MFTransparency, a US-based nongovernmental organization (NGO) that collects and publishes information on microcredit products and pricing, recently received the first submissions of loan data from ten Ghanaian microfinance institutions (MFIs) that are participating in its “Transparent Pricing Initiative in Ghana.” Launched in February 2011 in partnership with the Ghana Microfinance Institutions Network (GHAMFIN), the program is part of a broader global effort by MFTransparency to aggregate and publicize pricing data and organize training sessions on issues of transparency and consumer protection. Ghana is the fifth African country to work with MFTransparency under the “Enabling APR & EIR (Africa to Price Responsibly & Educate on Interest Rates) Program,” which is funded by the MasterCard Foundation of Canada.
The first ten MFIs to submit data are Innovative Finance Limited; Association of Progressive Entrepreneurs in Development; Community Aid for Sustainable Development; E-Life Development Agency; Initiative Development – Ghana; Opportunities International Savings and Loan Limited Ghana; Sekam Trust International; Grameen Ghana; CashPhase Ghana Limited; and AIDEZ Small Project International. According to an MFTransparency press release, 33 additional MFIs in Ghana have begun the data submission process.
The data will be posted on the MFTransparency website after it has been processed and standardized. Data from microfinance products in eight countries is available on the MFTransparency website as of June 2011.
By Rohan Trivedi, Research Associate
About Microfinance Transparency:
MFTransparency is a US-based nongovernmental organization (NGO) that was launched in July 2008 to provide information on microcredit products and their prices. 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 of microfinance products between suppliers and consumers. As of June 2011, MFTransparency has released pricing data from eight countries.
About Ghana Microfinance Institutions Network (GHAMFIN):
The Ghana Microfinance Institutions Network (GHAMFIN) is an association of microfinance institutions (MFIs) in Ghana. GHAMFIN was established in 1998 as an “informal network” of MFIs working to develop best practices in the Ghanaian microfinance sector. GHAMFIN provides training, industry monitoring and microfinance product services to approximately 80 member institutions as of June 2011.
About MasterCard Foundation:
Based in Canada, the MasterCard Foundation is a private foundation with approximately CAD 3 billion (the equivalent of USD 2.9 billion) in assets as of 2010. The foundation’s goal is to enable people living in poverty to improve their lives with increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from global payment processor MasterCard Worldwide during the company’s initial public offering.
Sources and Additional Resources:
[1] MFTransparency.org Press Release: “First Ten Microfinance Institutions in Ghana Submit Pricing Data to MFTransparency”, http://www.mftransparency.org/pages/first-ten-microfinance-institutions-in-ghana-submit-pricing-data-to-mftransparency/
MicroCapital.org story, March 15, 2011: “MICROCAPITAL BRIEF: MFTransparency, Ghana Microfinance Institutions Network (GHAMFIN) Launch Transparent Pricing Initiative in Ghana”, https://www.microcapital.org/microcapital-brief-mftransparency-ghana-microfinance-institutions-network-ghamfin-launch-transparent-pricing-initiative-in-ghana/
MicroCapital Universe Profile: Microfinance Transparency (MFT), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency
MicroCapital Universe Profile: Ghana Microfinance Institutions Network (GHAMFIN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ghana+Microfinance+Institutions+Network
MicroCapital Universe Profile: MasterCard Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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