MICROCAPITAL BRIEF: MFTransparency and Africa Microfinance Network (AFMIN) Partner on Initiative for Transparent Pricing in Microfinance

MFTransparency, a US-based nongovernmental organization launched in July 2008 that aims to provide information on credit products and pricing, and the Africa Microfinance Network (AFMIN), an association of microfinance networks that is based in Benin, are partnering to encourage the participation of AFMIN members in MFTransparency’s Transparent Pricing Initiative, which aims to provide training on interest rate calculations, publish online pricing information and promote consumer protection.

MFTransparency’s Transparent Pricing Initiative was launched in Senegal and Burkina Faso in July 2010 as part of a larger initiative sponsored by Lux-Development, an agency that manages most Luxembourg federal funds allocated to development aid, seeking to foster pricing transparency in all eight countries of the West African Economic Monetary Union (WAEMU), an organization that seeks to foster economic integration among countries using the Central African franc. The project was launched in Malawi in August 2010 as part of the Enabling APR and EIR Program (Enabling Africa to Price Responsibly and Educate on Interest Rates), sponsored by the MasterCard Foundation and is planned for expansion to other countries in Sub-Saharan Africa.

About MFTransparency: MFTransparency is a nongovernmental organization that aims to provide “information on credit products and their prices in a clear and consistent fashion” for the microfinance industry. MFTransparency collects data on the interest and fees charged on microfinance loan products in order to calculate the effective interest rates on those loans. Its intention is to establish the industry standard for pricing disclosure and to facilitate a fair exchange between suppliers and consumers of microfinance products. MFTransparency was launched in July of 2008 and is based in the US. According to its website, as of December 6, 2009, it has been endorsed by 264 “industry leaders” that serve 80 million clients globally.

About the Africa Microfinance Network: The Africa Microfinance Network (AFMIN) was established in 2000 as an association of microfinance networks that aims to contribute to the provision of effective and sustainable financial services to the low-income population of Africa. Its 22 member network collectively 1,118 microfinance institution (MFI) members who reached 13 million borrowers and 9.7 million savers as of December 2007. These MFIs report cumulative loans outstanding of USD 2 billion and net savings of USD 1.2 billion for the same period.

By Diana Baide, Research Assistant

[1] Press Release submitted to MicroCapital by MFTransparency

MicroCapital’s Microfinance Universe profile: MFTransparency:

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency

MicroCapital’s Microfinance Universe profile: Africa Microfinance Network

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Africa+Microfinance+Network+(AFMIN)

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