MFTransparency and the Mozambican Association of Microfinance Operators to Launch Initiative
Eighth Country in the enabling APR & EIR Program
LANCASTER, PA USA & MAPUTO, MOZAMBIQUE, August 15, 2011 – On August 23, 2011 MFTransparency and the Mozambican Association of Microfinance Operators (AMOMIF) will co-host a workshop in Maputo, Mozambique to launch the Transparent Pricing Initiative in Mozambique, the eighth country in the MasterCard Foundation-funded enabling APR & EIR Program.
In this workshop Alexandra Fiorillo, COO of MFTransparency, will provide training on pricing transparency to a range of local industry stakeholders including microfinance institutions, regulators, funders and other support organizations. The event in Maputo will mark the launch of the Transparent Pricing Initiative in Mozambique, during which MFTransparency will collect and publish pricing data for microfinance products offered in Mozambique. Through this Initiative, MFTransparency will facilitate discussion on issues related to pricing transparency as well as develop and disseminate financial education materials for microfinance clients.
The Transparent Pricing Initiative in Mozambique will also mark the launch of the eighth country project in the broader enabling APR & EIR Program. The enabling APR & EIR Program is short for enabling Africa to Price Responsibly & Educate on Interest Rates. A client protection effort of unprecedented scale in Africa, the project is raising awareness of transparent pricing issues in Malawi, Uganda, Rwanda, Ghana, Tanzania, Zambia, South Africa and Mozambique. Launched in August 2010, Malawi was the first country of the enabling APR & EIR Program to begin the Transparent Pricing Initiative. MFTransparency has since published microloan pricing data for Malawi and Uganda, with data for Rwanda, Ghana, Tanzania and Zambia forthcoming.
“We are especially excited about the timing of this launch given the focus that AMOMIF and the Mozambican microfinance sector have placed on client protection,” said Alexandra Fiorillo. “MFTransparency is looking forward to contributing to ongoing efforts toward facilitating transparency in Mozambique.”
The Mozambican Association of MicroFinance Operators (AMOMIF), in operation since 2007, has been a key driver of the development of the Mozambican microfinance industry. Since its inception, AMOMIF has focused on improving the policy framework for microfinance in Mozambique and promoting best practices. With a membership representing the majority of clients in the Mozambican microfinance market, AMOMIF promotes good governance and management among its members and the sector as a whole.
“We look forward to being recognized as a professional body, unified in diversity, radiating trust and strengthening the microfinance industry for human development,” said Gildo Lucas, AMOMIF Board Chair. “Transparency must be a management tool embraced by all operators and is a foundation for achieving sustainability.”
MFTransparency is a global initiative for transparent pricing in the microfinance industry. In each country included in its Global Transparent Pricing Initiative, MFTransparency collects data on the interest, fees and all charges on microfinance loan products in order to calculate the accurate, true price (Effective Interest Rate) on those loans. Its objective is to establish the industry standard for pricing disclosure and facilitate transparent communication between suppliers and consumers of microfinance products.
MicroFinance Transparency 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 responsibility. Based in the United States, the group has organized transparent pricing efforts on four continents and nearly 20 countries in Africa. For more information please visit www.mftransparency.org. Grameen Bank’s Dr. Muhammad Yunus and Elizabeth Littlefield, former CEO of CGAP, as well as more than 860 industry professionals and organizations have committed to transparent pricing by endorsing MFTransparency and its initiative. For information on MFTransparency staff, please see Who We Are.
About the Mozambican Association of Microfinance Operators
AMOMIF’s vision is to ensure that all Mozambicans have access to financial services and to contribute to the reduction of poverty in Mozambique. This 28-member organization represents the large majority of the Mozambican microfinance market. AMOMIF provides superior training for its members by partnering with organizations including the International Labour Organization and the International Finance Corporation.
AMOMIF constitutes an essential link for operators in a market that has been growing fast since the end of the 1990s, yet in the absence of a common interlocutor vis-à-vis the government. AMOMIF aims to address the problems and limitations that the Mozambican market has encountered, including gaps in the legislative environment, high operational costs and limited access to finance for the poor. AMOMIF seeks to improve the legal and policy framework in the sector and also acts as an intermediary to assist its members in accessing financial resources. For more information please visit www.amomif.co.mz.
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