Over 1,100 companies have shut down in 2025 so far — a 24% year-on-year spike, signalling growing strain on the economy.
South Africa’s corporate sector is facing renewed strain, with 145 more companies liquidated in September, bringing the total number of business closures to 1,180 so far in 2025, according to new data from Stats SA.
The latest figures paint a grim picture of the country’s business landscape. Liquidations surged 23.9% year-on-year compared to September 2024, while the year-to-date total is up 3.8% from the same period last year. Over the past three months alone — from July to September — closures rose 13% compared to 2024.
The trend marks a worrying reversal for South Africa, where business liquidations had been declining steadily since mid-2022. Economists warn that while current numbers remain below the Covid-19 lockdown peaks, the uptick signals renewed economic pressure rather than recovery.
Analysts say the modest figures could reflect not resilience but rather the shrinking pool of operating businesses in a stagnant economy. “There are simply fewer businesses left to close,” one analyst noted.
2025 has proven especially tough for South African companies. Persistent power instability, soaring energy costs, deteriorating infrastructure, red tape, and anti-business policies have all weighed heavily on operations.
Globally, US tariffs and trade tensions have also disrupted markets, further squeezing importers, exporters, and manufacturers.
In this hostile environment, even long-established firms and legacy brands have been forced into liquidation or business rescue. Stats SA’s report notes that business rescue data is not included in its liquidation figures — meaning the full scale of corporate distress may be even greater.