Small businesses in SA under strain

Stats SA data shows a rise in liquidations in July

- SIPHESIHLE BUTHELEZI

SOUTH Africa recorded 155 business liquidations in July 2025, raising fresh concerns about job security and the fragile state of the economy. The latest statistics on liquidations report from Statistics South Africa (Stats SA) shows that closures increased by 16.5% compared with July 2024, with close corporations hardest hit.

“The total number of liquidations increased by 16.5% in July 2025 compared with July 2024, Stats SA said in its release. During the period, liquidations of close corporations rose by 26 cases, while company liquidations decreased by four.

The short-term trend points to mounting strain. “The number of liquidations increased by 12.4% in the three months ended July 2025 compared with the three months ended July 2024,” the agency reported.

Looking at the year to date, “an increase of 1.8% in the number of liquidations was recorded in the first seven months of 2025” compared with the same period last year.

Industries most affected in July included financing, insurance, real estate and business services (54 liquidations), followed by trade, catering and accommodation (27), and construction (7).

Stats SA noted that the data covers both voluntary and compulsory liquidations, drawn from the Companies and Intellectual Property Commission (CIPC) and the Department of Trade, Industry and Competition.