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AF RICAN ENTREPRENEUR COLLECTI VE ANNUAL REPORT 2016: A YEAR OF INCLUSIVE GROWTH


We support Rwandan entrepreneurs to transform their dreams into reality and create positive impact in their communities. Sabrina Mutangana, AEC


CONTENTS LETTER FROM THE FOUNDERS

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WHAT WE DO

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MADE IN RWANDA

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A HEALTHIER TANZANIA

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WHAT’S NEXT FOR AEC

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REFUGEES TAILOR NEW BEGINNINGS13 SOLID BUSINESS BLOCKS

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2016 FINANCIALS

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AEC PARTNERS AND FRIENDS

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AEC’S IMPACT

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LETTER FROM THE FOUNDERS

A YEAR OF INCLUSIVE GROWTH As a continent, Africa is often talked about in terms of scarcity rather than inclusion. The prevailing belief is that there isn’t enough food to feed the people. There isn’t enough money to build more schools. There isn’t enough medicine to care for the sick. Conflicts on the continent - and across the globe - stem from the notion of scarcity. If one group has, another group has less.

provide for its people. However, Rwanda is demonstrating to the world that the people of the country are the most important resources. The country has said to its people, “because we have you, we have enough.” And as a result, it has opened its borders to refugees and returnees, and invests deeply in to people as its greatest resource. At AEC, one of our core values is that “people are the source of all great things”. From construction companies in Rwanda to bee-keeping cooperatives in rural Tanzania, AEC is honored to work with these people to help econ­ omies and communities grow.

But for AEC, we have another approach: One of inclusive growth. Rwanda’s development is remarkable: from Genocide in 1994; to top tier rankings by the World Bank in 2016 for ease of doing business, gender equality, safety, and global competitiveness. What makes this progression even more powerful is that Rwanda has grown while including all.

From supporting an entrepreneur who sells her high-end fashion in the new Marriott Hotel, to providing loans to tailors that create clothes in refugee camps, AEC works across the spectrum of entrepreneurship.

Rwanda is a tiny and landlocked country; a net-importer of food with few natural resources and a struggle to

This is inclusive growth.

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As you will read in the following report, AEC entrepreneurs have created 2,672 jobs for their communities since joining our program, and have created great social impact through their businesses. Entrepreneurs in Rwanda and Tanzania, including Burundian and Congolese refugees living there, are leading their countries in technology development, education reform, and agricultural production.

- and partners who believe in AEC’s model - we are creating space for everyone to succeed, believing nobody should be left behind. Thank you for allowing us to include you in our own organizational growth - we couldn’t do it without you.

2016 was a milestone year for AEC. In January, we laun­ ched a second accelerator program near Mt. Kilimanjaro with our Tanzanian affiliate, Anza, serving 35 entrepreneurs in our first year. In June, we piloted a partnership with the UN’s Refugee Agency, UNHCR to work with 400 refugee entrepreneurs. And in Rwanda we grew to 30 staff to reach hundreds of entrepreneurs in 2017. Inclusive growth advances equitable economic opportunities for every section of society, and through our work

Julienne Oyler and Sara Leedom

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We can see how our clients develop a strong sense of strategy during their time with us. Osman Senyonjo, AEC

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WHAT WE DO

DEVELOP ENTREPRENEUR CAPACITY

PROVIDE LONG TERM SUPPORT CONNECT TO GLOBAL MARKETS AND MENTORS

FOCUS ON LOCAL ENTREPRENEURS

OFFER DIRECT ACCESS TO AFFORDABLE CAPITAL

Supporting small and growing busi­ nesses with high potential in Rwanda

AEC is a network of business development service providers and financing funds. Through our two core programs, Inkomoko and ANZA, AEC supports local entrepreneurs to grow

Supporting social enterprises in northern Tanzania

their businesses and create jobs. 5


MADE IN RWANDA

SONIA MUGABO Sonia Mugabo is the woman behind the popular high-end fashion brand under her own name. Today, she has two shops, two full-time employees, and 20 tailors producing her designs. Sonia was recently named by Forbes Magazine as one of the 30 most pro­ mising young African entrepreneurs in her quest to transform local artisan talent into a global brand. AEC worked with Sonia on her operations and finances to ensure that the sales forecast is as organized as her shop display.

“I started this alone with just one tailor.

“You can’t do everything yourself. Inkomoko has helped me create an organizational track, which allows me to be able to focus on the creative part.”

Now my team is growing as demand is growing, and I needed help from Inkomoko to create a structure and set goals. It’s been very important for my growth – it helped me make people aware of my brand.” In 2016, Sonia Mugabo opened her second shop in the 5-star Kigali Marriott Hotel, and her growing customer base is from all corners of the world.

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A HEALTHIER TANZANIA JOHN MUGO MICRO HEALTH INITIATIVE 93% of people in Tanzania can’t afford health insurance. John Mugo is bridging that gap with his company Micro Health Initiative, offering low-cost health insurance to low and middle income families across Tanzania. For his business to grow, John needed help setting up a clear business plan, accounting systems and efficient marketing strategies. Today, John now has over 5,700 people signed up for his services. “Through our mentorship sessions with Anza, we have been able to develop additional products to suit gaps that we did not realize existed, such as medical insurance specific­ ally for girls.”

During his contract with Anza, John’s revenue increased 17 percent, he signed up over 2,800 new clients, and doubled the number of employees today he has 10 people on the payroll.

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“We have been able to interact with several potential partners, we have increased the number of clients, we have earned credibility.“

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WHAT’S NEXT FOR AEC FINANCIAL TOOLS FOR REFUGEE ENTREPRENEURS In 2017, we are significantly upscaling our support to refugee entrepreneurs in Rwanda through the provision of new finance tools and resources. With support from Mastercard and UNHCR, AEC will work with 800 entrepreneurs in three refugee camps and in urban areas to ensure that refugees are able to leverage UNHCR’s cash transfer program for maximum independence.

LIGHTBULB INITIATIVE In collaboration with Bank of Kigali, Inkomoko is identifying and supporting entrepreneurs who use technology to create lasting social impact. The Urumuri (or Lightbulb) initiative offers seven months of business incubation and mentorship from Inkomoko for up to 50 entrepreneurs. The strongest candidates will have access to $100,000 USD in interest-free loans from Bank of Kigali.

SPRING SPRING Accelerator’s 2017 cohort includes 19 businesses across East Africa working to create positive products and services for adolescent girls. Now in our second year of partnership with DFID, USAID, and Nike Foundation to support the SPRING Accelerator, AEC will work with eight Tanzanian and Rwanda companies to create sustainable and lasting impact for adolescent girls.

TANZANIAN EXPANSION THROUGH MICRO-SITES After a successful launch in Tanzania in 2016, AEC’s affi­ liate will be expanding across the country, starting with two “microsites.” In 2017, the Anza accelerator and a new finance fund will reach social enterprises in Moshi, Arusha, and Dar es Salaam.

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I share AEC’s belief that people are the source of all great things. To solve the challenges of youth unemployment across Africa, we need to do more than just hope, and AEC puts beliefs into action by supporting entrepreneurs that would otherwise be overlooked.� - Marion Ntiru, AEC Board Member

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With the right enabling environment, refugees have the capacity to not only support themselves, but to contribute to a vibrant economy - both inside camps and in the host communities. We’ve engaged AEC to cultivate refugee entrepreneur­ ship because we believe in AEC’s model and the power of entrepreneurship to create jobs for refugees and Rwandans alike. - Jakob Oster, UNHCR Rwanda Livelihoods Officer

“We were not used to figures – we were just spending as we earned. Now we know the progress of our business.”

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REFUGEES TAILOR NEW BEGINNINGS ANNONCIATE MUKAMUNANA TWISUNGANE TAILORING COOPERATIVE In 2016, AEC launched a program to supp­ ort the livelihoods of refugee entrepreneurs living in Rwanda. In our pilot, we trained and supported more than 400 urban and camp refugees from Burundi and Democratic Republic of Congo. Gihembe Refugee Camp in the North of Rwanda is home to nearly 12,700 Congolese refugees. Annonciate Mukamunana is one of them. Together with two partners, Annonciate runs a tailoring business in the camp. All three tailors are living with disabilities, and they joined forces to show that a disability is not a hindrance to running a business. Hundreds of residents in Gihembe Camp are being resettled to the United States each year, and many of Annonciate’s customers are women wanting to bring nice, new clothes with them overseas. Annonciate and her associates received a $200 loan from AEC, enabling them to build a stock and prepare for large orders. Soon they hope to be able to buy bigger and better machines. “Inkomoko trained us to manage our cash flow and keep financial reports. It’s not like before. We were not used to figures – we were just spending as we earned. Now we know the progress of our business.”

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“I know my trade, but I struggle with the admin side. Inkomoko helped me improve my business and develop a growth plan.“

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SOLID BUSINESS BLOCKS EMMANUEL TUYISENGE TEMACO BUILDERS Lack of capital and market meant a year without producing a single brick when Emmanuel Tuyisenge first started his concrete business. Today he has 13 per­ manent staff and 25 casual workers in several workshops across Rwanda. “When I joined Inkomoko, I was facing challenges managing my finances and in need of professional guidance. Inkomoko helped me improve my business and develop a growth plan. They supported me with financial reporting, enabling me to map my expenses and track my profit.”

Emmanuel received a loan from AEC’s fund, allowing him to focus on growing his venture through bigger contracts, investments and partnerships. Emmanuel expects big growth for Temaco. He is purchasing land for a factory, buying new and better machines, and is preparing to expand into more countries in the region.

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2016 FINANCIALS INCOME

USD

Ordinary Income Grants & Foundations Individual Donors Earned Income

$773,245 $40,519

Interest Income - Lease Program Total Ordinary Income Other Income Rental Income

$136,451 $4,492 $954,707

Exchange Gain/Bank Interest Total Other Income

$10,512 $10,984 $21,496

TOTAL INCOME

$976,203

EXPENSE

USD

Ordinary Expense Staffing Expense Salaries & Benefits Staff Development

$419,312

Consultants Total Staffing Expense

$2,811 $10,993 $433,116

Programmatic Expense Client Supports & Training Mentor Program & Guest House Capital Lease Expenses Program Expansion Costs Total Programmatic Expenses

$24,877 $25,400 $18,473 $11,230 $79,980

Administration and Fundraising Office Expenses Travel & Conferences Legal & Accounting Bank Fees & Exchanges Marketing & Communications Rwanda Administrative Taxes Total Admin & Fundraising

$24,435 $7,115 $3,696 $3,615 $3,711 $8,145 $50,717

Capital Expenses Repairs and Maintenance Total Capital Expenses

$861 $861

TOTAL EXPENSES

$564,674

FY END NET (CARRYOVER TO 2017)

$411,529

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AEC PARTNERS AND FRIENDS FOUNDATIONS & INSTITUTIONS

STAFF & CONSULTANTS

Anonymous Donor of Silicon Valley Community Foundation Bank of Kigali David Weekley Family Foundation Echoing Green Global Giving UK The HAND Foundation Imago Dei Fund Imbuto Foundation Kiva

Olive Ashimwe,

Priscilla Natukunda,

Patrick Cyusa,

Fabrice Ndayisaba,

Deo Gakuba,

Joss Ndikubwayo,

Valens Habumuremyi,

Abdoul Ngirabakumza,

Ashley Hollister,

Felix Niyitegeka,

Lydia Irambona,

Nathalie Niyonzima,

David Karuranga,

Jean Claude Nkusi,

Sara Leedom, COO

Eric Nshimiyimana,

Mastercard Center for Inclusive Growth Nike Foundation Rwanda Hope Foundation Salesforce Foundation Segal Family Foundation Skees Family Foundation L&R Uechritz Foundation UK Dept for International Development UNHCR

Program Director Accounting Manager Security

M&E Manager

Director of Special Projects

BOARD OF DIRECTORS Maria Brewer Palma, Chair Meredith Bates, Vice Chair Francis Gatare Cher Jacques

Client Relationship Manager

Marion Ntiru Tom Ryan, Treasurer Julie Taft Magatte Wade

INVESTMENT COUNCIL

Program Manager

Business Development Manager Business Development Associate Training Associate House Manager

Business Development Associate Director of Finance and Operations Creative Director

Claude Mazimpaka,

Business Development Associate

Johanne Møller,

Business Development Associate

Communications Manager

Julienne Oyler, CEO

Grace Mugabekazi,

Jeff Pilisuk,

Alphonse Mugisha,

Alberto Rodriguez Garcia,

Emery Musonera,

Osman Senyonjo,

Portfolio Manager

SPRING Director

Xavier Nshimiyimana,

Inkomoko Managing Director

Michelle Brauner,

Chris Durbin,

Carolyn Cambpell,

Paul Kaboub,

Harrison Chilton,

Tom Ryan,

Sabrina Mutangana,

Henri Tuzinde,

Alex Darden,

Irene Wang,

Cynthia Nahayo,

Agnes Uzarerwa,

Ares Management LLC Emerging Capital Partners Advent International EQT Partners

Vestar Capital Partners Old Ironsides Energy Century Equity Partners Falcon Investments

Lease Officer Lease Officer

Office Manager

Training Associate

PARTNERS ADA Microfinance African Leadership Network Akilah Institute AgriProFocus Anza Bank of Kigali Belay Global, Duhugurane Captured Once Photography Echoing Green Direct Impact ESSEC University Fletcher School at Tufts University Frontier Market Scouts

Portfolio Consultant

Business Development Manager Business Analyst

Director of Client Services

MENTORS Global Alliance for Improved Nutrition (GAIN) Gong Communications GrowthAfrica HEC Paris ImpactHub Kigali Intellecap & Sankalp Forum Junior Chamber International, Rwanda Chapter Kepler University nFriends Opportunity International Palladium (GRM) Private Sector Federation

Run Rwanda Rwanda Development Board Rwanda Trading Company Rwanda Workforce Development Agency Strategic Good UK High Commission of Rwanda University of Rwanda Volunteer Services Overseas (Tanzania) The Wharton School, University of Pennsylvania

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Jessa Coleman Matteo De Vos Matt Edward Ran Fan Shelia Fernandez Alexandra Gamboa Dwerryhouse Mayato Hattori Connie Jao Maggie Kellogg Heena Khatari Guillaume Leroy Amy Letourneau Timothy Minch Sarah Nicolas Joe Thornton Charles Wangoe


FRIENDS OF AEC Susan Ainsworth Antony Allard Charlie Allen Eric Anderson Anna Applebaum John and Cathy Ayliffe Amilcar Barrientos Meredith Bates Brooke Battles Ed and Alexis Bayley Molly Bennet Kauffman Deepa Bhupali Shymaa Binbrek Lara Bjork and Damon Jansen Anders Bjerg Pedersen Courtney Blodgett Laura-Ashley Boden Alice Bosley Michelle Brauner Rachel Breaux Peter Brown Alice Ohgi Brumley Cherie Carter Christopher Chan Jehan and Seth Chase Harrison Chilton Andreas Christensen Aubrey Chung and Mario Garcia M Karna Cohen Melanie Cole Emma Concepcion Galvez Troels Damgaard Tanya Das and Genevieve Ward Elizabeth and Alvaro De Valasco Rebecca del Monte Frances DeLuca Cydnee DeToy Madeleine Douglas Christopher Durbin Carrie Ellett Julia Fan Li Jonathan Filbey Brandy and Sean Flaherty Georgina Fleming Liza Fuchslin Brian Gadsden Diana Garcia Sally Garratt Marieve Gauthier Susan Getty Zanna Gilbert Marla Gitterman John and Martha Goldingay Beth Goldman Nadia Gomes Rebecca Gould

Samantha Grosby Cate Gunn John Gunn Kris and Charles Harb Bill Hase Molly and Andy Honig Cher Jacques Geraldine Gaeta and Jonathan Paine Gil Gaeta and John Howat Emily Jones Paul Kaboub David Kaczorowski Alex Krasavin and Karin Berry Leah Karlins Shipra Kayan David Martin Kayondo Molly Kelly and Marisa Uchin Diane Kelso Anne Kenny Mary Kay Koon Matt Koschak and Teresa Engebretson Kamir Kothari Caroline Kronley Herve Kubwimana Abby and Glen Kushner Youna Kwak and Munro Galloway Rick Kwan Michelle Lee Kris and Jerry Leedom Sara Leedom Camilla Leikvoll Heather LeMunyon Amy Letourneau Brandon Linton Kari Litzmann Lindsay Long Katherine Lorenz Colin Maclaughlin Srinivas Madipalli Alyshia Mangalji

Helen Marshall Dominic Masters Dick Matzinger and Elizabeth Shypertt Rebecca Maybury Duncan McKinlay Mohit Mehta and Kanika Tharpar Margaret Minnick Kerrin Mitchell Katie Miura Zara and Kelsey Morgan Morgan Motzel Meghan Murphy Lorrianne Nault Jennifer Ng Arianne Nichol Sarah Nicholas Marion Ntiru Nobuko Ohgi Joyce Ohgi Joe Orsinger Nancy and Duane Oyler Julienne Oyler Tad Oyler Sachin and Holly Pai Maria Brewer Palmer Charles Parrish Mary Patton Davis Jennifer Petersen Harry Prytherch Aysha Rajput Kiran Ramineni Jens Rasmussen Jon Rayner Eve Reaven Elizabeth Ricardo Logan Ritter Jose Rivera Lluberas Mary Roach Delilah Rothenberg Amy Roza Chrystina Russell Tom Ryan

Megan Ryan Rishi Sahgal James Sarria Cynthia Schoomaker Grace Ohgi Seng Nupur Sharma Darin Simmons Jr Shawna and Grant Sisler Jessica Smith Vanessa Smith Chiara Spector-Naranjo Kiesha Stephens Catherine Stoney Katie and Dermot Stratton Marni Sweetland Julie Taft Caylee Talpert Janice Talpert Nicholas Tanis Fumi Tataki Sarah Teacher Stephanie Telling Dan Tennery-Spaulding Joseph Thornton Diana To Ha To Linda Ann Tran Charlene Truong Ho Michele Tsuda-Yun Andreas Valakais Magatte Wade Jennifer Walker Kelli Washington William Wiley Carol Wilkins Thomas Williamson Niels Woo-Sang Kjiersgaard Richard Wood and Cathy Silvey Frances Wood and William Graves Kara and Matt Wood Mela and Nate Wood Kevin Wu Rebecca Youngs and Jai Vaze

The Mastercard Center for Inclusive Growth is partnering with AEC to unlock the economic potential of thousands of entre­ preneurs in East Africa. By working together to connect people with financial tools and knowledge to grow their business, we are helping continue a cycle of equitable economic growth that advances the lives of their families and communities. - Leslie Meek-Wohl, Director, Mastercard Center for Inclusive Growth

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We love working with AEC because they reach entrepreneurs with a unique combination of busi­ ness development services and affordable finan­ cial services. We believe in the impact of AEC’s approach and wish there were more organizations out there like AEC. - Kathy Guis, Kiva Regional Director for Africa

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AEC’S IMPACT 2,672

231

JOBS CREATED

ENTREPRENEURS TOTAL

84%

565

ENTREPRENEUR RETENTION

FULL TIME

25 %

% 75

RU

RA

L

80%

979 U R BAN

BUSINESS SURVIVAL RATE

PART TIME

1,128 CASUAL

13,430 CONSULTING HOURS

$547,023

60

DIRECT INVESTMENT

96.3%

36

BORROWERS

46

LOANS

MENTORS

SUCCESSFUL REPAYMENT RATE

106% RETURN ON INVESTMENT 21


African Entrepreneur Collective PO Box 209 Clinton, WA 98236 www.africanentrepreneurcollective.org AEC is a 501(c)(3) organization

Photography: Cate Gunn, Michelle Lee, Johanne Møller Layout: LHVisuals Ltd

AEC Annual Report 2016  
AEC Annual Report 2016  
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