Business

Over 1,600 businesses shut down in South Africa

Luke Fraser

 ·26 Aug 2026

1,601 businesses have been liquidated in South Africa in 2026, but the total number of liquidations is down year-on-year.

According to Stats SA’s latest data, the total number of liquidations decreased by 23.2% from 311 in July 2025 to 239 in July 2026.

Liquidations of companies decreased by 44 cases, while the liquidations of close corporations dropped by 28 cases during this period.

The number of liquidations decreased by 13.9% to 710 in the three months ended July 2026, compared to 825 in the three months ended July 2025.

A 4.9% decrease, from 1,684 to 1,601, in the number of liquidations was recorded in the first seven months of 2026 compared with the first seven months of 2025.

Of the 239 liquidations in July, 208 were voluntary while 31 were compulsory, which is a broader reflection of business stress.

Voluntary liquidations, however, can often be a sign of business operations and are not always indicative of business struggles.

Throughout the first seven months of the year, 1,438 voluntary liquidations have taken place, with 163 having been compulsory.

Outside of the unclassified companies, the hardest-hit industries in July were Financing, insurance, real estate, and business services, which recorded 41 liquidations.

This has also been the most affected classified industry, with 226 liquidations since the start of the year. Trade, catering, and accommodation saw the second-most, at 173.

Other data highlights the stress

While liquidation refers to the winding up of the affairs of a company or close corporation, another indicator of financial stress is insolvency.

Insolvency refers to an individual or partnership business that cannot pay its debts and is placed under final sequestration. While related to liquidations, they are not congruent.

Insolvencies better reflect a struggling business and are closely aligned with the broader economy.

Recent data from Stats SA showed that 143 insolvencies were recorded in July 2026, taking the total number of insolvent businesses to just under 900.

There was a 134% climb in insolvencies between June and July 2026, even if the number is down 15.5% year-on-year.

Year-to-date, insolvencies are down 11.8%, while the three-month rate (May to July 2026 vs the same period in 2025) is down 25%.

South Africa has only recently started to receive the insolvency data from Stats SA, with the monthly release of the figures halted in April 2023.

Although data on liquidations continued, data on insolvencies were delayed following a cyber incident at the Department of Justice and Constitutional Development in 2021.

Total insolvencies for 2023, 2024 and 2025 were extremely high, peaking in 2024, reflecting the incredibly difficult operating environments.

2023 was a year characterised by load shedding, with rolling power cuts up to stage 6 becoming a new reality for many. The year recorded 1,883 insolvencies.

While 2024 saw significant improvements in load shedding and the formation of the Government of National Unity, economic growth remained weak, with 2,105 insolvencies recorded.