IMPACT REPORT

2015

2Impact Report2015

Indicator As of Dec. 31, 2015

First close July, 2013

Total investments under management 7

Average investment size ~ $500,000

Sectors Fast-Moving Consumer Goods (4), Textiles (1), Healthcare (1), Technology (1)

Market focus Domestic only (2), Export “also” (5)

IAN membership 72 Families

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2015

Table of Contents

VisionRENEW’s vision is for Africa to become an economic powerhouse in the world through a thriving private sector. RENEW will have achieved our vision when thousands of Impact Angel Network members and their families have invested in hundreds of companies across the continent of Africa.

02The Numbers

05A Force of Innovationin Ethiopian Coffee

07Ethiopia and theEntrepreneurial Dream03Baking Injera and

Creating Impact in Ethiopia

06Innovation, One Ambulance Ride at a Time

0809

Participating in Ethiopia’s Burgeoning Textile Industry

The Team and IAN Advisory Board

04Creating a BrighterFuture for Ethiopia

About RENEWRENEW is an investment firm that manages and serves the Impact Angel Network (IAN). We seek to make both social impact and financial returns on our investments in Africa. We believe the best way to help developing countries is by investing in the private sector. We believe that Africa has attractive growth potential. We believe that through professional, in-country management, we can find, vet, invest in, and grow companies to achieve attractive financial returns and create sustainable, positive impact.

About the Impact Angel NetworkThe Impact Angel Network is currently the most active private equity investor in Ethiopia, and is the largest North American-based angel network for Africa.

2Impact Report2015

Indicator As of Dec. 31, 2015

Total jobs supported by portfolio 1,161

Total jobs created post-investment 483

Smallholder farmers supported 3,800

Indicator As of Dec. 31, 2015

Total annual sales for 2015 7.6 M USD

2015 sales growth 270%

2015 profit growth 36%

Exits 0

Additonal capital invested in portfolio post-IAN 10.6 M USD

The NumbersWe believe the best way to empower developing countries is through private enterprise and job creation, not charity. The growth potential of good businesses in developing countries is staggering – just look at the following financial and impact metrics, which are a direct result of the Impact Angel Network’s investments in Ethiopia. In the following tables, we present the financial and social impact created by the IAN’s portfolio.

Note: The numbers provided above are provisional.

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Injera baking is considered “women’s work” in Ethiopia because female family members do most household baking, so Mama Fresh has had the opportunity to provide work as injera bakers for many underprivileged women in Addis Ababa. This past year, RENEW was able to speak with one of Mama Fresh’s diligent and hard-working injera bakers, Belaynesh.

How has Mama Fresh impacted your life?Before joining Mama Fresh I used to work at a carpet-manufacturing factory as an operator. While I was working there, I had my first child, but this didn’t make my bosses happy so they let me go. I started looking for another job. That is when I heard about Mama Fresh from one of my relatives. Working at Mama Fresh has made my life stable, so I can raise my child. He is now seven years old and in first grade. The management team is very understanding, they are good people, and I feel like they are my family. They help me out when I have money problems by lending me money to pay for my child’s school.

Your reputation is that you are one of the most productive injera bakers in the company. How did you come to be so skilled?I have been baking injera since I was a child, so it came from experience. And the incentive given to us if we bake more injera is good. Currently the quota is to bake 350 injera per shift, but on a good day I usually bake from 450 to 600 injera per day, using four to five metads [ovens]. Once I get in the facility I am very focused, I just want to bake injera.

Has your job at Mama Fresh made you feel empowered as a woman?Yes, I earn my own money and raise my child so it has made me feel empowered as a woman. Since I am a single mother, I am required to support my child and his needs.

How does Mama Fresh injera compare to the injera you make at home, or you grew up eating?Mama Fresh injera compared to the injera I make at home is much healthier because it is made from pure teff. I usually

mix other grains with teff to make injera at home and so do other households. The process here is also much cleaner; the workers are very efficient and the baking is much more modernized than making injera at home. Overall, the production process is safe, clean and the dough processing is different from what I do at home. Besides, the teff Mama Fresh uses is quality teff and not mixed with other grains - I know because the teff is ground here at the facility - I prefer eating Mama Fresh injera than any other injera, even from what I make at home.

Baking Injera andCreating Impact in Ethiopia

Mama Fresh is Ethiopia’s largest commercial manufacturer and exporter of fresh-baked injera. The Impact Angel Network’s investment in Mama Fresh in January 2014 helped finance their new manufacturing facility and is helping Mama Fresh increase its production capacity, create jobs and explore new market opportunities.

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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 to build capacity to manufacture smart meters in Ethiopia. By pursuing this focus today, electrical engineers like Abisa Girma Yigezu are helping to ensure a brighter and cleaner future for generations to come. Abisa spoke to us recently about his life and work at dVentus.

When you were a child, what did you dream of doing?I liked making things as a child. I was a 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 like studying both mechanical and electrical engineering design.

How did you become an engineer?In Ethiopia, the Ministry of Education (MoE) assigns students to various universities

after they graduate high school. 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.

Tell us what you like about working 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 personally think dVentus will positively impact Ethiopia?

Definitely. I see more solutions and things that can be done in Ethiopia. There are many untapped opportunities in the energy sector. In the years coming, I see myself working on new products, involving in manufacturing products at dVentus. I would like to learn more about clean energy and do more at dVentus.

Creating aBrighter Future for Ethiopia

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.

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Altogether, METAD employs 39 permanent staff and up to 400 seasonal staff during harvest, 70% or more of which are women, and has worked with around 3,500 out growers to provide best practices on growing, harvesting and selling coffee. One of METAD’s employees, quality manager Solomon Teklemariam, recently shared about his work at METAD.

What is METAD’s outlook on Ethiopian coffee? METAD aims to provide geographically traceable, specialty coffee for customers. Any customer looking to see the origin of the coffee can easily track its origins from seed to cup. Quality and traceability are two important components of coffee processing that METAD is pioneering in Ethiopia. The company aims to serve the world the best quality Ethiopian coffee, which helps METAD obtain its organic coffee certification and helps the farmers that the company buys from receive a premium price for their crop.

What kind of social impact has METAD created?METAD has provided various trainings for the farmers in the

Hambela and Gedeb area, where both METAD’s farms are located. The farmers also benefit from the out growers program as they will get premium prices for their coffee due to the company’s organic certifications. METAD also supports the farmers and their families by building schools and providing learning equipment for them, building community center and providing clean water for the farmers.

Have you tried METAD coffee, and if so what do you think?I only drink METAD coffee - both at the farm and at the office. It is one of the best coffees in Ethiopia and this is one of the reasons I joined the company. METAD provides a high quality coffee, and in my opinion as a cupper, has a unique future and is ranked above 90% for specialty coffee - especially the coffee from Hambela.

How has your position at METAD inspired you?It has inspired me to be one of the best coffee quality graders in Ethiopia. I believe working at METAD is a good opportunity for me because it is one of the top coffee producing companies in

the country. I want to be a well-known coffee cupper and quality grader in Ethiopia. I want to improve my skills in agronomy, coffee trade and the overall process from seed to cup. I also want to improve economically, to provide a better life for my family and myself. This all depends on the performance of METAD, which I plan to contribute my best effort to.

A Force of Innovationin Ethiopian Coffee

The IAN closed their second investment into METAD, an Ethiopian specialty coffee company, in October 2013. Seventy-five kilometers beyond Yirgacheffe, deep in the heart of some of Ethiopia’s best coffee country, METAD’s 200 hectare Hambela farm includes a washing station, dry mill, beds for sun drying, a large warehouse and guest bungalows.

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Haile Aseged, one of the emergency medical nurses from Tebita, recently sat down with the RENEW team to talk about how TEBITA and EAES are transforming Ethiopia’s healthcare industry.

What is the company trying to achieve?I believe TEBITA is making enormous changes to the healthcare industry in Ethiopia. It is known that Ethiopia is one of the countries with the highest rate of car accidents and deaths associated with accidents. TEBITA is revolutionizing the healthcare industry by addressing the service gap that occurs between the scene of an accident and the hospital, and minimizing death rates in the process.

What kind of social impact has TEBITA and EAES created?Every paramedic at TEBITA has life-saving equipment. In addition to the emergency care services we give to clients, we also give services to elderly citizens traveling to hospitals regularly; we transport them in a safe way. These services were not available before TEBITA,

so this has positively impacted individuals needing such services. We see the impact everyday, we hear people’s feedback, and it is encouraging us to do more. We have changed the whole picture of the industry.

How has working for TEBITA changed your life?I love what I do; I see the impact on people everyday. This gives me mental satisfaction to know I have saved someone’s life, even more than the money I get. Even financially, working at TEBITA has improved my life so much. And while my family does not like that I am busy all the time, they can always see the pleasure I get from doing what I do. They also understand that I do not want to disappoint my patients. Seeing me happy doing my job makes them very happy. My son even talks about TEBITA at home and gets very excited when he hears the ambulance siren.

Where do you see yourself in the future?In the next 5 to 10 years, I see myself helping to grow TEBITA as a company. Because I am involved in the core business of the company, I feel like an

owner of the company. Our company has plans to expand to air ambulance services, and growing the company from an emergency care provider in just Ethiopia to other East Africa countries. I dream of having dispatch centers all over Ethiopia to reach patients quickly, and growing our services in the region in the long term.

Innovation, One Ambulance Ride at a Time

Members of RENEW’s Impact Angel Network closed an investment in May 2015 into East Africa Emergency Services LTD (EAES). The company will work in partnership with local firms such as Tebita Ambulance and Pre-Hospital Emergency Medical Service PLC, the first private sector ambulance company in Ethiopia.

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Isaias Lemma is the entrepreneur behind the Sadura Food Processing Plant PLC. He was born in Addis Ababa and has lived in the city, except for a brief interlude in London during his college years. Isaias sat down with RENEW to talk about how his experiences and education have inspired him to pursue his dreams of running his own business in Ethiopia.

When you were a child, what did you dream of doing for work or as a career?As a child, I was always guided to follow the conventional career routes (like doctor, engineer, etc.) However, I was always fascinated by the entrepreneurial history of my grandfather and the transformation of my parents (particularly my mother) from professionals to business people. The accomplishments gained from creating a business from inception to fruition, the creation of job opportunities at different ranges and the freedom to make my own decisions are the main reasons I wanted to pursue entrepreneurship.

What is the background of your family’s company?

The Twins PLC started as a small business and has grown into a medium-sized business consortium in Ethiopia. It started with a small children’s shop and had expanded into the supermarket business, import and distribution, and now has a paper production factory. Our steady growth in the business environment has helped us become a successful production and distribution business here in Ethiopia, with a significant market share in our selected business sectors.

What inspired you to go out and create an entirely new business venture?It is evident that Ethiopia is one of the fastest-growing economies in Africa and that growth is creating a society with increasing disposable income. The manufacturing business environment here is at an infant stage and most products are imported. Thus, I am constantly inspired to create quality products that add value to raw materials available here and reduce the dependency on imported goods. Additionally, I believe we can create jobs for the youth and directly contribute

to the growth of the nation.

What do you hope to accomplish in partnering with RENEW’s Impact Angel Network?By partnering with the IAN, we hope to grow our business and accomplish our goal of becoming one of the leading fast-moving consumer goods companies in Ethiopia. We also seek to vertically integrate into the supply chain to source our own raw materials through local farms, diversify into other products beyond the food and beverage industry sector, achieve major market share with our products, and export our products to neighboring African countries. With our experience in the local business environment and IAN’s support we believe we will accomplish these goals.

Members of the Impact Angel Network closed an investment in the food and beverage industry in Ethiopia in October 2015. The investment is in partnership with a leading producer of paper products in Ethiopia.

Ethiopia and the Entrepreneurial Dream

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Desta, a family-owned business established in 1992, produces and exports fabric and garments and provides cut-and-sew, knitting and embroidery services to domestic and international clients.

The IAN anticipates that the investment in Desta will create significant social impact in Ethiopia by adding more than 100 jobs to the local economy and supporting several hundred existing jobs, many for women, and will positively impact the burgeoning textile sector in Ethiopia. Desta is also committed to fair treatment of its employees and adherence to guiding principles of sustainability, setting it apart from the trajectory this industry has taken in many

other low and middle-income countries.

Although the first textile mill in Ethiopia was established nearly 80 years ago, the textile sector has been one of the country’s least developed industries. Up until recently, contribution of textile income to the country’s GDP was insignificant. However, with Ethiopia’s growing eligible workforce and the need for the creation of jobs, the government of Ethiopia has taken steps to promote investment in this sector and has created various incentives to encourage investment in textiles.

Ethiopia rapidly is becoming an attractive location for textile manufacturing on account

of competitive labor costs, government incentives, low energy costs, and other factors.Companies such as H&M, Tesco, Gap, Belk, and Wal-Mart, among others, are now sourcing textile products from the country.

This is the IAN’s seventh investment in East Africa.

Participating in Ethiopia’sBurgeoning Textile Industry

RENEW’s Impact Angel Network closed an investment in Desta PLC (Desta), a textile and apparel manufacturing company located in Addis Ababa, Ethiopia in December 2015.

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Alan Gardner, Charlotte, North CarolinaAndrew Umhau, M.D., Chevy Chase, MarylandDavid Grizzle, Washington, District of Columbia

Jeff and Donna Turi, Wilmington, DelawareJodi Morris, San Francisco, California Beth and Joel Marquette, Minneapolis, Minnesota

The Team

IAN Advisory Board

Matthew DavisPartner

Laura DavisPartner

Tom ScrivenPartner and Chief Counsel

Biruk AbaynehPortfolio Analyst

Berkessa BehailuFinancial Analyst

Lulit NegashPortfolio Analyst

Emily ZiethenInvestor Relations Manager

Bethlehem BogaleFinancial Analyst

Justin ReesorOperations Manager

Special thanks to members of the IAN for believing in the vision and investing with us; our entrepreneurs and their staff for their hard work and perseverance; our development partners for their support to make this investment model possible; and the RENEW team for their hard work on the ground and around the world.

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