South Africa's First Artisan SMME Fund Launches to Close R300 Billion Funding Gap

Imara offers practical financing solutions for plumbers, electricians, builders and other skilled tradespeople struggling to access capital

A new fund is set to transform how South African artisans access financing, targeting a sector long overlooked by traditional financial institutions.

The Imara Artisan SMME Fund, backed by Allan Gray Makers and E Squared Investments, has officially launched as the country's first fund purpose-built specifically for artisan trade businesses the plumbers, electricians, builders and other skilled professionals who form the backbone of local economies.

The Problem: A R300 Billion Gap

South Africa's artisan sector faces a significant challenge. An estimated R300 billion funding gap continues to prevent small and micro artisan businesses from scaling their operations and taking on larger projects.

The barriers are familiar to anyone who has run a trade business: most artisans cannot access fair financing through traditional channels, extended payment terms of 45 to 90 days create crippling cash flow problems, and the upfront costs of tools and materials often exceed available working capital.

These constraints trap many skilled tradespeople in a cycle where they cannot grow because they lack the resources to take on more work, yet they cannot access resources because they haven't demonstrated growth.

How Imara Works

Rather than offering traditional loans, the fund takes a practical approach aligned with how artisan businesses actually operate. The model addresses three critical pressure points through asset rentals that allow artisans to access tools and equipment through leading suppliers without upfront capital requirements, material financing that enables tradespeople to secure project materials and pay later once jobs are complete, and invoice discounting that provides immediate payment after project completion rather than forcing artisans to wait months for settlement.

Connecting Artisans to Markets

Beyond financing, Imara also supports the Find a Maker platform a network designed to connect skilled artisans with customers seeking their services. The platform aims to boost visibility for tradespeople and make it easier for clients to locate qualified professionals.

The Bigger Picture

The initiative has set an ambitious target: empowering 20,000 artisan microbusinesses. According to the fund's projections, every rand invested is expected to generate eight rand in social value a return that reflects the multiplier effect of enabling small businesses to hire, train apprentices, and contribute to their communities.

For South Africa's artisan sector, Imara represents recognition that skilled trades require financing models built around the realities of project-based work not products designed for other industries and retrofitted for tradespeople.