End of the line for 143 businesses in South Africa
South Africa has recorded a further 143 insolvencies in July 2026, taking the total number of insolvent businesses this year to just under 900.
The latest data from Stats SA showed a 134% climb in insolvencies between June and July 2026, although the number is down 15.5% year-on-year.
Year-to-date, insolvencies are also 11.8% lower, while the three-month rate (May to July 2026 vs the same period in 2025) is also 25% lower.
Insolvency refers to an individual or partnership business that is unable to pay its debts and is placed under final sequestration.
While related to liquidations, in that insolvency could be a cause or reason for liquidating a business, they are not congruent.
Liquidation refers to the winding-up of the affairs of a company or close corporation when liabilities exceed assets. This can be done on a voluntary basis or by an order of the court.
Voluntary liquidations, especially, could be part of standard business activity.
Because of this distinction, insolvencies are more reflective of struggling businesses and are more closely aligned to the broader business environment.
South Africa has been without this data for years, after Stats SA stopped tracking the numbers in April 2023.
While data on liquidations continued, data on insolvencies were delayed following a cyber incident at the Department of Justice and Constitutional Development in 2021.
Businesses are struggling
As with the data on liquidations, the insolvency statistics serve as a single data point and may indicate different causes.
One reading of the improved insolvency data is that business conditions are improving, and the lower numbers point to happier times.
This would lean into more positive sentiment around South Africa in 2026, which includes credit rating upgrades and market confidence in the country’s fiscal policies and trends.
Another reading could be that there are simply fewer businesses around to become insolvent—an unfortunate outcome of more than a decade of stagnant growth.
When weighed up against Stats SA’s revised liquidations data—where liquidations appear to be accelerating—the more negative conclusions could be drawn.
Stats SA recorded 245 liquidations in June 2026 and will publish the latest data for July 2026 on Wednesday, 26 August 2026.
| Year | Liquidations | Insolvencies |
|---|---|---|
| 2023 | 2,501 | 1,883 |
| 2024 | 2,626 | 2,105 |
| 2025 | 2,904 | 1,606 |
| 2026 to July (June) | TBA (1,361) | 896 (753) |
Total insolvencies for 2023, 2024 and 2025 were remarkably high, peaking in 2024, reflecting difficult business conditions that hit in each respective year.
In 2023, South Africa experienced the worst load shedding on record, which affected the economy as a whole. During this year, the country recorded 1,883 insolvencies.
In 2024, the country continued to face load shedding—although slowing down—and weathered political uncertainty before and after the National Elections. The country recorded 2,105 insolvencies.
2025 was a much calmer year locally, with a notable turn for the better in local economic conditions and sentiment; however, the Trump administration’s tariff war and targeting of South Africa still weighed.
Despite this, the number of insolvencies pulled back significantly, with 1,606 recorded last year. So far, for 2026, the picture appears to be on a brighter path.
Over the years, a common thread across the country has been stagnant economic growth, high unemployment, and a major lag in political reforms to boost the economy.
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