<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.


Ecosystems

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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.

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Agenz is a data-driven platform that uses advanced data intelligence to provide real-time property valuations, which allows buyers, sellers and real estate agents to set accurate pricing for sales or gauge current market values. 

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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.

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ChipChip is an Ethiopian e-commerce platform that makes fresh produce and Fast-Moving Consumer Goods (FMCG) more affordable by connecting consumers directly with suppliers through group buying.

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

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Press Release: ChipChip Makes Online Shopping Cheaper with Group Buying

<h1>Reflecting on Two Years at Renew Capital: An Interview with Chukwudi Ofili</h1><figure class="image"><img src="/uploads/Linkedin_Templates_b7aeec3f66.png" alt="Professional portrait of the Director of Legal at Renew Capital, based in Lagos, Nigeria."></figure>Two years ago, Chukwudi Ofili shared his&nbsp;<a href="https://www.renewcapital.com/newsroom/homecoming-my-journey-to-renew-capital">journey</a> of returning to Nigeria after a stint abroad as part of a successful legal career to date. Since then, he’s been on an exciting chapter of professional growth while witnessing significant developments across Africa's investment landscape. In this follow-up interview, Chudi reflects on the lessons he’s learned and the future he envisions.Chudi, it’s been two years since you joined Renew Capital. Can you tell us about your experience so far and what stands out for you as the firm grows across Africa?It’s been an exciting two years with Renew Capital as we’ve expanded across 14 countries in Africa. With this growth, I’ve had the chance to learn a lot, both personally and professionally. Over time, I’ve learned a few lessons that have really shaped my experience here.<ul><li>Adaptability.&nbsp;This has probably been the most essential skill. With things moving so fast, being prepared for every situation just isn’t realistic. You have to stay flexible, find ways to add value on the fly and embrace the challenges as they come.</li><li>Learning never stops.&nbsp;I have had to unlearn and learn during my time at the firm. I’ve learned to navigate the nuances involved in closing venture capital (VC) investments in tech-enabled startups across different jurisdictions in Africa. At the same time, I have had to build capacity in relation to fund formation and compliance in the United States.&nbsp;</li><li>Curiosity. This is highly encouraged at Renew Capital as we are always looking for new opportunities and different ways to create value for our founders. That mindset has been vital for me.</li><li>Africa’s potential is undeniable. Having been actively involved in ecosystem development, deal reviews and engaging with founders from across the continent. There’s an abundance of opportunities for disruption and innovation with the accelerated adoption of technology.&nbsp;</li><li>Legal frameworks are catching up.&nbsp;Some governments are recognizing that innovation needs the right legal environment to thrive. We’re seeing progress, but founders still need strong legal support to build scalable and investment-ready businesses.</li></ul>You’ve mentioned how law plays a role in innovation. How have you seen governments across Africa support this?At Renew Capital, we’ve been keeping track of these changes through our monthly Legal Briefs. We have, for example, seen updates to corporate laws that are supposed to help startups grow in places like Nigeria, South Africa, Ethiopia and Kenya. For example, in the&nbsp;<a href="https://www.renewcapital.com/newsroom/renew-capital-legal-brief-september-2024">September 2024</a> legal brief, the Ethiopian Capital Markets Authority (ECMA) launched a regulatory sandbox that allows fintech companies to test new products in a controlled space. This trend is also taking place in countries like Nigeria, Ghana and Rwanda. We’re also seeing increased adoption of startup and finance laws across Africa in places like Nigeria, Kenya, Morocco and Ethiopia.You also highlighted adaptability as a key lesson. Why do you think that’s been so important for you?As we’ve grown so quickly, we had to make a lot of changes as we entered new markets, which also comes with its own fair share of new challenges. Being adaptable has been essential for navigating all of that. Whether it’s changing our processes or adjusting to different legal and business environments across Africa, you’ve got to be flexible to succeed here.Looking forward, what excites you most about the next generation of African entrepreneurs?&nbsp;I believe that there is a general consensus that Africa is the world’s next growth market. With the many challenges that we face across the continent, African founders within Africa and in the diaspora are utilizing technology to innovate and provide solutions to the socio-economic challenges that we face on the continent. However, lack of access to capital and the lack of the necessary skills to build scalable and profitable businesses remain pain points for many founders. Notwithstanding, there has been increased activity by Africa-focused and experienced investors who are working hard to close this gap and address these challenges. There is optimism about the African potential.

Chukwudi Ofili, Director of Legal and West Africa Investment Manager at Renew Capital, reflecting on his two-year journey at Renew Capital.


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Reflecting on Two Years at Renew Capital: An Interview with Chukwudi Ofili

<h1>Press Release: Chpter Secures Investment to Drive Sales for African Businesses on Social Media</h1>Changing Africa’s social commerce landscape.<a href="https://latest-api.renewcapital.com/uploads/2024_09_24_FINAL_Chpter_Press_Release_ff5c6b13ff.pdf" target="_blank" rel="noopener noreferrer">Download full press release</a>NAIROBI, Kenya, September 24, 2024&nbsp;— Renew Capital has invested in&nbsp;<a href="https://www.linkedin.com/company/chpter-holdings/">Chpter</a>, an AI-powered conversational commerce platform that enables businesses to sell more on social media platforms such as WhatsApp and Instagram.&nbsp;Founded in 2022, Chpter enables faster and simpler social commerce through automated conversations, marketing and aggregated payments. This helps businesses to increase sales and manage customer interactions more efficiently. With this new funding, Chpter will speed up product development, expand its presence in sub-Saharan Africa and boost its sales and marketing.<figure class="image"><img src="/uploads/Chpter_Cofounders_From_Left_Mark_Kuria_Tesh_Mesongo_00af38c3c5.jpg" alt="A photo of the four co-founders of Chpter, an AI-powered platform helping businesses increase sales on social media platforms like WhatsApp and Instagram."></figure>“At Chpter, we’re dedicated to transforming the way businesses interact with their customers on social media,” said <a href="https://www.linkedin.com/in/teshmbaabu/">Tesh Mbaabu</a>, Co-Founder and CEO of Chpter. “We look forward to working with Renew Capital to accelerate our growth and further our mission of empowering businesses to elevate their social commerce strategies and take advantage of social media.”&nbsp;Chpter’s platform is already in use in Kenya and South Africa, serving industries such as retail, financial services and education. The company plans to expand into new markets, including Nigeria, Ghana, Egypt and Morocco.“As one of the investors in the consortium, Renew Capital is proud to support Chpter’s innovative approach to social commerce,” said Esther Mwikali, Senior Investment Manager at Renew Capital. “Chpter’s technology solves key problems for African businesses, like shopping cart abandonment and scattered customer interactions. Chpter is ready to drive growth and change the social commerce landscape by making engagement on platforms like WhatsApp and Instagram more effective.”Renew Capital is committed to backing growth-oriented founders who possess a blend of skill, grit and passion. Entrepreneurs seeking financing for asset-light, tech-enabled businesses should check out the&nbsp;<a href="https://venturelab.renewcapital.com/">Renew Venture Lab</a> and apply.Support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

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Chpter enables faster and simpler social commerce through automated conversations, marketing and aggregated payments. This helps businesses to increase sales and manage customer interactions more efficiently.


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Chpter secures investment to enhance social media sales for African businesses through AI-powered solutions. Learn how this platform is shaping social commerce across Africa.

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Press Release: Chpter Secures Investment to Drive Sales for African Businesses on Social Media

<h1>Renew Capital Legal Brief - September 2024</h1>The latest changes in Africa's regulatory environment<figure class="image"><img src="/uploads/Sept_Legal_Brief_Ld_08dcd450d9.png" alt="Photo of Renew Capital's September 2024 Legal Brief document."></figure>With a growing presence in Africa’s top startup ecosystems, the Renew Capital team stays on top of the legal landscapes shaping the venture capital and investment space and provides insights for investors, entrepreneurs, industry leaders and policymakers in Africa’s dynamic business environment.&nbsp;Egypt:&nbsp;<ul><li>Non-Resident Foreigners Can Now Own Egyptian Bank Accounts Freely -&nbsp;The Central Bank of Egypt has, via a circular dated August 7, 2024, directed all Egyptian banks to open non-resident bank accounts for foreign customers not residing in Egypt and to grant them access to available banking services. The aim is to expand access by foreigners to a range of banking services while ensuring compliance with account opening regulations, Know Your Customer (KYC) requirements and anti-money laundering laws and regulations.</li></ul>Ethiopia:&nbsp;<ul><li>Capital Market Regulatory Sandbox Launch&nbsp;-&nbsp;The Ethiopian Capital Markets Authority (ECMA) launched the sandbox on August 29, 2024. The sandbox provides a controlled environment for testing new capital market products or services with consumers under temporary regulatory flexibility.&nbsp;This is in line with similar approaches adopted by Nigeria, Rwanda and Kenya which have seen a lot of benefits for startups.</li></ul>Ghana:&nbsp;<ul><li>Ghana is Set to Lift Cryptocurrency Ban, Issues Draft Guidelines on Digital Assets - Draft Guidelines on Digital Assets were issued by the Bank of Ghana (BoG) in August 2024. The Guidelines contemplate the existence of a regulatory framework for digital assets and Virtual Asset Service Providers (VASPs) in Ghana and the licensing duties of both the BoG and the Securities and Exchange Commission. Similar to Nigeria, this should eventually lead to a certain regulatory framework for digital assets and inspire investor confidence in VASPs which were largely neglected in the past because of a lack of regulation and licensing options.</li></ul>Kenya:&nbsp;<ul><li>The Constitutionality of the 2023 Finance Act Remains on the Fence&nbsp;– The 2023 Finance Act was ruled unconstitutional by the Court of Appeal in Kenya in July 2024 due to the National Assembly’s failure to justify its decisions on public proposals and provide revenue estimates. However, the Supreme Court has stayed the lower court’s order pending the outcome of appeals filed on the matter.</li></ul>Nigeria:&nbsp;<ul><li>Tax Holiday for Basic Food Items&nbsp; -&nbsp;From July 15 to December 31, entities can import food items like maize, husked brown rice and wheat with a zero percent customs duty rate and sell them on commodity exchanges without charging value-added tax (VAT). This tax holiday aims to encourage food imports, reduce food inflation and address the food crisis in the country.</li><li>Busha and Quidax Receive Go Ahead to Commence Operations -&nbsp;The Securities and Exchange Commission (SEC) has issued its first approvals-in-principle to digital asset exchanges Busha and Quidax. Full registration will follow as the SEC reviews other participants in its Accelerated Regulatory Incubation Program. This groundbreaking move is expected to set a precedent for other digital asset exchanges to operate in one of Africa’s largest digital assets markets by volume.</li></ul>Rwanda:<ul><li>New Intellectual Property Regime Emerges&nbsp;- The 2024 Law on the Protection of Intellectual Property took effect on July 31, 2024, introducing several changes. These changes include the creation of an independent Intellectual Property Office and the introduction of provisional patent applications for ongoing inventions.</li></ul>South Africa:&nbsp;<ul><li>Satellite Service Operators Prepare for Licensing Framework -&nbsp;The Independent Communications Authority (ICA) has set up an inquiry to establish a licensing framework for satellite services in South Africa, particularly fixed, mobile and broadcasting satellite services. Stakeholders have until November 12, 2024, to submit suggestions to the ICA. This inquiry is a crucial step towards creating a transparent and efficient process for satellite operators, enhancing the delivery of satellite services across the country.&nbsp;</li></ul>Tanzania:&nbsp;<ul><li>Tanzanian Parliament Raises Market Dominance Threshold -&nbsp;&nbsp;The Parliament has endorsed a bill proposing to raise the market dominance threshold from 35% to 40%. Therefore, a single entity will be allowed to control up to 40% of the market it specializes in. This also means that when two or more entities consider a merger, they will not be restricted to the 35% market dominance rule. This is expected to encourage foreign investments whilst also imposing restrictions on the misuse of market holdings by multiple individuals.</li></ul>Uganda:&nbsp;<ul><li>ICT and Communications Laws Face a Likely Merger -&nbsp;The Uganda Communications Commission has declared its intentions to consolidate all ICT and communications laws for better regulation of all media platforms and the media industry.</li></ul>Zambia:&nbsp;<ul><li>Zambia Opens Access to Energy Transmission -&nbsp;Independent power producers can now bypass state-owned Zambia Electricity Supply Corporation Limited (ZESCO) Ltd as the transmission entity and transmit power directly to consumers. This is expected to improve access to power, reduce losses and promote efficient metering.</li></ul>Regulatory&nbsp;<ul><li>More African Governments Gear Towards&nbsp;Artificial Intelligence (AI) Regulation&nbsp;- In August, Nigeria and South Africa joined the growing number of African countries with national AI policy frameworks. Like Kenya and Egypt, they're developing policies to foster AI innovation and growth within their borders.&nbsp;</li></ul>Visit our blog to learn more about some of&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&nbsp;<a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a> if you need to get up to speed on any of these ecosystems! Stay tuned for more updates in our upcoming briefs!Disclaimer: The information included in this blog does not constitute legal advice. Consumers should consult their legal advisors.

Renew Capital’s September 2024 Legal Brief highlights key regulatory updates in Africa, including banking reforms in Egypt, cryptocurrency guidelines in Ghana and new market regulations in Ethiopia, Kenya and more.

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Renew Capital Legal Brief - September 2024

<h1>Why We Invested In Opareta: Building Digital Infrastructure For Mobile Money Agent Networks</h1><figure class="image"><img src="/uploads/Whats_App_Image_2024_01_09_at_08_30_28_2_b96ab2f0ce.jpeg" alt="The Opareta founder and team visiting one of their mobile money operator shop in Kampala, Uganda."></figure>Mobile money transfers have increased access to financial services for unbanked and underbanked populations globally. Mobile money adoption in Africa is the highest in the world and is growing rapidly. In 2023, mobile money transactions in Africa totaled $919B, facilitated by 8.3 million active agents across the globe, according to the&nbsp;<a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">GSMA</a> report. There are 237 million active mobile money accounts and 856 million registered accounts across the continent. Amid this booming landscape,&nbsp;<a href="https://opareta.com/">Opareta</a> stands out.&nbsp;Opareta automates commercial operations across agent networks with a suite of tools designed to boost operational efficiency, manage liquidity, mitigate fraud and drive growth. Their innovative approach integrates agent management SaaS, performance analytics, field team management, Know Your Customer (KYC) and customer relationship management (CRM) services, financial process facilitation and loan management tools. By building an intuitive mobile app, Opareta enhances the digital transformation of the industry from analog methods to a seamless digital experience. These features streamline processes and enhance the efficiency and reliability of mobile money services, which are pivotal in the digital transformation of financial services in Africa.Renew Capital invested in Operata to help transform the mobile money ecosystem by digitizing the agent networks.&nbsp;"We tackle this issue directly with our digital operating system, which enhances liquidity management, performance analytics and digital identity creation for agents. This change not only boosts operational efficiency but also advances financial inclusivity." — Mike Schwartz, co-founder of Opareta.<h2>Demonstrated Traction</h2>Since launching in Uganda, Opareta has supported mobile money agents to secure float and earn higher commissions. Opareta has expanded its strategic partnerships with mobile money operators in several countries, including Uganda, Gambia, Sierra Leone, DRC, Angola and Zambia.&nbsp;<h2>Orientation Towards Growth</h2>Opareta has made several strategic moves that position it for significant growth. These early steps highlight Opareta's commitment to innovation and its potential to transform the mobile money sector."We are thrilled to back growth-oriented companies like Opareta. Their approach aligns with the needs of an evolving financial landscape, driving efficiency and providing mobile money operators with tools that offer transparency, autonomy and insightful data," —&nbsp; Laura Davis, Managing Partner and co-CEO of Renew Capital.

Learn why Renew Capital invested in Opareta, an African startup building digital infrastructure for mobile money agent networks in Kampala, Uganda.

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Why We Invested In Opareta: Building Digital Infrastructure For Mobile Money Agent Networks

<h1>Secrets of Rwanda’s Momentum&nbsp;</h1><figure class="image"><img src="/uploads/Linkedin_Size_e1e30cc237.png" alt="Scenic view of Rwanda’s skyline with rolling hills and lush greenery, showcasing the country’s mountainous terrain and vibrant landscape."></figure>Rwanda, the land of a thousand hills, has become a key hub for the Renew Capital team and a beloved home for me. The people here are warm and welcoming. The entrepreneurial spirit is alive and the city is constantly growing and changing. Every time I walk through Kigali’s streets, I feel the buzz of something new and exciting happening. I’ve spent a lot of time here meeting with local entrepreneurs, government stakeholders and other energized expatriates galvanized by Rwanda's potential. Read more to learn what makes Rwanda so unique and what I have learned so far.<figure class="image"><img src="/uploads/Image_2_1_f12fa8d63d.png" alt="A mother gorilla carrying her baby on her back during on of my gorilla trekking experiences in Rwanda."></figure>One of the wildest experiences Rwanda has to offer. Trekking with gorillas. No zoom!Kigali is the second highest-ranked international finance center in sub-Saharan Africa:&nbsp;Kigali, Rwanda's capital city, has been recognized as an international financial center that is likely to become more significant in the future. In 2021, the Kigali International Financial Centre (KIFC) first appeared on the Global Financial Centres Index (GFCI), a ranking that assesses the competitiveness of financial centers worldwide. In March 2024, the 35th edition of the GFCI ranked Kigali 67th globally, third in Africa and second in sub-Saharan Africa. Kigali is also ranked&nbsp;<a href="https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/gfci-35-explore-the-data/gfci-35-rank/">sixth</a> in the Middle East and African region, behind Dubai, Abu Dhabi, Casablanca, Tel Aviv and Mauritius.&nbsp;<figure class="image"><img src="/uploads/Screenshot_2024_09_05_at_10_56_52_AM_ff95de969b.png" alt="A photo of the Global Financial Centres Index (GFCI) showing Kigali ranked 67th globally in the 35th edition, March 2024."></figure>Source: Global Financial Index (GFCI)Rwanda has a dense network of co-working, meeting spaces and tech hubs:&nbsp;The Rwandan government has been heavily involved in the establishment of several tech hubs and co-working spaces to facilitate ecosystem growth. While Rwanda’s small market size could limit founders’ ability to scale, its density of entrepreneurs, service providers and events means that ideas accelerate through the ecosystem. Norrsken’s Kigali House, where Renew Capital operates, is a prime example of Rwanda’s commitment to nurturing its startup community. Established by the Swedish group Norrsken Foundation, Kigali House serves as a dynamic workspace for startups, providing not only office facilities but also mentorship, networking opportunities and a platform for collaboration. Its presence in Kigali reflects a broader trend of international support for Rwanda’s entrepreneurial ambitions.&nbsp;<figure class="image"><img src="/uploads/Norksen_offfice_0776aca2a6.jpeg" alt="A photo of Norrsken Kigali House, a modern tech hub in Kigali, Rwanda."></figure>Norrsken’s Kigali House is located in Kigali’s downtown business district.Other spaces include:<ul><li><a href="https://kigali.impacthub.net/">Impact Hub Kigali:</a> Innovation lab, business incubator and social enterprise center.</li><li><a href="https://kigali.westerwelle.haus/index?&amp;v=latest">Westerwelle Startup Haus Kigali</a>:&nbsp;Supports entrepreneurship and economic growth.</li><li><a href="https://leaprlabs.rw/">Leapr Labs:</a>&nbsp;Focuses on scientific research and societal solutions.</li><li><a href="https://klab.rw/">kLab:</a> Open technology hub supporting startups and innovation.</li></ul>100% 4G national internet coverage:&nbsp;In 2018,&nbsp;<a href="https://thegreatlakeseye.com/post?s=Rwanda%E2%80%99s--investment--in--internet--connectivity--is--paying--off--_1175">95%</a> of the population had access to 4G LTE coverage, an increase from 26% in 2015.&nbsp;As of 2024, 4G is&nbsp;<a href="https://www.statista.com/outlook/co/digital-connectivity-indicators/rwanda#:~:text=The%204G%20network%20coverage%20in,k%20kbit%2Fs%20in%202024.">estimated</a> to cover 100% of the country.&nbsp;&nbsp;This extensive coverage facilitates mobile internet access, promoting digital inclusion even in rural areas. Moreover, investments in digital infrastructure have been a priority, with initiatives like the&nbsp;<a href="https://rdb.rw/the-republic-of-rwanda-africa50-unveil-the-kigali-innovation-city-urban-masterplan/">Kigali Innovation City</a> expanding internet access. This tech-friendly environment provides startups with the tools they need to innovate and compete on a global scale.Favorable legal and regulatory framework for financial and tech sectors:&nbsp;Rwanda has established a robust legal and regulatory framework that supports both the financial and technology sectors. The Kigali International Finance Center (KIFC) is backed by modern laws and regulations designed to attract international investors and financial institutions. These include favorable tax incentives, a focus on compliance with international standards and streamlined processes for setting up businesses. In the tech sector, Rwanda has implemented data protection laws and ICT policies that foster innovation while ensuring cybersecurity and privacy.&nbsp;Final thoughts: 30 years ago this year, Rwanda was in the midst of genocide and civil war and was one of the poorest countries in the world. Today, Rwanda’s GDP per capita (PPP) has rocketed from $367 in 1994 to around $3.2K in 2023 and from just $1.4B in nominal GDP in ‘94 to $14.2B in 2023. Moreover, the IMF projects that by the end of 2024, Rwanda’s real GDP growth rate will settle around 6.9%. This small African country is certainly on the rise.<h2>Rwanda's Meteoric Rise</h2>GDP per capita (PPP) growth of the six poorest countries in the world in 1994 by GDP per capita (PPP).<figure class="image"><img src="/uploads/Screenshot_2024_09_05_at_11_14_14_AM_9dcc6e882f.png" alt="Graph of Rwanda’s GDP growth from 1994 to 2023."></figure>Source: International Monetary Fund (IMF). Note: Based on global data available from the IMF.Go Deeper on Rwanda?<ul><li><a href="https://www.linkedin.com/feed/update/urn:li:activity:7237378476377309186" target="_blank" rel="noopener noreferrer">Rwanda in 12 photos</a></li><li><a href="https://latest-api.renewcapital.com/uploads/FINAL_Rwanda_Fact_Sheet_e76810f067.pdf">Rwanda’s Ecosystem Fact Sheet</a></li><li><a href="https://www.google.com/maps/@-1.9451017,30.0670117,13z/data=!4m2!11m1!2sTaoUorcIQMGcspk3-rAaOA?entry=ttu&amp;g_ep=EgoyMDI0MDgyNi4wIKXMDSoASAFQAw%3D%3D">Rwanda Ecosystem Google Map</a></li></ul> Interested in other African Startup Ecosystems?<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot"> Download Renew Capital’s Factsheets on other Ecosystems</a>. We’ll be adding new ones every few weeks!&nbsp;

Uncover the secrets of Rwanda's momentum as a thriving hub for entrepreneurship and innovation.


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Secrets of Rwanda’s Momentum 

<h1>Ethiopian Birr Stabilizes, Business Owners Eye Risks</h1>Ethiopian business owners are adapting to rapidly shifting dynamics following the July 29, 2024 float of the Ethiopian Birr (ETB) by the National Bank of Ethiopia (NBE). Dropping a crawling peg (an exchange rate system where a country's currency is adjusted periodically in small amounts at a fixed, pre-announced rate) with rigid capital restrictions, which caused chronic forex shortages, was one of the conditions put forth during&nbsp;<a href="https://www.imf.org/en/News/Articles/2024/07/29/pr24291-ethiopia-imf-exec-board-approves-4yr-us3b-ecf-arr">negotiations with the International Monetary Fund</a> for a&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-07-30/ethiopia-imf-program-unlocks-16-6-billion-world-bank-package">$3.4B</a> debt deal, to support Ethiopia’s Homegrown Economic Reform (HGER) Agenda aiming to address macroeconomic imbalances, restore external debt sustainability and foster private sector-led growth. This arrangement is also expected to catalyze additional external financing and credit. Additionally, the World Bank pledged up to&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-07-30/ethiopia-imf-program-unlocks-16-6-billion-world-bank-package">$16.6B</a> over three years in support of Ethiopia’s aspiration to become a middle-income country.Renew Capital brought together members of the Isua Network, the Ethiopian women-in-business network, in Addis Ababa on August 22, 2024 to learn about how they are adapting to the change and to provide a legal overview of the impact of the float.&nbsp;<figure class="image"><img src="/uploads/Isua_Event_b68c906e84.png" alt="Members of the Isua Network, Ethiopian women-in-business, gathered in Addis Ababa on August 22, 2024, for an event arranged by Renew Capital to discuss adapting to changes following the Ethiopian birr float and receive legal insights."></figure>Major changes cascading from the NBE&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2024/07/FXD012024-FOREIGN-EXCHANGE-PR-English.pdf">foreign exchange directive</a> include:&nbsp;<ul><li>Banks can now buy and sell foreign currencies at freely negotiated rates. They are no longer required to surrender foreign currency to the NBE and may allow residents to hold foreign currency accounts inside Ethiopia.</li><li>Import restrictions on&nbsp;<a href="https://latest-api.renewcapital.com/uploads/Tariff_Items_Removed_in_2024_6434acb6fb.pdf">38 product categories</a> have been lifted and the forex market for imports has been broadly liberalized.</li><li>Interest rate ceilings on borrowing from foreign countries have been removed for private sector companies and banks.</li><li>Ethiopia’s securities market is now open to foreign investors.</li><li>Special Economic Zones companies may retain 100% of their foreign earnings in a foreign currency.</li></ul>In the medium and long term, this is a landmark move for Ethiopia’s economy. The previous system led to significant shortages of foreign currency, distorted import and export markets and difficulty attracting foreign capital into the economy. The changes enacted are expected to breathe life into the economy, especially in the form of foreign investment and credit, free up reserves previously used for maintaining the currency peg and enable market forces to attain equilibrium without government intervention.In the short term, business owners and consumers are concerned that Ethiopia’s trajectory will echo that of recent currency liberalizations, including&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-07-30/why-nigeria-s-naira-currency-ngn-usd-slumped-and-why-it-matters">Nigeria in 2023</a> and&nbsp;<a href="https://www.al-monitor.com/originals/2024/07/imf-greenlights-release-820m-egypt-cites-economic-improvement">Egypt in 2024</a>, which respectively resulted in 70% and 60% devaluations of the local currencies against the U.S. dollar. This rapid devaluation affected the already high inflation rates and in Nigeria, triggered a cost of living crisis. Indeed, the ETB has fallen 47% against the dollar in the four weeks since the float. This brings the official ETB-USD exchange rate to within 5-10% of the parallel market rate. Previously, dollars sold on the parallel market fetched a premium as high as double the official bank rate.<figure class="image"><img src="/uploads/image_3_ca6b9e5ac4.png" alt="A graph illustrating the exchange rate of 100 Ethiopian birr to USD from May 2024 to August 2024, showcasing the impact of the currency float on Ethiopia's economy."></figure><h2>Uncertainty for Businesses</h2>While most Ethiopians share concerns about inflation and cost of living, business owners are navigating an even more challenging landscape. The uncertainty of how markets and the government will react is top of mind for many. As is often the case in these situations, float-related fears led some businesses to&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-07-31/-etb-usd-dollars-vanish-from-ethiopia-s-streets-as-residents-hoard-forex">hoard dollars</a> and shops to raise prices immediately on essential goods, such as cooking oil, by as much as<a href="https://www.reuters.com/markets/currencies/ethiopian-local-authorities-crack-down-price-hikes-after-currency-float-2024-08-01/"> 25%</a>. Authorities&nbsp;<a href="https://allafrica.com/stories/202408090072.html">shuttered dozens of shops</a> accused of price gouging and confiscated inventory, adding fuel to the fears of business owners.Exporters, whose access to foreign currency makes them a target of regulation, are seeing incremental changes. Prior to 2023, exporters were allowed to retain only&nbsp;<a href="https://www.renewcapital.com/newsroom/ethiopia-doubles-foreign-currency-retention-limit-for-exporters">20% of the foreign currency they earned</a> through exports, the remaining 80% was surrendered to the National Bank of Ethiopia for forced exchange into ETB. In 2023, the allowed retention&nbsp;<a href="https://ethiopianlawgroup.com/wp-content/uploads/2023/08/NBE-monetary-policy-2023-en.pdf">increased to 40%</a>. The 2024 directive nudged it to 50%. While these changes provide some relief for exporters, there remains uncertainty, as the government can still adjust the regulations at any time.<h2>Navigating Contracts</h2>One area where business owners may consider taking action is around contracts. Whether a contract is denominated in a foreign currency or in ETB, the value of existing contracts has changed overnight. Recognizing this challenge, Renew Capital invited Tsegamlak Solomon, Founder and Principal of the Addis Ababa-based law firm Tsegamlak Solomon &amp; Associates, to address this topic at the latest Isua Network event.The key takeaway for business owners was that the time to renegotiate contracts is now. Everyone doing business in Ethiopia is navigating this change together and there may be more opportunity and willingness to renegotiate within the first few months of this shift than later on.Mr. Solomon, who also has&nbsp;<a href="https://tsegasolomon.com/insights/f/how-will-ethiopia%E2%80%99s-currency-float-affect-your-business-contracts">written advice on the topic</a>, advised Isua members to:<ul><li>Review all contracts.&nbsp;Do any contracts contain a&nbsp;force majeure clause that includes unforeseen government changes? If yes, business owners should be prepared to renegotiate any such contract.</li><li>Evaluate&nbsp;the&nbsp;impact of the contract currency. Regardless of whether payment terms are delineated in ETB or a foreign currency, the reality on the ground has changed. Business owners should consider their own position and the counterparty’s to identify a solution that may suit both.</li><li>If negotiation is not possible, consider arbitration. Ethiopia’s Civil Code does not support court intervention in contracts, so strictly legal options are limited. However, the law does encourage parties to go through arbitration to determine a fair price that benefits both parties. Cases of onerous contracts – where one party is burdened with more costs than the other – are the most likely to be successful in this arena.</li></ul>One question raised by Isua members included whether there were any limitations to contracts being denominated in a foreign currency or a combination of ETB and a foreign currency. Mr. Solomon indicated that the chief constraint is that some contracts, such as employee contracts, may be set in a foreign currency, but must be paid out in ETB. Otherwise, business owners are free to use a variety of mechanisms. These include setting forex thresholds whereby pricing is reviewed once thresholds are reached or indexing different parts of the agreement to different currencies as desired.&nbsp;However the contract is designed, the most important point is to ensure that all contract elements, especially those related to forex, are crystal clear. This includes whether the contract follows the exchange rate on the date of signing or the prevailing rate of the NBE at the moment of payment.It is still early days and much remains in flux as the markets adjust. Isua business owners expressed both concern and optimism over the reforms. The question which remains is whether and how much this first critical step is followed by true market liberalizations in the coming months and years.

Ethiopian business owners are adapting to rapidly shifting dynamics following the July 29, 2024 float of the Ethiopian Birr (ETB).