Microfinance Investment Transparency and Evaluation

Microfinance Investment Transparency and Evaluation

A recent CGAP Focus Note stated, “The problems of over-lending and the associated risk of over-indebtedness in some of the fastest growing markets—Bosnia-Herzegovina, Nicaragua, and, most recently, India—have seriously tarnished the industry’s image and have led to a re-evaluation of some of the fundamental practices of microfinance.” Now more than ever transparency and objective evaluation is needed for the sector to rise above the criticism and offer investors and other stakeholders a realistic perspective on the risk and returns related to microfinance investment.

Chuck Waterfield founded MFTransparency in 2008 in order to facilitate transparent financial pricing among MFIs all over the world. Chuck will focus on the role of investors in helping to facilitate transparent pricing and on how investors can benefit from a market where MFI pricing is transparent. Chuck will also speak about the role of transparent pricing in responsible investment.

In 1997, MicroRate was founded as the first rating agency to specialize in microfinance. It’s goal is to increase transparency as a means of facilitating an increase of informed investment into microfinance. MicroRate evaluates areas such as governance, portfolio quality, management and operations, financial and social performance in both microfinance institutions as well as microfinance investment vehicles. MicroRate evaluations help investors measure risks and returns on their investments in microfinance.

Sebastian von Stauffenberg, CEO of MicroRate and former General Manager of its Latin American operations will speak about the landscape of microfinance evaluation, addressing trends and as well as other observations from his participation in industry initiatives such as the Smart Campaign certification committee and Social Performance Taskforce