After the merger of MAIN & AMT which took place during the African Microfinance Week in 2017, the “Project of transparency promotion and development in microfinance sector in Africa” is in progress. Transparency is an essential value that still has a long way to go in African microfinance industry. To gain the confidence of investors and clients and finance the development of their activities, Microfinance Institutions (MFIs) must set up transparency policies detailing their financial and social performance and information provided to clients.
After two Tainings of Trainers (ToT) in transparency in 2019, personalized coaching on financial education, training on financial analysis and social performance, the year 2020 was the beginning of implementation of transparency actions in African MFIs. Also in 2020, Transparency Pact was proposed and signed by institution’s members wishing to commit to greater transparency in their practices, with key element as collecting, analyzing and publishing financial and social data on ATLAS. At the end of 2020, MAIN organized an online transparency project capitalization workshop to present the activities carried out, the results achieved and the main lessons learnt with more than sixty members who participated in this online workshop.
Forty-Five (45) institutions, either 47% of member microfinance institutions, have signed the Transparency Pact, including forty (40) French-speaking and five (5) English-speaking institutions. The Pact offers two options for the publication of financial and social data, one nominative (option 1) and another anonymous (option 2). Thirty (30) institutions, including twenty eight (28) French-speaking and two (2) English-speaking, chose option 1 and fifteen (15) institutions, including twelve (12) French-speaking and three (3) English-speaking, chose option 2; either 67% of the signatories of the Pact have chosen to publish their data nominatevely and 33% have chosen to remain anonymous.
Of the forty-five (45) institutions that have signed the Transparency Pact, twenty seven (27) have sent their Factsheets for 2019 to MAIN, meaning 60% of the institutions that have signed the Pact. Out of these twenty seven (27), there are twenty (20) institutions, including eighteen (18) French-speaking and two (2) English-speaking for option 1. Seven (7) institutions that have opted for option 2 are exclusively French-speaking. This effort that you have made has been highly appreciated by the executive direction of MAIN.
MAIN Transparency Awards were created to reward institutions that respect good transparency practices. During the capitalization workshop, MAIN presented the Awards for the twenty one (21) institutions that have kept their commitments and shared their social and financial data. Three of the last received the “Gold” award consisting of a video clip highlighting their efforts in terms of transparency. Thirteen (13) others received the Bronze award and five (5) the Silver award.
We hereby, would like to urge members of the network who have signed the transparency charter to share their Factsheet from last year (2020) with MAIN during this year 2021, and invite other members of the network, to be part of this dynamic. MAIN wants to become a center of competence in matters of transparency which informs about international standards and disseminates good practices.
This requires the mobilization of all members of the network because your commitment to transparency will be a great achievement for the sector and for microfinance players in Africa. Do not hesitate to visit our dedicated page on https://www.mainnetwork.org/programme-transparence/ or contact us to find out about the next actions on transparency.
The Executive Direction