Introducing: the Arab Impact Network
Impact Europe, AVPN, AVPA, Latimpacto, … the list of impact investing networks has grown longer over the years, covering much of the globe. The Arab world, however, did not have its own dedicated regional network for impact. That is, until now.
The newly launched Arab Impact Network aims to fill this void by connecting impact players in the region to do more good, more effectively. The network, also known as the AIN, was introduced to the public during Impact in the Neighborhood, our cross-regional EU-funded impact event in Casablanca, on April 23rd. While there is a core group that will set the initial agenda of the AIN, the launch event is above all an invitation to impact people in the Arab world to reach out and be part of the movement.
There are ample motivations for starting a network that focuses on the Arab world. While the global impact investing market is growing, a meager 1% of global impact allocations is directed towards the MENA-region. Furthermore, large international aid organizations like USAID are increasingly restricting or even withdrawing funding, causing an immediate strain on an already vulnerable situation. As if this was not enough, geopolitical instability and conflict are putting additional stress on the existing funding ecosystem.
Why AIN?
Maya Rahal is one of the driving forces behind the AIN. She is working for Alfanar, who have been bringing impact to the Arab world for 20 years now. This experience has taught them many things, including the fact that “making real impact happen, cannot happen in isolation”. This was one of the core motivations for setting up the AIN.
“The current system is not actively helping us. What Alfanar has realized so far, has largely been achieved in spite of this system, and not thanks to it. So the idea was born for network that is Arab-led, and embeds the culture and knowledge that is present in the Arab world. A network that uses the existing social and intellectual capital to our advantage, because what we lack is not talent, but connection.”
This message is echoed by Eric Asmar, CEO of Happy Smala, based in Morocco. “Building networks and connections in the Arab world now is a bit like taking flights. To go from one Arab country to the next, we often must fly over Europe first. This needed to change.”
“Furthermore, fighting the same battles individually is very slow and challenging. Big institutions don’t like talking to an archipelago of smaller players. In the end, we were discussing the possibilities of bridging markets and scaling policy efforts at Impact Week in Bilbao last year. After some debating, we decided not to wait for a network to magically appear, but to build it ourselves.”
Capturing Opportunity
Crucially, the Arab Impact Network is not just a story of necessity, but also one of great opportunity. Regional markets have been growing as of late, showing high potential for investors. And in many ways, generating impact is an indigenous practice to the Arab world, which has historical and religious roots that go back centuries. The zakat market, for instance, which unites philanthropic religious capital within the framework of Islamic finance, is valued at 2 trillion dollars, as compared to the 1 trillion-dollar impact financing ecosystem in the region.
One of the main goals and challenges of the AIN will be to not just contextualize but localize the way in which the Arab world does impact, says Andrew Gharaibeh Collingwood of Impact Jordan. “It is crucial to find a community that shares a language and a narrative – a safe space where impact players can align on what impact means to them. It is not just about taking something from the outside and making it fit in this context, rather, it is about building on the indigenous practices and the ways in which impact is ingrained in Arabic culture.”
Inspiration for the AIN comes from earlier work done by the pioneering people behind it. Organisations like Alfanar have been working with social entrepreneurs in the region for decades, while Impact Jordan has been promoting the cause of impact and pushing for policy advocacy in their own national context for a while. Happy Smala, similarly, has a long history of translating activities like crowdfunding to a Moroccan context. All these experiences will provide crucial input for scaling impact across the entire Arab world.
Concrete agenda points for the network exist of the exchange of good practices, facilitating commercial exchanges, setting impact measurement and management standards for the region and advocating for impactful policy making. “It should also be a place for celebration,” adds Andrew Collingwood. “Recognizing the steps we take, will be crucial in maintaining a sustainable approach and growing a repeatable blueprint for impact”.
The current working logo of the AIN is shaped like an eye – a force of protection, but also of visibility and transparency, both of which are crucial in bringing more funding and expanding the ecosystem over time.