SA Businesses Show Signs of Recovery, Mzansi Disagrees: “Which Businesses?”

• South African businesses are showing signs of recovery, according to Statistics SA
• Despite the country's slow-growing economy, liquidation cases fell by 30 to 138 in March
• However, South Africans argue that is not the reality on the ground

Businesses in South Africa are indicating signs of recovery despite the country’s slow-growing economy, according to Statistics SA's recently released data.

Businesses have turned a new leaf

Stats SA’s Onica Mushwana says the total number of liquidations decreased by 17,9% in March 2024 compared to March 2023.

"Liquidations of close corporations decreased by 17 cases and liquidations of companies decreased by 13 cases during this period. The total number of liquidations decreased by 6,3% in the first quarter of 2024 compared with the first quarter of 2023."

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Mushwana said this represents a 30% decline in liquidations from 168 in March 2023 to 138 in March 2024 despite the soaring unemployment rate.

"The 138 liquidations recorded in March 2024 include 13 compulsory liquidations and 125 voluntary liquidations. Breaking down by the type of institution, 66 companies and 72 closed corporations shut their doors in March 2024."

She also notes that the number of company closures declined by 13 cases year on year.

"The number of liquidations by closed corporations decreased by 17 cases over the same period. In the first quarter of 2024, the number of liquidations declined by 6%; 3% compared with the first quarter of 2023."

Not the reality

Reacting to the statistics on Facebook, South Africans argued this was different from the reality in many areas.

@Jay Madimetja Mamashela commented:

"Which businesses are they referring to?"

@Giyani Vincent said:

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"Liars! With these loadsheddings and higher unemployment rates, it is false. We are on the ground, and we see the realities."

@Hezekial Mthembu added:

"Businesses are recovering because we are going to elections. Everything is becoming better now; we are not fools."

@James Phiri asked:

"Which business can show recovery with this loadshedding?☹️"

@Frida Collage asked:

"Million veggie stalls at taxi ranks?"

Liquidations plummet by 13.3% year on year

Meanwhile, last year, Briefly News reported that Stats SA revealed both alarming and hopeful trends, offering a nuanced perspective on the country's financial landscape in November 2023.

Despite the year-on-year decrease in liquidations, various economic indicators indicated that November presented a challenging month; several businesses were forced to close their doors permanently.

Source: Briefly News