PAWDEP Joins Global Group
PAWDEP became the first microfinance institution in Africa to report its data to the Microfinance Transparency Pricing Initiative(MFT). MFT is a network that allows microfinancing organizations that mainly lend to the world's poor to disclose how much they charge their borrowers, allowing more transparency and greater protection of the poor. The initiative has the backing of Nobel Peace Prize winner Muhammad Yunus, who set up Bangladesh's Grameen Bank and is regarded as the founder of the microfinance movement.
PAWDEP received a certificate during the global microfinance meeting in Nairobi, which Yunus attended."Investors, donors, policymakers, researchers and practitioners will immensely benefit from having access to the interest rate data", Yunus was quoted as saying in a statement shortly after the policing body was established."In the past few years, hundreds of pro-profit companies have begun financing and marketing loans to the poor in developing nations," says the global network on their website.It says companies have been "attracted by the near-monopoly lending environments and misleading pricing systems compounded by borrowers' frequent lack of understanding of the financial details of credit transactions.The information, published on the website www.mftransparency.org
disclose repayment schedules for each product that participating microfinance institutions offer.Information sharing
"We encourage all practitioners to join the network in order to enhance transparency and promote information sharing in the sector," Carol Mulwa, country manager - Oikocredit Kenya.The global initiative says its target is to promote a microfinance industry operating with healthy free market conditions where consumers and other stakeholders can make informed decisiions."We are at the beginning of a huge wave," Mr. Chege says. "Market development at the bottom of the pyramid is very sustainable and will have dramatic social impact.""Our ultimate goal is to provide essential information necessary for healthy free market conditions," says MFT on their website.