Business closures surged in South Africa in August

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The total number of liquidations in South Africa increased by 44.8% in August 2022 compared with the same period a year ago, new data from Stats South Africa (Stats SA) shows.

Liquidations of close corporations increased by 62 cases, and liquidations of companies increased by 12 cases during this period. The total number of liquidations increased by 18.8% in the three months ended August 2022 compared with the three months ended August 2021.

Absa noted in a research report that seasonally adjusted liquidations rose by 30.2% m/m in August after falling 3.4% in July. “Despite the notable m/m rise in August, liquidations are just 0.8% higher year-to-date,” it said. South Africa recorded 239 liquidations in August 2022, largely focused on the financing, insurance, real estate and business services segment. The trade, catering and accommodation segment saw the second largest number of liquidations, followed by community, social and personal services.

 

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