South Africa sees 8% drop in business liquidations in March
Statistics South Africa reports an 8% decline in business liquidations for March 2025, in addition voluntary closures outnumber compulsory ones.
While South Africa's economy is experiencing significant turbulence and instability, businesses are showing their resilience
Image: Picture: Henk Kruger/Independent Newspapers
While South Africa's economy is experiencing significant turbulence and instability, businesses are showing their resilience.
Business liquidations in South Africa dropped by 8.0% in March 2025 compared to the same month in 2024, according to Statistics South Africa (Stats SA). A total of 127 liquidations were recorded, down from 138 in March the previous year.
In its report, Stats SA stated: “The total number of liquidations decreased by 8.0% in March 2025 compared with March 2024. Liquidations of close corporations decreased by 21 cases, whereas liquidations of companies saw an increase of 10 cases during this period.”
The decline in liquidations of close corporations amid the rise in company closures, suggests a shift in how different types of businesses are faring in the current economic environment.
Looking at the first quarter of the year, the data shows a modest but consistent improvement. “The total number of liquidations decreased by 3.1% in the first quarter of 2025 compared with the first quarter of 2024,” the report added.
Out of the 127 total liquidations in March 2025, voluntary liquidations accounted for 105 cases, while 22 were compulsory. This continues the pattern of businesses opting to close through voluntary means rather than being compelled by court orders.
Industry data reveals that the financing, insurance, real estate, and business services sector recorded the highest number of liquidations in March, with 53 cases. The trade, catering, and accommodation industry followed with 20 liquidations. Manufacturing accounted for 8 closures, and construction saw 4.
Stats SA also indicated that it is refining how it tracks and reports liquidation trends.
“Statistics South Africa regularly engages with the Companies and Intellectual Property Commission to ensure the accuracy of statistics. This allows for an assessment of the current survey’s scope and other areas of improvement."