MFTransparency.org

Pricing Transparency in Microfinance: 1 Year Later

mftransparency — Thu, 23 May 2013 08:55:57 +0000

Chuck Waterfield, CEO of MicroFinance Transparency, talks with Oikocredit about pricing methodologies and the progress that has been made in pricing transparency over the past year.

Click to read the Oikocredit Interview

MicrofinanceTransparency is the leading – if not the only – microfinance pricing watchdog and analyst in the global microfinance industry. Last year we heard from our colleagues at MFT about trends in pricing transparency as part of Oikocredit USA’s guest-blog series, Microfinance Investor Education series. You can read those blog posts here:

We learned that the true definition of transparent pricing means the pricing, terms, and conditions of loans will be adequately disclosed to the clients in a clear manner that allows both accurate understanding of prices and comparison of different products. We also learned that, contrary to popular belief, there is no single market price for microloans, because price is influenced by the size of the loan, the maturity of the market, the location and experience of the borrower, in addition to many other factors when determining the price of a microloan.

Finally, during an interview with MFT founder and CEO Chuck Waterfield, we learned about the work MFT does to ensure prices are transparently disclosed to clients so that they may make the most informed decision. In April, as MicrofinanceTransparency celebrated its 5 year anniversary,we got back in touch with Chuck to hear updates on MFT’s progress over the last year and understand the state of the pricing transparency movement.

Oikocredit USA: Last year when we began the series, MFT had conducted pricing transparency evaluations in around 30 countries. Can you share with us any key developments with respect to the pricing initiative. In how many countries is MFT currently working and how many MFIs have shared information with the MFT?

Chuck Waterfield: We haven’t done a new country in the past year. In the first years, we had to demonstrate that we could do it; phase II is working with partner institutions to collect the data and training them – refreshing the current 30 countries to keep the data current.

As of last year, we had collected data from 400-some MFIs. [This year, when we add Pakistan & Morocco], we’ll hit the 500 institution mark – which is pretty good considering this is only our 5th year, and there still is no other vehicle through which MFIs can submit their pricing!

OUSA: From a pricing transparency standpoint, what do you think about regulation of microfinance?

CW: I’ve always been vocal about my support of the regulation of microfinance. As an industry, we created our own problems and now we’re paying the price – microfinance is far from a perfectly functioning market! The market principles are not in place: when clients do not know the prices they’re being charged, the definition of a market cannot exist.

MFT is training regulators – last year we had a conference for regulators for 22 countries in Africa! … And the central bank of the Philippines introduced a transparent pricing law – they followed the lead of countries like Cambodia that banned flat interest rates – which is a distortion, and makes the price of a loan twice as high. As of now, that’s illegal in the Philippines.

OUSA: We’ve heard that there were two key reasons for the lack of transparency: (1) No single market price for micro-credit loans; and (2) No single pricing methodology. Has progress been made on the use of a common pricing methodology and do we see a trend towards similar pricing for similar products in any specific markets?

CW: Is there a single market price? Bigger loans have lower prices; as loans get extremely small – like in the Philippines or in Mexico, where the prices are extremely high – as the loan sizes approach zero, the price that you need to charge is higher.

Microfinance is not all the same product. It depends where you are on the product continuum. When we publish the data for 2,000 products among 500 institutions, we see 2000 different prices, and a correlation between different kinds of products and the prices they charge. So while there is no single price, we can make better inferences about the curve.

OUSA: In terms of trends, are you observing a move towards greater pricing transparency in the microfinance market? Are there regional differences?

CW: The data is more rational or expected in Latin America, which has a more mature MF market – maybe it’s because they’ve been at it longer, maybe it’s because there are a lot more microfinance institutions, maybe it’s because there is more regulation.

When we look at Africa, there are a lot less MFIs. Some of the places we go only have a dozen MFIs and they’re younger, smaller, they only have a few thousand clients. So you see less logical correlation to a price curve. Prices in Uganda tend to be between 50% and 150%. You don’t find that kind of price range when you look at the Ecuador or Bolivia data. We’re early stages in Africa. This month we published our second set of data for Uganda so we can see what they charged a year ago and what they charge now.

MFT is in the early stages now of having multiple-year data for about 10 countries, and we’re just beginning to be able to ask “how does transparent pricing affect the pricing level of products – if at all?”

OUSA: What are some best practices being used by microfinance institutions to help their clients better understand the full prices behind microloans?

CW: Imagine: we ourselves don’t really know what the prices are. So then how do we get 60,000,000 clients to “get it”? We’re approaching this in stages. First – we didn’t have data. Now we have data. The industry stakeholders are learning. The next step is to increase the ways we can educate those clients.

Some MFIs set transparent pricing – and their price looks higher than competition. So how do you explain to clients that these prices that look higher are in fact lower? There are some nice examples where you sit with a group and you teach them to see through the facts. That takes time, literacy, and some skill. It’s difficult to teach clients not to believe the marketing literature, if they don’t have a legal alternative. With truth-in-lending regulation, clients can be taught in two steps. “Step 1: Always ask for the APR – the true price – and by law the lenders must tell you the true price. Step 2: Lower APR is cheaper.” That’s all the education you need. You can compare and make an accurate and informed decision.

OUSA: To the individual or institutional investor who entrust Oikocredit with their investment but have little experience in microfinance,what would be one or two factors they should use to evaluate any investments made in microfinance if they’re concerned about responsible pricing?

CW: I’m really pleased when people ask that question – but what’s the best answer? This is going to sound strange, because we’re all about transparent pricing – but then to say “how do I find an institution that’s charging responsible pricing?” If they’re in a country we report on, then you can check to see if they’re on the curve.

If they’re making a lot of profit – that’s a warning sign. Dig in deeper – what’s the highest level of profit that you would consider still fair? Define your line. For me, the line is 15% – 25% Return on Equity. If you see an institution that’s making 30 to 40% return on equity – as an investor that’s attractive. But is that social business, making 30 to 40% off the backs of poor women?

OUSA: What about the lay investor? What should they be looking for their MIV to do?

CW: If you’re looking at an investment fund – you ask “how do you screen your institutions?” what do you use to reject institutions? What I’ve seen time and again is “risk is too high, we don’t want to risk your money” or “we’re not making enough profit.” There’s a minimum threshold of profit. But if there’s no high bar, then you’re attracted or you let in those making 30-40-50% on equity, and then you get the reputational risk. So the best institution is one that uses selective criteria, and publishes this criteria.

The post Pricing Transparency in Microfinance: 1 Year Later appeared first on MFTransparency.org.

Transparent Pricing Initiative in Kenya, 2013

mftransparency — Thu, 02 May 2013 11:38:08 +0000

Transparent Pricing Initiative in Kenya	May 2013
	MicroFinance Transparency *Promoting Transparent Pricing in the Microfinance Industry*


We are pleased to announce the commencement of this year’s Transparent Pricing Initiative in Kenya The Initiative promotes consumer protection in the microfinance industry by facilitating responsible and transparent pricing. Participants in the Initiative publicly disclose their standardized microloan prices on the MFTransparency website. Microfinance Institutions in Kenya are invited to join the Transparent Pricing Initiative by becoming transparent in their pricing, thereby proving their commitment to consumer protection, social performance and responsible microfinance. Participating in the Initiative requires the completion of an excel-based questionnaire and the submission of client loan documentation as evidence. The participation process has been designed to take a minimum amount of time – typically less than 2 hours of a senior staff member’s time. We do not charge for this service but deliver the opportunity for you to adhere to this essential industry standard at no cost. The Initiative is delivered by MFTransparency in partnership with Planet Rating, and is funded by the Netherlands Platform for Microfinance. All institutions participating in this Initiative receive the Seal of Transparency – an internationally recognized certification as a transparent microfinance institution. Gain recognition for your organization by promoting responsible microfinance – become a member of the Transparent Pricing Initiative in Kenya. Please view our website for more information: Click here to read about the benefits of participation Click here to view the transparent pricing data from last year’s Initiative Click here to sign up, or email kenya@mftransparency.org MFTransparency represents an industry movement toward transparent practices and responsible microfinance. We have organized transparent pricing efforts in nearly 30 countries on four continents, working with over 500 microfinance institutions. Publicly disclosing the prices that borrowers pay for microloan products is now the standard, and expectation, of the microfinance industry. Join the other microfinance institutions in Kenya who have already become transparent. Please send any questions or your interest in participation to Kenya@mftransparency.org - we look forwards to hearing from you!

MicroFinance TransparencyEmail: info@mftransparency.org

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Iniciativa para Preços Transparentes no Moçambique, 2013

mftransparency — Thu, 25 Apr 2013 09:48:06 +0000

Iniciativa para Preços Transparentes no Moçambique	April 2013
	MicroFinance Transparency *Promoting Transparent Pricing in the Microfinance Industry*


Temos o prazer de anunciar o começo da edição 2013 da *Iniciativa para Preços Transparentes no Moçambique* Aquela Iniciativa promove a proteção dos clientes da indústria das microfinanças, facilitando a tarifação responsável e transparente dos serviços de microcrédito. Os participantes da Iniciativa divulgam os seus preços de forma padronizada no site internet da MFTransparency website. Convidamos as instituições de microfinanças moçambicanas a se associarem à Iniciativa para Preços Transparentes, demostrando assim o seu compromisso com a transparência dos seus preços, a proteção dos seus clientes e o desempenho social responsável das microfinanças. Os participantes da Iniciativa só precisam preencher um documento Excel e enviar alguns documentos comprovando as condições tarifárias do seus produtos. O processo foi desenhado para tomar o menor tempo possível, uma ou duas horas de um funcionário experimentado da área de crédito. Não cobramos nada para aquele serviço, e oferecemos uma oportunidade para vocês aderirem a aquele padrão da indústria para nenhum costo. A Iniciativa está sendo levada a cabo por MFTransparency em parceria com a Planet Rating, e financiada pela MasterCard Foundation. Todas as instituições participantes recebem um Selo de Transparência, uma certificação que reconhece internacionalmente as instituições transparentes. Ganhe reconhecimento do seu compromisso com a prática responsável das microfinanças aderindo à Iniciativa para Preços Transparentes no Moçambique. Visite o nosso site para mais informações: Leia mais aqui sobre os benefícios da sua participação Consulte aqui os datos de tarifação transparentes da edição 2011 da Iniciativa Adira-se à Iniciativa aqui o por email a mozambique@mftransparency.org MFTransparency representa um esforço global da indústria das microfinanças para promover práticas responsáveis e transparentes. Já temos organizado a transparência dos preços em mais de 30 paises de quatro continentes, colaborando con mais de 500 instituições. Divulgar publicamente os preços pagados pelos clientes das microfinanças para um microcrédito agora tornou-se um padrão. Una-se às outras instituições moçambicanas que jà tornaram-se transparentes. Não duvide em entrar em contato conosco para cualquer pergunta sobre a Iniciativa ou expressar o seu interesse em participar na edição 2013, no endereço mozambique@mftransparency.org. Aguardamos com interesse a sua resposta.

MicroFinance TransparencyEmail: info@mftransparency.org

The post Iniciativa para Preços Transparentes no Moçambique, 2013 appeared first on MFTransparency.org.

Launch Event of the Transparent Pricing Initiative in Morocco

mftransparency — Wed, 10 Apr 2013 22:00:21 +0000

In April 2013, MFTransparency, represented by CEO Chuck Waterfield and Program Managers Louisa Dennison and Ranya Abdel-Baki, organized a half-day morning workshop on transparent pricing in Morocco.

The workshop marked the official launch of the Transparent Pricing Initiative in Morocco, sponsored by the Netherlands Platform for Microfinance and delivered in partnership with Planet Rating and Centre Mohammed VI de Soutien à la Microfinance Solidaire (CMS).

The workshop was well attended by more than 25 representatives from the Moroccan microfinance sector. All of the key Moroccan Microfinance Institutions (MFIs) were represented at the workshop in addition to a number of key stakeholders from the government and the investor and donor community. The inaugural speech was given by Mr. Mustapha Hassar, Responsable du service des Associations de Microcrédit at Bank Al Maghrib.

Following the opening remarks, Emmanuelle Javoy, Managing Director of Planet Rating, and Chuck Waterfield provided an overview on pricing transparency globally and its role specifically in the Moroccan microfinance industry context. They shared with the audience the new industry standards for calculating prices of microcredit products and explained how true prices are calculated.

At the end of the workshop, Chuck Waterfield explained how Moroccan MFIs can actively participate in the Transparent Pricing Initiative in Morocco. Moroccan MFIs showed interest in taking part in the Initiative and pricing data collection is currently underway in Morocco.

Event Presentation – download in French

Launch Event: Transparent Pricing Initiative in Morocco – Session 1

Chuck Waterfield, April 2013

Casablanca, Centre Mohammed VI de Soutien à la Microfinance Solidaire

Event Presentation – download in French

Launch Event: Transparent Pricing Initiative in Morocco – Session 2

Chuck Waterfield, April 2013

Casablanca, Centre Mohammed VI de Soutien à la Microfinance Solidaire

Event Presentation – download in French

Launch Event: Transparent Pricing Initiative in Morocco – Session 3

Chuck Waterfield, April 2013

Casablanca, Centre Mohammed VI de Soutien à la Microfinance Solidaire

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En vue de plafonner la marge des associations de microcrédit à 2% : La transparence est de mise

mftransparency — Wed, 10 Apr 2013 20:37:33 +0000

Moroccan newspaper Aujourd’hui hails MFTransparency as a new champion for client protection in Morocco. Read the article on MFTransparency’s launch event of the Transparent Pricing Initiative in Morocco, in French, here.

Click here to read the Aujourd’hui article

AUJOURD’HUI:En vue de plafonner la marge des associations de microcrédit à 2%: La transparence est de mise , April 10 2013

La protection du consommateur a désormais un nouveau défenseur au Maroc. C’est ce qu’il faut retenir de l’atelier de lancement de l’Initiative sur la transparence des prix au Maroc organisé, hier, mardi 9 avril, à Casablanca. Aussi, plus qu’une initiative, il s’agit d’une réelle dynamique d’actions et de sensibilisation. Une opportunité pour améliorer la performance sociale et le respect des principes de protection des consommateurs au moyen d’une meilleure transparence des prix des produits de la microfinance. Soutenue par la Plate-forme des Pays-Bas pour la microfinance (NPM), l’Initiative est mise en œuvre en partenariat avec Mftransparency, Planet Rating et le Centre Mohammed VI de soutien à la microfinance solidaire (CMS). Autant d’institutions réunies dans l’objectif de partager les nouveaux standards de calcul des prix pour les produits de microcrédit. Citons dans ce sens Bank Al-Maghrib qui intervient depuis 2006 en tant que régulateur du secteur. La banque centrale a lancé donc une étude sur la politique de la tarification des prix permettant ainsi de tracer un panorama sur l’évolution du comportement des associations de microcrédit (AMC) vis-à-vis de leurs clientèles. Constat à retenir : La transparence , dans ce sens, n’est pas dans ses développements les plus élaborés. Des affichages non systématisés, des conditions non appliqués et absence de clarté des contrats … Tous ces facteurs impactent la politique de tarification des AMC.

En effet, les prix affichés par le secteur sont en inadéquation à la fois avec le coût réel des acteurs ainsi qu’avec le profil du risque du client et le secteur d’activité. Bank Al-Maghrib démontre, par ailleurs, le taux moyen pondéré par le secteur qui se situe autour des 35 % : Une moyenne identique à celle des grandes associations de microcrédit (34 %) et en deçà des petites et moyenne AMC (45%). Malgré la consistance de ces chiffres le Maroc montre une certaine aisance par rapport à d’autres pays où le taux oscille entre 100 et 200 %. En outre, les coûts restent élevés par rapport à l’exploitation, le refinancement, et le risque. Ce dernier se fixe à 5% après un pic de 9% en 2009. Autre facteur qui influe la modalité de perception des intérêts est l’application des taux nominaux allant de 10 à 32%. Tenant compte de l’ensemble de ces données, Bank Al-Maghrib œuvre pour la détermination d’une composante globale en termes de tarification. L’objectif requis est d’harmoniser les coûts en plafonnant la marge à 2%.

A noter que l’Initiative se décompose en quatre activités. Il s’agit en premier de la collecte de données, la standardisation et la diffusion des prix des produits de microcrédit. La deuxième activité tourne autour de la formation des institutions de microfinance, des institutions financières, des réseaux, des bailleurs de fonds, des investisseurs et des autres acteurs du secteur. La troisième correspond à la mise à disposition de documents pédagogiques aux acteurs du secteur. Enfin, la quatrième activité est une formulation de recommandations aux instances réglementaires sur la politique de communication des prix.

«Le lancement de l’Initiative sur la transparence de la tarification au Maroc arrive à un moment où l’ensemble des acteurs consolident leurs efforts, en vue de redonner une nouvelle dynamique au secteur et lui permettre de faire face aux mutations socio-économiques que connaît le pays. L’un des principaux objectifs de la stratégie marocaine de la microfinance est de servir 3,2 millions de bénéficiaires d’ici 10 ans. Un des piliers fondamentaux de cette stratégie est incontestablement la professionnalisation du secteur», indique Youssef Errami, directeur exécutif du Centre Mohammed VI de soutien à la microfinance solidaire. Et d’ajouter que «cette initiative s’inscrit bien dans le cadre de la réalisation d’une professionnalisation poussée du secteur, mais aussi dans le cadre du souci de protection de la clientèle. L’intérêt suscité par cette initiative fait que nous ne pouvons qu’encourager la dynamique de réflexion qui en découlera. C’est dans cet objectif que nous sommes très heureux d’accueillir chez nous nos partenaires pour un débat large et fructueux».

«Nous sommes ravis que le Maroc soit le premier pays de la région de l’Afrique du Nord et du Moyen-Orient à être reconnu pour ses efforts de promotion de la performance sociale et des principes de protection des clients à travers la transparence des prix en microfinance». C’est ainsi que s’est exprimé Chuck Waterfield, directeur général de Mftransparency, au sujet du lancement de l’initiative. M. Waterfield indique, par ailleurs, que le Maroc a su donner l’exemple dans la région et dans le monde sur différents aspects. Le MF transparency, qui est une organisation non gouvernementale présente dans une trentaine de pays, est très enthousiaste à l’idée que le Maroc réaffirme son engagement pour la microfinance responsable avec le lancement de l’Initiative sur la transparence des prix. Permettant ainsi de mieux comprendre l’environnement concurrentiel des institutions de la microfinance auxquelles est attribuée une notation.

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L’initiative offrira une compréhension complète des coûts payés par les clients

mftransparency — Wed, 10 Apr 2013 15:04:39 +0000

Moroccan newspaper Aujourd’hui interviewed MFTransparency’s Program Manager, Ranya Abdel Baki, at the launch of the Transparent Pricing Initiative in Morocco. Read the interview in French here.

Click here to read the Aujourd’hui article

AUJOURD’HUI: Ranya Adbel-Baki – L’initiative offrira une compréhension complète des coûts payés par les clients, April 10 2013

ALM : Vous venez de donner le coup d’envoi de l’Initiative sur la transparence des prix au Maroc. Quelle est la finalité de cet événement ?
Ranya Abdel-Baki : Le Maroc est le trentième pays avec lequel Microfinance transparency collabore. Le but étant de protéger au maximum les clients des associations de microcrédit à travers une transparence de prix. Là où nous allons nous constatons une inadéquation entre le taux d’intérêt réel et celui qui est déclaré. Ce dernier est tout le temps en deçà de son niveau initial . De même, l’ensemble des associations de microcrédit, au Maroc où ailleurs, ne disposent pas d’outil de calcul précis pouvant inclure toutes les dépenses relatives aux prêts. C’est dans ce contexte là que nous avons choisi le Maroc pour partager notre expertise et accompagner le développement du secteur.

Qu’est-ce qui justifie ce choix, sachant que c’est la première initiative dans le MENA ?
En effet, ce choix est réconforté par la dynamique observée de l’activité de la microfinance au Maroc. C’est un secteur en plein essor et qui se trouve à l’abri de toute menace pouvant freiner son expansion. Cette initiative permettra de mettre en lumière les avancées du Maroc en termes de microfinance. Elle permettra, en perspective, de donner des informations claires et cohérentes sur les produits du microcrédit et leur prix offrant ainsi une compréhension complète des coûts payés par les clients.

Sur quoi repose votre approche ?
Je dirai tout d’abord sur le développement de bonnes pratiques visant à assurer une protection renforcée des consommateurs. Première démarche à entreprendre est la collecte de données. A travers nos entretiens avec l’ensemble des associations, nous tracerons le cadre de notre mission qui sera axé principalement sur le coût et la nature des produits de microcrédit présentés au Maroc. Ces données seront ensuite publiées, sous le format standard avec une analyse de marché et des informations complémentaires sur l’activité au Maroc. Chose qui se fait pour la première fois dans le Royaume. Ces étapes convergent vers l’élaboration d’une politique de transparence des prix à laquelle prendra part l’ensemble des instances réglementaires et organes de supervision.

Quels sont les avantages à déduire d’une telle démarche ?
Ceci se décline en trois axes. Le premier avantage est d’ordre concurrentiel. Si toutes les associations publient le détail de leurs prix, nous procéderons à un format standard rendant l’ensemble des produits comparables. Ceci aboutirait également à établir un marché mondial de la microfinance à la fois loyal et efficace. En outre , cette démarche donnera plus de visibilité vis-à-vis des bailleurs de fonds et contribuera à développer un outil pédagogique pour l’ensemble des acteurs. Nous sommes certains que cette approche multidimensionnelle permettra aux associations marocaines de franchir une étape décisive de leur engagement pour la performance sociale et économique.

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Lancement de l’Initiative sur la Transparence des Prix au Maroc

mftransparency — Mon, 08 Apr 2013 12:20:09 +0000

À Casablanca, Maroc, le 9 avril, 2013 - MicroFinance Transparency organise un atelier à Casablanca pour marquer le lancement de l’Initiative sur la Transparence des Prix au Maroc. Soutenue par la Plateforme des Pays-Bas pour la Microfinance (NPM), l’Initiative sera mise en œuvre en partenariat avec Planet Rating et le Centre Mohammed VI de Soutien à la Microfinance Solidaire (CMS).

L’Initiative sur la Transparence des Prix se décompose en quatre activités qui sont principalement (1) la collecte de données, la standardisation et la diffusion des prix des produits de microcrédit ; (2) la formation des IMF, des institutions financières, des réseaux, des bailleurs de fonds, des investisseurs et des autres acteurs du secteur ; (3) la mise à disposition de documents pédagogiques aux acteurs du secteur de la microfinance et (4) les recommandations aux instances réglementaires sur la politique de communication des prix.

L’atelier, qui rassemblera les principales institutions et organisations du secteur de la microfinance au Maroc, sera l’occasion de partager les nouveaux standards de calcul des prix pour les produits de microcrédit, et d’expliquer aux Institutions de Microfinance (IMF) marocaines comment elles peuvent participer à l’Initiative sur la Transparence des Prix au Maroc. En partenariat avec Planet Rating, MFTransparency collectera et publiera les données de prix pratiqués en microfinance, pour pouvoir les comparer et connaitre le coût réel pour les clients. La transparence des prix est un élément clef pour la protection des consommateurs. C’est une condition nécessaire pour que les pratiques responsables se développent dans un environnement concurrentiel, et pour que les acteurs du marché puissent prendre des décisions éclairées. Enfin, l’Initiative aura pour effet d’améliorer la connaissance des prix dans le secteur de la microfinance au Maroc.

MFTransparency, leader mondial de la transparence des prix en microfinance, travaille avec les IMF, les Banques Centrales, les bailleurs de fonds et les investisseurs pour améliorer la transparence des prix dans le secteur de la microfinance. Le Maroc sera le premier pays de la région de l’Afrique du Nord et du Moyen-Orient où sera menée cette Initiative. MFTransparency a déjà organisé des ateliers similaires et collecté les données de prix dans plus de 30 autres pays, parmi lesquels le Malawi, l’Uganda, la Tanzanie, la Zambie, le Mozambique, le Rwanda, le Kenya, le Sénégal, le Burkina Faso, le Togo, le Bénin, l’Inde, la Bosnie, le Pérou, la Bolivie, l’Equateur, la Colombie, l’Argentine, le Cambodge, le Bangladesh et l’Azerbaïdjan. Plus de 1300 professionnels et organisations du secteur de la microfinance se sont engagés pour la transparence des prix en soutenant MFTransparency et l’Initiative sur la Transparence des Prix, parmi lesquels le lauréat du Prix Nobel, le Professeur Mohammed Yunus.

Chuck Waterfield, le Directeur Général de MFTransparency s’est exprimé au sujet du lancement de l’Initiative en disant : « Nous sommes ravis que le Maroc soit le premier pays de la région de l’Afrique du Nord et du Moyen-Orient à être reconnu pour ses efforts de promotion de la performance sociale et des principes de protection des clients à travers la transparence des prix en microfinance. Le Maroc a su donner l’exemple dans la région et dans le monde sur différents aspects, et nous sommes très enthousiastes à l’idée que le secteur réaffirme son engagement pour la microfinance responsable avec le lancement de l’Initiative sur la Transparence des Prix».

Emmanuelle Javoy, Directrice Générale de Planet Rating a déclaré : « La transparence des prix nous permet de mieux comprendre l’environnement concurrentiel des IMF auxquelles nous attribuons nos notations. Cette information est essentielle, elle nous permet de fournir une analyse approfondie de leur engagement pour la protection des clients (Transparence ou Tarification responsable), ou de leur positionnement sur le marché. C’est la raison pour laquelle Planet Rating se réjouit à l’idée de collaborer avec MFTransparency pour révéler des données aussi capitales pour les acteurs du marché (IMF, Régulateurs et investisseurs) et leur permettre de faire l’analyse qu’il faut pour prendre les décisions qu’il faut».

Youssef Errami, le Directeur Exécutif du C.M.S soutient que « L’un des principaux objectifs de la stratégie marocaine de la Microfinance est de servir 3,2 millions de bénéficiaires d’ici 10 ans. Un des piliers fondamentaux de cette stratégie est incontestablement la professionnalisation du secteur. Le lancement de l’Initiative sur la Transparence de la tarification au Maroc arrive à un moment où l’ensemble des acteurs consolident leurs efforts, en vue de redonner une nouvelle dynamique au secteur et lui permettre de faire face aux mutations socioéconomiques que connaît le pays. Cette initiative s’inscrit bien dans le cadre de la réalisation d’une professionnalisation poussée du secteur, mais aussi dans le cadre du souci de protection de la clientèle. L’intérêt suscité par cette initiative fait que nous ne pouvons qu’encourager la dynamique de réflexion qui en découlera. C’est dans cet objectif que nous sommes très heureux d’accueillir chez nous nos partenaires pour un débat large et fructueux »

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En savoir plus sur MicroFinance Transparency

MFTransparency est une organisation non gouvernementale internationale créée en 2008, qui œuvre pour la transparence des marchés de la microfinance à travers la communication des prix, la formation et le conseil en matière de politiques de prix. MFTransparency représente toute une dynamique tournée vers des pratiques plus responsables et transparentes en microfinance. Basé aux Etats-Unis, le groupe est intervenu dans près 30 pays sur les quatre continents. Le fondateur de la Grameen Bank, le Professeur Muhammad Yunus, la précédente directrice du CGAP Elisabeth Littlefield ainsi que plus de 1300 professionnels et organisations du secteur de la microfinance se sont engagés pour la transparence des prix en soutenant MFTransparency et l’Initiative sur la Transparence des Prix. Pour plus d’informations, veuillez consulter le site internet de MFTransparency www.mftransparency.org.

En savoir plus sur Planet Rating

Basée à Paris, Planet Rating est une agence de notation internationale spécialisée en microfinance. Son objectif est de fournir aux acteurs du marché les informations dont ils ont besoin pour permettre au secteur de suivre une croissance solide. Créée en 1999, Planet Rating joue un rôle majeur dans la professionnalisation du secteur. Depuis plus de 10 ans l’agence a conduit plus de 650 notations financières et sociales des IMF. Planet Rating propose des rapports de notation de grande qualité, et couvre toutes les zones géographiques à travers ses six bureaux basés à Paris, Lima, Dakar, Nairobi, Beyrouth et Manille. Pour plus d’informations, veuillez consulter le site internet de Planet Rating www.planetrating.com.

En savoir plus sur le Centre Mohammed VI de Soutien à la Microfinance Solidaire (CMS)

Conformément aux instructions de Sa Majesté le Roi Mohammed VI, et aux vues des différents acteurs du secteur de la microfinance au Maroc, la Fondation Mohammed V pour la Solidarité a créé le centre Mohammed VI de Soutien à la Microfinance Solidaire en 2007, en tant que centre de support pour la microfinance. Le Centre a pour objectif de soutenir les efforts des Institutions de Microfinance (IMF) au Maroc mais aussi de promouvoir leurs activités à travers (1) la formation du personnel, (2) la mise en place d’un système d’information et de documentation, et (3) le marketing des produits de microcrédit. Pour plus d’informations sur le CMS, veuillez consulter http://www.cm6-microfinance.ma.

Contact presse :

Ms. Ranya Abdel-Baki

Program Manager, MicroFinance Transparency

Email: ranya@mftransparency.org

Website: www.mftransparency.org

Launch of the Transparent Pricing Initiative in Morocco

Casablanca, Morocco, 9^th April, 2013 - MicroFinance Transparency is organizing a workshop in Casablanca, Morocco to mark the official launch the Transparent Pricing Initiative in Morocco. The Initiative is sponsored by the Netherlands Platform for Microfinance (NPM) and delivered in partnership with Planet Rating and Centre Mohammed VI de Soutien à la Microfinance Solidaire (CMS).

The Transparent Pricing Initiative consists of four main activities; namely, (1) data collection, standardization and dissemination of microfinance product pricing; (2) training for MFIs and financial institutions, networks, donors, investors and other stakeholders; (3) provision of education materials for all microfinance stakeholders; and (4) policy recommendations to regulators on microfinance pricing disclosure.

The workshop, which gathers key institutions and organizations that work in the microfinance sector in Morocco, will share the new industry standards for calculating prices of microcredit products and explain how Moroccan Microfinance Institutions (MFIs) can actively participate in the Initiative. MFTransparency, in partnership with Planet Rating, shall then collect and publish comparable data on the prices charged to microfinance clients in Morocco. As a prerequisite for responsible pricing and a key element of consumer protection, transparent pricing leads to increased competition and better-informed decisions by all industry stakeholders. The Initiative will ultimately result in increased knowledge of pricing within Morocco’s microfinance industry.

MFTransparency, the industry leader in transparent pricing, works with MFIs, Central Banks, and funders to bring pricing transparency to the microfinance industry. The Initiative in Morocco will be the first to take place in the Middle East and North Africa (MENA) Region. MFTransparency has previously conducted similar workshops and data collection efforts in more than 30 countries, including; Malawi, Uganda, Tanzania, Zambia, Mozambique, Rwanda, Kenya, Senegal, Burkina Faso, Togo, Benin, India, Bosnia, Peru, Bolivia, Ecuador, Colombia, Argentina, Cambodia, Bangladesh and Azerbaijan. Over 1,300 industry professionals and organizations have committed to transparent pricing by endorsing MFTransparency and the Transparent Pricing Initiative, including Nobel Prize Laureate Professor Mohammed Yunus.

Chuck Waterfield, CEO of MFTransparency commented “We are delighted that Morocco will be the first country in the MENA region to be recognized for its efforts in promoting improved social performance and consumer protection principles through microfinance product pricing transparency. Morocco has been a leader in the microfinance sector in the MENA region and across the world in many ways, and we are pleased to see the sector reaffirming its commitment to responsible microfinance through endorsement of the Transparent Pricing Initiative.”

Emmanuelle Javoy, Managing Director of Planet Rating commented “Transparent pricing data enables us to better understand the competitive environment of the MFIs that we rate. This information is crucial for us to be able to provide a good analysis of their Client Protection practices (Transparency or Responsible Pricing), or on their market positioning. Planet Rating is therefore very happy to work in partnership with MFTransparency to bring the data needed by market actors (MFIs, regulators, and investors) to make the right analysis and decisions”.

Youssef Errami, Executive Director of CMS commented “One of the main goals of the Moroccan Microfinance strategy is to serve 3.2 Million beneficiaries in the 10 coming years. The industry professionalization is undoubtedly one of the fundamental elements of this strategy. The Transparent Pricing Initiative in Morocco is launched while all the stakeholders combine their efforts to stimulate again the industry, in order to face the social and economic changes of the country. This Initiative is undertaken within the context of a deep professionalization of the industry, but also within the framework of the clients’ protection principals. The interest aroused from this Initiative brought us to support this momentum and the thoughts resulting from it. That is the reason why we are very pleased to host our partners for a large and profitable debate”

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About MicroFinance Transparency

MicroFinance Transparency (MFTransparency) is an international non-governmental organization founded in 2008 with the purpose of facilitating transparent markets through pricing disclosure, education and policy advisory. MFTransparency represents an industry movement toward transparent practices and responsible microfinance. Based in the United States, the group has organized transparent pricing efforts in nearly 30 countries on four continents. Grameen Bank’s Dr. Muhammad Yunus and Elizabeth Littlefield, former CEO of CGAP, as well as over 900 industry professionals and organizations have committed to transparent pricing by endorsing MFTransparency and its initiative. For more information on MFTransparency, please visit www.mftransparency.org.

About Planet Rating

Paris-based Planet Rating is a global rating agency specialized in microfinance, focused on providing all microfinance stakeholders with the information they need for sound growth of the sector. Founded in 1999, Planet Rating has provided more than 650 financial and social ratings of MFIs, playing a vital role in professionalizing the sector for over a decade. Planet Rating provides high quality and unbiased rating reports, and offers a global geographic coverage through its six offices located in Paris, Lima, Dakar, Nairobi, Beirut, and Manila. For more information on MFTransparency, please visit www.planetrating.com.

About Centre Mohammed VI de Soutien à la Microfinance Solidaire (CMS)

According to the high Instructions of His Majesty King Mohamed VI, and in consultation with stakeholders in the microfinance industry in Morocco, Mohammed V Foundation for Solidarity established Centre Mohammed VI de Soutien à la Microfinance Solidaire in 2007 as a support center for microfinance. The Centre strives to support the efforts of Microfinance Institutions (MFIs) in Morocco as well as promote their activities through: (1) training of MFIs staff, (2) establishment of a system of information and documentation, and (3) marketing the products of microfinance clients. For more information on CMS, please visit http://www.cm6-microfinance.ma.

For questions relating to this press release please contact:

Ms. Ranya Abdel-Baki

Program Manager, MicroFinance Transparency

Email: ranya@mftransparency.org

Website: www.mftransparency.org

The post Lancement de l’Initiative sur la Transparence des Prix au Maroc appeared first on MFTransparency.org.

Transparent Pricing Initiative in Cambodia, 2013

mftransparency — Thu, 14 Mar 2013 10:23:46 +0000

Transparent Pricing Initiative in Cambodia	March 2013
	MicroFinance Transparency *Promoting Transparent Pricing in the Microfinance Industry*


We are pleased to announce the commencement of this year’s Transparent Pricing Initiative in Cambodia The Initiative promotes consumer protection in the microfinance industry by facilitating responsible and transparent pricing. Participants in the Initiative publicly disclose their standardized microloan prices on the MFTransparency website. Microfinance Institutions in Cambodia are invited to join the Transparent Pricing Initiative by becoming transparent in their pricing, thereby proving their commitment to consumer protection, social performance and responsible microfinance. Participating in the Initiative requires the completion of an excel-based questionnaire and the submission of client loan documentation as evidence. The participation process has been designed to take a minimum amount of time – typically less than 2 hours of a senior staff member’s time. We do not charge for this service but deliver the opportunity for you to adhere to this essential industry standard at no cost. The Initiative is delivered by MFTransparency in partnership with Planet Rating, and is funded by the Netherlands Platform for Microfinance. All institutions participating in this Initiative receive the Seal of Transparency – an internationally recognized certification as a transparent microfinance institution. Gain recognition for your organization by promoting responsible microfinance – become a member of the Transparent Pricing Initiative in Cambodia. Please view our website for more information: Click here to read about the benefits of participation Click here to view the transparent pricing data from last year’s Initiative Click here to sign up, or email cambodia@mftransparency.org MFTransparency represents an industry movement toward transparent practices and responsible microfinance. We have organized transparent pricing efforts in nearly 30 countries on four continents, working with over 500 microfinance institutions. Publicly disclosing the prices that borrowers pay for microloan products is now the standard, and expectation, of the microfinance industry. Join the other microfinance institutions in Cambodia who have already become transparent. Please send any questions or your interest in participation to cambodia@mftransparency.org - we look forwards to hearing from you!

MicroFinance TransparencyEmail: info@mftransparency.org

The post Transparent Pricing Initiative in Cambodia, 2013 appeared first on MFTransparency.org.

MFTransparency welcomes new team member

mftransparency — Wed, 13 Mar 2013 12:34:15 +0000

We are pleased to announce the appointment of our newest team member – Ranya Abdel-Baki. Ranya joins MFTransparency in the capacity of “Program Manager, Strategy, Finance, and Communications”. She will be responsible for managing and coordinating activities related to organization strategy; finance and administration; communications and external relations; and the development of educational materials.

Ranya brings us over 12 years of experience in finance and economic and social development. Prior to joining MFTransparency, Ranya worked at Sanabel – The Microfinance Network of Arab Countries – for 6 years. During her tenure at Sanabel, Ranya assumed several roles beginning from Transparency and Research Manager to Deputy Executive Director and finally Executive Director of the network for 3 years. Ranya has also worked as a Credit Analyst and Supervisor for 5 years at National Société Générale Bank and as an Urban Economist & Development Specialist at EcoConServ-Environmental Solutions.

In addition she has undertaken a number of consultancy assignments assessing the social impact and financial sustainability of development projects in Egypt. Her experience in microfinance includes the co-writing of the Arab Microfinance Analysis and Benchmarking Report for four consecutive years, training on financial analysis for microfinance, and lecturing on microfinance in the American University in Cairo. Ranya is currently a Board member with the SEEP Network. She holds a MSc. in Urban Economic Development from University College London.

Ranya can be contacted at ranya@mftransparency.org. We are delighted to welcome Ranya to the team and look forward to working with her to promote pricing transparency in microfinance.

The post MFTransparency welcomes new team member appeared first on MFTransparency.org.

Overview of the Pricing Transparency Index

mftransparency — Fri, 08 Mar 2013 11:28:49 +0000

The Pricing Transparency Index is MFTransparency’s scale for rating the level of transparency of a price. The Index can be applied at a range of levels – country, institution, product and loan. The Index shows the percentage of the loan price that is communicated by the lender’s nominal interest rate to the borrower.

The higher the Pricing Transparency Index rating = the more transparent the price, with a perfect score being 100.

For more information about the Pricing Transparency Index please download this overview briefing:

How is the Pricing Transparency Index Calculated?
How can MFIs improve their Index rating?
How can industry stakeholders use the Index?

The post Overview of the Pricing Transparency Index appeared first on MFTransparency.org.