn’t mean much if there is no way to collect. The New York Convention fills that gap and provides the mechanism for the U.S. party to enforce the award -- arbitral awards rendered in any country party to the Convention will be enforced and recognized in each other country party to the Convention, subject only to certain, limited defenses.Parties can adopt the New York Convention with certain “reservations”. Ethiopia has adopted it with three reservations: (1) the Convention will only apply to the recognition and enforcement of awards made in the territory of another contracting state; (2) Ethiopia will only apply the Convention to disputes arising out of legal relationships which are considered “commercial” under the laws of Ethiopia; and (3) there will not be any retroactive application of the Convention <a href="https://www.renewcapital.com/blog/2020/ethiopia-accedes-new-york-convention#item4">4</a>. These reservations are not uncommon but will limit the scope of the Convention in Ethiopia. Existing legal agreements will not benefit from the Convention without a new agreement to arbitrate entered into after November 22.Ethiopia’s accession to the New York Convention will give foreign investors more certainty and security that their investments will be protected. Though Ethiopia previously had domestic rules regarding enforcement of foreign arbitral awards, adopting the New York Convention is seen as a “best practice” in the international community, and it adds to the list of recent reforms Ethiopia has undertaken to create a more attractive environment for foreign investment.<hr>To find out more about RENEW or the IAN, contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>, follow us on Twitter <a href="https://twitter.com/RENEWLLC">@RENEWLLC</a> or find us on Instagram <a href="https://www.instagram.com/impactangelnetwork/">@impactangelnetwork</a>. Apply to join the Impact Angel Network: Application: <a href="https://renewstrategies.formstack.com/forms/renew_investor_accreditation_form">LINK</a><hr>1. “Status: Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958)”, United Nations Commission on International Trade Law, <a href="https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2">https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2</a>2. New York Convention, Article II.3. Ibid, Articles III-V.4. “Status”, <a href="https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2">https://uncitral.un.org/en/texts/arbitration/conventions/foreign_arbitral_awards/status2.</a>

As of November 22, 2020, Ethiopia will be the 165th nation to adopt the Convention

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Ethiopia Accedes to the New York Convention

<h1 style="text-align:center;">November 2020 Resource Blog</h1>For this month’s resource blog, we’re focusing on one of the greatest resources in your business, the people. Specifically, these articles will help you keep your people motivated, inspired and understood.<ul><li><a href="https://hbr.org/2020/06/stay-motivated-when-feedback-is-scarce?utm_medium=email&amp;utm_source=newsletter_daily&amp;utm_campaign=dailyalert_not_activesubs&amp;deliveryName=DM82727">Stay Motivated When Feedback Is Scarce</a>: It’s easy to fall into catastrophic thinking — especially when you’re working remotely. Learn how to motivate yourself and others. (HBR) Time: a 4-minute read</li><li><a href="https://hbr.org/2020/06/what-to-do-when-work-feels-meaningless?utm_medium=email&amp;utm_source=newsletter_daily&amp;utm_campaign=dailyalert_not_activesubs&amp;deliveryName=DM82910">What to Do When Work Feels Meaningless</a>: Understand how to focus on what you can control, taking advantage of the opportunities in a crisis, and how to use the opportunities in a crisis to connect with your purposeful future. (HBR) Time: a 3-minute read</li><li><a href="https://hbr.org/2020/06/what-your-youngest-employees-need-most-right-now?utm_medium=email&amp;utm_source=newsletter_daily&amp;utm_campaign=dailyalert_not_activesubs&amp;deliveryName=DM82910">What Your Youngest Employees Need Most Right Now</a>: The pandemic has presented unprecedented challenges for those who are just beginning their careers. Learn how to support the youngest members of your team. (HBR) Time: a 3-minute read</li></ul>Interested in learning more about a specific topic? Contact us and let us know what interests you at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>.&nbsp;<figure class="image"><img src="/uploads/hbr_picture_0_eb1ed862b4.png"></figure>&nbsp;

A look at the greatest resources in your business, the people

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November 2020 Resource Blog

<h1 style="text-align:center;">RENEW and The Exec's Featured on EBS’s Ethio Business</h1>RENEW was featured on EBS’s Ethio Business show on Thursday, November 12, at 8:30 PM EAT. RENEW’s partners, Matthew and Laura Davis, and Project Manager, Dagmawit Shiferaw, speak about RENEW’s investment in the country and the development community ecosystem that is supporting the private sector in Ethiopia. Enjoy the direct link to the episode below and check out RENEW’s YouTube (<a href="https://www.youtube.com/channel/UC9TBp70IOmBxIKozLPviBFQ">LINK</a>) for short clips from The Exec’s Program.<a href="https://www.youtube.com/watch?v=R2MPimOIESM&amp;feature=youtu.be">LINK TO YOUTUBE</a>Thanks to the work RENEW is doing with the development community, including Global Affairs Canada, RENEW currently offers two core training programs: The Exec's Program and CFO100. Below we recall what Tesfalidet Hagos and Amakelech Lulu had to say about <a href="https://latest-api.renewcapital.com/uploads/RENEW_Exec_s_Curriculum_0a694da586.pdf">The Exec’s Program.</a>&nbsp;<figure class="image"><img src="/uploads/xec_fotor_0_5a15a1761c.jpg"></figure>“RENEW’s Exec’s Program helped me to start thinking more strategically. I am not working as a technician anymore, but instead like an entrepreneur. As a manager, it has helped me free myself so I build systems, properly delegate jobs, and design standard indicators. I now see my company from a higher position instead of getting constantly caught in the day-to-day issues.” - Tesfalidet Hagos, Founder and CEO Luna, and Fresh Corner“The Exec’s Program has given me a lot of confidence related to my financial management. Now I say to my finance manager ‘What is this?’ and ‘How can I do that?’ Through the program, I learned not to be intimidated by financial management, and I learned how to follow up and ensure I have proper cash flow management. Now, I sit with my finance manager regularly. At first, he was surprised because he’d never had a company owner ask him these kinds of questions. He was surprised that I knew the right terms for things. I had even taken an accounting course before, but it hadn’t prepared me to be an entrepreneur.” - Amakelech Lulu, Founder, and CEO of Gishen PharmacyApply for our Training Programs:<ul><li>The Exec's Program - None currently available.</li><li>CFO100 - None currently available.</li></ul>

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RENEW and The Exec's Featured on EBS’s Ethio Business

<h1 style="text-align:center;">RENEW Welcomes Paul Reynolds to Leadership Team and Kirsten Newman as General Counsel</h1>&nbsp;Download the Full Press Release<hr>RENEW Welcomes Paul Reynolds to Leadership Team and Kirsten Newman as General Counsel&nbsp;Denver, CO and Addis Ababa, Ethiopia, October 13, 2020 -- RENEW is pleased to announce the following position changes at RENEW:<ul><li><a href="https://www.linkedin.com/in/paulreynolds5/">Paul Reynolds</a> joins RENEW’s executive team as a managing partner in Addis Ababa, Ethiopia.</li><li><a href="https://www.linkedin.com/in/kirsten-newman-10301aa7/">Kirsten Newman</a> has been promoted to the general counsel position.</li><li><a href="https://www.linkedin.com/in/tomscrivencfa/">Tom Scriven</a>, RENEW’s partner and previous general counsel, will be returning to private practice in Colorado and will remain a partner and on RENEW’s Investment Committee.</li></ul>RENEW, an impact investment and management consulting firm based in East Africa since 2012, announces further expansion with a new executive team member and an internal promotion. This includes RENEW’s new managing partner, Paul Reynolds, from Inchcape, and Kirsten Newman’s promotion to general counsel. RENEW also announces that Tom Scriven, RENEW’s partner and previous general counsel, will be returning to private practice and will remain a partner and on RENEW’s Investment Committee.Paul Reynolds joins RENEW’s leadership team bringing three decades of global investment banking and investment experience. Having been lead adviser on 175 announced transactions worth over €250 billion, Paul has extensive government and board level experience in EMEA and India. Paul built sustainable businesses for Cazenove in the UK (2001-2005), and for Rothschild in the UK (2005-2008), the Middle East and India (2008-2012) and Benelux and Nordic regions (2012-2016), as well as a number of not-for-profit enterprises. In 2017, Paul joined Inchcape (INCH.L) to drive its business development across Africa and investments in Ethiopia. Paul is a trustee of Rainbows4Children (Ethiopia), non-executive director of the Investor Relations Society of South Africa and Kilya Capital in Kenya, Chairman Emeritus of the Middle East Investor Relations Association, Supervisory Board member of Capital Tool Company, and remains a Rothschild Senior Adviser. Paul will be helping to lead RENEW’s investment advisory practice and support the firm’s regional expansion.<figure class="image"><img src="/uploads/pr_kirsten_paul_3_3eabd4f81b.png"></figure> Kirsten Newman, who has been with RENEW since September 2018 as associate general counsel, has been promoted to RENEW’s general counsel. Kirsten is responsible for the legal tasks related to the investment activities of RENEW and for serving the legal and compliance needs of RENEW LLC. Prior to joining RENEW, Kirsten worked as a senior associate in the energy and infrastructure project finance group at Skadden, Arps, Slate, Meagher &amp; Flom. In this capacity, she advised commercial and investment banks, private equity firms, developers, borrowers and issuers in various types of finance transactions, with an emphasis on project finance. Kirsten has extensive cross-border experience, advising on transactions in more than a dozen countries. Kirsten previously studied and worked in London, beginning her legal career in Skadden's London office, advising on international M&amp;A and capital markets deals. Kirsten received her J.D. from the University of Minnesota Law School, magna cum laude and Order of the Coif. She holds a B.A. in psychology, summa cum laude, from the University of Minnesota.Kirsten will be taking over as general counsel from Tom Scriven, who will be returning to private practice in Colorado and will remain a partner and on RENEW’s Investment Committee. Tom has been a partner with RENEW since 2012 and helped build the firm's investment practice and development consulting business with RENEW's founders, Matt and Laura Davis. He has led numerous transactions in East Africa and served as board chair for several portfolio companies.“RENEW has aggressive plans to scale into East Africa, and we look forward to fresh perspectives and insights from the new members of our leadership team,” noted RENEW’s CEO, <a href="https://www.linkedin.com/in/matthew-davis-a948772/">Matthew Davis</a>. “SME investing in East Africa is challenging, but a potentially rewarding and high-impact investment strategy. I am very excited to have Kirsten and Paul helping guide RENEW to our next stage of growth. We’re also grateful for the immense contributions Tom has made to RENEW as general counsel, and we will continue to benefit from his wisdom on our Investment Committee.”About the Impact Angel Network and RENEWRENEW’s<a href="https://www.renewcapital.com/investing" target="_blank" rel="noopener noreferrer"> Impact Angel Network</a> is one of the most active private equity investors in Ethiopia. Its members seek to achieve both significant positive social impact and financial returns through investments in small and medium enterprises (SMEs) in Africa, a proven engine of economic growth and job creation which often lack capital and management capacity due to their size. RENEW and IAN members believe that targeting employment through SMEs is, dollar-for-dollar, the most effective and sustainable way to reduce poverty.RENEW, with its largest office in Addis Ababa, Ethiopia, manages the IAN’s investment operations and provides investment advisory and consulting services in support of its investments. RENEW’s work in Ethiopia was piloted with USAID and is currently undertaken with financial support from the Government of Canada provided through Global Affairs Canada. The project, Accelerating Business Growth, aims to promote sustainable job creation for low-skilled workers, including women and young adults, through a dynamic and growing small and medium business sector in Ethiopia.&nbsp;

Announcing the following position changes

RENEW Welcomes Paul Reynolds to Leadership Team and Kirsten Newman as General Counsel

<h1 style="text-align:center;">October 2020 Resource Blog</h1>For this month’s resource blog, we’re focusing on good habits to follow to achieve success in your business and personal life. Specifically, October’s articles recommend a list of good habits that should guide you towards success. Read the articles below to learn more.<ul><li><a href="https://www.forbes.com/sites/entrepreneursorganization/2018/03/28/how-to-form-good-habits-in-your-personal-business-life/#492021cf6332">How to Form Good Habits in Your Personal &amp; Business Life</a>: Learn about the 3-step pattern that behavioural psychologists say should help you achieve good habit-forming success in your business and personal life. (Forbes) Time: a 4 minute read</li><li><a href="https://www.investopedia.com/articles/personal-finance/092515/10-habits-successful-people.asp">10 Habits of Successful People</a>: A list of the 10 most often-cited habits of successful people, including organization, relaxation and taking action. Check out the article for the other 7 habits. (Investopedia) Time: a 5 minute read</li><li><a href="https://www.entrepreneur.com/article/287162">28 Best Habits to Have in Business</a>: Your behavior comes from habits that we use on a daily basis. Learn how to cultivate good habits to put your progress on autopilot. (Entrepreneur) Time: an 8 minute read</li></ul>Interested in learning more about a specific topic? Contact us and let us know what interests you at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>.<figure class="image"><img src="/uploads/habits_0_dae48bc95a.png"></figure>

A look at good habits for your business and personal life

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October 2020 Resource Blog

<h1 style="text-align:center;">The Journey Often Leads to a Beautiful Destination</h1>When I was growing up, I used to hear words like “debit, credit, tax, laws, amendments”, since I belong to a family of Chartered Accountants. This is why, when the time came for me to choose a career, I chose Chartered Accountancy without giving it a second thought. Not because it runs in my family, but because I feel connected with this area of work. To read laws, understand their nitty-gritty details, and to help society follow them and thus, be apart of nation-building; it all excites me. I knew it wouldn’t be very easy to get to my goal. Only 0.04 percent of people obtain the ‘CA’ designation in a population of 1.37B in India.From the start, I knew there was no fun in choosing the easy way out. I knew I had to be strong and determined to reach my goal. There would be days when I would be anti-social, locked in four walls with hundreds of books. But this hardship was worth pursuing if it brought a prefix of ‘CA’ in front of my name.<figure class="image"><img src="/uploads/shailandfamily2_0_cdbc2db0ae.png"></figure>With that, my journey started. There were sleepless days and books all over and around me. In spite of giving every bit of me, I faced failures. But I kept pushing myself with positivity and determination and kept thinking about the time when I knew it would all be worth it one day.I learned it’s okay to fail, but it’s not okay to not start again. It’s okay to cry, but it’s not okay to not feel determined again. For me, acceptance is the key to success. Accepting the situation and giving every possible effort to make it awesome. I always embrace failures as it makes you a better and grounded person. Failure teaches you a lot of lessons which success might not.Finally, after all those struggling years, with my family’s support and my determination, I went from Shail Bhandari to CA Shail Bhandari. I still remember the day of my accomplishment. I didn’t get overwhelmed, I didn’t scream in joy like other CA aspirants on achieving the feat. I was grounded and calm because I realized that my journey brought me more joy than the outcome.After obtaining my CA, I faced another dilemma: whether to join my family business or start a separate venture as a professional. Working in my family business would be an easy option as I would be backed up for all my work. But choosing an easy way was never my cup of tea. I wanted to work beyond my boundaries and that is what brought me to RENEW.I connect so much with RENEW. We work in a challenging and growth-oriented environment and things are not always smooth. We all know this and still choose this road and journey. I believe that keeps the team going every day with new challenges and constant learning! We fail, we grow and we learn.<figure class="image"><img src="/uploads/shailandfamily_3769bdf188.png"></figure>I was nervous and yet excited to be part of the team. We belong to different countries, speak different languages, have diverse beliefs, but we have one goal: to be the most successful SME investment firm and that is what connects us. We share different thought processes and cultures and embrace them all. Challenges make us tougher, stronger and a better person. We know how bad the situation may be, but we have the ability to stand up again and make things happen in our favour.The journey still continues with lots of ups and downs, lows and highs, but with a constant belief of a beautiful and peaceful journey and destination!

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The Journey Often Leads to a Beautiful Destination

<h1 style="text-align:center;">A Gender Analysis on the Effects of COVID-19 on Ethiopia’s SMEs</h1>This blog was co-authored by <a href="https://www.linkedin.com/in/dagmawit-shiferaw-8665943b/">Dagmawit Shiferaw</a><hr>Sign up for <a href="https://renewstrategies.formstack.com/forms/renews_digital_library">RENEW’s Digital Resource Library</a> for additional resources, including video tips for executives.The impact of COVID-19 on businesses is wide and diverse, bringing about opportunities for some while threatening the existence of others, and this is especially true in Ethiopia. At RENEW, we have been creating interventions to help businesses weather the storm. One of the interventions that the <a href="https://www.international.gc.ca/world-monde/stories-histoires/2021/business-growth-ethiopia-ethiopie-croissance-entreprises.aspx?lang=eng">Accelerating Business Growth (ABG) Project</a>, led by RENEW, has created in response to COVID-19 is a widely accessible virtual webinar series designed to keep companies informed and to provide resources that will help them make critical decisions during these difficult times.Over the last few months, we have continued to run a number of webinars, including our virtual Women in Finance Series, recognizing the need for women business owners to stay connected during this time. We have seen a significant increase in participation, showing the importance of solidarity amongst women business owners and executives during the pandemic. At the end of all our webinars, RENEW has polled participants using a set of questions with 6 to 9 indicators to assess and better understand the effects COVID-19 is having on companies.The resulting company data was gender-disaggregated and analyzed in order to better understand how COVID-19 was impacting female-led versus male-led companies so that we, and the greater development community, could continue to refine our existing interventions using a data-driven approach.<figure class="image"><img src="/uploads/gender_graph_1_ca0cdba438.png"></figure>Out of the 95 respondents in total, the spread between female versus male participants was roughly equal at 51% and 49%, respectively. The respondents were predominantly operational companies with a fairly even distribution among the business stages (i.e., micro, small, medium, etc.) across both females and males. Further, the sector spread between female and male companies is also largely similar. And by having these three factors roughly equal and not skewing the data with significant outliers, RENEW believes the data is statistically under control.The business owners were polled about the effects of COVID-19 on their companies, wherein they could choose as many of the eight pre-listed indicators that applied to them. Within the female participant category, “a decline in local sales/revenue” was cited the most with a 51.2% prevalence rate (excluding pre-revenue companies, this becomes a 39.5% prevalence rate). In comparison, the male participant category “a decline in local sales/revenue” and a “delay in an expansion project” were equally cited the most with a 40% prevalence rate for each (or a 35% prevalence rate for the two reasons if we exclude pre-revenue companies).&nbsp;<figure class="image"><img src="/uploads/gender_graph_3_ab51dacb3e.png"></figure>The business owners were then polled about the measures they were taking to survive during this period, wherein they could choose as many of the nine pre-listed indicators that applied to their companies. Within the female participant category, “decreasing costs” was the most cited action with a 41.9% prevalence rate (34.9% excluding pre-revenue). In comparison, the male participant category “looking for new markets” was the most cited action with a 45% prevalence rate (35% excluding pre-revenue). When we exclude pre-revenue companies for male-led companies, “working to improve the product or businesses” also has a 35% prevalence rate.Finally, the business owners were polled on what they would use funding on if secured, wherein they could choose as many of the seven pre-listed indicators that applied to their companies. Both the female and male categories chose “growth - working capital” as the most cited use of funding at 62.8% and 62% respectively (37.2% and 47.5%, respectively, excluding pre-revenue companies). Interestingly though, the second most cited use of funding for each category differs - for females it is “Survival - salaries and other expenses”, whereas males listed “Pivot - launch new lines of business in response to COVID” (this remains unchanged when we exclude pre-revenue companies).&nbsp;<figure class="image"><img src="/uploads/gender_graph_2_b3c3c18e98.png"></figure>RENEW believes that these observations provide further support for our investment strategy to help SMEs become gender-smart and be run by gender-balanced executive teams. Having both women and men in positions of leadership, management and decision-making not only drives gender equality but, we believe, is simply smart investing. There are a number of research reports and data on how gender-smart companies (i.e., gender-equal boards, executive teams, etc.) outperform their non-gender-smart peers in terms of financial performance (1).In the gender analysis outlined above, we see how female and male entrepreneurs respond differently to COVID-19 (“inward” versus “outward” looking); something that we have even experienced at RENEW. Both approaches can be right and good for the company, but it's in having that diversity of thought at the executive and management level that builds balance and brings about opportunity, something that is particularly important during times of hardship.--Interested in seeing more of RENEW’s resources? Sign up for <a href="https://renewstrategies.formstack.com/forms/renews_digital_library">RENEW’s Digital Resource Library</a> to access the full PDF and a number of other white papers, recordings and publications.

RENEW examines how female and male entrepreneurs are fairing under the global pandemic

Gender Equality

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A Gender Analysis on the Effects of COVID-19 on Ethiopia’s SMEs

<h1>New Year, New Currency for Ethiopia</h1>On September 14, following the <a href="https://en.wikipedia.org/wiki/Enkutatash">New Year</a> celebrations in Ethiopia, the Ethiopian government introduced new currency notes which will replace the 10, 50 and 100 birr notes and also introduced a new 200 birr note. The introduction is part of the government's effort to control corruption, counterfeit money and illegal cash holdings. This undertaking by the government will cost over ETB 3.7B (approximately $101M USD).<figure class="image"><img src="/uploads/Linkedin_Templates_19_78215bcb02.png" alt="An image of the New Ethiopian 200 birr note showcasing newly identified security features as part of Ethiopia's currency reform, including the transition to new Ethiopian birr notes"></figure>Figure 1: The newly introduced 200 birr note with newly identified security featuresThe introduction of the new 200 birr notes (approx. $5.50 USD) is the first note of this denomination for the country whose biggest note was previously the 100 birr note. This is a timely move as the birr has been losing its purchasing power and people have needed to carry a considerable amount of cash for transactions (<a href="#item1">1</a>).<h2 style="text-align:justify;">Why Change the Currency Now?</h2>The current administration has introduced the <a href="https://www.renewcapital.com/resources/blogs/The%20Ethiopian%20Business%20Environment%20in%20Light%20of%20the%20Homegrown%20Economic%20Reform%20Program">Homegrown Economic Reform Program</a> to stabilize the economy and continue the economic growth that Ethiopia has seen for more than a decade. As part of the reform, the National Bank of Ethiopia (NBE) spearheaded the design and implementation of different monetary policies to help neutralize challenges such as inflation and the liquidity shortage within the country.The NBE claims that there is a lot of currency circulating outside the banking system which contributes to the high inflation rate the country is currently experiencing. The bank further claims that the money may be funding illicit activities from black market foreign currency dealings to inter-country contraband trading. In May of this year, the NBE issued a directive putting a cap on the withdrawal amount a person or company can make. Individuals are allowed to withdraw up to ETB 200K ($5.4K USD) per day but cannot exceed ETB 1M ($27K USD) per month, whereas companies can withdraw up to ETB 300K ($8K) per day but not exceeding ETB 2.5M ($68K USD) per month. This directive has pushed those engaged in illicit activities to avoid the banking system and conduct business through cash-based transactions.<h2 style="text-align:justify;">Roll Out Plan and Implications</h2>The NBE has given a three-month period to fully transition to the new currency. The introduction of the new currency is expected to force the money circulating outside the banking system into the proper channels.Ethiopia is not the first country to change the currency for the same reason. In 2016, India wrote off the 1000 and 500 rupee notes and issued new 500 and 2000 rupee notes in a move to lock out money that is unaccounted for - known as "black money" - which may have been acquired corruptly or money that is being withheld from the tax authorities. In India, people with illegal money usually went on to purchase high valued assets such as a house to launder the money in order to find a way back into the banking system. The Ethiopian government seems to have predicted this move and has changed the procedure of registering sales of moveable and non-movable assets. According to the new procedure issued by the Federal Documents Authentication and Registration Agency, if anyone wishes to get its service for the sale and purchase of assets they should:<ul><li>Present a bank transfer slip which took place during the sale.</li><li>Present a bank transfer slip when people give a personal loan.</li></ul>In each case, the sales contract or loan agreement can only be authenticated if the parties present a bank transfer slip showing the money was transferred through the proper banking system channels.The authority further banned all moveable and non-movable asset giveaways for an unspecified time.In the near term, the Ethiopian government is trying to close every loophole which people with illicit money are expected to take; however, the long term solution is to focus on transitioning from a cash-based to an electronic-based economy. According to Ethio telecom the country currently has 44.5M mobile voice subscribers and 23.5M data and internet users. This shows the country is well-positioned to move to electronic-based transactions.The lesson from other countries who have gone through a demonetization process teaches us that people will always find a way to get the illicit money back into the system. For now, the government has taken steps to block as many of these avenues as possible. Even though it’s a big undertaking, the change in currency is a promising step forward for the country and we’re encouraged to see further steps being taken with the Homegrown Economic Reform Program.

Explore the recent introduction of the new Ethiopian 500 birr note and other new Ethiopian birr notes, including the 200 birr and 100 birr note, as the Ethiopian government reforms its currency to combat corruption and stabilize the economy. 