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The CGAP Poverty
Assessment Tool provides transparency on the depth of outreach
of MFIs. It provides rigorous data on the levels of poverty of
clients relative to people within the same community through the
construction of a multidimensional poverty index that allows for
comparisons between MFIs and across countries. The tool involves
a survey of 200 randomly selected clients and 300 non-clients,
takes about four months to complete and costs around $10,000.
Field tests were successfully completed on seven MFIs in seven
countries. The Poverty Assessment tool should be used in conjunction
with other appraisal tools (such as the CGAP Appraisal Format)
to ensure a holistic understanding of MFIs.
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