MICROCAPITAL BRIEF: MFTransparency and The MasterCard Foundation Launch Enabling APR & EIR Program to Promote Transparency in Microfinance in Eight Sub-Saharan African Countries

MFTransparency, a US-based nonprofit that encourages fair and transparent pricing in the microfinance industry, and the MasterCard Foundation, a private Canadian foundation that aims to increase access to microfinance and education, have joined together to launch the Enabling Africa to Price Responsibly & Educate on Interest Rates program (Enabling APR & EIR). The Enabling APR & EIR Program aims to raise awareness of transparent pricing issues in eight countries in Sub-Saharan Africa: Malawi, Uganda, Rwanda, Ghana, Tanzania, Zambia, South Africa and Mozambique. The program will include three major components: the collection and publication of pricing data, training on pricing transparency and the development and dissemination of educational materials. MFTransparency will collect and publish data on the interest rates and fees charged to microfinance clients in participating countries. This data will be published on MFTransparency’s website and is intended for use by investors, regulators, microfinance institutions (MFIs) and clients. The level of funding for the project has not been disclosed.

By Conner Brannen, Research Assistant

About MFTransparency:

MFTransparency is a nongovernmental organization that aims to provide “information on credit products and their prices in a clear and consistent fashion” for the microfinance industry. MFTransparency collects data on the interest and fees charged on microfinance loan products in order to calculate the effective interest rates on those loans. Its intention is to establish the industry standard for pricing disclosure and to facilitate a fair exchange between suppliers and consumers of microfinance products. MFTransparency was launched in July of 2008 and is based in the US. According to its website, as of December 6, 2009, it has been endorsed by 264 “industry leaders” that serve 80 million clients globally.

About MasterCard Foundation:

Based in Canada, the MasterCard Foundation is a private foundation with over CAD 3 billion (the equivalent of USD 2.9 billion) in assets. The foundation’s goal is to enable people living in poverty to improve their lives with increased access to microfinance and education. The Foundation was established in 2006 by a gift of shares from global payment processor MasterCard Worldwide during the company’s initial public offering.

Sources and Additional Resources:

The MasterCard Foundation: “MFTransparency Partners with The MasterCard Foundation to Promote a Fair and Transparent Microfinance Industry in Eight African Countries,” June 7, 2010: http://www.themastercardfoundation.org/news_releases/2010-06-07.htm

MicroCapital Universe Profile: MFTransparency: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency

MicroCapital Universe Profile: MasterCard Foundation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation

MICROCAPITAL BRIEF: MasterCard Foundation Provides $4.5m Grant to Haitian Microfinance Institution (MFI) Fonkoze, April 27, 2010: https://www.microcapital.org/microcapital-brief-mastercard-foundation-provides-45m-grant-to-haitian-microfinance-institution-mfi-fonkoze/

MICROCAPITAL BRIEF: Plan Canada and The MasterCard Foundation Create $4.1m Youth Microfinance Project in Niger, Sierra Leone and Senegal, March 30, 2010: https://www.microcapital.org/microcapital-brief-plan-canada-and-the-mastercard-foundation-create-41m-youth-microfinance-project-in-niger-sierra-leone-and-senegal/

MICROCAPITAL BRIEF: MasterCard Foundation, CARE Canada, Aga Khan Foundation Canada (AKFC) to Extend Microfinance Services in Tajikistan and Rwanda, March 15, 2010: https://www.microcapital.org/microcapital-brief-mastercard-foundation-care-canada-aga-khan-foundation-canada-akfc-to-extend-microfinance-services-in-tajikistan-and-rwanda/

MICROCAPITAL BRIEF: MicroFinance Transparency Receives Ford Foundation Grant to Promote Transparency in Latin American Microfinance Industry, March 22, 2010: https://www.microcapital.org/microcapital-brief-microfinance-transparency-receives-ford-foundation-grant-to-promote-transparency-in-latin-american-microfinance-industry/

MICROCAPITAL BRIEF: Kenya’s ‘Pamoja Women?s Development Programme’ (PAWDEP), ‘Project Partner’ of Oikocredit, Becomes First African Microfinance Institution (MFI) to Submit Data to MFTransparency, December 8, 2009: https://www.microcapital.org/microcapital-brief-kenyas-pamoja-womens-development-programme-pawdep-project-partner-of-oikocredit-becomes-first-african-microfinance-institution-mfi-to-submit-data-to-mftransparen/

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