Price caps are increasingly common in microfinance. Whether price caps have the intended impact of lowering microfinance prices and preventing the exploitation of borrowers is a hotly debated topic.

A question that I am regularly asked is: “Why are you negative about IPOs?”. To answer that question, I’ll need to first talk about my views on profit in microfinance.

We are an independent NGO which promotes transparent pricing in the microfinance industry. We deliver positive solutions to the better the practices and impact of the microfinance industry.

MFTransparency marks its four year anniversary with the launch of a new website, the announcement of new operational partnerships, and the dissemination of new educational resources. Read more here.

As part of MFTransparency’s enabling APR & EIR Program, financial education experts have developed a universal pricing education package, aimed at consumers of microloans. These resources have been developed to be tailorable, aknowledging the diversity of Africa’s communities.

For each of the countries in which MFTransparency works a thorough review is conducted, known as a Country Survey, outlining national socio-economic, political and historic factors. Summarizing the country specific context, Country Surveys form a valuable backdrop against which to examine a market’s pricing data.

MFTransparency’s work in Ethiopia has provided a unique insight into a market where several MFIs have achieved financial and operational sustainability whilst at the same time maintaining a strong social mission and very low product pricing.

In October 2011, MFTransparency hosted the African Microfinance Pricing Transparency Leadership Forum in Nairobi, Kenya. This was the first event of its kind, bringing together policymakers, regulators, networks and a host of industry experts to discuss issues related to pricing transparency in African microfinance markets.

During the past few months MFTransparency, has been offering direct trainings and technical assistance to MFIs participating in The Transparent Pricing Initiative in West Africa.

This short article presents the main points of the Philippine’s updated guidelines on the Truth in Lending Act to Enhance Pricing Transparency, released in July 2011.