Finding concrete examples or pilots of projects that fit within the mechanism developed proved to be difficult with respect to the micro-finance component, research and consultations indicated that micro finance institution that would fit into the mechanism or be interested to take a lead in such an initiative, brought us to two main conclusions:

1. That Micro Finance Institutions (MFIs) interested in engaging in the micro-technology for income generation purposes would not be able and/or willing to take a lead alone without requiring that costs be paid largely or entirely by donor/grant money. At this time, the financing of micro-technology for micro-entreprise is not being pursued or viewed an interesting and value-added new product line by MFIs.

2. That those MFIs who are financially stable and able to take on high interest/risk debt in foreign currency, had a large client reach etc. and who could fit into the proposed EWFP mechanism, were not willing to take the risk of financing technologies or be involved in development of local markets with/to their clients at this time, as part of their planned business activities.

Research (to date) on finding potential projects from the micro-technology perspective, that fit into the mechanism demonstrates a similar challenge. What does exist are projects heavily supported by “soft” funds, or pure technology transfer initiatives. Of these projects, those which could possibly fit into the technology scope of Canopus Poverty Reduction activities are far from a commercialisation stage (locally) nor are they developed for income generation purposes by the end technology user/entrepreneur/client. Local partners or experts indicated that potential projects with micro-technologies that fit into the proposed “scope” also appear to be difficult to link with the mini-finance or micro-venture capital approach (administered through micro finance institutions). Therefore, with respect to the financing component of the EWFP mechanism, we do not foresee working necessarily within a micro-finance context at this time (This does not rule out micro-finance as a local finance model, where appropriate). What has been learned is that each project, depending on local needs, technology and geographic region will require specifically engineered financing package.

Canopus Foundation will continue the poverty alleviation work, initiated within the Entrepreneurs for a World Free of Poverty initiative. Canopus will pursue a very flexible mechanism, that supports the needs of the local entrepreneur. However we wish to remain true to the principles of the use of market based applications of micro-technology for entrepreneurial and income generation
activities. Seeking out a test pilot project with whom we can work in partnership is the Foundation’s main focus at this time.
The mechanism within which we foresee pursuing our work in the area of poverty alleviation, is slightly modified from the original EWFP concept. We will aim to work with projects that seek to reduce poverty by assisting the entrepreneurial poor with technology, training and financing to assist them in improving their quality of life through entrepreneurial and income generating activities.

Canopus wishes to work in local partnership and provide support to develop projects that require:

. assistance in providing financial engineering to projects that seek to use micro-technologies (according to technology scope and for projects that fulfil and are according to established project criteria)
. appropriate micro technology packages
. micro enterprise training and technical support

What do we seek to learn from working in cooperation with such projects?

Canopus’ goal is to learn how projects that bring a social value can be successfully and sustainably financed. The Foundation will also explore how the returns on investment within such projects can be measured by the triple bottom line (social, environmental and economic returns) – and thus contribute to the work and to the role of technology as an added-value and “value-adder” in the creation of a market that fosters financing projects that focus on more than simply financial returns.

For more information please contact: info@canopusfund.org