South Africa’s corporate sector is under siege with the latest report from Statistics South Africa (Stats SA) revealing that 145 businesses were liquidated in September – pushing the 2025 year-to-date total to 1 180 closures.
This marks a 23,9% spike compared to September 2024, and a 13% increase for the July to September quarter year-on-year, signaling a worsening economic climate for businesses across the country.
The hardest-hit sectors include finance, insurance, real estate, and business services – followed closely by trade, catering, and accommodation. Construction saw a sharp rise in September, underscored by the high-profile liquidation of Murray & Roberts Holdings – a stark reminder that even industry giants are not immune to the pressures of South Africa’s fragile economy.
Globally, liquidations are expected to rise by 11% in 2025.
Mounting pressures: Why businesses are failing?
The surge in liquidations is driven by a toxic mix of high interest rates, weak consumer demand, and rising operational costs. Logistical bottlenecks and escalating transport costs further squeeze margins while global trade tensions and regulatory burdens compound the crisis.
One in four liquidations are due to unpaid debt
Eighty percent of businesses struggle to recover unpaid debts. Non-payment can cripple cash flow and performance. One in four bankruptcies are due to unpaid debt and a single major debtor can threaten survival. With South Africa’s fragmented and inefficient debt collection system, businesses face additional uncertainty and resource drain.
How can businesses prevent liquidations, job losses?
Trade credit insurance and business information offer a proactive, effective solution to mitigate risks from unpaid invoices and unstable debt collection.
“As businesses look to the festive season, it is imperative that they recognise the importance of protecting their income streams and securing their financial stability,” says Abdul Vally, CEO at Coface South Africa. “By embracing trade credit insurance, businesses can fortify themselves against market uncertainties and thrive even in tough times.”
Trade credit insurance is a specialised policy designed to protect businesses against losses resulting from unpaid trade debts. It allows companies to grant payment periods to their customers in South Africa and abroad with confidence. It also protects invoices against excessive late payment or default.
When businesses insure their sales, they protect their cash flow, preserve margins, optimise income management, and safeguard growth.
Assess credit risks and protect your interests
By harnessing business intelligence and predictive analytics, companies can gain invaluable insights into the creditworthiness of customers and partners – minimising risks and gaining a competitive edge.
“In an era of heightened uncertainty, businesses need to rely on data-driven insights to assess credit risks and protect their interests,” explains Vally. “By harnessing advanced analytics and predictive modeling, companies can identify potential risks early and take proactive measures to mitigate them.”
Integrating robust risk management strategies with technological innovation enhances resilience. Monitoring market trends, assessing counterparties’ financial health, and identifying emerging risks enables businesses to stay ahead and safeguard long-term success.
Economic outlook: fragile confidence amid rising risks
Despite grim liquidation figures there are glimmers of hope. South Africa’s official unemployment rate declined to 31,9% in Q3 2025, down from 33,2% in Q2 – and public-sector infrastructure investment is on the rise. However, business confidence remains fragile, with only four out of 10 business leaders expressing satisfaction with current conditions.
Don’t wait until unpaid debts threaten your survival
Vally urges all businesses – especially SMMEs – to act now.
“Don’t wait until unpaid debts threaten your survival,” he says. “Protect your income streams, secure your financial stability, and work with your insurer. In these uncertain times, trade credit insurance is your shield against the storm.”