{"id":826057,"date":"2025-05-29T12:00:00","date_gmt":"2025-05-29T10:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=826057"},"modified":"2025-05-29T12:02:31","modified_gmt":"2025-05-29T10:02:31","slug":"another-100-businesses-shut-their-doors-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/826057\/another-100-businesses-shut-their-doors-in-south-africa\/","title":{"rendered":"Another 100 businesses shut their doors in South Africa"},"content":{"rendered":"\n

South Africa has seen another 109 business liquidations in the month of April 2025, taking the total number of closures to 482 for the year so far.<\/p>\n\n\n\n

According to Stats SA’s latest report on liquidations in the country, the finance, insurance, real estate and business services sector continues to be the hardest hit by closures, followed by trade, catering and accommodation.<\/p>\n\n\n\n

However, the data also shows that closures are easing, with the number of liquidations down from March 2025, and down almost 15% from the same time last year.<\/p>\n\n\n\n

Closures for the year to date are also 6% lower than the same time in 2024, Stats SA noted.<\/p>\n\n\n\n

Looking at the longer-term trend, while 2025 s currently showing a small ‘bounce’ thanks to the number of liquidations earlier in the year, the overall picture is pointing down from the peak in 2021, and a ris in 2022.<\/p>\n\n\n\n

Another important distinction to make is the difference between voluntary and compulsory liquidications.<\/p>\n\n\n\n

Compulsory liquidations are often court-ordered and reflective of business failure, while voluntary liquidations are not necessarily the same.<\/p>\n\n\n\n

Business experts have noted that voluntary liquidations could be indicative of business activity, with subsidiaries or special purpose vehicles being liquidated for investment or development purposes.<\/p>\n\n\n\n

Most of the liquidations recorded by Stats SA are voluntary liquidations. In April, 98 of the 109 liquidations were voluntary, while only 11 were compulsory.<\/p>\n\n\n\n

For the first three months of the year, compulsory liquidations were higher than in 2024, pointing to some distress in the country. <\/p>\n\n\n\n

However, April 2025’s compulsory liquidations (11) were down from those recorded in April 2024 (25).<\/p>\n\n\n\n

In terms of voluntary liquidations, a lower number could be interpreted as good or bad, depending on the wider context of the business environment.<\/p>\n\n\n\n

A low number of liquidations could point to low demand for access to funds for investment or low business activity.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Businesses under pressure in South Africa<\/h2>\n\n\n\n

April was a particularly difficult month for businesses in South Africa, given the strained environment due to the launch of US President Donald Trump’s tariff war and ructions within the Government of National Unity (GNU) over the 2025 budget.<\/p>\n\n\n\n

Trump launched a global 10% tariff on 5 April, followed by a steeper ‘reciprocal’ tariff regime on select countries \u2014 including South Africa \u2014 on 9 April.<\/p>\n\n\n\n

The latter tariffs, called the “Liberation Day” tariff, was paused for 90 days. However, the aggressive stance by the United States caused great uncertainty and disrupted global markets.<\/p>\n\n\n\n

Many businesses hit pause on investment and development activity, taking a wait-and-see approach.<\/p>\n\n\n\n

Similarly, drama within the GNU over the 2025 budget in April also disrupted local operations as markets were on edge, expecting a divorce between the ANC and DA.<\/p>\n\n\n\n

While these fears were ultimately quelled later in May, it made for a tricky environment in April\u2014the month the latest liquidation states reflect.<\/p>\n\n\n\n

The seasonally adjusted Absa Purchasing Managers\u2019 Index remained in contractionary territory for a sixth consecutive month in April.<\/p>\n\n\n\n

According to Investec chief economist Annabel Bishop, leading business indicators for the first quarter of the year show that there was likely a contraction in economic activity.<\/p>\n\n\n\n

This includes declines in industrial production\u2019s, retail sales, wholesale trade, and tourism and hospitality.<\/p>\n\n\n\n

Business services are reported to have fallen in both volumes and confidence, and the real estate subsector saw confidence decline, she said.<\/p>\n\n\n\n

The latest BankservAfrica Transaction Index (BETI) also hit its lowest point this year in April 2025, marking a month of economic slowdown.<\/p>\n\n\n\n

\u201cConfidence levels across the globe and in South Africa have been knocked by the sheer uncertainty that these developments brought on,\u201d the group said.<\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa has seen another 109 business liquidations in the month of April 2025, taking the total number of closures to 482 for the year so far.<\/p>\n","protected":false},"author":10,"featured_media":812517,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[22135,1809],"class_list":["post-826057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-liquidations","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=826057"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826057\/revisions"}],"predecessor-version":[{"id":826076,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826057\/revisions\/826076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812517"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=826057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=826057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=826057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}