The Transparent Pricing Initiative in Morocco published standardized pricing data from 6 microfinance institutions, representing an estimated 60.1% of the total micro borrowers in Morocco. Launched in April 2013, the Initiative was delivered in partnership with Planet Rating and was funded by the Netherlands Platform for Microfinance (NPM). .
Microfinance in Morocco
An intervention by the Ministry of Finance, together with Banque Al-Maghrib (BAM) – the Moroccan Central Bank, instituted a tighter prudential framework in the areas of governance, internal control, loan and asset quality, and the mitigation of operational risks. In addition, the government orchestrated a merger between two of the largest Microfinance Institutions (MFIs) at the time – Zakoura and Fondation des Banques Populaires (FBPMC) which is now known as Attawfiq Micro-Finance. This aimed to protect consumers, create stability and strengthen and restore confidence in the industry. The microfinance market in Morocco is dominated by few large institutions and continues to be the largest in the MENA region.
Morocco Price Graph
The price graph presented below shows the prices of microloan products in the Morocco dataset. Each data-point represents a real loan given to a real borrower, calculated using original loan documentation from the institution. The size of the data-point correlates with the number of borrowers that have a loan of that product at that loan amount. The color of the data-point correlates with the Transparency Index of the sample. The interactive legend beneath the graph can be used to change the graph axis and labels. Try the custom feature to see price correlations with attributes such as loan purpose, institution type, loan term and percent of gross national income.
The pricing data reveals a curve in the market average APR, showing that loans of a smaller size rise dramatically in price. Each bubble represents the price of a real loan given to an actual client. The size of the bubble represents the number of clients with loans of this approximate size, and the colour indicates the Pricing Transparency Index for this loan product sample. The data indicates a strong correlation of loan products with lower prices being advertised with a more transparent price.
|Institution||# Borrowers||Portfolio (US$)||Products||Transp. Index||Participating Since||Age of Data|