<h1 style="text-align:center;">Changes are Coming to the Ethiopia Investment Code. Are You Ready?</h1>On October 22, 2019, RENEW had the pleasure of hosting a panel discussion on the changes that are coming to the legal and regulatory framework for investing in Ethiopia. This event was in partnership with the Aspen Network for Development Entrepreneurs (ANDE), TrustLaw (Thomson Reuters Foundation) and Global Affairs Canada. <a href="https://www.linkedin.com/in/tsegamlak-solomon-921175a2/">Tsegamlak Solomon</a>, RENEW’s Ethiopia Legal Counsel, sat on the panel, as well as <a href="https://www.linkedin.com/in/mesfin-tafesse-31a01919/">Mesfin Tafesse</a>, the Founder and Principal Attorney of Mesfin Tafesse &amp; Associates.<figure class="image"><img src="/uploads/andeevent_e41f044019.jpg"></figure>The event was of great interest to many, with more than 60 people in attendance who all wanted to learn more about the changes coming to the Investment Code. In case you missed the event, here are some resources for your review:<ul><li>Draft Investment Regulation (<a href="https://drive.google.com/file/d/1TWWAZFi4GdRcBa6yoiXI5uKFUEAdBBxm/view?usp=sharing">LINK</a>): For investment areas open for domestic investors only, refer to Article 4; and for investment areas reserved for joint investment between domestic and foreign investors, refer to Article 5.</li><li>Summary from RENEW, ANDE and TrustLaw (<a href="https://drive.google.com/file/d/1iCUwSrFx0t45dlt3yfFXPFQAVF7deK_W/view?usp=sharing">LINK</a>)</li><li>EIC October 2019 Presentation (<a href="https://drive.google.com/file/d/1i8YauaqoLpOjLgrwpnGdNdBLr2DZ8Q-b/view">LINK</a>)</li></ul>You can also read our recent blog about RENEW’s role in the upcoming reform (Blog: <a href="https://www.renewcapital.com/resources/blogs/Having%20Skin%20in%20the%20Game%20Can%20Help%20with%20Investment%20Reform">Having Skin in the Game can Help with Investment Reform</a>). If you have any questions or if you’re interested in being notified about future events at The Exchange, please don’t hesitate to contact us today at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>. You can also contact our event partners through <a href="http://www.andeglobal.org/">www.andeglobal.org</a> and <a href="http://www.trust.org/">www.trust.org</a>.DISCLAIMERThe documents linked herein are provided strictly for informational purposes only and do not constitute investment advice or legal advice. Readers should consult their professional advisors to obtain advice with respect to any particular legal or investment matter discussed therein. The information in the documents is provided “as-is” and no representation is made that the information is accurate or complete, nor should it be relied upon as such. In addition, the information may not constitute the most up-to-date legal or other information. All liability with respect to actions taken or not taken based on the contents of the documents linked herein is hereby expressly disclaimed.

A Panel Discussion with RENEW, ANDE and TrustLaw.

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Changes are Coming to the Ethiopia Investment Code. Are You Ready?

<h1 style="text-align:center;">Finding Ways to Inspire and Impact My Community</h1>Since I was young, I was really passionate about the arts and inspiring people through art. As I got older, this passion started to transition to design. I always imagined myself going to a fashion design institute or doing a degree in fashion design. After I graduated from university, I ended up spending a year at fashion school and decided that it was time to start living my dream. It was an exciting life-long vision, and I had so many Ideas. I was thinking BIG. I had plans to create unique and attractive products that could impact the community.Little did I know it was tough to actually get into the business. It was challenging because in this system we are taught the basics, but not how to get our business off the ground. There was a lot to think about from choosing the business structure, to the business plan and the most important thing, the startup costs. There were costs needed for the brand design, the logo, the website, rent for a work location, machines, design tools and many more. Even though I had so many ideas, I learned that I had to focus on one idea at a time and start small.<figure class="image"><img src="/uploads/screen_shot_2019_11_05_at_2_42_32_pm_3fc420b2ed.png"></figure>I started with a few craft pieces and custom traditional clothes for family and friends for holidays and events. I liked sharing my designs and sketches in the hopes of inspiring people. It wasn’t anything big, but I was really happy that I could make something that people could enjoy wearing with confidence. It satisfied me greatly, and it still does. Whether it was a big or small project, I knew I would be happy doing what I love on the side and exploring other things that I could do. That’s when I finally decided that I wanted to have this be a side project, and I started looking for more opportunities to grow professionally.When I started looking for full-time employment, I knew I wanted a way to grow my business skills, and I still wanted to be at a job that was inspiring and that would have an impact on my community. As I began my search, I came across RENEW, a company which was really trying to have a positive impact on the community where I live. I knew I wanted to be a part of that.When I joined RENEW, I was really nervous about my first day. It was my first job, and I didn’t want to mess anything up. It actually took me no time at all to familiarize myself because everyone was really welcoming, and I enjoyed everything I was doing. I was so fascinated by how well-planned and organized everything here at RENEW was. I was in love with all the guiding statements and disciplines, and it made me want to align it with my personal life. I’ve been at RENEW for for about 15 months now, and I know I’m in the right place where I can grow both professionally and as a person.

How Filseta, our Project Coordinator, came to join RENEW.

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Finding Ways to Inspire and Impact My Community

<h1 style="text-align:center;">Our Jobs Scorecard, Ethiopia's First Jobs Summit</h1>On October 31, 2019, RENEW was invited to attend the first Jobs Summit in Addis Ababa, hosted by the Jobs Creation Commission of Ethiopia. The Jobs Creation Commission highlights the commitment that the government, the private sector and development partners have in steering Ethiopia towards higher numbers of sustainable jobs, especially those for women and youth. Their goal is to help bridge the unemployment gap in Ethiopia by creating 20 million jobs in the country by 2030.During the Jobs Summit, the Commission presented its <a href="http://jobscommission.gov.et/documents/">Plan of Action for Job Creation</a> and the <a href="http://jobscommission.gov.et/documents/">2019 State of Jobs Report</a>. The presentation recognized the potential that small and medium enterprises (SMEs) have to be huge drivers of job creation and growth, citing an increase of support to those working in that sector.<figure class="image"><img src="/uploads/jobsummit_fotor_0_6b3aeefc9e.jpg"></figure>We can all be proud that as of June 30, 2019, through the investments made by RENEW and the Impact Angel Network, we have created 1,487 jobs and helped sustain an additional 2,229; we have also supported 1,792 jobs through our training to companies in The Exec’s Program, for a total of 5,464 jobs created or sustained through our work in Ethiopia.**RENEW is committed to working with the Jobs Creation Commission, development partners and other stakeholders to help achieve Ethiopia’s goal of 20 million jobs. Be sure to visit the <a href="http://jobscommission.gov.et/">Commission’s website</a> to learn more about their initiatives.Read more about RENEW’s efforts related to job creation:<ul><li><a href="https://www.renewcapital.com/resources/blogs/Desta%20%20Building%20Sustainability">Eyob’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/An%20Angel%20Investor%E2%80%99s%20Perspective">Beth’s Blog</a></li><li><a href="https://www.renewcapital.com/resources/blogs/Expansion%20Brings%20Rural%20Jobs%20to%20Ethiopia">Desta Worker’s Blog</a></li></ul>**The data for portfolio jobs is current as of June 30, 2019. Data is preliminary and has not been audited. The data includes figures for investments that were exited during Q2 2019and is based on a high-water mark. The data for The Exec’s Program is current as of September 30, 2019.

Hosted by the Jobs Creation Commission of Ethiopia.

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Our Jobs Scorecard, Ethiopia's First Jobs Summit

<h1 style="text-align:center;">November Resource Blog</h1>Our November Resource Blog takes a look at our favorite articles from this past month. Read through the below to learn more about stories of growth from Kerrygold, Heineken and Lipton.<ul><li><a href="https://www.bloomberg.com/news/features/2019-10-02/how-irish-butter-kerrygold-conquered-america-s-kitchens">Irish Butter Kerrygold Has Conquered America’s Kitchens</a>: The salty, uber-yellow spread has seen double-digit growth almost every year for the past decade. This article covers the story of Kerrygold's growth in an intensely competitive U.S. market, starting with a tiny marketing budget and yet emerging as a top brand. (Bloomberg)</li><li><a href="https://fortune.com/2014/12/03/heineken-charlene-de-carvalho-self-made-heiress/">Heineken’s Charlene de Carvalho: A self-made heiress</a>: This article covers Heineken's succession story and how the family-owned company handled succession, while vowing not to meddle with day-to-day operations and yet reserving the right to shake things up in four areas: the company’s image, its balance sheet, acquisitions, and the selection of board members and key executives. (Fortune)</li><li><a href="https://www.npr.org/sections/thesalt/2016/10/25/498863411/-from-tea-garden-to-teapot-how-lipton-became-an-empire">How Lipton Built An Empire By Selling 'Farm To Table' Tea</a>: Lipton tea can be found in almost any grocery store, and the brand is just about synonymous with industrial Big Tea. So tea enthusiasts who sniff at the familiar square bags might be surprised that once upon a time, Lipton was known as the "farm to table" of the tea world. In fact, it was sold with the catchy slogan "direct from tea garden to teapot." So how did Thomas Lipton build this tea empire? Read this article to find out. (NPR)</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/screen_shot_2019_11_05_at_10_16_32_am_0_1d7c444d3c.png"><figcaption>Image Source: Bloomberg: <a href="https://www.bloomberg.com/news/features/2019-10-02/how-irish-butter-kerrygold-conquered-america-s-kitchens">Irish Butter Kerrygold Has Conquered America’s Kitchens</a></figcaption></figure>

Our favorite articles from the past month.

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November Resource Blog: 2019

<h1 style="text-align:center;">A Look into The Exec’s Program</h1>In May 2017, RENEW launched <a href="https://www.renewcapital.com/resources/blogs/Key%20Resources%20for%20Executives">The Exec’s Program</a>, an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.The reason RENEW started the program is simple: our investment thesis is that with a little planning and disciplined execution, companies in Ethiopia can have a huge competitive advantage over others in the market. Our experience is that poor execution is why most companies fail. Starting at the top, most CEOs, often founders, don’t know or apply some of the most basic fundamental disciplines that have been proven to work around the world. For example, writing down a clear plan for the year; tracking a few key metrics; closing the company’s books each month and analyzing the three financial statements; running effective weekly management meetings; using a sales pipeline; asking for feedback from customers, etc. You’d be shocked at how few companies do the basics.<figure class="image"><img src="/uploads/execs_0_5f0e006bab.png"></figure>We started The Exec’s Program to be different from the flood of donor and consultant offered accelerator programs and boot camps out there. We wanted to have a program focused on tools that could be immediately applied by a CEO to their organization that would move the needle on their performance. The program requires a commitment of time, and like any skill, what is taught must be practiced over and over again until it becomes a habit. The habits that disciplined executives form are those that other top-performing executives attribute to their success.The program is for executives in RENEW’s portfolio and a select few additional executives we believe have the potential to become market leaders. The program focuses on planning, governance, execution, finance, marketing and sales, and corporate stewardship, with a strong focus on teamwork and group implementation.Now for the numbers. Since 2017, we have had three cohorts with a total of 46** executives. Of these 46 executives who were enrolled in the program, 19 have been women. The following table provides a deeper look into the three cohorts:<figure class="image"><img src="/uploads/graph1_8aff448ffb.png"></figure>In the latest annual survey conducted from February to March 2019, RENEW collected data from the companies that attended The Exec's Program, a total of 26 companies. Here are some quick findings based off these surveys:<ul><li>As of December 2018, the total number of employees of all The Exec's Program Alumni was 1,943, which translates into a 16% increase from 2017. Of these 1,943 jobs, 871 were held by women.</li><li>In terms of the number of jobs created over the course of the training program, The Exec’s Program Alumni have added 264 new jobs to the local economy, of which 132 jobs were jobs for women (50%). On average this represents 10 new jobs created per company, five of which were for women.</li><li>From the 26 companies in the Alumni group, 18 companies raised capital in 2018, 69% of the total.</li><li>From the 18 companies that raised capital, five companies raised equity, 10 companies raised debt and three companies raised grants.</li></ul><figure class="image"><img src="/uploads/graph2_f89ce253c1.png"></figure><ul><li>On average, accelerated ventures display greater one-year growth in revenues, employment, and investment;</li><li>USAID’s PACE Program (Partnering to Accelerate Entrepreneurship) report finds that Small and Growing Businesses (SGBs) that receive shorter, less individualized technical assistance, such as cohort-based, time-bound incubators and accelerators, demonstrate an average revenue growth over two times and job growth over one-and-a-half times that of other SGBs.</li></ul>Some comparisons between GALI and The Exec’s Program:<figure class="image"><img src="/uploads/graph3_93b77f1b26.png"></figure>Based on these survey results and through facilitating these sessions, we believe that The Exec’s Program is providing valuable skills and opportunities to the participants. We are constantly aiming to graduate top-performing executives with disciplined management teams that become legends of Ethiopia’s economic growth.For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_ca912bbd10.png"></figure>The Executives’ Program, a part of RENEW’s Accelerating Business Growth (ABG) project, is undertaken with financial support of the Government of Canada provided through Global Affairs Canada. Please see the following press release on the ABG project for more details. To find out more about RENEW or the Impact Angel Network, contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>, follow us on Twitter @RENEWLLC or find us on Instagram @impactangelnetwork.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

The Exec’s Program is an intensive training program designed to provide CEOs with the systems and tools needed to build disciplined management teams.

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A Look into The Exec’s Program

<h1 style="text-align:center;">Having Skin in the Game Can Help with Investment Reform</h1>In 2012, partners of the RENEW team ventured into a country most said would be one of the most challenging places to invest in all of Africa: Ethiopia. At the time, the investment code was extremely restrictive, few knew about private equity, the government was adversarial (at best) with the private sector, and the largest companies were state-owned. Almost eight years later and having become one of the most active investment firms in the country, we’re pleased to say a lot has changed and even more change is on the horizon. But how did all of this come about – what some are calling a private sector renaissance?When we arrived in February 2012, the question everyone asked was, “Can you get your money out?” Most companies didn’t know about private equity; they understood debt and grants and a few that did understand it were cautious, always wary of foreigners coming into their country and their companies. But we were committed to learning about Ethiopia and how to tap into its huge potential.We started by learning the different organizations involved with investing. We interviewed many (many!) lawyers all with different opinions of how something worked – all very confident in their answers. We then started investing and painstakingly mapping out the 100+ steps to investing in a company in Ethiopia. After each deal we’d go back to the file and update the steps. The first few deals were challenging, and then we started to learn the acronyms, learned what to expect when we put forward a document for a stamp at XYZ agency, anticipated the requests, and started to streamline the process. We built systems to collect changes from each government agency on a regular basis and changed our attitudes from frustrated to curious and grateful. Now, in partnership with RENEW’s Impact Angel Network, we have made 13 investments in 11 companies. We recently were invited to weigh-in on the upcoming investment reform agenda and did so in a white paper (<a href="https://latest-api.renewcapital.com/uploads/RENEW_LLC_Investment_Law_Reform_White_Paper_3b22c23669.pdf">LINK</a>). We are pleased to learn that a number of our suggestions, along with many other investment actors’ suggestions, are being considered.<figure class="image"><img src="/uploads/skyline_1_019dbfeffb.png"></figure>Had we charged in and demanded changes eight years ago, or come in now offering suggestions about how others do it, we might not have seen this level of change. But by actually investing and putting real skin in the game, we got a much deeper and richer view of investing. We applaud the government of Ethiopia for being open to change and for not just having consultants inform their policy reform, but for reaching out to the private sector – those in the trenches – and asking for their input. We are grateful to be operating in a country where the actors are doing their best to do what’s best for the country, the people and the economy.Here are some of the highlights we have learned are coming with the revised investment law, likely to go in effect later this year:<ul><li>A change from the positive listing of areas open for foreign investors to a negative listing approach, in which only sectors that are not open for foreign investment will be listed. Many sectors are expected to be opened for foreign investors!</li><li>The minimum capital requirement remained the same but may not apply for institutional investors focusing on SMEs. The definition of institutional investors is not fully clear yet, but be on the lookout for this change.</li><li>A private sector representative will have a seat on the Ethiopia Investment Board (EIB) which is chaired by the Prime Minister of Ethiopia, Abiy Ahmed.</li><li>Any grievance between foreign investors and domestic investors can be taken to the arbitration tribunal, a reputable organization with a long history in Ethiopia.</li><li>The different regulations, directives and even board decisions of the EIB will be made available to the public.</li><li>The proposed law includes plans to loosen regulation in relation to investment licensing, suspension and revocation.</li><li>The requirement to have a business proposal for investment registration will no longer apply.</li><li>The one-stop shop service for foreign investors at the EIC will continue to be available after an investor gets a business license. In the past, oversight was turned over to Ministry of Trade causing some service inconsistencies.</li></ul>We look forward to the investment law reforms on the horizon, and we encourage practitioner-led private sector development. We hope we can replicate this story in more countries in East Africa and across the continent.<figure class="image"><img src="/uploads/grow_build_leaveorange_a69d83d8cc.png"></figure>

Playing the long game is paying off in Ethiopia.

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Having Skin in the Game Can Help with Investment Reform

<h1 style="text-align:center;">2019 ABG Check-In</h1>In 2016, RENEW signed a collaboration agreement with the development arm of the Canadian federal government, Global Affairs Canada, for a project known as Accelerating Business Growth (ABG). The ABG project aims to support high potential, responsible small and medium enterprises (SMEs) in Ethiopia so they can attract and efficiently use finance to scale up, enabling them to play a stronger role in the Ethiopian economy. The project addresses the gap found in the capital markets in Ethiopia and in many other countries in Africa, called the “missing middle”. This missing middle limits the ability of SMEs to access finance to grow their businesses and create sustainable jobs.The project’s ultimate outcome is to increase employment and generate income opportunities for men, women and young adults from Ethiopia’s small and medium enterprises sector and related value chains. Specifically, RENEW is aiming to support a total of 5,000 jobs and help Ethiopian SMEs attract $52.5M (CAD) of financing to help scale their companies by the time the project concludes in May 2021.<figure class="image image_resized" style="width:100%;"><img src="/uploads/abg2_7d4fbe5c3d.png"></figure>With three years completed, RENEW has made significant progress on both metrics, now supporting 3,944 jobs through the program (79% of target) and having helped Ethiopian SMEs attract $47.5M CAD (91% of target). A sampling of other project targets and current results are as follows:<ul><li>Target: Train 650 SMEs on finance. Current result: 529 (81%).</li><li>Target: Train 100 resource providers (banks, chambers of commerce, accounting and legal firms, financing institutions, etc.) on finance. Current result: 74 (74%).</li><li>Target: Annual sales growth rate increase of 10% achieved by companies who participate in The Exec’s Program. Current result: 13.50% (exceeding target).</li><li>Target: Graduate 50 individuals from The Exec’s Program. Current result: 46** (92%).</li><li>Target: Graduate 100 finance executives from the CFO100 Program. Current result: 51 (51%).</li><li>Target: Grow the Impact Angel Network (IAN) by 175 individuals and families. Current result: 73 (42%).</li></ul><figure class="image image_resized" style="width:100%;"><img src="/uploads/chigign_98d5028b3a.png"></figure>Throughout the project, the team has also developed unique initiatives that directly support the project’s goals and have contributed to the achievements listed above to date, including:Chigign ‘Tobiya: In partnership with Tonetor Multimedia, RENEW launched Chigign ‘Tobiya, a business pitching TV series broadcast on national television (FANA TV) which aims to raise awareness and build interest in entrepreneurship locally in Ethiopia. The initiative also aims to build out a local Ethiopian angel investor network for SMEs. Two seasons have been fully aired attracting a reported 40M viewers, with season three production now in the final stages. Eleven companies that pitched on the show have advanced to the diligence stage, and RENEW anticipates multiple closings in these companies during 2019.Women in Finance: RENEW launched the “The Women in Finance” series in 2017 aimed at empowering and inspiring female finance professionals in Ethiopia. Four sessions have since been held in partnership with local banks and organizations, with glowing reviews and results. Guest speakers have been invited and productive discussions have been held related to the unique challenges that women face in the finance industry in Ethiopia. The 5th edition of the program is scheduled for Q4 of 2019.Women’s Mini-fund: The mini-fund is an investment vehicle that pools funds for investment in multiple (women-owned) companies. The RENEW team wanted to be creative in forming a vehicle that would address the unique constraints faced by women entrepreneurs. More details about the mini-fund can be found in our Press Release from May, as well as in the Press Releases for RENEW’s two new portfolio companies, a company that supports <a href="https://travelethiopia.com/">tourism in Ethiopia</a> and a <a href="https://kijanionline.com/">Ugandan diaper company.</a>For more information on the ABG project, <a href="https://www.renewcapital.com/resources/blogs/An%20Update%20on%20the%20ABG%20Project">read the blog</a> we published in November of 2016 shortly after the project launch.<figure class="image"><img src="/uploads/canada_3_1_c404b1a690.png"></figure>The Accelerating Business Growth (ABG) program is undertaken with support from the Government of Canada provided through Global Affairs Canada. The Impact Angel Network (IAN) is one of the largest North American-based angel networks dedicated to investing in Africa. RENEW is an impact investment firm working in Ethiopia that manages the IAN and provides professional investment advisory and consulting services in support of its investments.**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

**46 includes our Spring 2019 class who have not yet received their certificates, but who have completed all required coursework and assignments.

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2019 ABG Check-In

<h1 style="text-align:center;">October Resource Blog</h1>Our October Resource Blog takes a look at our favorite articles from this past month. Read through the below to learn more about defining success, setting goals, recruitment and buying businesses.<ul><li><a href="https://hbr.org/2019/08/before-you-start-a-business-decide-what-success-looks-like">Every Business Owner Should Define What Success Looks Like</a>: As a majority of companies are owned by people with a tie to the company instead of outside shareholders, a well-articulated owner strategy about what they want from the company in terms of returns and other objectives generates alignment among owners, board members, executives, and employees. Think of it this way: if owners are clear about how they want to keep score, board members and management teams will know how to win. That clarity also allows companies to define success on their own terms, rather than someone else’s. (Harvard Business Review)</li><li><a href="https://www.fastcompany.com/90393311/giving-up-on-my-medium-term-goal-allowed-me-to-grow-my-company">Giving Up on My Medium-term Goal Allowed Me to Grow My Company</a>: A CEO recounts his approach of growing a company by focusing on short-term deliverables and a long-term vision instead of medium-term goals. (Fast Company)</li><li><a href="https://medium.com/redpoint-ventures/recruiting-recruiters-62176d0910fb">Recruiting Recruiters</a>: Redpoint Ventures recommends hiring an internal recruiter earlier than usual in a startup, as potential delays might exacerbate the challenges of growing a company. (Medium)</li><li><a href="https://hbr.org/ideacast/2017/02/why-you-should-buy-a-business-and-how-to-do-it.html">Why You Should Buy a Business (and How to Do It)</a>: In this article, two professors at Harvard Business School spell out an overlooked career path: buying a business and running it as CEO. Purchasing a small company lets you become your own boss and reap financial rewards without the risks of founding a start-up. Still, there are things you need to know. (Harvard Business Review)</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/hbr_0_0599fe1e53.png"><figcaption>Image Source: Harvard Business Review: <a href="https://hbr.org/2019/08/before-you-start-a-business-decide-what-success-looks-like">Every Business Owner Should Define What Success Looks Like</a></figcaption></figure>

Our favorite articles from this past month.

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October Resource Blog 2019

<h1 style="text-align:center;">Expansion Brings Rural Jobs to Ethiopia</h1>During a recent visit to Butajira, Ethiopia, a small town three hours outside of Addis, I saw the Bekele family’s vision to be a leading Ethiopian owned and led garment manufacturing facility coming alive. Historically, the company, <a href="http://www.desta-garment.com/">Desta Garments PLC</a>, which the Impact Angel Network made an investment into in 2015, has been operating in a relatively small, three story building in Gerji, a sub-city of Addis Ababa. The company has done really well with the space that it has had, employing close to 700 people and producing garments for international brands.“Our current factory was never designed to be a garments facility, but our new Butajira facility is,” stated Eyob Bekele, owner and general manager of Desta. “To increase our ability to compete with any company worldwide, we need a proper setup and Butajira is the answer.”The facility is in the final stages of construction, but production and export has already started from the new location. The company employs around 220 employees at the new site and has already established 5 sewing lines. With a large contract for 1M garments per year already in place for the facility, the company is moving fast to fully utilize the 8,000 square meter space.Further expansion will include a second shed that will have a canteen to serve nutritious food to the staff which is expected to grow to more than 1,000 employees. Further plans include a medical clinic for staff and the community, rainwater collection and a state-of-the-art waste treatment plant.“We are committed to hiring people with disabilities including the deaf,” Eyob continued. “We have a family member who has a disability, and we feel like just because you are disabled doesn’t mean you cannot work productively. We aim to employ 30-50 workers with a disability at any one time which is about 5-10% of our current labor force.”“The women in Desta’s workforce play a significant role from the bottom to the top of the organization. About 90% of our workforce are women. A few have started as a cleaner and are now in management. We take women empowerment seriously and invest in soft skills,” Eyob said.To read more about Desta, download our most recent <a href=" https://latest-api.renewcapital.com/uploads/RENEW_2020_2021_Impact_Report_web_5e1a98866d_815a14c8fa.pdf">Impact Report</a>.

The Impact Angel Network’s garments facility, Desta, is expanding to Butajira.