MICROCAPITAL BRIEF: MFTransparency Announces “Transparent Pricing Initiative” in Uganda, Gains Participation From Nine Microfinance Institutions (MFIs) Including Micro Enterprise Development (MedNet), Kacita, Y-Save

Microfinance institutions (MFIs) Micro Enterprise Development (MedNet), Kacita and Y-Save were among the first in Uganda to participate in the “Transparent Pricing Initiative”, an effort to publicize comparable data on microloan pricing that was launched by US-based nonprofit MFTransaparency. The effort was brought to Uganda in partnership with Association of Microfinance Institutions of Uganda (AMFIU). As of February 2011, an additional six unnamed Ugandan MFIs were enrolled for a total of nine participating plus with another six MFIs having begun the process of the initiative.

Officially launched in 2010, the Uganda portion of the initiative consisted of workshops that were held across three Ugandan cities – Gulu, Mbarara and Kampala – and attended by approximately 122 representatives from the microfinance industry.

A certification is awarded to those MFIs that submit data to MFTransparency on interest and fees charged to borrowers and make a commitment to give their clients clear information on pricing.

By Medha Ravi, Research Associate

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 of microfinance products between suppliers and consumers. MFTransparency was launched in July 2008 and is based in the US. According to its website, since MFTransparency’s launch, 691 industry leaders, including microfinance institutions and apex banks currently serving 107 million clients worldwide, have endorsed its efforts.

About Micro Enterprise Development (MedNet):
Established in 1996 in Uganda, Micro Enterprise Development (MedNet) is a nongovernmental organization (NGO) affiliated with US-based charity World Vision. MedNet’s services include group and individual loans, a voluntary savings product and training and consulting services. As of 2009, MedNet reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 3.1 million, a gross loan portfolio of USD 1.6 million, approximately 7,800 borrowers, return on assets (ROA) of -18.3 percent and return on equity (ROE) of -82.3 percent.

About Y-Save
Established in 2000, Y-Save is a membership-based savings and credit cooperative organization based in Watoto Church, Uganda. It started as a saving scheme for the Young Workers Ministry of the Kampala Pentecostal Church (KPC), which later became Watoto Church. Over time, the membership of the group has grown to include members of other ministries affiliated with Watoto Church. Y-Save reports 705 account holders, all of whom hold shares in the organization.

Source and Resources:

MFTransparency Press Release, February 21, 2011, “MedNet, Kacita and Y-Save are the First MFIs to Participate in MFTransparency’s Transparent Pricing Initiative in Uganda”, http://www.mftransparency.org/pages/mednet-kacita-and-y-save-are-the-first-mfis-to-participate-in-mftransparency%E2%80%99s-transparent-pricing-initiative-in-uganda/

MicroCapital.org story, January 10, 2010, “MICROCAPITAL BRIEF: MFTransparency Launches Transparent Pricing Initiative in Rwanda Aiming to Reduce Interest Rates on Microfinance Loans”, https://www.microcapital.org/microcapital-brief-mftransparency-launches-transparent-pricing-initiative-in-rwanda-aiming-to-reduce-interest-rates-on-microfinance-loans/

MicroCapital.org story, October 28, 2010, “MICROCAPITAL BRIEF: MFTransparency Launches Transparent Microfinance Pricing Initiative in Rwanda and Uganda”, https://www.microcapital.org/microcapital-brief-mftransparency-launches-transparent-microfinance-pricing-initiative-in-rwanda-and-uganda/

MicroCapital.org story, October 4 2010, “MICROCAPITAL BRIEF: MFTransparency and Africa Microfinance Network (AFMIN) Partner on Initiative for Transparent Pricing in Microfinance”, https://www.microcapital.org/microcapital-brief-mftransparency-and-africa-microfinance-network-afmin-partner-on-initiative-for-transparent-pricing-in-microfinance/

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

MicroCapital’s Microfinance Universe Profile: Microenterprise Development (MedNet), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reserve+Bank+of+India+%28RBI%29

MicroCapital’s Microfinance Universe Profile: Y-Save, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Y-Save

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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