<h1 style="text-align:center;">Financing Ethiopia’s Ambitious Economic Plans</h1>Economists, business leaders, investors, development partners, government leaders, local and international journalists and a host of others focused their attention on Addis Ababa last week with The Economists’ <a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">2015 Ethiopia Summit</a>, held at the Sheraton on October 28th and 29th.<figure class="image"><img src="/uploads/img_8243_1_128a3eec8e.jpg"></figure>His Honorable Excellency Prime Minister Hailemariam Desalegn of the Federal Democratic Republic of Ethiopia opened the event, sharing some high level thoughts on Ethiopia’s economic accomplishments and plans. Next, Dr. Arkebe Oqubay, a senior advisor to the Prime Minister and the former mayor of Addis Ababa, gave a very succinct overview of the government’s development plans as described in the Growth and Transformation Plan II, which in some ways was formally launched at the event. Dr. Oqubay detailed how the government is aiming for continued economic growth at around 11% per year and plans to focus on growing the manufacturing, agriculture and export industries. The government is also aiming to help create two million jobs in the next ten years. He described how the government looked closely at the economic development plans and accomplishments of countries such as China, South Korea, Vietnam and Brazil, and used several of their lessons learnt and best practices to map out the country’s future economic goals.Both Dr. Oqubay and Prime Minister Desalegn mentioned the need for increasing local and foreign investment, encouraging groups like RENEW and the Impact Angel Network (IAN) to invest in textiles, leather, agro-processing, clean energy, steel, cement and chemicals. And, while some of these investments are larger than RENEW and the IAN’s focus (our sweet spot is $500K to $1.5M per deal), Dr. Oqubay stressed the need to invest in small and medium enterprises to fuel growth at all levels in the private sector.The government appeared determined to continue building, and in some cases owning, critical infrastructure, including EthioTelecom (a government owned entity), industrial parks, and the railway system to Djibouti, which is estimated to cut transportation costs by one half. At the same time, government leaders at the summit were clear that they would not be opening up the banking sector to foreigners for at least another five years, as they feel they do not yet have the capacity to regulate international banks. Dr. Oqubay spoke about the current challenges of the country (infrastructure and human capital), which the government will continue to work on within the context of their ‘state led capitalism’ plan.<figure class="image"><img src="/uploads/img_8257_1_8bc617077f.jpg"></figure>Later in the day, RENEW’s Matthew Davis, along with a powerhouse panel of international and local investment bankers, took the stage to discuss the “financing of Ethiopia’s ambitious plans.” Matthew’s fellow panelists included Davinder Sikand, Partner of The Abraaj Group; Helaway Tadesse, Senior Vice President and Chair of Management Credit Committee of Zemen Bank; and Sergei Stankovski, Managing Director of Goldman Sachs. Matthew’s main points were to be successful in Ethiopia investors need to “get small”, “play by the government’s rules” and “don’t complain about the challenges.”<figure class="image"><img src="/uploads/img_8260_2_dae07cca2d.jpg"></figure>Following the panel, Hailu Tessema, one of the owners of Mama Fresh Injera PLC (a RENEW portfolio company), held a one-on-one interview with the Xan Smiley, the Editor-at-Large of The Economist, about “doing business in Ethiopia.” Hailu challenged the assumption that obtaining debt financing was an issue for companies in Ethiopia, and stressed how the Ethiopian government has helped ensure small, local companies are having access to foreign markets through partnership with companies like RENEW, which are helping increase exports and modernize cottage industries like injera manufacturing.Overall, the summit was a success and important for Ethiopia, as it brought the country’s economic progress and plans into the global spotlight, and gathered investors from around the world to hear about the prospects and challenges of investing in one of the next great investment frontiers.

RENEW reflects on its time at The Economist's 2015 Ethiopia Summit.

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Financing Ethiopia’s Ambitious Economic Plans

<h1 style="text-align:center;">Above the Clouds</h1>It’s been on my list for 17 years to climb Mt. Kilimanjaro, Africa’s highest peak. From October 17 to 24, 2015, Matt and I left the world of cellphones, emails, computers, internal team and portfolio board meetings behind to challenge ourselves in a different way.The 55-mile hike might be classified as little more than an extended “walk”, except for one major exception: the elevation change. But living in Addis Ababa, at 2,356 meters (7,730 feet), certainly helped prepare us for this adventure. We spent the first night at an elevation we were used to and went slowly up from there. After about 3,700 meters (12,000 feet), we were mostly above the clouds for the remainder of our trek. I love clouds, and it was mesmerizing to watch the weather change beneath us, and the fog and cloudbanks roll up the mountainside throughout each day. Basecamp was at 4,750 meters (15,520 feet) and at about 12:20 AM on Wednesday night, we started our final ascent.We left later than the other groups, but somehow our guides got us to the top first. Slowly placing one foot ahead of the other, with the oxygen getting thinner and thinner with every step, we made it to Stella’s point and then the grand finale, Uhuru Peak at 5,895 meters (19,340 feet), just as the sun cracked the horizon. Our guides timed it perfectly. With a bottle of non-alcoholic champagne to toast the accomplishment and our second wedding anniversary, it was a moment I will never forget.<figure class="image"><img src="/uploads/nov_essentials_kilimanjaro_36476295b8.jpg"></figure>The trek also allowed ample time to think and journal about what we are doing at RENEW, and it really helped me crystalize and ‘renew’ some of the lessons I have learned after living and working in Ethiopia for almost four years. These are …&nbsp;<ol><li>You can be very productive when you are offline - Being offline for a week allowed us to focus and have productive thoughts and conversations. We had hours to remember, talk and brainstorm about what is and will be in our personal lives and in the work we are doing with the Impact Angel Network in Africa.</li><li>Listen to the locals - One of our guides had been climbing the mountain for 28 years and the other 17. We went at their recommended hiking pace, we drank water, ate food and rested when they told us to, and we were fine. Our guides had many stories to tell us about Westerners (Mzungus) who thought they could do it better than the guides…and they did not fair so well.</li><li>Poly, Poly - The term means ‘slowly, slowly’ in Swahili. Doing things slowly is not in our nature in the West, but doing some things slowly may be the difference between a successful and failed summit attempt.</li></ol>&nbsp;In some regards I would like to think I came down the mountain a different person. Both Matt and I descended with a clarity and vision for a few key areas of our life, the IAN and RENEW.My advice - don’t wait. If you have those things you’ve always been meaning to do, make a plan and get them done. You will be glad you did.

Adventures and lessons learnt while climbing Mount Kilimanjaro, Africa's tallest peak.

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Above the Clouds

<h1 style="text-align:center;">RENEW and the Impact Angel Network Close Sixth Investment in East Africa</h1>RENEW is excited to announce that members of the Impact Angel Network (IAN) closed an investment in the food and beverage industry in Ethiopia. The investment is in partnership with a leading producer of paper products in Ethiopia. The company sees an opportunity to leverage the management’s experience in fast-moving consumer goods (FMCGs) and the IAN and RENEW’s support to gain significant market share in the growing food and beverage industry by offering low-cost, locally produced alternatives to expensive imports.<figure class="image"><img src="/uploads/merkato_f7d9ce0c21.png"></figure>With the world’s fourteenth largest and fourteenth fastest growing population, Ethiopia is likely to see some of the strongest growth in FMCGs among African countries.* Demand within Ethiopia in relevant segments of the food and beverage industry, in particular, has exhibited significant growth in recent years, with compound annual growth rates in the double digits.**Anticipated impact includes creation of 125 new jobs in Ethiopia’s manufacturing and value addition sectors, increased purchases of produce from over 900 small holder farmers in Upper Awash, an impoverished area in the Afar region of Ethiopia, benefitting farmers and their families in that region, and reductions in foreign currency expenditures as a result of import substitution.This is the IAN’s fifth investment in Ethiopia since 2013, and their sixth investment in the East Africa region.<a href="https://renewcapital.com/sites/default/files/press_release_-_ethiopian_food_and_beverage_co.pdf">Download the press release</a>, contact us at <a href="mailto:renew@renewcapital.com">renew@renewcapital.com</a>, follow us on Twitter @RENEWLLC or find us on Instagram @impactangelnetwork to learn more.*<a href="https://www.cia.gov/library/publications/the-world-factbook/geos/et.html">The World Factbook</a> and <a href="https://www.kpmg.com/Africa/en/IssuesAndInsights/Articles-Publications/General-Industries-Publications/Documents/Fast-moving Consumer Goods in Africa.pdf">Fast Moving Consumer Goods in Africa</a> **<a href="http://ethemb.se/wp-content/uploads/2013/07/Production-of-Fruits-and-Vegetables-in-Ethiopia.pdf">Investment Opportunity Profile for the Production of Fruit and Vegetables in Ethiopia</a>

The IAN invests in an Ethiopian food and beverage company.

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RENEW and the Impact Angel Network Close Sixth Investment in East Africa

<figure class="image"><img src="/uploads/the_economist_2_0_da21a74fc3.jpg"></figure><h1 style="text-align:center;">The Economist to Host Ethiopia Summit 2015</h1>This week, The Economist will be hosting <a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">The Ethiopia Summit 2015</a> in Addis Ababa. The conference plans to bring together the country’s leading policy makers and business executives to explore, discuss and tackle the current economic challenges Ethiopia faces today.Matthew Davis will be speaking on the “Financing Ethiopia’s Ambitious Plans” panel. This panel will discuss Ethiopia’s constrained banking sector, which had led to a “gap” in access to finance for small to medium sized enterprises. As a result, private equity groups, such as RENEW and the Impact Angel Network (IAN), have stepped in to fill this gap and provide entrepreneurs with the means to scale their companies. In light of Ethiopia’s second Growth and Transformation Plan (GTP II), the panel will explore Ethiopia’s current investment environment, the opportunities to help finance the country’s development goals, and the changes the private banking sector would experience if it were to open up.Hailu Tessema, the owner of <a href="http://www.mama-fresh.com/">Mama Fresh Injera, PLC</a> - one of the the IAN’s portfolio companies - will be sharing the challenges he has faced as an Ethiopian entrepreneur, his successes to date, as well as lessons learnt from building a company from scratch and growing it to a global enterprise.This event is significant, as it demonstrates a shift in the world’s focus on development and aid, to investment and trade. With Ethiopia being the second most populous country and the ninth largest economy on the continent, the country is poised to achieve its full potential and become one of the world’s fastest growing economies*. Be sure you do not miss out on the opportunities Ethiopia has to offer!<a href="http://www.economist.com/events-conferences/emea/ethiopiasummit-2015">*The Economist Ethiopia Summit 2015</a>

RENEW’s Matthew Davis and Mama Fresh’s Hailu Tessema to speak at this week’s summit.

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The Economist to Host Ethiopia Summit 2015

<figure class="image"><img src="/uploads/dventus_logo_1_8b93607161.png"></figure><h1 style="text-align:center;">dVentus Technologies: Creating a Brighter Future for Ethiopia</h1>To continue with our Q&amp;A series with the employees of RENEW’s portfolio companies, I recently had the pleasure to speak with one of <a href="http://www.dventus.com/">dVentus Technologies PLC’s</a> engineers.Daniel Gizaw founded dVentus with the idea of promoting sustainable energy solutions, which he and a local team would manufacture at facilities in Ethiopia. Since the IAN’s initial investment in 2013, dVentus has been making strides in building local capacity and in new product development. The company has successfully designed and built a prototype and system for smart meters to improve the reliability, security and efficiency of African and Middle Eastern power grids, and is now working on certifying the prototype to customers' specifications. dVentus’ expansion has enabled the company to increase its staff by approximately 25%, as it has brought on engineers and other highly skilled local professionals since the close of the IAN’s investment. The company is also developing other exciting new products, such as energy efficient generators and other components of smart grid solutions.dVentus’ headquarters are truly a site to behold. The building is a beacon of hope that glints silver and green in the sunlight, signifying the sustainable, green energy technologies and products that Daniel and his team of engineers work on everyday. By pursuing this focus today, engineers like Abisa Girma Yigezu are helping to ensure a brighter and cleaner future for generations to come.Abisa was born in Addis Ababa, Ethiopia and has never lived outside of the city, but this has never stopped him from dreaming big and creating an impact in his local community and beyond.<figure class="image"><img src="/uploads/dventus_1_50d27c401d.jpg"></figure>When you were a child, what did you dream of doing for work or as a career, and how did this influence your decision to become an engineer? I liked making things as a child. I was very curious child; I have always been fascinated to know how things are made and how they work. I have attempted to make small motors, a homemade battery and even crude photo paper in my high school years. I have that curiosity even today. I was sure, somehow, that I would be in the business of creating things early on. I like studying both mechanical and electrical engineering design and developing products.How did you hear about dVentus? I first heard of dVentus through a vacancy announcement poster at Addis Ababa University Technology Faculty, now Addis Ababa Institute of Technology (AAIT), where I was studying for my BSc in electrical engineering. Back then, dVentus went by the name Danotek Motion Technologies LLC. I had always wanted to work in a place where electro-mechanical products are made. In the subsequent years, I closely followed Danotek (now dVentus). After I earned my BSc in electrical engineering in 2011, I got the opportunity to be a recruit engineer at dVentus. I started working at dVentus beginning July 2011.How did you become an engineer, and what education / training have you received to date? In Ethiopia, the Ministry of Education (MoE) assigns students to various universities after they graduate high school through its countrywide field and university assignment program. So when I graduated high school, the MoE assigned me to study electrical engineering at Addis Ababa University Technology Faculty. In later years, I majored in control engineering. After working for three years at dVentus, I began studying my MSc in microelectronics. I am now in my second year. I’ve taken many on the job trainings while working at dVentus, including: ISO9001: 2008 QMS auditing, project management, design reliability, electronics circuit design, test and other technical trainings.What is your position title at dVentus, and what are your responsibilities? I am an electrical engineer at dVentus. My responsibilities are designing electronic circuits, building prototypes, testing, reviewing other designs, training new recruits, and I (am) also involved in ISO9001: 2008 QMS related tasks.In your own words, tell us what is means to work at dVentus? dVentus is a technology company that is on the rise. Working at dVentus for me is looking at different opportunities that are not found in many places. I get to work on products from conception to end of manufacturing and so much more.How has working for dVentus changed your life? I like working for dVentus. I have gained lots of experience, knowledge and skills both from (a) technical and business aspect. I am still learning a lot. I am more confident in my craft than ever.Do you have a family that you provide for (children, spouse, parents, extended family), and what does your family / friends think about your work at dVentus? I live with my family - parents and siblings - and I contribute my share. I am sure my family is happy for me working at dVentus. I like what I do, so I am pleased with where I am.Has your job at dVentus made you feel empowered as an individual? Definitely. I see more solutions and things that can be done in Ethiopia. There are many untapped opportunities in the energy sector.What is your favorite part about working for dVentus as an engineer? Working on new proof of concept tests in electronics lab and peer learning with colleagues, especially with my seniors.Where do you see yourself in 5 years? 10 years? In the years coming, I see myself working on new products, involving in manufacturing products at dVentus. I would like to learn more and do more at dVentus.How has your job at dVentus inspired you to pursue your own dreams? I am very much inspired to have my own company one day that designs products. I am building an edge both in the business and technical aspects.

RENEW has a Q&A session with a dVentus engineer to talk about green technology.

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dVentus Technologies: Creating a Brighter Future for Ethiopia

<h1 style="text-align:center;">Impact Investing: A Innovative Force in Angel Investing and Development</h1>RENEW's Tom Scriven and Laura Davis participated in the National Angel Capital Organization 2015 Summit and Social Capital Markets 2015 Conference last week. Read their reflections on their unique experiences below:TOM'S REFLECTIONS ON THE NACO 2015 SUMMIT:<figure class="image"><img src="/uploads/naco_2015_collage_0_fcf6f68d39.jpg"></figure>The <a href="http://www.nacocanada.com/">NACO 2015 Summit</a> was both an eye opening and affirming experience. It was a pleasure to spend time with Canada’s vibrant angel investing community and to witness how investors increasingly are seeking out and finding opportunities to realize attractive financial returns while achieving social impact, as a component of their investment strategies. Amidst conversations on structuring exits and valuation of early stage companies, angels attended over five hours of sessions devoted to impact investing during the two-day summit - further evidence of the growing interest in this dynamic field among North American investors.In the midst of the many interesting panels and keynote speakers, like “super angel” <a href="https://twitter.com/daveberkus">Dave Berkus</a> and serial entrepreneurs <a href="https://twitter.com/lbrody">Leonard Brody</a> and <a href="https://twitter.com/ddebow">Dan Debow</a>, I caught a quick drink with Marianne Hudson (President of the <a href="http://www.angelcapitalassociation.org/">Angel Capital Association</a>) and Kenneth Kousky (President of <a href="http://bluewaterangels.com/">BlueWater Angels</a> in Michigan). Marianne shared her thoughts on crowdfunding and regulatory changes affecting both early stage and impact investing. We are grateful for her role as an advocate for policies and regulations that promote angel investing. I enjoyed connecting with these leaders in the angel investing community at the Prince of Wales hotel in beautiful Niagara-on-the-Lake.I also caught up with Randy Thompson, of <a href="http://www.vaangels.com/">VA Angels</a>, and Mark Lawrence, of the <a href="http://www.nao-ontario.ca/">Network of Angel Organizations - Ontario</a>, in the vintage (think stained glass and mahogany) pub at the Queen’s Landing hotel to talk about how angel networks can and are promoting business leadership through mentoring programs.Other subjects that came up in my conversations during the week were angel investors’ interest in participating in international deals and cross-border syndication. In addition to the investments angels are making in their local communities, this strategy can provide diversification and participation in growth happening in, for instance, frontier markets where growth capital is less available.I look forward to seeing everyone at NACO 2016 in Vancouver, B.C. Ian McKay (CEO, <a href="http://www.vancouvereconomic.com/">Vancouver Economic Commission</a>), we look forward to spending some time in the city you could not help bragging on.LAURA’S REFLECTIONS ON THE SOCAP 2015 CONFERENCE:<figure class="image"><img src="/uploads/socap_2015_collage_5211196ca6.jpg"></figure>The location for <a href="http://socap15.socialcapitalmarkets.net/">SOCAP</a> was wonderful. Fort Mason is situated right on the water, with beautiful views of sailboats, seals and the Golden Gate Bridge. For me, the SOCAP experience was about being in a collaborative environment with thousands of people who, in some way, shape or form, participate in the growing field of impact investing. This provided me with the opportunity to make some really meaningful connections and have great conversations with my peers and colleagues in the space.During my time in San Francisco, I was able to connect with the leaders of <a href="http://www.alignimpact.com/">Align Impact</a>, <a href="http://www.vilcap.com/">Village Capital</a>, <a href="http://sgiicenter.com/">SGII</a>, <a href="http://capria.vc/">Capria Accelerator</a>, <a href="http://www.toniic.com/">TONIIC</a> and <a href="http://connectinggrowthglobally.com/2015/10/16/postcard-from-socap/">Connecting Growth Globally</a>, just to name a few. We talked about a myriad of topics related to impact investing, from joining RENEW in Ethiopia to meet with our portfolio companies, to exploring ways to partner in East Africa.TOM AND LAURA’S CONFERENCE CIRCUIT TAKEAWAY:RENEW is doing our part to contribute to an innovative and diverse community that is changing the way the world invests and does development, tackling poverty and engaging with the African continent in a new way. We see investing in SMEs as one of the most effective ways to encourage economic development in Sub-Saharan Africa, and all over the world. Investors can do well by doing good, which means there is a compelling investment case for investing in Africa in a way that creates jobs, promotes local production of essential goods and services, enhances healthcare and education and drives economic growth.

Reflections on RENEW’s time at the SOCAP and NACO 2015 Conferences.

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Impact Investing: A Innovative Force in Angel Investing and Development

<h1 style="text-align:center;">RENEW’s Impact Angel Network Closes Fifth Investment</h1>RENEW is pleased to announce that members of the Impact Angel Network (IAN) and another U.S. investment group recently signed an agreement to invest into a sesame company based in Ethiopia. The investors anticipate that over the next five years, the company will support more than 10,000 small farmers, strengthen the sesame industry in Ethiopia, generate $32 million in export sales and create more than 60 jobs in the manufacturing sector.The investment, like others the IAN has made into small and medium enterprises in East Africa, is anticipated to have a significant impact in the local economy.<figure class="image"><img src="/uploads/dsc_0064_4ec9b054d2.jpg"><figcaption>A sesame facility in Humera, Ethiopia. Ethiopia is Africa's largest sesame producer and exporter.</figcaption></figure>As a partner of the U.S. Agency for International Development (USAID) and the Feed the Future Agribusiness Market Development program, RENEW conducted investment analysis on the company. This investment would not be possible without the continued support of USAID, which aims to help stimulate the growth of small and medium enterprises in Ethiopia.This is the IAN’s fourth investment in Ethiopia since 2013, and their fifth investment in the East Africa region.

The IAN invests in a sesame manufacturing and exporting company

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RENEW’s Impact Angel Network Closes Fifth Investment

<h1 style="text-align:center;">RENEW Partners to Attend SOCAP and NACO 2015 Conferences</h1>Next week, RENEW’s partners Laura Davis and Tom Scriven are attending two important conferences in the field of impact and angel investing.<figure class="image"><img src="/uploads/conferences_1_901afa96ac.jpg"></figure>Laura Davis will be participating in the Social Capital Markets (<a href="http://socap15.socialcapitalmarkets.net/">SOCAP</a>) 2015 conference in San Francisco. SOCAP is to take place over the course of several days, gathering more than 10,000 impact investors and social entrepreneurs from around the world in one place. Participants come from all sorts of backgrounds - ranging from individuals, wealth managers, government bodies, foundations and non-profits - but they all share a common goal to “actively seek out opportunities to accelerate the market at the intersection of money and meaning.”Tom Scriven will be attending the National Angel Capital Organization (<a href="https://nacocanada.com/">NACO</a>) 2015 Summit in Niagara-On-The-Lake, Ontario. Tom will be joining more than 300 investors, industry leaders, entrepreneurs and development professionals from all over the world at Canada's largest gathering of angel investors. Participants will have the opportunity to collaborate and connect with like-minded individuals and experienced investors, as well as discuss industry best practices that lead to success.If you find yourself at either one of these exciting events next week, be sure to reach out and let us know!&nbsp;

Two of the largest events in North America for the fields of impact and angel investing.

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RENEW Partners to Attend SOCAP and NACO 2015 Conferences

<h1 style="text-align:center;">Entoto Observations</h1>Today is Sunday and the eve of Meskel in Ethiopia. It is a leap year according to the Ethiopian calendar, so Meskel will occur tomorrow on September 28, instead of its usual occurrence on September 27. According to <a href="https://en.wikipedia.org/wiki/Meskel">Wikipedia</a>, Meskel is an Ethiopian Orthodox holiday that represents the discovery of the true cross. In a dream, Queen Eleni was instructed to build a bonfire and told that the smoke from the fire would reveal the location of the true cross.Today, Matt and I hiked up Entoto Mountain, and though we have lived in Ethiopia for more than three years, there were new observations to be gathered and processed. That is the beauty of living in a foreign land - the learning never ends! Today we passed hundreds of people as we huffed and puffed up the mountain. Donkeys, sheep and cows being walked to market; the faithful going to church; tree branches dragged to neighborhood bonfire sites; soccer games; vegetables and coal being sold to prepare classic Ethiopian dishes; and the lists goes on of the endless, colorful activities that make up the Ethiopian experience. The most noticeable difference today was the yellow meskel daisy. The bright bit of sunshine made many appearances, being sold in markets across the city and by children who had plucked the graceful little flower from fields where it grows naturally this time of year. Tonight it will grace the floors of shops and homes underneath the traditional coffee ceremony setting, and be added to the bonfire piers that will be burned tonight in representation of finding the cross.<figure class="image"><img src="/uploads/collage_entoto_ff1bc48ad5.jpg"></figure>If you are interested in experiencing this unique country and culture first-hand and learning why major news publications like <a href="http://www.cnn.com/2015/07/13/travel/ethiopia-worlds-best-tourism-destination/">CNN</a> and <a href="http://qz.com/447128/ethiopia-has-been-voted-the-worlds-best-tourism-destination-for-2015/">Quartz</a> are saying Ethiopia is among the top travel destinations, consider an <a href="angel-investors-travel-ethiopia.html">Econ-Tourism Trip</a> with RENEW. We will make sure you get to the top of Entoto.

RENEW team members Matt and Laura Davis reflect on this special Ethiopian holiday.