<h1 style="text-align:center;">Setting up Roots Back in Ethiopia</h1>I have three major milestones in my life that help tell my story: (1) growing up in Ethiopia; (2) moving to the U.S.; and (3) moving back to Ethiopia.1. Growing up in EthiopiaBeing raised in a family of 10 by parents who were teachers, I was privileged to have a safe, nurturing childhood and lots of opportunities to learn from my elders. While reflecting back on my childhood memories, the good thing about growing up in a big family is we have been like a community in our small world – lots of fun, engaging moments, too many rules and at times chaotic, which all led to great family bonding.Now that I am a father of two (a 10 year old boy and a 3 year old daughter), I can witness all the excitement as well as the never-ending responsibilities of parenting. I always look back and appreciate the commitment and wisdom my parents had raising a big family with very limited resources.<figure class="image"><img src="/uploads/tamiru_bday_fotor_6283d926c1.jpg"></figure>With the amazing support of family and friends, I was able to successfully navigate through life, both in academics and in my career with no major setback or challenges: earning a BA degree in accounting in 2001 and a BSC degree in information systems in 2005, receiving multiple promotions during my 8 year financial services career working with more than 5 supervisors/mentors, and advancing to a leadership post having a direct report of close to 25 employees.Above all, winning the heart of my love (my wife), I declared myself the lucky one – life is beautiful. It is at this point that I decided to go international, and I chose the U.S. as my next adventure to pursue my MBA and the “American dream”.2. Moving to the U.S.Once I secured my student visa to the U.S., I was carried away by this dream of how my life would be transformed in a few years with lots of learning and exposure. I even made plans in advance as to what I would do for family and others five years down the road. My flight to the U.S. was my first international travel and also the first time I boarded a plane. That 17-hour flight by Ethiopian Airlines felt like a year as I was eager to hit the ground in the U.S.Transitioning to the U.S. and leaving my family behind was a different reality, followed by enjoying all the blessings of the U.S. (the “Land of Opportunity”). What a mixed emotion! I have to admit that the 2008 global financial crisis gave me a big blow, and, for the first time in my life, I faced what it feels like to be unemployed, lonely, confused, full of uncertainty, and challenged to start a career and life the American way.After several attempts to secure a job – multiple calls, follow-ups, few interviews, and rejections – I was offered my first job opportunity (a temp assignment). After that first hire, I continued to have nonstop and progressive responsibility in four companies, including a Fortune 500 company.Unlike my professional experience in Ethiopia, all of my supervisors while working in the U.S. were females from different nationalities including the U.S, U.K., Iran, and Russia – their devotion, commitment, and judgment were amazing and that really changed my perspective on the leadership capacity of women. I have a special regard and respect for my last boss in the U.S. who truly dedicated lots of time and energy in mentoring me and put tremendous confidence and trust in me to lead and push on various initiatives.My American dream halted unexpectedly when my employment contract was terminated. By then, I decided to move back to Ethiopia right away instead of looking for other opportunities.My experience working with more than 2,000 offshore employees based in India, Sri Lanka, and others led me to the idea of exploring the possibility of creating an outsourcing hub in Ethiopia as my next driver going back home.3. Moving back to EthiopiaReconnecting and settling back home is not as easy as you may anticipate. With the full support and comfort of our families, we have managed to ensure a smooth transition for the family by navigating through some challenges patiently. The focus, persistence and hard work of my wife (Dr. Selam Tilahun), who is also my silent healer and therapist, was critical. I took the longest break of my life to refill my energy. I got time to enjoy my family, appreciate the little things, revisit my battle rhythm to success, and reflect on my ambition and journey.<figure class="image image_resized" style="width:100%;"><img src="/uploads/tamiru2_fotor_0_3ed5221ba4.jpg"></figure>After that, I got fired up and started pushing forward on my big project of establishing an outsourcing hub that would provide accounting and business process outsourcing which would serve local and international businesses. The attempt didn’t succeed at the time due to conflicting scope, priority and other reasons.After the above failed entrepreneurial efforts, I decided to rejoin my first bank and accepted a role in product development and innovation. After more than one year of service, I needed to dive deeper on accounting/finance and business processes to stay on track toward my goal and started to look for other opportunities.It is at this time that I learned about an employment opportunity at RENEW. The idea of impact, various projects, multiple portfolio companies, a focus on accounting and finance, a grand vision, and American entrepreneurs made me seriously interested in the role.Here I am counting more than 8 months of an engaged, focused and transparent work environment at RENEW. On a regular basis, I interact directly with portfolio companies, specifically their finance team, to ensure timely and accurate financial reporting. Almost half of our portfolio companies’ finance teams are led by women. Enabling and empowering them in their finance and leadership journey is an exciting part of my job.I am inspired by Matthew Davis, CEO of RENEW, by his perspectives, grand vision for the company and attending The Exec’s Program focusing on the habits, discipline, and practices of successful corporate athletes. I am committed to continuously improving myself and to add to RENEW’s initiatives of establishing the “Berkshire Hathaway” of Africa.That is ME and my 40 years’ life journey in brief! The adventure continues in an impactful way. With everything going on, I choose to be excited and optimistic about the future again!

Tamiru’s Journey to Impact Investing; from Ethiopia, to the U.S. and Back Again.

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Setting up Roots Back in Ethiopia

<h1 style="text-align:center;">The Rights of Women Employees Under the New Employment Law</h1>Ethiopia has recently made changes to its employment law, which was in effect for the past 16 years. Proclamation No. 1056/2019, which repealed Proclamation No. 377/2003, came into effect on September 5, 2019. Though the new law has not significantly deviated from the previous one, it has made a notable change in terms of protecting the rights of women employees. These protections are outlined below.<figure class="image"><img src="/uploads/img_9202_fotor_0_86f9d62dc0.jpg"></figure>Sexual Violence and HarassmentOne of the most significant changes is the definition given to ‘Sexual Violence and Harassment’. Surprisingly, the repealed labor proclamation did not define ‘Sexual Violence’ or ‘Harassment’, nor did it provide for any consequences for offenders. This had been a barrier to an employer’s ability to take measures against employees who are caught committing these offenses. Thankfully, the new Labor Proclamation defines ‘Sexual harassment’ as “…an act of persuading or convincing another person through utterance, signs or any other manner, to submit for sexual favor without his/her consent.” Similarly, ‘Sexual Violence’ is defined as “…an act of sexual harassment accompanied by force or an attempt thereof.” The new law doesn’t stop with just the definition, it also specifies the consequences associated with it:<ul><li>An employer will be entitled to terminate an employee’s contract, who is caught committing the above act, without giving notice;</li><li>An employee who is subject to the above acts by his/her employer or managerial employee will be entitled to terminate his/her employment contract without notice. In addition, s/he will be entitled to a severance payment. The same applies if the act is committed by a co-worker and the employer fails to take measures, despite a report being made of the fact; and</li><li>In addition to the severance payment specified above, a victim of sexual harassment and violence will be entitled to compensation equal to three (3) months’ salary.</li></ul>Reduction of the WorkforceThe repealed proclamation had established a retainer arrangement for certain groups of employees during a reduction of the workforce by an employer. The new proclamation expanded the groups protected by this retainer arrangement to include new mothers whose babies are under four months old. This is in addition to expectant mothers, who were also covered under the repealed proclamation.<figure class="image"><img src="/uploads/001_402_fotor_9495138f5e.jpg"></figure>Maternity Leave The repealed proclamation provided for thirty (30) consecutive days pre-natal and sixty (60) consecutive days post-natal leave for expectant mothers. The new proclamation has made adjustments to this. Under the new proclamation, the pre-natal leave remained the same, but the post-natal leave has been expanded to ninety (90) consecutive days.Affirmative ActionBoth the repealed and the current proclamation provide for non-discrimination of women employees against their male counterparts in all respects. However, the new proclamation goes beyond that and provides for affirmative action in order for female employees to be given priority if they score equal results with male employees while competing for employment, promotion or any other employment benefits.Overall, the new labor proclamation did not make a significant change to the already existing labor laws, despite compiling what had been scattered through different amendments and court decisions. However, when it comes to the protection of the rights of women employees, it is considered a huge step forward from where it has been.

Notable change in terms of protecting the rights of women employees in Ethiopia

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The Rights of Women Employees Under the New Employment Law

<h1 style="text-align:center;">High-Impact Giving: Grow a Company. Build a Nation. Leave a Legacy.</h1>Prior to joining RENEW, I helped launch a firm which evaluated poverty alleviation initiatives in terms of their social return on investment. The analysis measured the increased wages and other measurable benefits that beneficiaries realized and the government spending saved per dollar spent on the evaluated program. After evaluating dozens of organizations and causes and looking at third-party assessments of many more, I concluded that the most effective way to tackle poverty is through investing in SMEs in frontier markets. I was impressed by studies showing that, for every dollar invested in an SME in a frontier market, the local economy realized 12 dollars, with benefits reaching multiple stakeholders, including employees and their families, other businesses, and taxpayers, as beneficiaries depended less on public assistance <a href="#section1">[1]</a>. Few other programs could claim such 'bang for the donor buck', especially when factoring in the potential for recycling of returns from SME investments to other impact investments or high-impact donations.This realization prompted me to join RENEW full-time and to invest both from my and my wife's personal assets and from our donor-advised fund (DAF). In 2017, we used funds from our DAF to make an impact investment and received a tax deduction to support a company and the local economy in Ethiopia. As our DAF receives funds back from this investment, we are able to then recommend that the funds be redirected to other investments or causes we care about. The use of our DAF allowed us to invest our philanthropic dollars into organizations that were supporting poverty alleviation with RENEW.<figure class="image"><img src="/uploads/destaphoto_0_a9b2ff1109.jpg"></figure>RENEW believes that the most effective way to move a country from poverty and dependence to prosperity is to help small and medium enterprises (SMEs) grow and, in the process, unlock their potential as primary engines of job creation and economic growth. We seek to invest in great companies that struggle to access what they need to grow and provide full and productive employment and decent work for all. Our strategy is to build great management and companies that in turn will support their employees and the community. RENEW has developed and implemented a unique blended finance model from our offices in Ethiopia and Uganda to pursue this strategy in partnership with the Impact Angel Network and the U.S. and Canadian governments.As we enter the 2019 holiday season, many look back at the previous year and reflect on what they are grateful for - be it friends, family, successes, experiences, or other blessings. A few years ago, it was this holiday-centric, philanthropic mindset that created <a href="https://www.givingtuesday.org/">#GivingTuesday</a> - “a global generosity movement unleashing the power of people and organizations to transform their communities and the world… and inspiring hundreds of millions of people to give, collaborate, and celebrate generosity.”This year, RENEW wants to challenge the #GivingTuesday donors of the world to think a little differently about some of their philanthropy - why not invest your charitable dollars in a way that results in far reaching and sustainable impact for poverty alleviation?Accredited, entrepreneurial givers can invest with RENEW from a donor-advised fund to make a dent in global poverty with the potential of earning a return on their charitable capital.<figure class="image"><img src="/uploads/new1_0_7e879d63e0.jpg"></figure>What is a Donor-Advised Fund?A donor-advised fund, commonly referred to as a DAF, is a philanthropic vehicle administered by a public charity. Think of it like an investment account dedicated to supporting your charitable contributions over time.As a donor, you can recommend where the charitable dollars will be focused and can also recommend your favorite charities or causes, which will then receive support from the fund, either in the form of grants or investments.How does a DAF lessen my tax burden?Contributions to a DAF result in an immediate tax deduction for those itemizing deductions. Any financial returns realized through a DAF investment simply return to the fund, tax-free, and can then be re-invested or donated through the DAF. DAFs can also eliminate capital gains taxes and reduce marginal income taxes on donated appreciated stock <a href="#section2">[2]</a>.How do I go about creating a DAF?<ol><li>Select a DAF manager.</li><li>Donate cash, publicly traded securities, or other illiquid assets to fund the DAF.</li><li>Receive a tax deduction immediately for your charitable contribution to the fund (if you itemize).</li><li>Working with your DAF manager, you can choose a strategy for growing your fund.</li><li>Recommend a target – such as a charity or impact investment – for your philanthropic investment.</li><li>At this time, DAF investing with RENEW is available only to investors who are ‘accredited’. (SEC <a href="https://www.sec.gov/fast-answers/answers-accredhtm.html">definition</a>).</li></ol>&nbsp;[1] One notable study is the Small Enterprise Assistance Fund’s report, “From Poverty to Prosperity: Understanding the Impact of Investing in Small and Medium Enterprises” published in October 2007 summarizing the results of a survey of 50 SME investments.[2] The information contained in this brief is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.

What Does Sustainable Investing have to do with #GivingTuesday?

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High-Impact Giving: Grow a Company. Build a Nation. Leave a Legacy.

<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>