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· Business liquidations in South Africa are at an all time high. It rose by 20.8 percent year-on-year basis in October as 215 more companies went under due to the deleterious impact of the,Covid-19 pandemic on economic activities
· Statistics South Africa (StatsSA) for the third quarter released recently said that the total number of liquidations increased by 33.2 percent in the three months ended October compared with the same period in 2019
· Of that, compulsory liquidations has risen by 21 cases and voluntary liquidations increased by 16 cases, quite a formidable number as compared to any other period in the recent times
Business liquidations in South Africa are at an all time high. It rose by 20.8 percent year-on-year basis in October as 215 more companies went under due to the deleterious impact of the Covid-19 pandemic on economic activities. As reported by www.trendnafrica.com
earlier, many companies of all hues and sizes are struggling to stay afloat, fully realizing that the economy is at its nadir and it would take more time than expected to bring it back on rails.
Statistics South Africa (StatsSA) for the third quarter released recently said that the total number of liquidations increased by 33.2 percent in the three months ended October compared with the same period in 2019. Of that, compulsory liquidations has risen by 21 cases and voluntary liquidations increased by 16 cases, quite a formidable number as compared to any other period in recent times. The liquidation was more felt in areas like finance, insurance, real estate, business services industry. It worked out to 79 in October – 68 of them voluntary. Segments like trade, catering and accommodation industry had 40 liquidations in the month, which was the second highest.
One silver lining is that the total number of liquidations came down by 4.7 percent in the first ten months of 2020 compared with the first ten months of 2019. Also, the estimated number of insolvencies, which relate to individuals and partnerships, came down by 38.3 percent year-on-year to 153 cases in September. The third quarter recorded a decrease of 57.7 percent in insolvencies compared to the same period last year. Seasonally adjusted insolvencies increased by 30.8 percent in September compared to August.
