According to Statistics South Africa, over 1,200 South African businesses closed in 2023
New data from Statistics South Africa (Stats SA) has unveiled that more than 1,200 businesses have shuttered their operations this year. While liquidations are down from last year, they remain substantial.
Stats SA collects data on liquidations from the Companies and Intellectual Property Commission and the Department of Trade, Industry, and Competition, according to which, "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."
Comparing the third quarter of 2022 to the third quarter of 2023, business closures have decreased by 11%. Over the first nine months of 2023, there has been a 13% drop compared to the same period in 2022.
Industries severely affected include agriculture, mining, manufacturing, energy, construction, trade, transport, finance, and social services - i.e., most of the economy.
However, James Vos, Mayoral committee member for economic growth at the City of Cape Town, offers a more optimistic outlook for the Western Cape. He asserts that Cape Town has experienced a decrease in unemployment rates, adding, "Cape Town has added 263,000 new jobs over the last year and 56,000 new jobs in the second quarter of 2023 alone."
Vos credits the City's economic success to its inclusive economic growth strategy (IEGS), which includes various initiatives, such as job growth, support for small and medium-sized enterprises (SMMEs), and productivity efficiency programs.
Finance and Economic Opportunities MEC Mireille Wenger emphasizes the province's commitment to fostering economic growth and job creation through support for entrepreneurs and SMMEs. The 2023 SMME booster fund has assisted 860 SMMEs since 2019, contributing to the retention of thousands of jobs and fostering growth in these enterprises.
Despite business closures, Cape Town's proactive strategies aim to bolster the local economy and job market, providing a beacon of hope for the Western Cape and South Africa as a whole.
