More than 750 businesses and partnerships in South Africa were declared insolvent during the first six months of 2026, according to newly released data from Statistics South Africa (Stats SA).
Although insolvencies declined year-on-year, economists say many businesses continue to face financial pressure amid weak economic growth.
Stats SA has resumed publishing insolvency statistics after a 2021 cyberattack disrupted access to insolvency records. The latest release marks the first standalone report since the suspension.
“Users should note that this release does not represent a continuation of the previous series, as there is a break in the time series data between September 2021 and December 2022,” Stats SA said in the report.
The agency recorded 753 insolvencies between January and June 2026. In June alone, 61 insolvencies were registered, down 56.1% from the 139 recorded in June 2025.
Insolvencies during the second quarter of 2026 were 27.3% lower than the same period last year, while year-to-date insolvencies declined 11.1% compared with the first half of 2025.
Insolvency differs from liquidation
Unlike liquidation, which is the legal process of winding up a company and selling its assets to repay creditors, insolvency occurs when a business can no longer pay its debts. Although insolvency can lead to liquidation, the two are not the same. They measure different aspects of financial distress.
The latest figures show fewer businesses and partnerships entered insolvency during the first half of the year. However, economists caution that the decline does not necessarily mean business conditions have improved.
For small businesses, the data serves as a reminder that financial pressures remain despite signs of improvement. Managing cash flow, controlling costs and adapting to slower economic growth will remain critical for business survival, particularly for enterprises with limited financial reserves.
The country recorded 1,883 insolvencies in 2023, rising to 2,105 in 2024 before easing to 1,606 in 2025. Those years were characterised by weak economic growth, persistent unemployment, electricity shortages and global economic uncertainty.
The insolvency data comes as separate Stats SA figures show that company liquidations have accelerated, highlighting continued pressure across the business environment.
Experts warn challenges remain
Global trade credit insurer Allianz Trade expects business insolvencies in South Africa to remain elevated despite some improvement in economic conditions.
In its 2026 Global Insolvency Report, the insurer said rising operating costs, tighter financial conditions and ongoing geopolitical uncertainty continue to place pressure on businesses. Forecasting about 1,540 business insolvencies in 2026 and a further increase in 2027.
Dr Eric Levenstein, Head of Insolvency and Business Rescue at Werksmans Attorneys, said many South African businesses continue to face severe financial strain.
“Businesses are operating under severe financial distress and that many companies are turning to business rescue before liquidation because of ongoing economic pressure,” he said.
Levestein said the trend reflects the difficult trading environment confronting businesses.
The return of Stats SA’s insolvency data is expected to provide a clearer picture of financial pressures facing businesses.
