Call for Good Practices on Islamic Finance and Impact Investing Activities

Click here to apply http://bit.ly/2tN5RAZ

Purpose of this call is to invite private and public sector to share their good practices on

  • Islamic finance funded impact investments and dedicated vehicles
  • impact investment vehicles in the OIC region
  • Islamic social finance vehicles

for the mapping study that is being carried out under the Global Islamic Finance and Impact Investing Platform (GIFIIP). The selected cases will be analysed by the research team managed by IICPSD and IRTI. Subsequently the good practices, information on vehicles and further findings will be published as part of the study.

Investment Focus

This call will consider impact investments that are intended to create positive environmental and/or social impact while generating financial returns in sectors that promote and facilitate Sustainable Development Goals (SDG) achievement. These sectors include, but are not limited to: Renewable Energy, Water and Sanitation, Healthcare, Education, Affordable Housing, Sustainable Agriculture, Inclusive Finance (including microfinance/SME finance), Sustainable Infrastructure and so on. Special consideration will be given for Islamic finance-funded impact investments and vehicles.

Geographic Focus

This call is intended for impact investments/impact investment vehicles or operate in the Organization of Islamic Cooperation (OIC) region.

Eligibility Criteria

This call is intended for impact investments and impact investment vehicles funded by Islamic finance. Impact investments and vehicles funded by conventional finance are also eligible to apply if they are based in the Organization of Islamic Cooperation (OIC) region.

All public/private organisations are welcome to be nominated including governments and public-sector institutions that are engaged in public-private partnerships for delivering services. Selection of good practices will be based on following criteria:

  • Sustainable Development Impact
    • Does the impact investment/vehicle increase the opportunities for implementation of the Sustainable Development Goals (SDGs)? (Particularly in SDG-related sectors including but not limited to Renewable Energy, Water and Sanitation, Healthcare, Education, Affordable Housing, Sustainable Agriculture, Inclusive Finance and Sustainable Infrastructure)
    • Does the impact investment/vehicle reach excluded and disadvantaged populations (e.g. women, youth, disabled, ethnic minorities)?
  • Profitability
    • Is the impact investment/vehicle profitable?
  • Potential for Scale and Replication
    • Has the impact investment/vehicle already achieved scale (either by expanding regionally or reaching deeper into poor populations or extending its activities)? If not, does the impact investment/vehicle have the potential to grow?
    • Has the impact investment/vehicle strategy/approach been replicated by others?
  • Innovation
    • Is innovation a core part of the impact investment/vehicle? If yes, where does innovation take place? Is the impact investment/vehicle based on an innovative product, process or is the impact investment/vehicle itself an innovative model?
  • Impact Measurement
  • Does the impact investment/vehicle have a standard impact monitoring and measurement process?

Good practices are expected to meet the majority of the eligibility criteria.

Submission of Good Practices

To apply, please complete the form on http://bit.ly/2paMVHG until 13 April 2018.

While submitting, please answer those questions that correspond to your organization type.

Confidentiality

All collected information will be analysed by UNDP IICPSD to find the good practices that showcase potential to enhance the Islamic finance and impact investing ecosystem. The party submitting the proposal agrees to UNDP IICPSD’s right to publish selected good practices. Further consultation with the submitting firm will be held before publishing.

Clarification

For clarification, queries can be sent to iicpsd@undp.org

 Background

The scale and ambition of 2030 Agenda requires substantial financial and technical resources, estimated to be between US$5 trillion and US$7 trillion each year for the next 15 years. These sums are far beyond the scope of individual governments and the multilateral funding agencies to supply. Private sector funding, capabilities and know-how need to be mobilized to sustain the new development agenda.

Islamic finance through impact investing can be strong and non-traditional source of financing for the SDGs. Islamic finance assets reached $2.2 trillion at the end of 2016 and are estimated to rise up to $3.8 trillion by 2022 representing a strong potential source of financing for the SDGs according to the ICD-Thomson Reuters. Attracting part of this market into SDG related investments will foster development and help to end poverty. The principles of Islamic finance and impact investing, with their rigorous moral and social criteria, their emphasis on inclusiveness and broader understanding of business–society relations already complement each other. These similarities suggest that bridging the two sectors offers a promising avenue of response to the growing challenges related to development financing, through collaboration, cross-learning and reaching new markets.

Built upon these similarities, Global Islamic Finance and Impact Investing Platform (GIFIIP) was established by the UNDP and the Islamic Development Bank in 2016. Led by UNDP’s Istanbul International Center for Private Sector in Development (IICPSD) aims to position Islamic finance and impact investing as a leading enabler of global SDG implementation through private sector engagement. Engaging the private sector, governments, and key stakeholders operating in the Islamic finance and impact investing markets, the platform aims to promote market-based solutions to sustainable development challenges by creating a collaborative working space among these actors. A three-pillar strategy has been defined for the advancement of the platform: i) Conceptualization & Capacity Building, (ii) Advocacy & Inter-industry Collaboration and iii) Deal Sourcing & Matchmaking.

A necessary condition for the Islamic finance impact investment industry to grow and prosper is the analysis of the Islamic finance impact investing ecosystem.

As part of GIFIIP’s work plan, UNDP IICPSD and IDB’s Islamic Research and Training Institute (IRTI) have initiated Islamic Finance and Impact Investing Ecosystem Mapping Study to build an evidence base on the ecosystem by:

  • mapping key actors operating in the Islamic finance and impact investing ecosystem,
  • mapping and assessing the products and services offered by the actors operating in the ecosystem, and;
  • identifying good practices that create positive impact for investors, enterprises invested and the society.

These studies will expand the overall knowledge in the niche area of Islamic finance and enable us to better understand synergies, opportunities and challenges as inputs for an ecosystem strategy.