A Better World - Volume 7

[ 15 ] Partner sh i ps for the Goal s G lobal partnerships have never been as critical as they are today. Development funds have been declin- ing for several years, with foreign aid from official donors falling by 5.7 per cent between 2015 and 2018. 2 The funding gap — funds required to maintain the ongoing operation of achieving the Sustainable Development Goals (SDGs) — stands at US$2.5 trillion per annum. It is agreed that private sector partnerships will be the most important in bridging this gap, however, continued efforts have not yet been able to achieve the targets set out by the SDGs. The private sector’s objective will always be to create value for stakeholders, but with progress evident for the adoption of the SDGs at government and consumer level, the mindset is moving in the right direction. Now it is more beneficial than otherwise for businesses to align themselves with the SDGs, but not all have the luxury to do so. The journey for small and medium-sized enterprises is a continuous, everyday struggle for existence, recently exacer- bated by the Covid-19 pandemic. Many OIC countries have deep-seated, complex challenges ranging from food insecurity, weak infrastructure and a low level of education, to conflict, job creation, an increasing youth population, health, and poor governance. According to several reports, the pandemic has set back the progress made so far on the SDGs to initial levels. Part of the solution to these crucial challenges is an increase in partnerships, particularly among international organizations. The fundamental work of the Islamic Chamber of Commerce, Industries and Agriculture (ICCIA) is the promo- tion of partnerships for the growth of trade for the OIC countries as well as Muslim business communities across the world. The organization’s renewed strategy is focused on designing, developing and deploying programmes that are centred on unlocking private sector capital to support the SDGs as they aid the long-term interests of the businesses and member economies. By providing investment-ready opportunities, the business case for investment is acceler- ated and this has been recognized as one of the best ways to bridge the funding gap for the SDGs. There is now the potential to inject almost US$ 10 trillion for high-impact investments in fast growing economies. 3 The largest portion of the funding gap inheres partly in economic infrastructure 4 — the facilities, activities and services that support the operation and development of other sectors of the economy. Most of countries in which the achievement of the SDGs is most needed are in high-risk zones, resulting in a higher cost of operation. To mitigate risk, governments need to put in place laws and policies to incentivize that risk versus its return. This is most impor- tant when considering areas where much work is needed, for instance, the climate change risk that will impact the private sector organizations’ commodity supply chains, a fact not considered by the international regulators in their models for financing emerging markets. 5 Moreover, policies are needed to encourage private sector donations, special projects that promote the hiring of disabled people, and projects that aim to work in remote areas. A challenge additional to the funding gap is that rising external debt in developing countries is putting SDG achieve- ment at risk, with the private sector’s SDG finance mostly focused on advocacy instead of action. 5 The renewed strategy of the ICCIA to support programmes that drive action is a product of extensive discussions with global sector thought leaders over a period of two years. To achieve this, the ICCIA is intensifying its partnerships with international organizations, foundations and private sector stakeholders to include developing businesses in addition to running capacity building and networking programmes. Outlined below are examples of some of the most important projects on which the ICCIA is working in partnership with multiple stakeholders. Green Waqf Waqf (Arabic for endowment) is a special kind of philanthropic deed in Islam, which is established in perpetuity. This model has been used for centuries to support the poor by providing them with education, health, mosques, clean water and other needed services. Waqf is a sustainable finance concept that has been part of Islamic philosophy from its inception, and involves donating a fixed asset which can produce a financial return or provide a benefit for its recipients. Research suggests that many waqf properties end up being designated as schools, cemeteries or mosques but, unfortunately, not many generate income for the waqf or the beneficiaries. Thus, within the ICCIA’s strategy and in line with its initiatives, it has launched the Green Waqf initiative. The project will identify waqf land, both across OIC countries and around the world, and convert any non-productive areas into productive land through culti- vation and, in the process, sequester atmospheric CO 2 . This land will be planted with income-generating trees, relevant to Mobilizing private sector investments to accelerate the SDGs Aalia Jafar, Director International Relations, Islamic Chamber of Commerce, Industries and Agriculture (ICCIA) 1