<h1>#StopGivingTuesday</h1>&nbsp;It’s Time to Invest in Africa’s Future<h2>Stop Giving to Africa</h2>It’s #GivingTuesday, and across the U.S., wallets are opening, charities are receiving and people are feeling good about giving. Some of you may be considering giving to Africa. But here’s some hard truth: charity isn’t helping Africa. Worse, it’s holding the continent back. With the world’s youngest and fastest-growing workforce—but the fewest jobs to match—Africa needs more than charity. It needs investment.I know—this sounds harsh. And yes, I’m biased. My wife&nbsp;<a href="https://www.linkedin.com/in/laura-davis-25764430/">Laura Davis</a> and I run an investment firm in Africa. Over the past decade, we’ve personally invested in about 50 startups across the continent. We do this because we’ve seen firsthand how investment—not charity—transforms economies, creates jobs and builds wealth.Let me offer two excellent reasons why you should consider moving from giving to investing in Africa:&nbsp;<ul><li>The “Oh No!” reason, and</li><li>The “Oh Wow!” reason</li></ul><h3>The “Oh No!” Reason: We’re Losing Africa</h3>The U.S. and the West are losing influence in Africa to China and Russia. China-Africa trade hit $282B last year, dwarfing the U.S.’ $45B. While Beijing is building railways, roads and ports, we’re sending planeloads of Americans on service trips, wearing matching T-shirts, ready to “help” Africa. Many Africans I speak with see charity efforts as outdated and patronizing—a relic of the 1980s.Meanwhile, China and Russia are treating Africa like the economic and geopolitical powerhouse it’s becoming. Ethiopia and Egypt recently joined BRICS+, signaling Africa’s shifting alliances and growing strategic importance. By 2050, 25% of the world’s population will live in Africa and the continent will hold 28% of the UN Security Council votes. Yet African leaders feel the U.S. doesn’t take them seriously—and frankly, they’re right.We’re falling behind because we’re stuck in an outdated view of Africa. Why are we still exporting handouts when we could invest in the entrepreneurs shaping Africa’s future? Capitalism works—it’s what we do best.&nbsp;<figure class="image"><img src="/uploads/Images_Website_Ratio_18_66c12a4288.png"></figure>Source:&nbsp;<a href="https://news.gallup.com/poll/644222/loses-soft-power-edge-africa.aspx?mkt_tok=ODEzLVhZVS00MjIAAAGS7gl9qAoPQNoaWqmpe2yrbLIC7aETi7NdaMFPLoxSgHL5s-XaG_Y8xnyQf-zWThDGGdEUGwwnc7WUsZ2Mnn3KoyULp4jY5fmg2j6sarpChZ4">Gallup</a><h3>The “Oh Wow” Reason: Africa is Booming</h3>Now for the exciting part. Africa is booming. Nine of the world’s 20 fastest-growing economies are in Africa. The continent is urbanizing faster than anywhere else and will soon house 13 of the world’s largest cities. Yet population growth continues to outpace private sector expansion. The opportunity is enormous—but only if you come looking for it.More than 60% of Africans are under the age of 25 and Africa’s youth are entrepreneurial, ambitious and ready to lead. A recent study found that 71% of African youth plan to start their own businesses within five years. Thanks to advancements in internet access, AI and mobile technology, launching a startup in Africa has never been easier—or more affordable.<figure class="image"><img src="/uploads/Images_Website_Ratio_22_9313e2173f.png"></figure>Source:&nbsp;<a href="https://www.renewcapital.com/">Renew Capital</a>Here are some examples:&nbsp;<a href="https://www.linkedin.com/company/mpostafrica/">MPost</a>, one of the startups we backed, is digitizing post office boxes in Africa. In some extreme cases, thousands of Africans have to share one P.O. box. MPost is making it possible to turn your mobile phone into a P.O. Box, enabling industries like e-commerce to flourish across Africa. Imagine the millions of jobs, economic value and wealth creation that could happen as this company scales. For a more traditional example, look at METAD, a specialty coffee company in Ethiopia. The founder had a vision of transforming Ethiopia’s coffee industry to make it specialty-grade before specialty coffee was all the rage. Today, METAD doesn’t just export world-class coffee to your favorite roasters and cafes—it employs thousands of workers, supports more than 10,000 smallholder farmers and provides health services and education to employees’ families, among other things. We don’t need to ask founders to go above and beyond making a profit; it’s just smart business in Africa. &nbsp;When young Africans see local founders securing investments, they think, “If they can do it, so can I.” That spark of hope spreads, fueling a ripple effect of ambition, innovation and a cycle of prosperity.<h3>Why All Eyes Should Be on African Startups</h3>Africa is the youngest continent on Earth, with a median age of 19. Each year, 8 to 10 million young Africans enter the workforce, but only 3 million formal jobs are created annually. This gap is a crisis—but it’s also the opportunity of a generation.Startups are the solution. They create jobs, drive innovation and build economies. Yet Africa receives less than 1% of global venture capital—a ridiculous figure for a continent that will soon be home to one out of every four humans on the planet.Imagine the possibilities if we focused our collective efforts on startups. In 2022, aid to Africa totaled $53B. Redirecting even a fraction of that to support startups could spark an economic renaissance. This shift is already happening in small pockets. Forward-thinking development organizations are working on blended finance projects, partnering with investors to lower the costs and risks for them to invest in Africa. But we need more charity checks to become investment checks.<figure class="image"><img src="/uploads/Images_Website_Ratio_21_794518c508.png" alt="An African map showing how aid funding exceeds startup capital, blended finance, and investment, highlighting the importance of investing in Africa instead of just giving."></figure>Source:&nbsp;<a href="https://www.renewcapital.com/">Renew Capital</a>If we focus, Western nations could accomplish a new vision: to invest in 10,000 startups every year within three years—a scale about 10 times Africa’s peak in 2022. At $100K per investment, this would require roughly $1B annually in pre-seed and seed-stage capital, or about 10% of what we currently give as charity to Africa each year. Combined with another $500M annually for technical assistance and ecosystem-building support from blended finance projects to prepare startups and provide post-investment support, this effort could create approximately 3.3 million jobs annually—closing the jobs gap by about 40%—at a cost to taxpayers of around $150 per job created. These are my own rough estimates, but imagine if we all focused on a bold target like this? Also, private capital doesn’t just generate employment; it catalyzes ecosystems, drives innovation and renews Africa’s image on the global stage. What a legacy.<h3>In Closing</h3>Obviously, I know we can’t stop all giving cold turkey—there’s too much entrenched infrastructure to dismantle overnight. But the time has come to move from giving to investing in Africa.And rest assured, there’s wealth in Africa. No matter how well-intentioned your charity or impactful your project is, there’s likely someone local who could be funding it and doing it better than you.&nbsp;I vote we replace #GivingTuesday (for Africa) with #StartupAfrica.I’d love to hear your thoughts. My objective is not to offend but to challenge us to think differently. Here are some questions that I’d love your thoughts on:&nbsp;<ul><li>Do you think giving is working?</li><li>Do you think investing will do more than giving?</li><li>What do you think is stopping the West from shifting its focus from giving to investing in Africa?</li><li>What else should we do to encourage Africa’s growth?</li></ul>Wondering How to Get Started?<ul><li>Think Differently: Poverty isn’t solved by giving; prosperity is created by investing. Read&nbsp;<a href="https://www.amazon.com/Prosperity-Paradox-Innovation-Nations-Poverty/dp/0062851829">The Prosperity Paradox</a> by Clayton Christensen.</li><li>Take an Investment Trip to Africa: Be part of a movement to create jobs and drive innovation. Join an investment tour to Africa. Meet entrepreneurs and see opportunities. We’ve got a group coming to&nbsp;<a href="https://www.gitexafrica.com/">GITEX Africa</a> in April.</li><li>Start Small and Diversify:&nbsp;You don’t need millions to begin, but no matter the dollar value, it’s best to diversify across countries. U.S.-based donors can use donor-advised funds to start. Join angel networks or explore Africa-focused VC firms.</li><li>Get Africa Smart:&nbsp;Subscribe to curated content on African startups. Check out&nbsp;<a href="https://theafricabrief.beehiiv.com/">The Africa Brief&nbsp;</a>(ours) or&nbsp;<a href="https://www.thisweekinfintech.com/tag/africa/">This Week in Fintech, Africa</a> (one of my favorites).</li><li>Be You:&nbsp;Be generous locally. If you want to help Africa, use your expertise to guide businesses and share your skills with African entrepreneurs.</li></ul>Disclaimer:This summary is intended for informational purposes only, is subject to change, and does not constitute investment advice or a recommendation to you. This summary is not intended as an offer to sell or a solicitation of an offer to buy an interest in any company (a “Company”) managed by Renew Capital or its affiliates. Such an offer to sell or solicitation to buy an interest in a Company may be made only by the delivery of subscription agreements relating to such Company and specifically delivered by Renew Capital to the recipient thereof. Investment in a Company is open solely to “accredited investors” (as defined by the SEC under the Securities Act of 1933, as amended) and, in addition, is intended only for sophisticated investors who meet the investor suitability requirements described in the subscription agreements and who can bear the risk of investment losses, including the potential loss of their entire investment.Investments with Renew Capital are speculative in nature and involve a high degree of risk. Renew Capital invests in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries and include the risk of total loss of an investor’s entire investment. Investors should consult with their independent financial, legal and tax advisors to determine whether any particular investment or investment strategy is appropriate for them. Renew Capital does not make any recommendation regarding the appropriateness of any specific investment opportunity for any specific investor.

The time has come to move from giving to investing in Africa.

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#StopGivingTuesday

<h1>Press Release: STIMA Pioneers EV Battery Management Solution&nbsp;</h1>Renew Capital invests in STIMA to expand their smart platform for electric vehicle charging infrastructure, monitoring and battery fleet management.<a href="https://drive.google.com/file/d/1RfgwCN80aYVpfGuU0hrOdeTkKf4y1oxd/view?usp=drive_link" target="_blank" rel="noopener noreferrer">Download Full Press Release</a>NAIROBI, Kenya, November 28, 2024&nbsp;—&nbsp;STIMA is transforming the electric vehicle (EV) industry with a smart, all-in-one platform that takes the hassle out of managing battery fleets. The platform allows users to easily and efficiently manage batteries regardless of the technologies they use.&nbsp;<figure class="image"><img src="/uploads/Stima_Boda_Photo_1_2989b59f23.jpg" alt="Renew Capital, an early stage venture capital firm in Africa invests in Stima Boda; a photo of the Stima Boda team"></figure>By analyzing real-time data from e-mobility assets, STIMA provides users with direct actionable insights related to conducting and optimizing their operations, improving battery performance and lifespan, implementing fleet predictive maintenance and managing warranty claims with the supply chain. It further makes the link with battery financiers to create a trusted track record and inform on portfolio risks and investments' expected returns.“Our goal is to empower e-mobility businesses by providing battery intelligence that enhances battery fleet efficiency and maximizes returns for businesses,” said Jason Gras, co-founder of STIMA. “Our platform’s data-driven approach simplifies the complexities of battery management and delivers real-time insights and optimizations that make operations smoother, safer and more scalable. This ultimately de-risks battery financing, supporting large project financiers in joining the sector”.STIMA has partnered with leading companies in the EV space in Africa, such as Bboxx, Greenwheels, Roam and MAX to help scale and optimize battery-swapping infrastructure.“As we see more electric two-wheelers on the road and as infrastructure deployments expand, the need for a robust and efficient battery management is becoming critical and the market is adapting to this as well,” said Esther Mwikali, senior investment manager at Renew Capital. “STIMA’s platform addresses this by helping businesses manage their battery fleets, cut costs and improve performance. We’re proud to support this team as they meet this growing demand in the EV industry.”Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.

Renew Capital invests in STIMA to expand their smart platform for electric vehicle charging infrastructure, monitoring and battery fleet management.

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Press Release: STIMA Pioneers EV Battery Management Solution 

<h1>Smart Philanthropy: Use Your DAF to Shape Africa’s Future</h1>Using a Donor-Advised Fund (DAF) for impact investing in Africa is a smart way to gain tax benefits while making a positive difference. This guide explains how to use your DAF effectively, the benefits of investing in African ventures and the steps to start this impactful journey.<img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdYtY1Zcl0tvoTkHoaWNzCcYIMLQrLqaydOeUM4zCXxlFNQ5mss00Y5dOxOHirfM4rEYllxZgk32jjWsHaGvYXT7V1H1dYqdtKGN9O0TC2KXJrJatrOeX5iNJpVUrZmaoCD6afpZQ?key=iJTOOe2QxD9-YSlET2v78_Z2" alt="Graphic of Renew Capital's model for impact investing in Africa through a Donor-Advised Fund (DAF), illustrating how investors can fund impactful ventures across the continent.">Source:&nbsp;<a href="https://www.renewcapital.com/">Renew Capital</a>Understanding Donor-Advised Funds (DAFs)A&nbsp;<a href="https://www.fidelitycharitable.org/guidance/philanthropy/what-is-a-donor-advised-fund.html">Donor-Advised Fund</a> is a charitable investment account for philanthropic giving. You can donate cash or assets to this account, get a tax deduction right away and then decide over time which charitable organizations will receive the funds. This approach offers flexibility and potential tax benefits for charitable contributions.&nbsp;<h2>The Rise of Impact Investing</h2><a href="https://www.ifc.org/en/our-impact/impact-investing-at-ifc">Impact investing</a> refers to investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. This approach has gained traction as investors recognize the potential to address global challenges through strategic capital allocation. By aligning investments with personal values, donors can support initiatives that drive social change while achieving financial objectives.&nbsp;<h2>Why Africa?</h2>Africa presents a&nbsp;<a href="https://blogs.cfainstitute.org/investor/2022/10/14/eight-reasons-why-africa-is-primed-for-impact-investing/">unique opportunity</a> for impact investing due to its rapid economic growth, youthful population and abundant natural resources.<ul><li>Economic Growth and Potential:&nbsp;Sub-Saharan&nbsp;<a href="https://www.worldbank.org/en/region/afr/overview">Africa's economy</a> is projected to grow by 3% in 2024, up from 2.4% in 2023, with expectations to accelerate to 4% in 2025 to 2026.&nbsp;This growth is driven by increased private consumption and investment.</li><li>Youthful Demographics:&nbsp;Africa has the&nbsp;<a href="https://au.int/en/youth-development#:~:text=Africa%20has%20the%20youngest%20population,development%20index%20of%20African%20nations.">youngest population</a> in the world with more than 400 million young people aged 15 to 35. Harnessing this potential through education and skill development is crucial for sustainable growth.</li><li>Technological Advancements:&nbsp;The continent is experiencing a digital transformation, with mobile technology and internet penetration opening new avenues for entrepreneurship and access to global markets. Initiatives like the African Continental Free Trade Area (AfCFTA) aim to create the&nbsp;<a href="https://www.ft.com/content/2b867f0f-522e-47e4-b619-aa3b728a7cfd">world's largest free trade area</a>, involving 54 African nations and 1.47 billion people, by reducing tariffs and fostering intra-African trade.</li><li>Natural Resources:&nbsp;Africa's&nbsp;<a href="https://www.unep.org/regions/africa/our-work-africa#:~:text=The%20largest%20reserves%20of%20cobalt,internal%20renewable%20fresh%20water%20source.">abundant natural resources</a>, including minerals, oil and arable land, offer significant opportunities for investment and development. The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa. Sustainable management of these resources can lead to long-term prosperity.</li></ul><h2>Benefits of Using Your DAF for Impact Investing in Africa</h2><ul><li>Tax Advantages: Contributions to a&nbsp;<a href="https://money.usnews.com/investing/investing-101/articles/what-are-donor-advised-funds">DAF are tax-deductible</a> and any investment growth within the fund is tax-free. This structure allows for more capital to be allocated toward impactful investments.&nbsp;</li><li>Flexibility: DAFs provide the flexibility to recommend grants to various charitable organizations and invest in initiatives that align with your philanthropic goals.&nbsp;</li><li>Amplified Impact: By&nbsp;<a href="https://www.renewcapital.com/newsroom/investing-in-africa-with-a-daf">investing in African startups</a>, you support economic development, job creation and innovation in regions that can benefit significantly from such investments.&nbsp;</li></ul><h2>Steps to Start Impact Investing in Africa with Your DAF</h2><ul><li>Research and Identify Opportunities: Begin by researching sectors in Africa that align with your interests, such as renewable energy, healthcare or education.&nbsp;</li><li>Set Up a DAF:&nbsp;Choose a financial institution or donor-advised fund sponsor to establish your DAF. Organizations like&nbsp;<a href="https://www.uicharitable.org/">UI Charitable Advisors</a>,&nbsp;<a href="https://impactassets.org/">Impact Assets</a> and&nbsp;<a href="https://www.impactfoundation.org/">Impact Foundation</a> can help guide you through the setup process, offering strategic advice to align your DAF with your philanthropic goals.</li><li>Assess Market Risks: Understand the unique market risks associated with African investments, including political instability, currency fluctuations and regulatory challenges. Renew Capital keeps track of the momentum of&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">African startup ecosystems</a>.&nbsp;</li><li>Partner with Experienced Organizations: Collaborate with organizations experienced in African markets to navigate the complexities of investing in the region. For instance, Renew Capital focuses on investing in growth-oriented companies in Africa.</li><li>Monitor and Measure Impact: Establish clear metrics to assess the social and financial impact of your investments. Regular monitoring ensures that your investments are meeting your philanthropic objectives.&nbsp;</li></ul><h3>Conclusion</h3>Leveraging your Donor-Advised Fund for impact investing in Africa allows you to align your philanthropic goals with investment strategies that drive meaningful change. By supporting early-stage African startups and ventures addressing critical challenges, you can make a difference while enjoying financial benefits. Start exploring opportunities today and put your DAF to work in Africa to make your money make a difference.For a detailed guide on how to invest in Africa with your Donor-Advised Fund, check out<a href="https://docsend.com/view/4ab7rf7hs33a6wvm">&nbsp;this comprehensive resource</a>.

Learn how to use your DAF to support early-stage startups in Africa and drive impactful change.

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Smart Philanthropy: Use Your DAF to Shape Africa’s Future

<h1>Why We Invested in Sawa Energy: Creating Accessible Clean Energy for East Africa</h1><figure class="image"><img src="/uploads/SAWA_ENERGY_TEAM_52_6d614f76bd.JPG" alt="Founders of Sawa Energy providing solar solutions for businesses in Rwanda and Uganda."></figure>Africa holds enormous potential for clean energy, especially solar, yet struggles with<a href="https://www.brookings.edu/articles/addressing-africas-dual-challenges-climate-change-and-electricity-access/"> electricity access</a>. The continent receives minimal&nbsp;<a href="https://climatepromise.undp.org/news-and-stories/west-africa-has-great-potential-solar-energy-its-time-release-it#:~:text=It%20seems%20the%20problem%20is%20widespread%20across%20the%20continent.%20In%202021%2C%20only%200.6%20percent%20of%20the%20%24434%20billion%20dollars%20invested%20globally%20in%20renewable%20energy%20production%20went%20to%20African%20countries%2C%20the%20lowest%20investment%20since%202011.">renewable energy investment</a>—only 0.6% of the $434B global investment in 2021, the lowest since 2011. This lack of funding impacts business productivity across Africa, which faces ongoing energy reliability issues.<a href="https://www.sawaenergy.com/ourstory">Sawa Energy</a>, based in Uganda and Rwanda, builds and finances solar systems tailored for commercial businesses. Their model enables small and medium-sized enterprises to access solar without upfront costs, saving 10% to 30% on electricity bills and gaining reliable energy access.Renew Capital invested in Sawa Energy to support its vision of a sustainable energy future in Africa.<h2>Strong Founders</h2>Sawa Energy, launched in 2021, has founders with more than a decade of renewable energy experience.&nbsp;<a href="https://www.linkedin.com/in/samuel-kaufman-cpa-a6387835/">Samuel Kaufman</a>, the Chief Executive Officer (CEO), along with co-founders&nbsp;<a href="https://www.linkedin.com/in/jordan-zipkin/">Jordan Zipkin</a>, Chief Investment Officer(CIO) and&nbsp;<a href="https://ca.linkedin.com/in/guillaumecharpenel">Guillaume Charpenel</a>, board member and former Managing Partner, lead the company’s mission of empowering local partners, reducing emissions and delivering investor returns.<h2>Demonstrated Traction</h2>As one of the largest solar suppliers in Rwanda, Sawa Energy has developed&nbsp;<a href="https://www.duurzaaminvesteren.nl/projecten/sei-24-solar-u-ltd">32 projects&nbsp;</a>totaling 2.6 MWp and 1 MWh across Rwanda and Uganda. Their clients include data centers, banks, schools and nonprofits.&nbsp;<h2>Orientation Toward Growth</h2>Sawa Energy aims to become East Africa’s largest private solar provider by 2030, addressing energy needs with reliable and affordable clean energy solutions.“Sawa Energy's approach to financing solar is a game-changer in the region. By facilitating the transition to clean and renewable energy sources, Sawa Energy is addressing immediate electricity needs while paving the way for a greener and more resilient energy landscape across the continent.” — Laura Davis, Managing Partner and Co-CEO of Renew Capital.

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Why We Invested in Sawa Energy: Creating Accessible Clean Energy for East Africa

<h1>Renew Capital Legal Brief - October 2024</h1>The latest changes in Africa's regulatory environment<figure class="image"><img src="/uploads/Newsletters_and_Legal_Brief_3e57dfff40.png" alt="Photo of Renew Capital's October 2024 Legal Brief document."></figure>Renew Capital monitors Africa’s evolving legal landscape, sharing key insights with investors, entrepreneurs and policymakers in Africa’s dynamic business environment. Explore our curated&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">snapshots</a> for a closer look at African startup ecosystems.Ethiopia:<ul><li>The National Bank of Ethiopia (NBE) Reviews FX Trading Fees - NBE now requires banks to clearly separate foreign exchange (FX) trading spreads and disclose FX fees to clients, effective October 15, enhancing transparency in Ethiopia’s FX market.</li></ul>Ghana:<ul><li>The Ghana Investment Promotion Centre (Amendment) Bill (GIPC Bill) Goes Public -&nbsp;The GIPC Bill, under public review until October 31, aims to reduce barriers for foreign investors by potentially removing share capital requirements for foreign-owned businesses and reserved activities for locals.</li></ul>Kenya:<ul><li>Court Strikes Down Derivatives Tax, New Horticulture Bill Introduced -&nbsp;The High Court deemed the 2023 Income Tax regulations on derivatives unconstitutional, promoting the adoption of these financial products. Additionally, a new Horticulture Crops Authority Bill proposes stricter regulations and penalties for the horticulture sector.</li></ul>Nigeria:<ul><li>The Central Bank of Nigeria (CBN) Establishes FX Market Principles - CBN released a draft Foreign Exchange Code, modeled on the FX Global Code to ensure transparency and fairness in the FX market, encouraging foreign investment.</li></ul>Rwanda:<ul><li>Contracts for the International Sale of Goods (CISG) Accession Effective October 1, 2024 -&nbsp;Rwanda’s accession to the UN Convention on Contracts for the International Sale of Goods (CISG) took effect on October 1, 2024, impacting international sales contracts.</li></ul>South Africa:<ul><li>New Dividend Tax for Kuwaiti, Dutch and Swedish Shareholders -&nbsp;New tax protocols require Kuwaiti, Swedish and Dutch shareholders to pay a 5% to 10% dividend tax, potentially affecting foreign investments.</li></ul>Tanzania:<ul><li>The Bank of Tanzania (BoT) Launches Domestic Gold Purchase Program - BoT now buys gold domestically, offering competitive prices and incentives, including zero-rated VAT and reduced fees. This strategy aims to bolster the nation's gold reserves while strengthening the local currency, the Tanzanian shilling.</li></ul>Uganda:<ul><li>Parliament Dissolves NITA-U -&nbsp;Uganda’s Parliament passed a bill to dissolve the National Information Technology Authority Uganda (NITA-U), integrating it into the&nbsp;Ministry of Information, Communication Technology (ICT), aligning with the government’s rationalization policy.</li></ul>Pan-African:<ul><li>Regional Competition Authority Becomes Operational -&nbsp;ECOWAS Regional Competition Authority (ERCA) became operational on October 3, 2024, overseeing cross-border transactions within ECOWAS that meet merger notification thresholds.</li></ul>Visit our blog for insights on&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Africa’s startup ecosystems</a>, or contact us at renew@renewcapital.com Stay tuned for more updates!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.

The latest changes in Africa's regulatory environment.

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Renew Capital Legal Brief - October 2024

<h1>Why We Invested in Octavia Carbon: A Climate Game-Changer</h1><figure class="image"><img src="/uploads/Linkedin_Templates_10_fd0f99e3ea.png" alt="A photo of the Octavia Carbon team demonstrating their direct air carbon capture technology in the Nairobi, Kenya lab and factory."></figure>Octavia Carbon, Kenya-based and the first Direct Air Capture (DAC) startup in the Global South, is leveraging the country’s geothermal energy, favorable geology and local talent to pioneer carbon capture solutions. Their mission: to pull CO₂ from the air, fight climate change and create carbon credits that offset emissions affordably.<h2>Why Kenya?</h2><ul><li>Geothermal power provides over 85% of the energy needed for DAC, making carbon capture more affordable and greener.</li><li>The Rift Valley's basaltic rock can safely store CO₂ for millennia, offering a long-term carbon solution.</li></ul><h2>Innovation and Traction</h2><ul><li>Octavia’s Project Hummingbird: Africa’s first DAC plant will capture 1,000 tons of CO₂ annually​ (<a href="https://vc4a.com/ventures/octavia-carbon/">VC4A</a>).</li><li>Five large-scale DAC machines have been built by Octavia and the company plans to move to mass production soon.</li><li>Carbon credits are already offered by Octavia, aligning with global climate goals ​(<a href="https://fsdafrica.org/blog/using-direct-air-carbon-capture-technology-to-address-emissions/">FSD Africa</a>).</li></ul><h2>Growth Potential</h2>Octavia Carbon partners with global platforms like Cella, Klimate.co and Tomorrow’s Air to scale DAC technology. Their model will hopefully help Kenya and Africa emerge as a carbon credit leader, building resilience through technology and sustainable economic growth​ (<a href="https://nextbillion.net/news/kenyan-climate-tech-startup-octavia-carbon-secures-funding-for-carbon-capture-technology/">NextBillion</a>).<a href="https://www.wri.org/blog/2020/03/to-unlock-the-potential-of-direct-air-capture-we-must-invest-now">Investing in DAC</a> now is critical to reducing future costs. This, based on the current pace of climate change, will be ever more important as carbon dioxide removal becomes even more necessary (<a href="https://www.wri.org/insights/direct-air-capture-resource-considerations-and-costs-carbon-removal">WRI</a>).&nbsp;<h2>Quote from Renew Capital</h2>"Octavia Carbon is redefining climate action by leveraging Kenya’s strengths. This investment reflects our belief in Africa’s ability to lead in this space." – Lucas Robinson, Principal - Consulting, Renew Capital.

Learn why we invested in Octavia Carbon, an early-stage startup using Direct Air Capture (DAC) technology to extract CO₂ from the atmosphere and deliver innovative climate solutions.

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Why We Invested in Octavia Carbon: A Climate Game-Changer

<h1>Secrets of Tanzania Momentum</h1><figure class="image"><img src="/uploads/TZ_20b5289fec.png" alt="A fisherman guides his boat at sunset, escorting passengers back to Zanzibar after a picturesque lake ride in Tanzania."></figure>Image: Sunset dhow ride back to ZanzibarTanzania is strategically positioned as a gateway to East African regional markets, offering significant potential for growth. While some may find the pace of development more measured than some of its neighbors, the country possesses abundant untapped resources that could drive a thriving startup ecosystem. The community is close-knit, providing a solid foundation for collaboration and support among entrepreneurs. The meet-ups we hosted and attended were filled with youthful energy, showcasing a promising entrepreneurial spirit.The government has demonstrated a commitment to supporting tech, innovation and private sector growth, with legislative reforms aimed at improving the business environment. For instance,&nbsp;<a href="https://dailynews.co.tz/tz-enjoys-investment-boom/">The Tanzania Investment Act, 2022</a> reduced the minimum investment capital required to access incentives (as outlined by the Tanzania Investment Center – TIC) for local investors to $50K and introduced enhanced online facilitation through the Tanzania Electronic Investment Window (TeIW), which began operations in October 2023. Additionally, the government launched a fintech sandbox earlier this year to boost the country's fintech ecosystem. Renew Capital remains optimistic about the potential for a stronger investment pipeline in Tanzania.<figure class="image"><img src="/uploads/Linkedin_Templates_11_2e83a919ea.png" alt="Vast miles of lush sisal fields stretch across the countryside of Tanzania's mainland, showcasing the agricultural landscape."></figure>Driving through the countryside of Tanzania's mainland, there are miles of sisal fields.<h2>Key Momentum Points</h2><ul><li>Tanzania's Standard Gauge Railway (SGR) project aims to boost economic growth, regional integration, infrastructure development and national pride. In&nbsp;<a href="https://www.thecitizen.co.tz/tanzania/news/national/tanzania-set-to-launch-sgr-services-4655934">June 2024</a>, the Tanzanian government launched the SGR project. It aims to facilitate faster, more&nbsp;efficient transportation of people and goods. Two routes have been in operation -– the Dar es Salaam to Dodoma route (approximately 450 km) and Dar es Salaam to Morogoro route (approximately 190 km).&nbsp;</li></ul><figure class="image"><img src="/uploads/Linkedin_Templates_18_cf51859c3d.png" alt="An impressive view of the improving railway infrastructure in Tanzania, featuring a train on the tracks amidst scenic landscapes."></figure>Image Source:&nbsp;<a href="https://www.thecitizen.co.tz/tanzania/news/national/tanzania-ready-for-sgr-services-launch-between-dar-es-salaam-and-dodoma-on-july-25-4679416">The Citizen</a>Importantly, the railway is expected to&nbsp;<a href="https://www.thecitizen.co.tz/tanzania/news/national/tanzania-to-boost-intra-africa-trade-with-sgr-expansion-4710098">expand</a> in East Africa and the Southern African Development Community (SADC), including countries such as – Burundi, Rwanda, Zambia, DRC, Mozambique and Malawi.&nbsp;<ul><li>Digital adaptation is accelerating: Since Tanzania&nbsp;<a href="https://www.thecitizen.co.tz/tanzania/news/business/tanzania-s-5g-coverage-rapidly-expands-to-15-percent--4699090">launched</a> 5G last year, usage grew to 15% of the population by Q2 2024. The Tanzania Communications Regulatory Authority’s (TCRA)&nbsp;<a href="https://www.tcra.go.tz/uploads/text-editor/files/Communication%20Statistics%20report%20for%20end%20of%20June%202024_EN_1721315046.pdf">June 2024 report</a> further specified that 4G and 3G coverage had reached&nbsp;<a href="https://www.thecitizen.co.tz/tanzania/news/business/tanzania-s-5g-coverage-rapidly-expands-to-15-percent--4699090">83% and 89%</a> of the population, respectively. This growth is crucial for boosting the country’s tech-enabled startup ecosystem.</li><li>In 2024, Tanzania launched a fintech regulatory sandbox to boost the fintech ecosystem: On&nbsp;<a href="https://www.clydeco.com/en/insights/2024/08/the-fintech-regulatory-sandbox-regulations-2024">July 2024</a>, the Bank of Tanzania published a sandbox regulation framework for fintech startups, aiming to reduce regulatory burdens and promote innovation while maintaining oversight for consumer protection, financial inclusion and financial system stability. The Fintech Regulatory Sandbox Regulations of 2024 outline eligibility criteria, application procedures and a nine-month testing period, aiming to increase Tanzania's fintech sector.</li></ul><figure class="image"><img src="/uploads/TZ_3_038dceb737.png" alt="A Tanzanian woman hands cash to a mobile money agent, highlighting the growth of fintech in Tanzania's financial landscape."></figure><a href="https://www.ports.go.tz/index.php/en/dar-es-salaam-port">Dar es Salaam&nbsp;</a>is Tanzania's principal port. It handles 95% of the country's international trade and has a capacity of 14.1 million dry and 6 million bulk liquid cargo. It serves landlocked countries such as Uganda, Zambia, DRC, Burundi, Rwanda, Malawi and Zimbabwe, making Tanzania a critical access point to the continent.&nbsp;Final thoughts…The Tanzanian economy is expected to&nbsp;<a href="https://www.imf.org/en/Publications/CR/Issues/2024/06/25/United-Republic-of-Tanzania-Third-Review-Under-the-Extended-Credit-Facility-Arrangement-and-550949">grow</a> in the coming years due to an improved business climate among other factors. For example, the real GDP growth rate is expected to increase from 5% in 2023 to approximately&nbsp;<a href="https://www.imf.org/en/Publications/CR/Issues/2024/06/25/United-Republic-of-Tanzania-Third-Review-Under-the-Extended-Credit-Facility-Arrangement-and-550949">6.5%</a> by 2029, according to IMF projections, while inflation is expected to remain within the central bank's&nbsp;<a href="https://drive.google.com/file/d/1QeMZMyI_-PpeIG-KYdrH4MmyC1rVO8jw/view?usp=drive_link">5%&nbsp;</a><a href="https://www.imf.org/en/Publications/CR/Issues/2024/06/25/United-Republic-of-Tanzania-Third-Review-Under-the-Extended-Credit-Facility-Arrangement-and-550949">target</a> range.&nbsp;For a host of reasons, Tanzania is a market to explore!&nbsp;<h3>Tech Hubs</h3><ul><li><a href="https://www.costech.or.tz/bunihub">Buni Hub</a>: supports ideation and prototyping under the&nbsp;<a href="https://www.costech.or.tz/">Tanzania Commission For Science And Technology (COSTECH)</a>), a government agency supporting Tanzanian innovation and technological growth.&nbsp;</li><li><a href="https://teknohama.or.tz/">DTBi</a>: focuses on the commercialization under the COSTECH.</li><li><a href="https://www.linkedin.com/company/westerwelle-startup-haus-arusha/?originalSubdomain=tz">Westerwelle Startup Haus Arusha</a>:&nbsp;supports entrepreneurship and economic growth.</li><li><a href="https://www.pesatechafrica.com/">PesaTech</a>:&nbsp;is&nbsp;an accelerator program under UNCDF that specializes in Fintech.</li><li><a href="https://funguo.org/">Funguo</a>: is an accelerator program under UNDP that aims to scale and support startups. Currently, it has reached 934 startups.</li><li><a href="https://www.vda.co.tz/">Vodacom Accelerator:</a> has a digital accelerator program capacitating startups.</li></ul>Innovation Nelson Mandela Hub: is a program under the<a href="https://nm-aist.ac.tz/"> Nelson Mandela Institute of science and technology University</a> in Arusha, Tanzania. It supports startups or individuals starting from the prototype stage.Go Deeper on Tanzania?<ul><li><a href="https://latest-api.renewcapital.com/uploads/FINAL_Tanzania_Fact_Sheet_1a0d49728a.pdf" target="_blank" rel="noopener noreferrer">Tanzania's Startup Ecosystem Fact Sheet</a></li><li><a href="https://www.google.com/maps/@-6.756524,39.1765061,12z/data=!4m2!11m1!2s5Q-w_tnFSTOizJTBasGPQg?entry=ttu&amp;g_ep=EgoyMDI0MTAxNC4wIKXMDSoASAFQAw%3D%3D" target="_blank" rel="noopener noreferrer">Tanzania's Startup Ecosystem Google Map</a></li></ul>Interested in other African Startup Ecosystems? Download Renew Capital’s Factsheets on other <a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot" target="_blank" rel="noopener noreferrer">Ecosystems</a>. We’ll be adding new ones every few weeks!&nbsp;

Explore Tanzania's startup ecosystem, highlighting government initiatives, fintech growth and the Standard Gauge Railway project driving economic momentum.


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Secrets of Tanzania Momentum

<h1>Press Release: Agenz Provides Transparency and Real-Time Data to Morocco’s Real Estate Market</h1>The platform provides real-time property valuations, market insights, and transparency in real estate transactions<a href="https://latest-api.renewcapital.com/uploads/FINAL_Agenz_Press_Release_2c02663edd.pdf " target="_blank" rel="noopener noreferrer">Download full press release</a>CASABLANCA, Morocco, October 10, 2024 – <a href="https://www.linkedin.com/company/agenztechnologies/">Agenz</a>, a data-driven platform that provides real-time property valuations and market insights in Morocco, has secured investment from Renew Capital. The company uses advanced data intelligence to provide instant property valuations, which allows users to set accurate pricing for sales or gauge current market values. The platform also offers a range of services, including buyer and seller lead generation and comprehensive market insights.<figure class="image"><img src="/uploads/Linkedin_Templates_14_60fd73a77e.png" alt="Image of Renew Capital co-founders and Morocco's Investment Ecosystem Development Manager alongside Agenz founder."></figure>“We’ve built Agenz to bring transparency and clarity to the real estate market,” said <a href="https://www.linkedin.com/in/malik-belkeziz-8a117966/">Malik Belkeziz</a>, Founder of Agenz. “Our platform helps people make smarter decisions by providing accurate data on property values and market trends. This investment allows us to expand our services and reach more people across Morocco and Africa.”Agenz not only supports individuals looking to buy, sell, or rent properties but also offers professional tools for real estate agents, including advanced valuation and market research solutions. The platform ensures that users, whether homeowners or professionals have the data they need to navigate the real estate process with ease.“Agenz is tackling one of the key challenges in the real estate industry—access to reliable and transparent data,” said the Investment Ecosystem Development Manager at Renew Capital, <a href="https://www.linkedin.com/in/nihal-grii-9278a8ab/?originalSubdomain=ma">GRII Nihal</a>. “By delivering real-time property valuations and insights, Agenz is giving buyers, sellers and real estate professionals the tools they need to make informed decisions. We’re excited to back Malik and his team as they scale their impact on Morocco’s real estate market.”Renew Capital continues to invest in growth-oriented entrepreneurs who are driving innovation and building scalable solutions for Africa’s most pressing needs. Our ambition in Morocco is to support even more startups and help them scale across Africa.&nbsp;Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.<h2>Agenz Apporte Transparence et Données en Temps Réel au Marché Immobilier Marocain</h2>La plateforme fournit des évaluations immobilières en temps réel, des analyses de marché et de la transparence dans les transactions immobilières.Casablanca, Maroc 10 octobre 2024– <a href="https://www.linkedin.com/company/agenztechnologies/">AGENZ</a>, le site immobilier leader au Maroc,&nbsp; accueille le fond panafricain Renew Capital dans son tour de table. Grâce à une intelligence de données avancée, AGENZ révolutionne le marché de l’immobilier au Maroc en permettant à ses utilisateurs d'évaluer avec précision les prix de vente et de naviguer en toute confiance dans leurs transactions.Avec AGENZ, acheteurs, vendeurs, promoteurs et banques bénéficient d'outils puissants pour accélérer et simplifier leurs démarches. La plateforme va bien au-delà des évaluations immobilières précises : elle optimise les transactions grâce à un réseau de plus de 300 commerciaux, internes et externes, déployés à travers tout le pays.<a href="https://www.linkedin.com/in/malik-belkeziz-8a117966/">Malik Belkeziz</a>, fondateur d'AGENZ, explique : « Nous avons fondé AGENZ pour fluidifier les transactions immobilières et démocratiser l’accès à des informations fiables et transparentes. Cet investissement de Renew Capital va permettre à AGENZ d’étendre ses services au-delà du Maroc, tout en renforçant notre impact local sur le marché immobilier. »GRII Nihal, Responsable d’investissement et&nbsp; développement des écosystèmes chez Renew Capital, ajoute : « AGENZ résout un problème fondamental du marché immobilier : la transparence des informations. Leur technologie d'évaluation et leurs analyses en temps réel offrent aux acteurs du marché les outils nécessaires pour effectuer des transactions rapides, efficaces et sécurisées. Nous sommes fiers de soutenir Malik et son équipe dans leur mission de transformer le marché immobilier africain. »Renew Capital continue d’investir dans des entreprises qui révolutionnent les secteurs clés en Afrique. Leur soutien à AGENZ renforce leur ambition de contribuer à l’écosystème entrepreneurial marocain et de promouvoir l'innovation sur tout le continent.Le support accordé à notre portefeuille d’entreprises est fourni en partenariat avec Affaires mondiales Canada.À propos de Renew Capital&nbsp;: Renew Capital est une firme d'investissement panafricaine spécialisée dans les startups à fort potentiel de croissance. Nous soutenons activement les entreprises africaines en leur offrant non seulement du capital, mais aussi des ressources pour se développer sur le marché. Pour plus d'informations, suivez-nous sur nos réseaux sociaux.Clause de non-responsabilité:&nbsp;Ce communiqué de presse a été traduit de l'anglais. Nous vous remercions de votre compréhension pour d'éventuelles maladresses ou imperfections de traduction.

Agenz, a Moroccan real estate platform, secures investment from Renew Capital, offering real-time property valuations and market insights.

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Agenz Provides Transparency and Real-Time Data to Morocco’s Real Estate Market

<h1 style="margin-left:0px;">Press Release: ChipChip Makes Online Shopping Cheaper with Group Buying</h1>The platform connects consumers directly with suppliers to drive down costs.<a href="https://latest-api.renewcapital.com/uploads/24_10_8_FINAL_Chip_Chip_Press_Release_b816fb1c7a.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>ADDIS ABABA, Ethiopia,&nbsp;October 8, 2024 - ChipChip, an innovative e-commerce platform bringing consumers and suppliers together through group buying, has secured investment from Renew Capital as lead investor as well as other international co-investors. Since its launch, &nbsp;<a href="https://www.linkedin.com/company/chipchip/">ChipChip</a> has been changing how consumers purchase fresh produce and fast-moving consumer goods (FMCG) by enabling them to unlock bulk prices through collective purchasing.&nbsp;<figure class="image"><img src="/uploads/Linkedin_Templates_16_1e3cf6fbe2.png" alt="A photo of the ChipChip team based in Addis Ababa, Ethiopia, who work on connecting consumers directly with suppliers through group buying to make online shopping more affordable."></figure>ChipChip allows users to form groups, pool orders and buy directly from farmers and suppliers. By eliminating intermediaries, ChipChip allows users to enjoy bulk savings while supporting local farmers and suppliers. This community-based approach makes it easier for consumers to access high-quality, locally sourced products at lower prices.“We believe that group buying can change e-commerce in Africa by making it more affordable and impactful,” said <a href="https://www.linkedin.com/in/amir-redwan/">Amir Redwan</a>, Co-CEO of ChipChip. “Our platform helps consumers save while supporting local suppliers. With this investment, we’re excited to expand our reach and continue delivering value to communities across Africa.”ChipChip also caters to businesses like restaurants and hotels, providing access to bulk purchases of essential goods. With a seamless shopping experience and exclusive deals, the platform ensures consumers and businesses alike benefit from trusted and affordable access to products.“ChipChip is tackling some of the biggest challenges in Africa’s e-commerce - affordability and access to high-quality products,” said Adam Abate, Principal, Investment Management at Renew Capital. “By giving consumers direct access to suppliers, they’re not only making everyday products more affordable but also building lasting relationships between local producers and buyers. This model is transforming the way communities engage with commerce. We are proud to support Amir and his team as they lead this shift.”ChipChip employs 40 full-time staff and 50 sourcing agents, with 33 women and 57 men. By the end of the year, the company plans to grow to 400 employees, with a strong focus on promoting women, while also prioritizing the recruitment of top-quality talent with the support of Renew Capital.Renew Capital remains committed to supporting growth-oriented entrepreneurs who drive innovation and deliver scalable solutions to Africa’s most pressing needs.Support to Renew Capital portfolio companies is provided in partnership with Global Affairs Canada.

ChipChip, an Ethiopian e-commerce platform, secures investment from Renew Capital to expand its group buying model.