Business closures in South Africa have been lower following the pandemic than after the global financial crisis (GFC). While the lockdowns had a big impact on services industries and tourism, the GFC had a broader impact across industries. Data from Statistics South Africa suggests that the number of insolvencies and liquidations has been lower over recent years than before the GFC. This does not appear to reflect a decline in the number of firms as there has been an increase in the number of new businesses registered over time.
Footnote
Note that the data pre-2023 data plotted is not comparable to the updated data.
