Objectives
- Through our efforts, we help to prove that microfinance is not only an effective tool to fight poverty but also an integral and professional part of the financial system.
Our key objectives are to :
- Create links between investors and MFIs
- With more than 80 investment funds in microfinance, MFIs have to fight to distinguish themselves. According to a recent study of CGAP, among 505 analyzed MFIs, only 10 receive 25% of total resources and 148 receive 89% of total resources. The funds available in the market offer more than 1 billion dollars, but only half of them have been invested so far. Furthermore MFIs must finance their development with new funding sources and funding mechanisms in order to build solid institutions from a financial and decision-making point of view. By providing ratings, Planet Rating establishes a new link between a vibrant private financial sector and microfinance. Our ratings are an essential tool in investment decisions. They allow investment funds, commercial banks and sponsors to obtain a professional, independent and objective opinion on the performance of the MFIs they wish to support.
- Build capacity for MFI self-evaluation
- Through our evaluation methodology, we identify and classify strengths and weaknesses of rated MFIs. This process allows MFIs to build their capacity for self evaluation by allowing Management members to take a step back from their operations and take a comprehensive view of their strengths and weaknesses.
- Promote communication and transparency in the microfinance sector
- Despite tremendous development over the last several years, the microfinance sector remains opaque. To build confidence in the sector, donors, investors and practitioners must have access to dependable and current information. Planet Rating responds to this need by providing reliable data on MFI financial and operational performance.