MFTransparency-The MasterCard Foundation partnership for Fair and Transparent Microfinance

Microfinance Focus, June 8, 2010: MFTransparency a global initiative for fair and transparent pricing in the microfinance industry has entered into a partnership with The MasterCard Foundation to promote fair and transparent pricing in the microfinance industry in eight countries in Sub-Saharan Africa. The effort, known as the enabling APR & EIR Program (enabling Africa to Price Responsibly & Educate on Interest Rates), will be launched in June.

A client protection effort of unprecedented scale in Africa, the project will raise awareness of transparent pricing issues in Malawi, Uganda, Rwanda, Ghana, Tanzania, Zambia, South Africa and Mozambique. The main objective of the enabling APR & EIR Program is to promote improved consumer protection principles through microfinance product pricing transparency. It will include three major components: the collection and publication of pricing data, training on pricing transparency, and the development and dissemination of educational materials.

“Moving beyond our current, country-by-country pricing transparency initiative will enable us to develop a more nuanced understanding of the microfinance industry in Africa,” said Chuck Waterfield, president of MFTransparency. “With support from The MasterCard Foundation, we will extend the benefits of transparent pricing to clients throughout the region.”

MFTransparency will collect and publish complete and comparable data on the interest rates and fees charged to microfinance clients in participating countries. This data will be published on the MFTransparency website, along with contextual information, and will be available for viewing by investors, regulators, microfinance institutions (MFIs) and clients. MFTransparency will work with a range of stakeholders in the eight countries to raise awareness of transparent pricing issues through training workshops and meetings. It will also develop and disseminate educational materials designed specifically for different stakeholders such as MFIs, regulators and clients. Through these activities, MFTransparency will begin to implement an enabling environment for responsible finance.

“Our Foundation supports a wide range of microfinance programs intended to build industry capacity and expand access to financial services for African youth,” said Reeta Roy, president and CEO of The MasterCard Foundation. “We are proud to partner with MFTransparency on this effort to ensure that microfinance providers are serving poor clients in transparent and sustainable ways.”

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