Data from Statistics South Africa (Stats SA) has revealed a shocking truth about the state of businesses in the country.
“Stats SA collects administrative information on liquidations from Companies and Intellectual Property Commission and the Department of Trade, Industry and Competition,” said the organisation.
Stats SA said that more that 1,200 businesses have had to shut down their operations in 2023.
However, despite the high numbers, they are lower than those of 2022.
“The total number of liquidations (selling off assets and using the proceeds to pay off creditors and shareholders) decreased by 8.2% in September 2023 compared with September 2022,” said Stats SA.
It added that when compared to the third quarter of 2022, the number of businesses that closed declined by 11% in the third quarter of 2023.
The first nine months of 2023 also had a 13% drop when compared to the first nine months of the previous year.
These are the industries that were affected the most in 2023:
– Agriculture, hunting, forestry and fishing
– Mining and quarrying
– Electricity, gas and water
– Trade, catering and accommodation
– Transport, storage and communication
– Financing, insurance, real estate and business services
– Community, social, personal services
When these businesses shut down, some of the employees suddenly find themselves without jobs.
This is especially difficult due to the ongoing cost of living crisis where the majority of South Africans fight to meet their basic needs when almost everything is more expensive and nearly unattainable.