MFTransparency, a US-based nongovernmental organization that aims to provide clear information on credit products and pricing, recently released the report from its Transparent Pricing Initiative in Ethiopia which was launched in September 2011 [1]. The report comprises data collected from 16 microfinance institutions (MFIs) and includes analyses of pricing based on type of institution, loan purpose and geographic focus. It also includes data about eligibility requirements, lending methodology, repayment frequency, price variation, interest calculation methods, fees, insurance and compulsory savings. The report contains recommendations covering aspects such as loan documentation, interest rate calculation and client protection principles.
The initiative was sponsored by two Dutch organizations: microfinance network MicroNed and Terrafina Microfinance, a fund that provides technical and financial support to African MFIs.
MFTransparency, which was founded in 2008, has collected data from 30 countries on four continents, including 17 countries in Sub-Saharan Africa.
To view the full webinar presentation of the report, you may visit: http://www.mftransparency.org/pages/ethiopia-data-launch-presentation/
By Nisha Koul, Research Associate
About MFTransparency: 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 and publicize the effective interest rates charged on those loans. According to its website, 889 industry stakeholders have endorsed its efforts as of 2011. As of January 2012, MFTransparency has collected data from 30 countries on four continents, including 17 countries in Sub-Saharan Africa.
About MicroNed: MicroNed is a microfinance network of Dutch development finance organizations that includes: Cordaid, a Catholic humanitarian agency; Hivos, a nongovernmental organization (NGO) that provides grants and technical assistance; the Interchurch Organization for Development Co-operation (ICCO in Dutch), which provides financial services to socially-oriented organizations; Ofxam-Novib, an investment fund that supports microfinance institutions; and the Rabobank Foundation, a microfinance-focused initiative of the Rabobank financial services group. As of 2011, MicroNed reports supporting microfinance activities in approximately 50 countries and operates on an annual budget of EUR 250,000 (USD 322,000).
About Terrafina Microfinance: Terrafina Microfinance is a Dutch microfinance program founded in 2005 by the Interchurch Organisation for Development Cooperation (ICCO in Dutch), Rabobank Foundation, and Oikocredit. It provides financial and technical support to microfinance institutions (MFIs) primarily in rural areas of West Africa. As of 2010, Terrafina reported involvement in approximately 100 projects with 62 African MFIs.
Sources and Additional Resources:
[1] Press release submitted to MicroCapital, January 2012.
MicroCapital.org story, November 22, 2011, “MICROCAPITAL BRIEF: Ethiopia’s Wasasa Microfinance, Poverty Eradication and Community Empowerment (PEACE), Metemamen, Harbu, Digaf Microfinance Submit Pricing Data to MFTransparency,” https://www.microcapital.org/microcapital-brief-ethiopia%E2%80%99s-wasasa-microfinance-poverty-eradication-and-community-empowerment-peace-metemamen-harbu-digaf-microfinance-submit-pricing-data-to-mftransparency/
MicroCapital.org story, September 8, 2011, MICROCAPITAL BRIEF: MFTransparency, Association of Ethiopian Microfinance Institutions (AEMFI) to Launch “Transparent Pricing Initiative in Ethiopia” with Funding from MicroNed,” https://www.microcapital.org/microcapital-brief-mftransparency-association-of-ethiopian-microfinance-institutions-aemfi-to-launch-%E2%80%9Ctransparent-pricing-initiative-in-ethiopia%E2%80%9D-with-funding-from-microned/
MicroCapital Universe Profile: MFTransparency, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency
MicroCapital Universe Profile: MicroNed, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroNed
MicroCapital Universe Profile: Terrafina Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Terrafina+Microfinance
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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