<h1>Press Release: Scale Secures Investment to Digitize Procurement in Africa</h1>Scale's platform modernizes procurement, empowering African businesses with efficiency and transparency<a href="https://latest-api.renewcapital.com//uploads/2023_22_12_FINAL_Scale_Press_Release_2d0a3deb03.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release&nbsp;</a>NAIROBI, Kenya, December 22, 2023&nbsp;—&nbsp;Procurement in Africa has traditionally been hindered by inefficiency, high costs and opaque operations. Scale, based in Kenya, is transforming this critical business function by streamlining procurement, automating workflows and cutting operational expenses.<img src="/uploads/31bcea3f_efc1_4523_82ad_a44be7b74732_3cd83dee52.JPG" alt="Founders of Scale, a digital procurement platform in Nairobi, Kenya, pose for a team photo, showing dedication to improving efficiency in African business.">For suppliers, Scale opens a growth-oriented marketplace, offering tools that demystify bid management. For buyers, the platform delivers a suite of features that enhance internal procedure management and unlock new efficiencies."Scale is reshaping procurement in Africa,” said <a href="https://ke.linkedin.com/in/marvintumbo" target="_blank" rel="noopener noreferrer">Marvin Tumbo</a>, Co-founder &amp; CEO of Scale, emphasizing the platform's breadth. “We're moving beyond simply streamlining tasks to granting buyers and suppliers clear, controlled and strategic procurement processes."Scale seeks to utilize Renew Capital's support to expand its platform's capabilities, further enabling efficient and transparent procurement processes across Africa."We're thrilled to back Scale's pursuit of procurement excellence,” says Esther Mwikali, Investment &amp; Project Manager at Renew Capital. “Their platform addresses critical needs for buyers and businesses, charting a new course for African commerce."&nbsp;*Ecosystem activation, pipeline development and capacity-building support provided to Renew Capital portfolio companies is generously supported by Global Affairs Canada.

Renew Capital invests in Scale, a digital procurement platform in Africa, enhancing efficiency and transparency for businesses.

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Press Release: Scale Secures Investment to Digitize Procurement in Africa

Renew Capital's operations have expanded to nine African countries. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our team on the ground. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>My Journey to Renew Capital: Get to know Antony Maina&nbsp;</h1>Navigating the marathon of career, impact, entrepreneurship and family<figure class="image"><img src="/uploads/Image_20231130_150400_924_251f971004.jpeg"></figure>Welcome to the latest feature of our ‘Journey to Renew Capital’ blog series. In this interview, we speak with Antony Maina, Marketing and Communications Manager about his journey to Renew Capital, what entrepreneurship means to him, family life and a lot more.&nbsp;Antony, it’s wonderful to have you with us. Growing up in Eldoret, Kenya a town quite famous for its athletes, how did this influence your unique career path, particularly your passion for communications and entrepreneurship?My hometown of Eldoret, Kenya is known as the “home of champions” because of the many elite long-distance runners it has produced. Compared to other cities like Mombasa and Nairobi it felt more like a village where everyone knew everyone even though it is a metropolitan town. We all went to the same schools and would meet in the same churches. The one thing that brought everyone together was athletics, with the main stadium in the town — “Kipchoge Keino Stadium” — named after Kenya's first Olympic gold medalist. Coming across droves of runners as they practiced for their marathons was a usual sight.&nbsp;While I admired the runners, my journey was destined for a different track. I was more drawn into entrepreneurship so after completing my undergraduate studies, I immediately started out as a freelance blog writer. This experience was my introduction to the world of communications and storytelling. I found myself drawn to stories about businesses and this marked the start of my path towards understanding entrepreneurship.You've had a diverse career across various organizations before joining Renew Capital. How have these experiences shaped your understanding of entrepreneurship and its role in addressing global challenges?Each experience has been a building block in my understanding of the entrepreneurial landscape, especially in developing economies. Prior to Renew Capital, my role at the Aspen Network of Development Entrepreneurs (ANDE) was particularly transformative. I led our work in Ethiopia and Rwanda and also spearheaded the Argidius-ANDE Talent Challenge, which was a unique challenge that sought innovative programs that addressed the challenge that many businesses encounter that is identifying, attracting and retaining middle- and senior-level managers.&nbsp;I also led the mapping of entrepreneurial ecosystems in Rwanda and Ethiopia. This was eye-opening too as it underscored the critical gap in financing for small and growing businesses – a gap that, if filled, could catalyze significant progress toward the United Nations Sustainable Development Goals (UN SDGs). Well, the bottom line is - I strongly believe that entrepreneurship is an underleveraged tool in the fight against poverty and many other global challenges that we face today. Entrepreneurs are innovative and are wired to create solutions. With the right support, entrepreneurs can be a driving force for sustainable economic growth.&nbsp;That's a powerful insight. How did this perspective lead you to Renew Capital, and how has your first year there been?I first came across Renew Capital in 2018, while I was still with ANDE. We hosted a few events with the team in Addis Ababa and Nairobi and that gave me a driver's seat view of their culture, vision and beliefs. Oh, and did I say there was a podcast too? Well, Renew Capital was at the time running a series of podcasts that I loved listening to on my way to work. Their vision and passion for transforming Africa's narrative from an aid-dependent to an investment-ready continent deeply resonated with me. At the time, Renew Capital was in Ethiopia and had just opened an office in Uganda marking the start of its pan-Africa expansion. Joining Renew Capital therefore felt like a natural next step in my journey.&nbsp;My first year has been exhilarating. Like many entrepreneurs we support, Renew Capital is fast-paced. New ideas are generated daily with those that don’t work being put quickly to rest.&nbsp; You can feel the entrepreneurial energy once you step into the room. The team’s diverse backgrounds contribute to a rich mix of perspectives that fosters a dynamic environment where innovative solutions to complex challenges are encouraged and implemented on a daily basis. And by the way, if that sounds like a team that you would like to join, check out the current&nbsp;<a href="https://www.renewcapital.com/careers">job opportunities</a>.&nbsp;How has it been managing the first-paced work at Renew Capital with your family life? Is there such a thing as balance?Finding a balance between work and family life is like trying to dance on a moving train, you just have to go with the flow. My twins keep me on my toes. They’re a constant reminder of why the work we do is crucial. It’s about creating a world where they and other children like them, can thrive. I want to instill in them an entrepreneurial spirit, the courage to innovate and make a difference.What are your hopes for the future?Looking ahead, I see a world where entrepreneurship is at the heart of sustainable development. At Renew Capital, we're just scratching the surface of what's possible. Africa’s brimming with potential and people are beginning to recognize the continent's untapped wealth and opportunities. For example, the African Development Bank highlights that Africa holds 65% of the world’s remaining uncultivated arable land, abundant fresh water and about 300 days of sunshine each year. Furthermore, with Africa's population projected to reach 2.4 billion by 2050 and continue growing to 4.2 billion over the next century, the potential market for new businesses is enormous.I believe Africa’s economic growth is largely going to be driven by entrepreneurs and entrepreneurial thinking. As our Co-CEO Matt Davis says, “Africa’s moment is now.” Here are more&nbsp;<a href="https://www.renewcapital.com/newsroom/embracing-africas-startup-revolution">reasons</a> why.&nbsp;

Finding a balance between work and family life is like trying to dance on a moving train, you just have to go with the flow.

Perspectives

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My Journey to Renew Capital: Get to know Antony Maina 

<h1>Love And Tough Love: Our Take On 8 African Startup Ecosystems</h1>Our bird’s eye summary on the heels of our investment tourRenew Capital, along with a growing network of angel investors from around the world, have spent over a decade immersing ourselves in the vibrant cultures and entrepreneurial spirit of Africa. We initially focused on Ethiopia - not easy, but rich in culture and packed with potential - and have recently expanded across the continent into 9 countries. We’ve had wins, losses, and an amazing investment experience…and we’re just getting started.&nbsp;&nbsp;Each day we see new signs of growth. Laura and I recently embarked on a six-week investment trip across East and Southern Africa, including a visit to Ghana in West Africa. We engaged with more than 100 founders with the aim of selecting the best deals for our upcoming Renew Venture Lab Fund, which is a feeder fund to our venture capital fund. What we observed was a brilliant, diverse and energetic blend of talent, culture and progress. Africa is without a doubt changing and developing, much faster than most of the world may even be aware of. I hope this brief recap sheds light on this potential and inspires some of you to get on a plane and join us for an unforgettable investment experience.&nbsp;<div class="raw-html-embed"><style>
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</div><h3>A short manifesto&nbsp;</h3>I believe (and hope) that in the next ten years, the West’s perspective of Africa will undergo a radical paradigm shift, resulting in the redirecting of billions of dollars given each year in the form of aid and charity to investments in Africa’s burgeoning startup ecosystem.&nbsp;There has not been one discussion I have had in the last 5 years where I heard an African advocate for more charity or aid. The continent seeks partners that believe in their potential and will invest in their future. And that future is being written in the code of startups and the strategies of relentless entrepreneurs.&nbsp;At Renew Capital, we're working with a global network of investors who are not just observers; they are actively participating in this transformation. And the founders we are backing are embracing their new role as the ambassadors of Africa’s future.&nbsp;Africa is not just rising – it's thriving, innovating, and redefining possibilities.Now, let's delve into the highlights of our visits to various countries, shedding light on their entrepreneurial spirit and investment potential.<h3>Addis Ababa, Ethiopia: Awakening the Sleeping Giant (our home)</h3>Please note that I’m biased in my analysis of Ethiopia. It’s our Africa home and I have a deep place in my heart for this great country. I also have some tough love for her; earned through holding our ground during a civil war and losing a number of investments in that season.&nbsp;Ethiopia, historically considered a dormant tech market, is experiencing a surge in fintech interest. The introduction of&nbsp;<a href="https://www.renewcapital.com/newsroom/m-pesa-launches-in-ethiopia">M-PESA</a> sets the stage for exponential growth, with innovative partnerships and government initiatives fostering a conducive environment. Renew Capital, present in Ethiopia for 12 years, believes in the awakening of this market. That said, we’re moving with caution. While the capital markets are opening up, it takes time for the motivations of leaders to work their way down to the rank-and-file bureaucrat who approves or rejects your investment license. We’re ready to fight for every approval - Ethiopia is a sleeping giant and its tech scene is 20 years behind others, but when it decides to move it will be huge.&nbsp;<h3>Accra, Ghana: A Rising Star in Fintech?</h3>Ghana is gaining attention as an emerging destination in the African fintech landscape. Comparisons to stable Rwanda and entrepreneurial Uganda create a market balancing stability with innovation. Ghana's focus on financial inclusion and cross-sector collaborations indicates a promising future. We're excited to make an investment there, soon!<a href="https://www.mckinsey.com/industries/financial-services/our-insights/fintech-in-africa-the-end-of-the-beginning#:~:text=Ghana%20and%20francophone%20West%20Africa%20are%20expected%20to%20show%20the%20fastest%20growth%2C%20at%2015%20percent%20and%2013%20percent%20per%20annum%20respectively%2C%20until%202025.">15% per annum</a>: Ghana is the fastest-growing fintech market in Africa.&nbsp;<h3>Dar es Salaam, Tanzania: Kickstarting the Ecosystem</h3>In some ways, Dar es Salaam reminds me of Addis - starting up and ripe with potential. But we need to get movement to go from potential energy to kinetic energy, and that’s going to require some big, focused pushing.&nbsp;When we were there the ecosystem seemed close-knit and small. There was a youthful energy to the meet-ups we hosted and attended. It seems the government is supporting tech and innovation, so, while our pipeline was thin, we are eager to roll up our sleeves and start working “in and on” the ecosystem. I give it another 12 to 24 months and we’ll start seeing an impressive pipeline of deals coming out of Tanzania.&nbsp;I would have liked to see a bit more innovation and more traction from the companies that pitched to us. That said, we’ll definitely be coming back to a few of them (awesome founders), soon.&nbsp;<h3>Lusaka, Zambia: Discipline and Stability are Good for Growth</h3>Lusaka mirrors Rwanda's disciplined setup, offering stability and potential for growth. Investments in tech infrastructure and educational initiatives to bridge the skills gap contribute to a conducive environment for tech companies. It was hard for me to get a strong read on the ecosystem, so we’ll need to spend more time getting our heads around how the cultural environment impacts its investment potential. Oddly I would say of all the places, Zambia was the most polished culture I have engaged with. I found myself looking for some grit, but there were a few founders there that I liked. I was also impressed with the budding angel investment ecosystem; I see co-investment potential on the horizon. I also didn’t feel like the Zambian startups were trying to punch above their weight class - which was nice. They seemed realistic about valuations and their heads weren’t too big, which was a welcome refresher from some countries we visited.&nbsp;<h3>Kampala, Uganda: Dynamic Private Sector Amid Political Transitions</h3>Uganda was the first place I started to do my work in Africa years ago. And its private sector culture has remained a unique blend of chaos and growth. Uganda's laissez-faire strategy is working. But everyone seems worried about the upcoming leadership transition - so we’ll keep an eye on that. But I loved the energy of Uganda and there are some sharp founders doing great work there.<h3>Kigali, Rwanda: Investments and Excitement Bearing Fruit</h3>Rwanda radiates hope for the future. The country is positioning itself as a regional launchpad for startups. International collaborations, outside universities, and a government keen on fostering innovation make Kigali a hub for cross-border startup innovation. “Yeah, but it’s small…” is a true and cliche thing to say. But like Seattle weather, we know there is a lot of sun, and we just hope not too many people find out about it before we get a head start. Rwanda, we're ready!&nbsp;<h3>Nairobi, Kenya: Awesome but Pricey Amid Economic Concerns</h3>Nairobi stands out with sophisticated founders pitching innovative ideas, but (currently) expensive valuations. It’s November 2023, not 2022. Plus, the country is having macroeconomic challenges. All that to say, the talent and maturity of the pipeline in Nairobi is exceptional. I loved it. They have a rapidly evolving fintech ecosystem but we’re navigating it carefully. There is some&nbsp;soft money still sloshing around buying companies at prices that would make you shake your head. The strategic founders will readjust quickly, and position their current raise in a way that enables a faster raise in 12-18 months once the dust settles.&nbsp;&nbsp;<h3>Maputo, Mozambique: A Great Afro-European Vibe and Emerging Tech Scene</h3>Maputo, with its Afro-European fusion, faces some structural challenges but exhibits immense entrepreneurial resilience and potential. Financial inclusion initiatives and international investments in natural gas provide optimism for economic growth. A lot going on with the government "sandbox" initiative. Most companies were too early, but a few...could break out. We are excited to hopefully make our first investments there soon!In conclusion, we're very excited and were amazed by how much diversity and growth potential we saw! Now, it's time to make the hard decisions about who to back and how to come back to.As we continue to expand into some of these untouched and potential-rich markets, we will continue to share our insights with the larger community. We’re driven by a broader mission to change the way the world engages Africa, from giving to investing. It won’t be easy - transitioning and learning to invest. But fortune favors the brave! If you’re looking for an unforgettable experience or you’d like to share your own stories, please don’t hesitate to reach out!&nbsp;Renew Capital aims to back the founders leading Africa's startup revolution. We're gearing up to make significant investments in ventures across 10 countries and 8 sectors. We work with a global network of investors who believe in Africa's immense potential and the power of the private sector to drive innovation and economic development. If you are an accredited investor and would like to learn more, take 2 minutes to&nbsp;<a href="https://www.renewcapital.com/apply">apply to Renew Capital Angels™</a>&nbsp; to schedule a meeting with our team.This blog is intended for informational purposes only and does not constitute investment advice or a recommendation to you, or an offer to sell or solicitation to buy any security. Investments with Renew Capital are speculative in nature and involve a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries and include the risk of total loss of an investor’s entire investment.

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Love And Tough Love: Our Take On 8 African Startup Ecosystems

<h1>Lithium and the Race for Africa</h1><figure class="image"><img src="/uploads/shutterstock_1914908425_0e17232030.jpg" alt="Photo of lithium, a key component in electric vehicle manufacturing, with projections indicating Africa could supply one-fifth of the world's lithium by 2030."></figure>Africa's most significant bilateral trading relationship is with China, reaching a staggering $254B in 2021, surpassing U.S.-Africa trade by four times.&nbsp;Additionally, China holds the top position as the primary contributor of foreign direct investment in Africa, supporting hundreds of thousands of jobs on the continent—approximately twice the volume generated by U.S. foreign direct investment. This dynamic economic partnership underscores China's substantial influence and engagement in the region and the United States’ weakness around investing in Africa.&nbsp;<h4>Figure 1</h4>From 2013 to 2021, Chinese Net Foreign Direct Investment (FDI) into Africa averaged $3.7B annually, while U.S. Net FDI averaged $-.1B over the same period indicating a trend towards US divestment from Africa.Chinese Net FDI Flows vs. U.S. Net FDI Flows to Africa (USD, Billions, Unadjusted)<figure class="image"><img src="/uploads/Images_Website_Ratio_3_297a099f71.png" alt="Chinese Net FDI Flows vs. U.S. Net FDI Flows to Africa (USD, Billions)."></figure>Source: The Statistical Bulletin of China's Outward Foreign Direct Investment, U.S. Bureau of Economic AnalysisChinese funding to Africa peaked at over $28B in 2016, just three years after it announced the&nbsp;<a href="https://www.cfr.org/backgrounder/chinas-massive-belt-and-road-initiative">Belt and Road Initiative</a>, an international infrastructure development strategy intended to boost China’s influence around the world. However, by 2021 funding fell to $1.22B and then fell again to just $994.48M in 2022. China’s challenges create an opportunity for other global players including the United States to invest in the continent and for African countries to develop more comprehensive strategies to capitalize on their natural wealth and build their own manufacturing capabilities.&nbsp;While Chinese investment in Africa over the past two decades far outweighs the U.S., in 2023, Chinese investment has decreased dramatically as a result of challenging economic conditions at home and the global economic impact of the pandemic.&nbsp;One of the ways African countries are stepping up is by developing new local manufacturing facilities for lithium batteries, which could increase the export value of their local lithium and contribute to Africa’s developing local Electric Vehicles (EV) manufacturing market.<h3>The Global Lithium Race</h3>Projections indicate that by 2030, Africa could contribute one-fifth of the world's lithium requirements<figure class="image"><img src="/uploads/Images_Website_Ratio_ec78ab6879.png" alt="Infographic depicting projections that Africa could provide one-fifth of the world's lithium needs by 2030, highlighting contributions from Australia, China, Chile, Zimbabwe and Africa, as forecasted by The Economist."></figure>The lithium mining and battery manufacturing industry is experiencing a growing demand due to the global EV market which is projected to be valued at $1.6T by 2030. Therefore, battery manufacturers need new lithium sources for the long-term supply to serve the growing market. Importantly, Africa's resources, particularly its lithium reserves, play a&nbsp;<a href="https://foreignpolicy.com/2023/08/16/zimbabwe-china-lithium-exports-green-technology-africa/#:~:text=The%20world%E2%80%99s%20clean,domestic%20processing%20there.">critical role&nbsp;</a>in the global shift toward clean energy.There are 98 million metric tons of lithium resources across the globe. South American countries namely Argentina, Bolivia and Chile account for 53%, the largest portion, followed by European countries with approximately 7.4 million tons and Africa with approximately five million tons of lithium resources.&nbsp; Africa's production is expected to continue to grow, increasing the continent’s role in global lithium supply chains.<h4>Figure 3&nbsp;</h4>5% of the global total lithium deposits are located in Africa% of Lithium deposits globally<figure class="image"><img src="/uploads/Images_Website_Ratio_2_4cf3e131f6.png" alt="Global Lithium Deposits: Pie chart indicating Africa holds 5% of global lithium deposits."></figure>Source: Yahoo FinanceThe surge in Electric Vehicles (EVs) in industrial powerhouses like the U.S., China and Europe has prompted strategic attention to Africa's resources in foreign policy agendas.&nbsp;China presently holds a substantial influence over the lithium supply in Africa. China is the largest investor in Zimbabwean <a href="https://foreignpolicy.com/2023/08/16/zimbabwe-china-lithium-exports-green-technology-africa/#:~:text=However%2C%20China%2C%20which%20controls%20the%20world%E2%80%99s%20critical%20minerals%20supply%20chain%2C%20is%20ideally%20placed%20to%20reap%20benefits%20in%20these%20situations%2C%20because%20several%20Chinese%20owned%20companies%20have%20recently%20completed%20processing%20plants%20in%20the%20country." target="_blank" rel="noopener noreferrer">lithium processing</a>, which has the largest deposits on the continent.&nbsp;However, in December 2022, the U.S. took decisive measures to secure its lithium supply. During the U.S. and Africa Leaders Summit in Washington, the United States signed a trilateral Memorandum of Understanding (MOU) with the Democratic Republic of Congo (DRC) and Zambia. The agreement aims to establish a seamless production system for EV batteries, covering the entire supply chain from mineral extraction to assembly line development.By doing so, the U.S. positions itself strategically to counterbalance China's significant influence in the mining sectors of both DRC and Zambia.&nbsp;<h3>Africa is Building Production Capacity</h3>In Morocco plans are underway to build the first operational super-sized battery manufacturing plant capable of producing batteries that can store at least&nbsp;<a href="https://africabriefing.com/africas-first-gigafactory-for-ev-batteries-could-mark-a-turning-point-in-the-continents-energy-transition/">one billion watt-hours</a> of electricity.&nbsp;These plants would not only be able to produce the batteries needed to power EVs but also contribute to broader public energy demands.Moreover, many African governments are recognizing the broader potential beyond raw materials in the global minerals race. Zimbabwe and Tanzania have proactively taken legislative measures to ensure that lithium processing occurs within their borders. To fully capitalize on the lithium boom, both countries are banning raw lithium exports aimed at maximizing profits derived from lithium extraction and processing rather than just exporting raw materials.<figure class="image"><img src="/uploads/Images_Website_Ratio_1_a99712b4b8.png" alt="China's Mineral Imports from Africa: Graph of China's mineral and metal imports from Africa in billions."></figure>After banning raw lithium exports last year, in the first nine months of 2023, Zimbabwe registered a revenue of $209M (ZWD 76B) from lithium exports, which is approximated to be three times as much as last year’s revenue, indicating that local processing rather than raw material exports can increase returns for African governments.&nbsp;<h3>Conclusion</h3>Despite recent efforts by Western and African governments to invest in the EV supply chain, China still dominates.&nbsp;Chinese firms control at least half of the production of battery parts and, in some cases, more than 70% of the manufacturing process for some specific components. The COVID-19 pandemic underscored the risks associated with abdicating control of key supply chains to just one country,&nbsp;<a href="https://www.freightwaves.com/news/how-three-chinese-companies-cornered-global-container-production">as experienced with China and shipping containers during the pandemic</a>. Therefore, it is imperative to take action to diversify control over battery supply chains, particularly as global efforts intensify to reduce carbon emissions. Furthermore, by shifting focus towards the local processing of minerals and the production of EV components and batteries, African nations with abundant mineral resources stand to benefit significantly from the shift to clean energy. Considering China's dominant position in Africa's lithium market and its substantial control over key components in the electric vehicle supply chain, it is crucial for African nations to proactively diversify and localize their production of EV components and batteries, utilizing their abundant mineral resources to seize opportunities in the global shift towards clean energy. At the same time, western governments must aim to invest in EV supply chains to mitigate Chinese dominance over one of the most critical sectors promoting the global transition to clean energy, if they want to remain competitive.

One of the ways African countries are stepping up is by developing new local manufacturing facilities for lithium batteries..

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Lithium and the Race for Africa

Renew Capital is at the forefront of Africa's startup revolution. We're gearing up for our most significant venture yet—an investment in up to 20 African startups sourced from 10 countries and 8 sectors. If you are an accredited investor and interested in learning more, take 2 minutes to <a href="https://www.renewcapital.com/apply" target="_blank" rel="noopener noreferrer">apply to Renew Capital Angels™</a> and be part of the transformation.<h1>Embracing Africa's Startup Revolution</h1>Our Journey Through 8 Countries Meeting 50 Startups in 60 Days<div class="raw-html-embed"><style>
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</div>Across the continent in 60 days: snapshots from a few of the countries on Matt and Laura’s whirlwind tour. Photos courtesy of Renew Capital.After living and investing in Africa for more than a decade, we've embarked on what could only be described as an extraordinary adventure. Through the highs and lows, successes and setbacks, we've been building what we envision to become one of the region's premier investment firms.Our story is one of true entrepreneurship, marked by the same trials and triumphs faced by those we invest in. From our base in Ethiopia, the "sleeping giant" of the African investment landscape, we've expanded across nine countries. Our recent marathon journey through 8 countries, meeting 50 startups, has reaffirmed a few things:<h2>Africa’s Moment Is Now</h2>The Western perspective on Africa is due for a paradigm shift. The era of simply giving is being outpaced by a more impactful strategy: investing in Africa’s future. The continent is not looking for handouts; it is seeking partners in progress. Partners who understand that the future is being written in the code of startups, in the strategies of entrepreneurs who are as visionary as they are relentless.At Renew Capital, we're not just observers; we're active participants in this transformation. Our history on the continent has shown us the undeniable: Africa is not just rising - it's thriving, innovating and redefining what's possible.<h2>Calling All Angels: Rise to the Investment Challenge</h2>We stand at a pivotal moment. To those on the outside looking in, this is your call to action. Renew Capital is backing startups and becoming part of a revolution that’s redefining supply chains and creating jobs. We are investing in the innovators who are shaping Africa’s tomorrow.It’s time to transcend the old ways of nepotism and cronyism. To those successful African entrepreneurs and investors, investing in innovation is investing in a legacy that will endure. Political leaders and decision-makers, the resources at your disposal have the power to ignite change or stifle potential. The choices you make today will echo through the annals of history.<h2>Our Pledge: Renew Capital’s Largest Investment Offering</h2>In the coming weeks, Renew Capital will unveil its most diverse and comprehensive investment package to date. We are selecting up to 20 tech-enabled startups from a pool of talent that spans 10 countries and 8 sectors. These startups are not just businesses; they are beacons of hope and progress.Our commitment goes beyond capital. We provide a scaffold of training and coaching that prepares these startups for the journey ahead. We’re calling on investors who are ready to be part of something transformative. Join us. Invest with intention. Let’s write history together.If you’re ready to rise to this challenge and back the next generation of African entrepreneurs,&nbsp;<a href="https://www.renewcapital.com/apply">apply now to Renew Capital Angels™.</a> After submitting the 2-minutes application, accredited investors will have access to our largest investment opportunity to date. We will be sharing more in our Renew Capital Angels Members’ Call on Wednesday, November 15, so be sure to submit your application before then.The time to act is now. Be a part of this landmark shift in how the world engages Africa. Your involvement is not just an investment in a company; it’s an investment in the future of a continent on the rise.<h2>The Future Awaits. Let’s Build It Together</h2><img src="https://lh7-us.googleusercontent.com/Uv9vJEC-PzrRb-zP5GZzBD6OS08lpKlXjf8QRer6mFYHMoAPcA2-xMvOojQGTgef_n0kF9YAcsfuCK8CcZzUigHHJbm6f3j3eutEQs1d26RHPMbs-JAUFSfdUxfN2N39fSxnRbNmZncMch6qz5oaUZo" alt="Renew Capital's upcoming investment package featuring up to 20 early-stage companies from 10 countries and eight sectors, highlighting the firm's commitment to investing in Africa. "><h2>Here are some interesting facts about Africa:</h2><ul><li>Venture Capital Funding: In 2022, Africa raised $5.2 billion in venture capital across 786 deals, accounting for 3% of the total volume and 1.2% of the total value of global venture funding. Despite a global downturn in venture capital,&nbsp;<a href="https://www.avca.africa/data-intelligence/research-publications/2022-venture-capital-in-africa-report/#:~:text=Africa%20raised%20US%245,US%2450%20million%20compared%20to%202021">Africa's market remained relatively stable</a>, with only a slight decrease in funding compared to the previous year​​. However, it is important to note that the majority of these transactions were relatively small, with&nbsp;<a href="https://www.brookings.edu/articles/figures-of-the-week-venture-capital-trends-in-africa/#:~:text=However%2C%20the%20majority%20of%20VC,in%20the%20United%20States">65% of VC deals attracting less than $5 million</a> in investments​​.</li><li>Urbanization Trends: Africa is experiencing a significant urbanization trend. While its population has been largely rural, the continent is now driving urbanization at&nbsp;<a href="https://www.dw.com/en/africa-drives-global-urbanization/a-65653428#:~:text=05%2F17%2F2023,This%20is">a pace similar to Asia's in previous decades</a>​​. Sub-Saharan Africa, in particular, has seen a consistent increase in its urban population, with a&nbsp;<a href="https://www.macrotrends.net/countries/SSF/sub-saharan-africa-/urban-population#:~:text=Sub,as%20defined%20by%20national">3.92% rise from 2020 to 2021</a>​​. This urbanization is significant as it often correlates with increased economic activity and can provide a fertile ground for startups and investors.</li><li>Projected Growth in VC Investment: There was an expectation that VC investment in Africa would sharply increase to between $3.8 billion and $4.7 billion in 2022, with projections reaching up to&nbsp;<a href="https://www.statista.com/chart/24911/vc-investment-by-country-in-africa/#:~:text=In%202022%2C%20VC%20investment%20is,investment%20in%20Africa%20is">$6.8 billion by 2023</a>​​. However,&nbsp;<a href="https://restofworld.org/2023/african-startups-vc-funding-decline/">a decline in venture capital funding</a> in the African tech startup ecosystem has been observed in 2023, which has raised concerns among entrepreneurs and investors about the potential stagnation of the sector if the funding does not meet the needs of growing companies​​.</li><li>Emerging Opportunities and Sectors: The technology sector in Africa is burgeoning, and there is a growing acknowledgment that venture capital can support the expansion and innovation of tech startups on the continent. Moreover, the agriculture technology sector is seen as a&nbsp;<a href="https://www.caban.co.za/venture-capital-opportunities-in-africa-in-2023/#:~:text=Top%2010%20Venture%20Capital%20Opportunities,improve%20agricultural%20productivity%20in%20Africa">promising area</a> where venture capital can address food security issues and improve agricultural productivity​.</li><li>Unicorn Status Achievements: The rise of significant startups is underscored by achievements such as unicorn status, with MNT-Halan becoming Africa's first unicorn of 2023 and Egypt's first unicorn after raising&nbsp;<a href="https://techpoint.africa/2023/03/15/african-venture-capital-funding-in-february-2023/#:~:text=Egypt%20was%20by%20far%20the%20country%20that%20got%20the%20most%20funding%20%E2%80%94%20%24437%20million%20%E2%80%94%20due%20to%20MNT%2DHalan%27s%20%24400%20million%20raise.%20South%20Africa%20followed%20in%20second%20place%20with%20%24173.7%20million%2C%20while%20Nigeria%20(%2436%20million)%20and%20Kenya%20(%2415.8%20million)%20rounded%20up%20the%20top%20four.">$400 million</a>​.</li></ul>This summary is intended for informational purposes only, is subject to change, and does not constitute investment advice or a recommendation to you. This summary is not intended as an offer to sell or a solicitation of an offer to buy an interest in any company (a “Company”) managed by Renew Capital or its affiliates. Such an offer to sell or solicitation to buy an interest in a Company may be made only by the delivery of subscription agreements relating to such Company and specifically delivered by Renew Capital to the recipient thereof. Investment in a Company is open solely to “accredited investors” (as defined by the SEC under the Securities Act of 1933, as amended) and, in addition, is intended only for sophisticated investors who meet the investor suitability requirements described in the subscription agreements and who can bear the risk of investment losses, including the potential loss of their entire investment.Investments with Renew Capital are speculative in nature and involve a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries and include the risk of total loss of an investor’s entire investment.

After living and investing in Africa for more than a decade, co-founders Matt and Laura Davis believe we stand at a pivotal moment. 

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Embracing Africa's Startup Revolution

Renew Capital's operations have expanded to nine African countries, spanning four regions. We aim to provide insight into Africa's startup scene, along with the opportunities and challenges it presents through a series of blogs from our team on the ground. If you share our passion for developing entrepreneurship in Africa, we invite you to check out our&nbsp;<a href="https://www.renewcapital.com/careers">open roles</a>.&nbsp;<h1>How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges</h1>Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam, Tanzania.&nbsp;<figure class="image"><img src="/uploads/TZ_Linked_In_fd3d58377e.png" alt="Q&amp;A session with Renew Capital's Investment and Project Manager in Dar es Salaam, Tanzania, discussing insights on Tanzania’s entrepreneurial scene and addressing local challenges."></figure><figure class="image"><img></figure>Tanzania has a population of over 67 million people, making it one of the most populous countries in Africa. This vibrant and youthful nation is also one of the continent's fastest-growing economies. ML Kidaha, Renew Capital investment and project manager for Tanzania sheds light on the startup scene in the country, citing that the community-oriented culture of Tanzania, embodied by the Umoja spirit of togetherness, drives the success of the business community.What unique characteristics and advantages does Tanzania's startup scene offer?Tanzania has a lot of untapped opportunities to take advantage of especially since it is under the radar of the global startup community. The country's population of over 67 million people, rapidly growing cities like Dar es Salaam and its strategic location bordered by the Indian Ocean, as well as the vast&nbsp;<a href="https://globalsiasar.org/pt-br/node/249">freshwater</a> resources of Lake Victoria to the north, Lake Tanganyika to the west and Lake Nyasa (Lake Malawi) to the southwest, make it an attractive place to do business. These features also make Tanzania a suitable market to test validation for both product-to-market fit and scalable market opportunities for adaptation across multiple African countries with similar characteristics.&nbsp;Tanzania’s young population is eager to learn and adapt and this contributes to the vibrant, moldable, startup ecosystem we’re seeing. Success in the Tanzanian context is tied to understanding and aligning with the local culture and people. For example, thriving businesses can be found in a wide variety of locations, catering to a wide range of income brackets. Due to Tanzania's background as a socialist state and its community-focused culture, business requires a collaborative, courteous approach. Understanding the local demographics and building partnerships with them is key.&nbsp;Tanzania is known for its safety and peaceful environment, which can provide a secure foundation for startups to operate.&nbsp;What are the most common obstacles that Tanzanian startups face?Funding is a major obstacle for Tanzanian founders as well as the lack of systems to support business growth and help entrepreneurs scale their businesses. Despite ongoing capacity-building efforts, there is a shortage of technical assistance and systems in place to assist entrepreneurs in becoming investor-ready or taking their businesses to the next level. Additionally, there are bureaucratic processes and red tape that can slow down progress.&nbsp;Entrepreneurs often rely on cash injections from friends and family rather than formal institutions to address funding challenges. However, they lack guidance on how to optimize these resources and are not able to use their funds wisely to achieve business growth.&nbsp;In the context of Tanzania's startup ecosystem, what role do young people – and young women in particular – play in shaping the future of the country's entrepreneurship and innovation landscape?The youth, comprising over 60% of Tanzania's population, have a significant role in shaping the economic future of the country. With rapidly growing cities and a tech-savvy mindset, young people are at the forefront of digital adaptation. The increasing number of internet users reflects this positive trend. This shift towards digital adaptation highlights the need for more tech-enabled businesses.&nbsp;Women contribute significantly to nurturing businesses and play a crucial role in decision-making processes. Moreover, with over 50% of the population being women, there will be a growing demand for products and services that cater to their specific needs.&nbsp;Could you please provide us insight into your journey in the investment sector?I majored in finance in the U.S. where I developed a strong interest in the field. I started my career in financial services, focusing on financing small businesses, entrepreneurs and investment properties, especially in commercial real estate. Later, I worked at Goldman Sachs in their private wealth management division. After that, I gained valuable experience in management consulting at one of the Big 4 accounting firms in Tanzania, across various industries. This gave me a comprehensive understanding of the Tanzanian landscape and reinforced my desire to work in investments.&nbsp;

Insights from ML Kidaha, Renew Capital Investment and Project Manager based in Dar es Salaam.

Ecosystems

Tanzania

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How I See My Ecosystem: Tanzania’s Entrepreneurial Scene Tackling Local Challenges

Laura Davis, Co-CEO of Renew Capital, visited Accra for the first time in over 12 years. She shares her experience of one of Africa's bustling metropolises and what has changed since her last visit. We’re hiring in Ghana! Apply for our Investment Ecosystem Development Manager role&nbsp;<a href="https://renewcapital.bamboohr.com/careers/58">here</a>.&nbsp;<h1>Ghana's Entrepreneurial Pulse: My Perspective</h1>Rediscovering Ghana's lively capital city and entrepreneurial landscape&nbsp;Ghana.&nbsp;It was my second time to visit (the last time was more than 12 years ago), and after a few days, I finally started to get a decent feel for the capital, Accra. It’s a sprawling region of 5.4 million according to&nbsp;<a href="https://www.statsghana.gov.gh/regionalpopulation.php?population=MTM0NTk2MjQzOS4yMDE1&amp;&amp;Greater%20Accra&amp;regid=3">Ghana Statistical Service</a> and somehow without much of a bell curve shaping the skyline.&nbsp;The city’s business center seems to have shifted&nbsp;over the years, according to some, from the original city center near the chaotic Makola Market neighborhood to the Airport neighborhood and increasingly towards an area called Cantonments/Labone.<ul><li>Perhaps it's not really that different from many other African capitals where there are various pockets of modernity and innovation, but generally the density of such elements seems to be low.&nbsp;</li></ul><figure class="image"><img src="/uploads/Accra_eed3a4bf74.png" alt="Highlights from an ecotourism trip in Accra, Ghana, showcasing the vibrant startup ecosystem, local culture, and key attractions like Makola Market and Independence Arch."></figure><figure class="image"><img></figure>Our four-year-old Brooklyn says the difference between Ghana and Ethiopia where we’ve been living for almost 12 years, is the lady head porters (called kayayei locally) carrying everything imaginable with unparalleled strength and grace in the sweltering weather. And she currently loves talking about her disappointment with the trash she encountered on the beaches we visited. But of course, there are lots of other things to mention, both good and challenging from my perspective.&nbsp;<ul><li>The start-up scene is fragmented and nascent - There are definitely&nbsp;good things happening in pockets around the city, and good energy, but it’s not a compact ecosystem and there’s a fair amount of congestion and traffic in between these pockets of start-up energy.</li><li>There are lots of eager donors&nbsp;- But not too many massive entrepreneurial successes to point to yet. At least not that many that I heard of.&nbsp;</li><li>The Impact Hub Ghana has a great vibe.&nbsp;It’s located in the Osu neighborhood and has attracted several international companies like Glovo to HQ there.</li><li>The government is prioritizing entrepreneurship&nbsp;with various efforts underway to provide a legal framework for startups and support through various organizations such as the Venture Capital Trust Fund and the&nbsp;<a href="https://neip.gov.gh/">National Entrepreneurship and Innovation Programme (NEIP)</a>, among others.&nbsp;</li></ul>If you have the pleasure of a visit to Accra, Ghana, here are a few tourist recommendations that will give you a sense of the country's great history and vibe<ul><li>The Green Butterfly Market opens every first and third Saturday of the month at the Department of Parks and Gardens and features food and products from local artisans.&nbsp;</li><li>The Ghana National Mosque Complex hosts an impressive replica of Turkey’s Blue Mosque, a gift from the people of Turkey.</li><li>The West Hills Mall,&nbsp;supposedly one of the biggest malls in Accra was honestly a bit low on energy but could be interesting for anyone who wants to take a short drive (on a Sunday) outside the city center.</li><li>Makola Market&nbsp;- Beautiful, colorful, amazing chaos. My takeaway - this country has hustle! Need I say more?&nbsp;</li><li>Independence Arch is a beautiful piece of art that’s part of the&nbsp;<a href="https://visitghana.com/attractions/independence-square-1/">Independence Square</a> which memorializes Ghana’s independence struggle.&nbsp;</li><li>Osu Castle&nbsp;and the fishing villages nearby. Its history as a slave outpost among many others like it in Ghana is beyond hard to swallow, but also part of the story that must be acknowledged.&nbsp;</li><li>Oxford Street&nbsp;- Of course, there’s an “I Love Accra” sign that makes for great pictures, but also the street captures the dynamic hustle of the city’s residents and has plenty of shops and restaurants to enjoy.</li></ul>&nbsp;<div class="raw-html-embed"><div style="text-align: center;">
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</div></div>&nbsp;Overall, looking forward I wish for more success stories in Accra. I see its great potential, and I believe there’s a future for Renew Capital and our Angels in beautiful Ghana. If you are interested in a role with us, we are currently inviting passionate and qualified candidates to apply to join our team as an&nbsp;<a href="https://renewcapital.bamboohr.com/careers/58">Investment Ecosystem Development Manager</a> in Ghana.&nbsp;

If you have the pleasure of a visit to Accra, Ghana, here are a few tourist recommendations that will give you a sense of the country's great history and vibe

Ghana

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Ghana's Entrepreneurial Pulse: My Perspective

<h1>Press Release: Renew Capital Angels Invest in Jamii.one, a Micro Insurance Platform</h1>Supporting solutions to expand financial inclusion across Ethiopia, Renew Capital partners with Jamii.one<a href="https://latest-api.renewcapital.com/uploads/FINAL_Jamii_One_Press_Release_e2a1650a7b.pdf" target="_blank" rel="noopener noreferrer">Download the Full Press Release</a>ADDIS ABABA, Ethiopia, September 28, 2023&nbsp;—&nbsp;Driving towards financial inclusion for communities across Ethiopia, Renew Capital Angels has partnered with Jamii.one, a trailblazer micro-insurance platform for the African landscape.The company has begun services in Ethiopia, where there are few insurance options for rural communities and only 42% of mobile phone owners own smartphones.<figure class="image"><img src="/uploads/unnamed_96ad0f588d.jpg" alt="A happy team photo of Jamii.one members posing together in Addis Ababa, Ethiopia, showcasing their commitment to enhancing financial inclusion through micro-insurance solutions."></figure>Jamii.one’s growth has come from self-organized Ethiopian community groups called "Iddirs" that bring on average around 50 people together making monthly contributions for informal cooperative-like insurance for funerals and other significant life events.&nbsp;More than 30% of Ethiopians participate in Iddir groups, which often face operational difficulties due to manual data tracking and management, preventing them from fully meeting their members' financial needs. Jamii.one provides an app-based data registration tool for Iddirs and connects them to affordable, reliable insurance options. “When we entered the market it didn't take us long to introduce the Iddir community to Jamii.one. After we tailored our product for Iddir and enabled access to affordable group micro life insurance it was amazing to see the power of technology with the power of community,” says <a href="https://www.linkedin.com/in/tigist-bezu-928519158" target="_blank" rel="noopener noreferrer">Tigist Bezu</a>, co-founder.&nbsp;Importantly, the app is designed to accommodate low literacy levels, offline functionality and limited smartphone usage, making it accessible to a wider segment of the population. This initiative aims to enhance financial inclusions across Ethiopia and beyond.

Renew Capital Angels invests in Jamii.one, a micro-insurance platform enhancing financial inclusion in Ethiopia. By leveraging community groups, Jamii.one offers affordable insurance solutions to rural populations, improving access to essential services.

Ethiopia

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Press Release: Renew Capital Angels Invest in Jamii.one, a Micro Insurance Platform

In a significant move to support the growth of Ethiopian exports and reduce the inflation rate, the National Bank of Ethiopia (NBE) has taken a decisive step to amend the foreign currency retention limit.&nbsp;&nbsp;<h1>Ethiopia Doubles Foreign Currency Retention Limit for Exporters</h1>Tracing Policy Evolution and Economic Implications as the National Bank of Ethiopia Made Significant Changes<figure class="image"><img src="/uploads/unnamed_3f52256ebf.jpg" alt="Close-up of Ethiopian Birr banknotes showcasing design and features of Ethiopian currency."></figure>On August 11, 2023, the National Bank of Ethiopia (NBE) announced an amendment to&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2023/04/fxd-79-2022.pdf" target="_blank" rel="noopener noreferrer">Directive No. FXD/79/2022&nbsp;</a> governing the Retention and Utilization of Export Earnings and Inward Remittances (the “Amended Directive”). This amendment was effected via the Directive for Amendment of the Retention and Utilization of Export Earning and Inward Remittance&nbsp;<a href="https://nbe.gov.et/wp-content/uploads/2023/09/fxd-84-23.pdf" target="_blank" rel="noopener noreferrer">Directive No. FXD/84/2023</a> (the “New Directive”). The New Directive effectively doubles the percentage of foreign currency that exporters are permitted to retain from their forex earnings. In the official announcement, the Governor of the National Bank highlighted that this move is geared toward alleviating Ethiopia's inflation rate, which had surged past 30% during the previous two years, before registering a slight decline to&nbsp;<a href="https://tradingeconomics.com/ethiopia/inflation-cpi#:~:text=The%20annual%20inflation%20rate%20in%20Ethiopia%20eased%20for%20a%20third,slowed%20for%20almost%20all%20components.">28.8% in August 2023</a>.&nbsp;&nbsp;The announcement that came last month from the NBE permits exporters to retain 40% of their export proceeds in foreign currency, twice the amount allowed under the Amended Directive. However, the retention amount for inward remittances remains unchanged at 20%. The New Directive could encourage exports by introducing positive incentives.&nbsp;<h2 style="text-align:justify;">Tracing the Evolution</h2>The journey towards allowing exporters to retain their forex proceeds found its origins in August 1996, when NBE introduced Directive No. FXD/02/1996:Directive No. FXD/02/1996:<ul><li>Granted exporters the privilege of retaining a designated portion of their export proceeds in foreign currency.</li><li>First round of amendments in October 1996 focused on expanding the permissible amount of foreign currency (FCY) retention.</li></ul>Directive FXD/11/1998:<ul><li>Allowed exporters to retain 100% of their export earnings.</li><li>Distributed it between accounts A and B in a 10:90 ratio.</li><li>Account A: exporters were allowed to retain 10% of the FCY for an unlimited period of time.</li><li>Account B: exporters retained 90% of the FCY for 28 days, after which it would automatically convert to the local currency.</li></ul>Directive No. FXD/48/2017:<ul><li>Adjusted the FCY retention ratios to a 30:70 distribution across the two accounts.</li><li>Account A: exporters were allowed to retain 30% of the FCY for an unlimited period of time.</li><li>Account B: exporters retained 70% of the FCY for 28 days, after which it would automatically convert to the local currency.</li></ul>Policy adjustment in 2021:<ul><li>Retained FCY amount for exporters increased to 45%.</li><li>Retention accounts A and B were combined into one account with no imposed time frame for conversion.</li></ul>Directive No. FXD/79/2022:<ul><li>Implemented due to an urgent need for currency stability.</li><li>Required businesses to surrender 80% of their forex earnings.</li><li>The surrendered amount was automatically converted into Ethiopian Birr.</li><li>This marked a more stringent turn in the policy evolution.</li></ul><h2 style="text-align:justify;">Possible Economic Implications</h2>While assessing the impact of the most recent directive, it's essential to consider two potential outcomes. On the one hand, the directive introduces positive incentives to encourage exports. The Amended Directive, which required exporters from various industries, including meat processing, grain, coffee, sesame, and leather, to surrender up to 80% of their foreign currency earnings, has been a major concern. As a result, export earnings are on the decline, with&nbsp;<a href="https://www.thereporterethiopia.com/35709/">coffee exports</a>, for instance, dropping by nearly $80M USD since 2022. Furthermore, the&nbsp;<a href="https://www.thereporterethiopia.com/35235/">leather industry,</a> where the high cost of chemical inputs, driven by limited foreign currency access, has escalated production expenses, is also suffering. This has resulted in reduced production capacity, factory closures, and job losses, impacting not only individual producers but also the broader Ethiopian economy.On the other hand, another consequence of the new directive could involve concerns about a reduction in the government's concentration of FCY, which could be mitigated through strategic measures. For instance, ensuring that exporters actively participate in the FCY market by legally providing FCY to importers and businesses would alleviate the burden on the National Bank. Attracting increased Foreign Direct Investment (FDI) through a robust legal framework and favorable business conditions can also counter any potential decrease in the government's foreign currency holdings. Lastly, ensuring government-owned enterprises like Ethiopian Airlines can contribute more effectively to foreign exchange reserves could be another way to reduce the impact.&nbsp;

On August 11, 2023, the National Bank of Ethiopia (NBE) announced an amendment to Directive No. FXD/79/2022  governing the Retention and Utilization of Export Earnings and Inward Remittances (the “Amended Directive”).