MICROCAPITAL BRIEF: Moody’s Analytics Partners with Africa Microfinance Network (AFMIN) to Deliver Social Performance Assessments (SPAs) in Sub-Saharan Africa

The Africa Microfinance Network (AFMIN), a Benin-based association of 1,100 African microfinance institutions (MFIs) serving 20 million clients, recently partnered with Moody’s Analytics, a US-based financial risk management company that provides risk management, credit analysis, research and training tools for financial institutions, to deliver Social Performance Assessments (SPAs) in Sub-Saharan Africa. The assessments analyze the performance and operations of microfinance institutions using a ranking scale ranging from SP1 to SP5. The highest grade of SP1 indicates that the “MFI’s infrastructure and processes are consistent with a high likelihood of operating in the best interest of its customers, and that the risk of causing adverse effects to its customers and other investors are very low. It also must operate well in order to accomplish its social mission, perform well environmentally, have well established and information systems, and maintain the highest standards in terms of customer over-indebtedness and debt collection practices.” The assessments are expected to help create inclusive financial markets in Africa.

As reported by Microcapital, Moody’s Analytics launched its SPAs in Europe and Central Asia in September 2013.

While financial information for Moody’s Analytics is unavailable, Moody’s Corporation reported total assets of USD 3.9 billion and annual revenue of USD 2.7 billion as of December 2012.

By Megan McGowan, Research Associate

About the Africa Microfinance Network:

The Africa Microfinance Network (AFMIN) was established in 2000 as an association of microfinance networks aiming to contribute to the provision of effective and sustainable financial services to the low-income population of Africa. Its 22 member networks collectively represent 1,118 microfinance institution (MFI) members as of 2007. AFMIN’s core programs include capacity building for members, advocacy and policy change, performance monitoring and benchmarking, research, information dissemination, knowledge building and network management.

About Moody’s Corporation:

Moody’s Corporation is a US-based financial services company. Moody’s Analytics, a unit of Moody’s Corporation, aids capital markets and credit risk professionals in adapting to changes and challenges in the business marketplace by offering tools, such as software and research, and expertise and advisory services for measuring and managing risk in credit analysis, market research and financial risk management. As of 2012, Moody’s Corporation reported total assets of USD 3.9 billion and annual revenue of USD 2.7 billion.

Sources and Additional Resources

Microfinance Gateway: “Moody’s Analytics and AFMIN Form Strategic Alliance on Social Performance Assessments for Sub-Saharan Africa,” September 24, 2013, http://www.microfinancegateway.org/p/site/m/template.rc/1.9.62690/

MicroCapital.org Article, “MICROCAPITAL BRIEF: Moody’s Analytics, Microfinance Centre (MFC) Partner to Launch Social Performance Assessment (SPA) in Europe, Central Asia,” September 13, 2013, https://www.microcapital.org/microcapital-brief-moodys-analytics-microfinance-centre-mfc-partner-to-launch-social-performance-assessment-spa-in-europe-central-asia/

MicroCapital.org Article, “MICROFINANCE EVENT: MFTransparency, Agence Française de Développement, UN Capital Development Fund, Luxembourg Cooperation, African Microfinance Network, CGAP (Consultative Group to Assist the Poor) to Host African Microfinance Pricing Transparency Leadership Forum, October 5-7, 2011 in Nairobi, Kenya,” October 4, 2011, https://www.microcapital.org/microfinance-event-mftransparency-agence-francaise-de-developpement-un-capital-development-fund-luxembourg-cooperation-african-microfinance-network-afmin-cgap-consultative-group-to-assist-the/

MicroCapital Universe Profile: Africa Microfinance Network (AFMIN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Africa+Microfinance+Network+%28AFMIN%29

MicroCapital Universe Profile: Moody’s Corporation?https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Moody%27s+Corporation

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