<h1 style="text-align:center;">Celebrating our Impact</h1>Thank you in advance for taking a moment to read about the impact of RENEW’s work in 2019 and RENEW’s model. Though COVID-19 was not on our radar until the very end of last year, it is important to acknowledge that things have changed dramatically around the globe since then.As I write, we are hopeful that Ethiopia and much of Africa has in some ways been spared from the health crisis, but we are deeply aware that we have not been economically spared. Thankfully, as we look across the landscape at our pipeline, portfolio and the other companies we support with our partner, Global Affairs Canada, we see resilience and innovation. Matt and I decided to stay in East Africa along with our young daughter to weather the storm with our team and companies. It was not an easy decision given that the region’s healthcare infrastructure would likely not be able to handle a sizeable outbreak. But we felt that the economies in East Africa would likely need investors to step in where government stimulus programs do not exist to help support and restart local businesses.<figure class="image"><img src="/uploads/ian_internationalgathering_2_94d3057ddb.jpg"></figure>So I write to you from Ethiopia, where we have turned our office into a business continuity “command center”. We are helping companies re-purpose assets, pivot operations, and establish new partnerships with other companies in the IAN’s portfolio and our network. Data is now coming forward that confirms our initial read that developing countries, especially in Africa, will be impacted far worse economically than the developed world due to the global shut down of commerce and trade. And while we are aware that RENEW and the IAN will not prevent this across Africa, or even Ethiopia, we know small investments will go a long way.Now, to quickly summarize the last year, February 2020 marked eight years that RENEW and the IAN have been in Ethiopia. Before we arrived, there was one PE firm; now, there are over a dozen. RENEW’s Impact Angel Network (IAN) is the most active SME investment group in Ethiopia, and we have already achieved two exits! Before the IAN, most of the private sector had no option for financing. Unless you had a micro-enterprise or a huge company, there was nowhere to get $500K in much-needed growth capital. Now, entrepreneurs are advised to speak with RENEW’s angel network or pitch on Chigign ‘Tobiya, the investment TV show RENEW helped launch.The work is not just happening in East Africa, but it’s happening around the world with the Impact Angel Network. As we look backwards and forwards, we stand with the business community and those who are impacted by the economic crisis in East Africa. Together, we will get through this.Laura Davis and the RENEW Team.****A special thank you to our partner, Global Affairs Canada, for helping us increase the awareness and understanding of private equity investing in Ethiopia, to the members of the Impact Angel Network for believing in the vision and investing with us, to our entrepreneurs and their staff for their hard work and perseverance, to our development partners for their support to make this investment model possible, and to the RENEW team for their hard work on the ground and around the world.

ian_internationalgathering_2.jpg

Celebrating our Impact

<h1 style="text-align:center;">Using Your DAF for Impact Investing</h1>Interested in optimizing your impact investing and philanthropy? No matter where you are looking to make an impact, a Donor Advised Fund (DAF) can be useful. During our recent monthly Impact Angel Network Member's Call, we had a special guest from ImpactAssets, <a href="https://www.linkedin.com/in/sallyboulter/">Sally Boulter</a>, to discuss how US investors can use a DAF to make impact investments. We thought you might enjoy listening to that part of the call. You can find the recording here:&nbsp;<a href="https://renewstrategies.formstack.com/forms/daf_for_impact_investing">DOWNLOAD THE MEMBERS' CALL RECORDING</a> &nbsp;&nbsp;During the call, we discussed how it is helpful to think of a DAF as a philanthropic checkbook. A donor transfers assets (e.g., cash, securities, other rights or assets) into a DAF account with a non-profit organization (like divisions of Charles Schwab and Fidelity, ImpactAssets and the National Christian Foundation) that is set up to manage DAFs and facilitate transfers into and out of DAFs in line with IRS rules. Donors then receive a charitable deduction in the amount of the value of the assets transferred to the DAF. The funds sit in the account until the donor is ready to make grants to charitable entities or to make impact investments. You can also download a Q&amp;A. <a href="https://drive.google.com/open?id=1JF7QJfASnwqf31gWmkWX8wQfWhgvCFPx">LINK</a>.At RENEW, we are both investors and advocates for impact investing, especially now. Every investment, no matter how small, will have a significant impact. We applaud those that are rising to the call and investing during these challenging times, when capital is scarce but the need is high. If and when you are interested, we invite you to <a href="https://renewstrategies.formstack.com/forms/renew_investor_accreditation_form">apply to join the Impact Angel Network</a>.<figure class="image"><img src="/uploads/destapic_1_b66e1ff9c9.png"><figcaption>Photo by Ian Christmann: <a href="http://ianchristmann.com/">www.ianchristmann.com</a></figcaption></figure>&nbsp;

Interested in optimizing your impact investing and philanthropy?

destapic_1.png

Using Your DAF for Impact Investing

<h1 style="text-align:center;">Amidst the Crisis, Find Some Help For Your Company</h1>Are you an entrepreneur, executive of a company or business owner struggling to figure out how to navigate these uncertain times? Maybe angel Investors can help. The Exchange, RENEW's angel and early-stage SME investment platform supported by Global Affairs Canada, is a pioneer of angel investing in East Africa. The Exchange manages investments from RENEW's Impact Angel Network, which is the largest North American-based angel network dedicated to investing in Africa and one of the most active SME investors in Ethiopia. The Exchange also helped launch the popular T.V. program, Chigign 'Tobiya, which is building local angel networks and inspiring entrepreneurship across Ethiopia. Amidst this crisis, The Exchange will be running a series of virtual trainings to help business owners, managers, and entrepreneurs learn how to find, attract and utilize capital to weather this economic crisis.<figure class="image"><img src="/uploads/grow_build_leavebrown_ae8c0ab94a.png"></figure>We are constantly working to support our pipeline and portfolio companies to be creative and persevere during these challenging times. We are helping them repurpose assets, pivot operations, and establish new partnerships with other companies in our portfolio and our network. We financed a team of dVentus engineers to create a ventilator prototype; helped Travel Ethiopia repurpose its vehicles to enable Deliver Addis to scale up its food delivery fleet; launched a new home healthcare service with EAES and Tebita for elderly patients reluctant to go to the hospital, and we are exploring whether Sadura can make hand sanitizer.We are also creating platforms for the wider business community to provide resources, tools, and encouragement for businesses to press forward. RENEW has launched a channel on Telegram to help you get your head in the game. Join <a href="https://t.me/OrangeBusinessNetwork">@OrangeBusinessNetwork</a> on Telegram today and let’s get to work.We have taken The Exchange, the training and acceleration wing of our operation, virtual and redesigned our training to provide companies with the right set of tools to survive during this time.Coming up, we have the following free virtual trainings scheduled, click on the links to register:<ol><li>Webinar: How Should You Be Responding as a Business Owner in the Age of COVID? Date: Please check back for a future date. Time: TBD</li></ol>Register: Interested in participating in an upcoming workshop? Please email <a href="mailto:renew@renewcapital.com">RENEW</a> and we'll let you know when the next date is announced.<ol><li>Webinar: Where is the Money For My Company and How Do I Get It? Date: June 9, 2020 Time: 2 PM EAT Register: <a href="https://us02web.zoom.us/meeting/register/tZcqduihpjwtGtYJfZTlD9s89T3gvTaQD7cP">LINK</a></li><li>Webinar: What is the ET Gov. Economic Response to COVID? Date: June 25, 2020 Time: 2 PM EAT Register: <a href="https://us02web.zoom.us/meeting/register/tZUucOqhrDkrHtDW93IX_gqzQpCCtpwAAmFd">LINK</a></li><li>Webinar: After the Lockdown: Uganda's Legal and Economic Response to COVID-19 and What You Need to Know Date: July 2, 2020 Time: 2 PM EAT Register: <a href="https://us02web.zoom.us/meeting/register/tZwtd-CrrTkoG9x-DZkiatbqWJcOl95f6diV">LINK</a></li><li>Webinar: Private Equity and How to Find Cash for Your Business Date: July 14, 2020 Time: 2 PM EAT Register: <a href="https://us02web.zoom.us/meeting/register/tZMvcu6oqDsvGtdmSodbDcSWXT_ntZUs54cc">LINK</a></li></ol>Women in Finance Series: The Women in Finance Series has gone virtual! Women in Finance is a quarterly event hosted by RENEW. The next event will be June 18, 2020 @ 4 PM <a href="mailto:renew@renewcapital.com">Contact us</a> if you are interested in attending.<figure class="image"><img src="/uploads/execs_2_c9a1822a5d.png"></figure> If you are looking for a partner or just someone to help you navigate the waters ahead, please contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>.

Are you an entrepreneur or manager? Find resources to thrive during these times

execs_2.png

Amidst the Crisis, Find Some Help For Your Company

<h1 style="text-align:center;">COVID-19 Q&amp;A - Operating Your Business in Uganda</h1>Uganda has taken one of the strictest stances on the African continent in efforts to prevent <a href="http://statehouse.go.ug/sites/default/files/files/presidential-statements/address-corona-virus-4-may-2020-converted.pdf">COVID-19</a> from spreading in the country. On May 4, 2020, the President of Uganda provided an updated statement on matters regarding COVID-19. According to the statement, a few essential industries and businesses are now allowed to operate. These include (i) agricultural farming; (ii) food markets; (iii) factories; (iv) wholesalers to supply to factories; (v) hardware shops to sell factory goods and supply construction sites; (vi) repair workshops (garages) to operate on the cargo trucks; (vii) metal and wood workshops; (viii) insurance providers; (ix) select lawyers; (x) restaurants; and (xi) warehouses.Now that many businesses have been allowed to re-open, there are a few things you need to know.How can my staff get to work?With public and private transport still restricted in Uganda, employers are asked to shuttle their staff to work or encourage their staff to either cycle or walk to work.What protective equipment should I provide my employees?It is mandatory for all persons to wear face masks in public, therefore employees should ensure that their workers have the required protective gear.My business interfaces with the public. What do I need to know?If you have a business that’s open to the public, please ensure that your staff can safely remain 2 meters away from your customers. All customers who enter your facility must wear a mask. Please ensure that your customers have space and abide by the rule of remaining 4 meters apart from each other. Further, there is a concern that forced air will cause the virus to spread so shops should not operate air conditioning. For restaurants, only takeaway services can be provided at this time.<figure class="image"><img src="/uploads/uganda_0_e5713c583b.png"><figcaption>Image Source: Wild Uganda Blog: <a href="http://www.wildugandablog.com/things-to-do-in-kampala/">10 Things to do in Kampala</a></figcaption></figure>What should I do if an employee is suspected of having COVID-19?As an employer, under the <a href="https://ulii.org/ug/legislation/statutory-instrument/2020/52">Public Health (Control of COVID- 19) Rule2 2020</a>, you have a duty to notify a medical officer or medical practitioner if you believe one of your employees has COVID-19. Please call the Ministry of Health toll-free line on 919/ 0800 1000661/ 0800 203033, if you believe one of your employees should be checked.If COVID-19 is confirmed, you can expect a site visit from a medical officer. They will assess the situation and may: (i) order all persons who have been in contact with the COVID-19 patient to remain at the premises; (ii) cause the staff who were in contact with the COVID-19 patient to be removed to a regional referral hospital or another suitable place for quarantine. Please note that the health inspector must have written instructions from a medical officer to conduct a search or inquiry.I have to import/export or export goods and supplies to run my business. What do I need to know?<a href="https://ulii.org/ug/legislation/statutory-instrument/2020/53">Public health (Prohibition of Entry into Uganda) Order, 2020</a>. Businesses are allowed to import and export cargo only, through the different border posts in Uganda via vehicle, air or water transport. Only the United Nations and other humanitarian organizations are able to bring people or animals into Uganda at this time.<a href="https://ulii.org/ug/legislation/statutory-instrument/2020/46">Public Health (Prevention of COVID-19) (Requirements and Conditions of Entry into Uganda) Order, 2020</a>. At the border, all persons and cargo/vehicles/aircraft or vessels will be subjected to an examination conducted by the government medical officers of health. The medical officers of health have the power to isolate or quarantine the personnel, e.g. truck drivers, cargo crew. Upon examination, such personnel may be quarantined at a designated place or placed under observation for 14 days or more, while other personnel may be advised on the measures to take to avoid being infected with COVID-19. These interventions put in place to curb the spread of COVID-19 may result in delays for logistics; therefore, businesses should plan for this potential risk.

Understanding the UG Government COVID-19 Regulations & What They Mean for Your Business

uganda_0.png

COVID-19 Q&A - Operating Your Business in Uganda

<h1 style="text-align:center;">May 2020 Resource Blog</h1>For this month’s resource blog, we’re focusing on leadership. What good looks like, the best traits leaders have and successful leadership stories. If you’re a leader, do you embody these traits? Read the articles below to learn more.<ul><li><a href="https://hbr.org/2020/04/what-good-leadership-looks-like-during-this-pandemic">What Good Leadership Looks Like During This Pandemic</a> - This article explains the traits of good leadership when the situation is uncertain. Passing the good leadership test requires leaders to act in an urgent, honest, and iterative fashion, recognizing that mistakes are inevitable and then correcting course — not assigning blame — is the way to deal with them when they occur. (Harvard Business Review)</li><li><a href="https://hbr.org/2019/01/the-best-leaders-arent-afraid-to-ask-for-help">The Best Leaders Aren’t Afraid to Ask for Help</a> - And needing help — asking for help — is an essential part of being a leader. (Harvard Business Review)</li><li><a href="https://www.barrons.com/articles/how-ron-kaplan-rescued-trex-1428109386">How Ron Kaplan Rescued Trex</a> - Ron Kaplan is the CEO of Trex, a leader in making synthetic wood for backyard decks. This article describes how he turned around the company. (Barrons)</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/resource_may_1_ef74569a26.png"><figcaption>Image Source: Harvard Business Review: <a href="https://hbr.org/2019/01/the-best-leaders-arent-afraid-to-ask-for-help">The Best Leaders Aren’t Afraid to Ask for Help</a></figcaption></figure>&nbsp;

resource_may_1.png

May 2020 Resource Blog

<h1 style="text-align:center;">Can Ethiopia’s Banking Sector Help to Mitigate the Economic Impact of COVID-19?</h1>With the outbreak of COVID-19, we are observing unprecedented economic changes and Ethiopia is trying to adapt to a new normal. The economy is suffering and sectors like tourism and hospitality are witnessing their worst days. The financial sector in general and the banking sector, in particular, are no exception. However, besides working to resolve its own liquidity issues, is the sector adapting quickly enough and playing its part to help businesses and the economy?The financial sector plays an important role in the economy through the mobilization of savings from depositors and disbursing that money to businesses in the form of loans. This channeling of resources to businesses is the backbone of the economy and a huge source of local funding for businesses. Tasked with the same responsibility, the Ethiopian financial sector has been recording significant year-over-year growth. According to the National Bank of Ethiopia’s (NBEs) 2018/19 Annual Report, deposit liabilities of the banking system topped ETB 899.6B and the total outstanding borrowing stood at ETB 164.5B.Considering the role of the banking sector in the national economy, the NBE has availed ETB 15 B for the banking sector as Ethiopia reported the first case of COVID-19 on March 13 (<a href="https://www.afro.who.int/news/first-case-covid-19-confirmed-ethiopia">LINK</a>). Simultaneously, NBE has released part of the Great Renaissance Dam Bill Bond[1] that commercial banks have purchased. Nevertheless, by some standards, NBE has been slow to introduce new monetary policy changes that could help fight the impact of COVID-19 on businesses and the economy as a whole. As a governing body of the financial sector, NBE has the obligation and resources to take proactive measures to help flatten the impact of COVID-19 on the economy.<figure class="image"><img src="/uploads/skyline4_0_f435d8b363.jpg"></figure>NBE can take three vital measures that could help commercial banks deal with the challenges that COVID-19 brought:<ul><li>Lower the savings interest rate</li><li>Release part of the legal reserve to commercial banks</li><li>Release part of the liquidity reserve to commercial banks</li></ul>Lower the savings interest rate – NBE last made changes to the savings interest rate in October 2017 pushing it to 7% from 5%. The average lending rate of the banking sector was 13.5% for the 2018/19 fiscal year. Since then, some banks have made changes to the lending interest rates by lowering rates ranging from 0.5% to 5%. Regardless, the industry-wide average lending rate remains high for a challenging time such as this. As such, NBE should intervene and lower the savings interest rate to help commercial banks lower their lending interest rates. Lower interest rates will mean cheaper loans for businesses and households. That will reduce the costs faced by businesses and households in Ethiopia.Release part of the legal reserve to commercial banks – Commercial banks in Ethiopia are obliged to set aside 25% of their net profit annually and, currently, each commercial bank has set aside funds accumulated over several years as there have not been incidents forcing the release of these funds. This legal reserve is set aside as a shock absorber to help protect the shareholders and the public interest. The current situation, if not dealt with early, could cause a long-term economic disruption and result in a number of job losses. NBE could release part of the funds to commercial banks in different tranches and set guidelines to help coordinate efforts and avail funds at a lower interest rate to hard-hit sectors such as tourism, hospitality, manufacturing and micro, small and medium enterprises (MSME), sectors that create a large number of jobs in the economy.Release part of the liquidity reserve to commercial banks – Commercial banks are also obliged to set aside at least 15% of their net current liabilities to help protect depositors against economic shocks. This could be another source of funding for commercial banks. If NBE allows banks to use part of the reserve by setting the same guidelines as the legal reserve and supervising banks to make sure they disburse the loan to priority sectors at a lower interest rate, it could be a savior for many businesses and the economy in general.In addition to the monetary policy changes suggested above, commercial banks (both private and public) should also work internally to help the economy bounce back. Thus far, commercial banks have taken some initiatives to that end. These include giving donations to the government, waiving some of the service charges, and lowering the interest rate for certain sectors. Though these are good efforts, I believe these efforts are far behind what businesses and the economy need. This is the time for the executive management and board of directors of each bank to work together and come up with creative solutions. To mention a few, banks should consider suspending payment of accrued dividends and also hold on to future distributions until the economy stabilizes. In addition, banks should refrain from providing bonuses and salary increments to their employees. This will avail funds that can be used to support businesses by freeing millions of birr that banks deploy each year in the form of bonuses, salary increments and dividend distributions.We are in a time of uncertainty. The effect of COVID-19 is not only taking lives but also disrupting the economy. Thus, it requires the coordinated efforts of both the public and the private players. People and organizations should work hand-in-hand to help mitigate the effects of COVID-19. It is important to be proactive and take measures before things get any worse. The banking sector, as the nucleus of the economy, should present itself as the forerunner in these efforts and continue to push for alternative banking solutions to help the economy recover faster from this crisis. As the regulator and the captain of the banking sector, NBE plays a pivotal role in all of these efforts. Commercial banks, both public and private, should also help and push NBE to make smart and sound monetary policy changes to help equip them with the resources and policy frameworks to fight the economic impact of COVID-19.[1] The NBE has released between 20% to 25% of the total bill bond that commercial banks have bought over the years.

It’s time for banks to help repair the damage

Ethiopia

skyline4_0.jpg

Can Ethiopia’s Banking Sector Help to Mitigate the Economic Impact of COVID-19?

<h1 style="text-align:center;">Find Resources and Tools to Help Your Business Survive and Thrive</h1>To say this is a challenging time globally is a massive understatement. In many ways, the world is on fire and no matter what the nature of your business, no matter what countries you operate in, you likely are impacted. Now, more than ever, it’s time to get back to the basics of business, to breathe deeply, to find cash wherever you can, internally or externally, to pivot where needed and hopefully even leverage the crisis to grow your business. Your family, your neighbors, your country is depending upon you to do just that. So get your head in the game and let’s do this!But you’ll need support. RENEW has launched a channel on Telegram <a href="https://t.me/OrangeBusinessNetwork">https://t.me/OrangeBusinessNetwork</a> to provide resources, tools and encouragement to help you press forward.Through the channel, we will invite you to virtual seminars on where to find cash, what the government is doing to help, how to survive a crisis and even current sources of grant capital. We will direct you to seminars that other organizations have organized, and we will even be providing snippets from our invite-only Exec’s Program that we run 1-2 times a year. Our thesis is that with a little planning and disciplined execution, companies in Ethiopia can have a huge competitive advantage over others in the market. Most CEOs, often founders, don’t know or apply some of the most fundamental disciplines that have been proven to work around the world.So get your head in the game. Join <a href="https://t.me/OrangeBusinessNetwork">@OrangeBusinessNetwork</a> on Telegram today and let’s get to work.<figure class="image"><img src="/uploads/skyline_1_2a7bf97b0a.jpg"></figure>

RENEW launches on Telegram @OrangeBusinessNetwork to support private sector

skyline_1.jpg

Find Resources and Tools to Help Your Business Survive and Thrive

<h1 style="text-align:center;">7 Reasons Why We’re Still in Ethiopia During the Crisis</h1>In our latest white paper, we outline seven reasons why RENEW believes a ‘stay the course’ approach to investing in SMEs in Ethiopia is the best response both to the economic crisis created by the COVID-19 outbreak and the equally threatening locust swarms.&nbsp;<a href="https://renewstrategies.formstack.com/forms/7reasonswhywereinethiopia">DOWNLOAD WHITE PAPER</a>&nbsp;Investing in SMEs to help them weather the current storms is the best COVID response we know at RENEW. While we make no promises, we join others moving capital right now in the belief that investors who respond when capital is scarce may benefit from more reasonable valuations now followed by improving times ahead.<figure class="image"><img src="/uploads/ianchristmann_0_7b382cb1ca.png"><figcaption>Photo by Ian Christmann: <a href="http://ianchristmann.com/">www.ianchristmann.com</a></figcaption></figure>We may look back and find that the detrimental impact of current circumstances on SMEs and their employees, especially women, outweighs the impact on the physical health of Ethiopians. We see broad opportunities to be investing in SMEs generally, as they are the backbone of Ethiopia’s economy and the provider of the majority of private-sector jobs. Their resilience will determine whether Ethiopia can continue progressing economically and benefit from the last fifteen years of momentum or give up significant gains in poverty alleviation and growth.To learn more about what RENEW and our portfolio companies are doing to respond right now, we invite you to read the following blog post (<a href="https://www.renewcapital.com/resources/blogs/Peace%20of%20Mind%20Emergency%20and%20Care%20Services%20for%20Diaspora">LINK</a>). Also, stay tuned for an announcement about an investment we expect to close in the coming weeks and other initiatives we are implementing to ensure Ethiopia’s private sector is able to preserve jobs and even thrive in these challenging times.

Why RENEW believes a ‘stay the course’ approach to investing in SMEs in Ethiopia is the best

ianchristmann_0.png

7 Reasons Why We’re Still in Ethiopia During the Crisis

<h1>Why So Few Cases in Africa?</h1>Recently, on RENEW's monthly Impact Angel Network Members' Call, we discussed the current situation on COVID-19 in East Africa and why the case numbers here are so low. We compare numbers from Ethiopia, Uganda, China, and the U.S., and share the prevailing theories and possible economic and health outcomes that could happen in the weeks ahead. Here is a short clip of the recording.&nbsp;<a href="https://renewstrategies.formstack.com/forms/covid_19_recording">LISTEN TO THE RECORDING</a>&nbsp;At RENEW, we are saying to ourselves every day "Get capital into companies and save jobs." This helps us stay focused and energized in these challenging times. Keep up the good fight, and stay healthy and encouraged - we will get through this.Please <a href="https://renewstrategies.formstack.com/forms/feedback_on_the_marketplace__copy">contact us</a> if you need help or have ideas you'd like to partner on. You can also apply to join the Impact Angel Network (<a href="https://renewstrategies.formstack.com/forms/renew_investor_accreditation_form">LINK</a>) and be a part of the next Members’ Call.<figure class="image"><img src="/uploads/covid19blog_0_5c5aeb5a92.png"></figure>