Stats SA reports over 5% decrease in business closures compared to 2023

JOHANNESBURG - It’s a bad time for businesses in parts of the country as they battle to keep their doors open.

Statistics South Africa (Stats SA) has reported more than 370 business liquidations in the second quarter of 2024.

This is down from the 391 businesses that shut their doors in the second quarter of 2023.

The closure of these businesses does little to boost South Africa’s dim job prospects, as the tough business environment continues to bite.

Principal survey statistician at Stats SA Suzzie Mnguni said, “There was a decrease of 5.4% [from 802 to 759] in the number of liquidations recorded during the first six months of 2024 compared with the first six months of 2023.”

SA'S COST OF LIVING CRISIS CONTINUES TO HEIGHTEN

Meanwhile, all eyes are on the Government of National Unity (GNU) following intensified calls for the country’s decision-makers to intervene on the cost-of-living crisis.

This comes after the South African Poultry Association (SAPA) renewed calls for an urgent review of the basket of zero-rate food items.

The association wants the government to scrap tax on chicken products to spare South African consumers from the high food costs.

While SAPA's Izaak Breitenbach admitted increasing zero-rated food items will impact revenue collected from value-added tax (VAT), he said there are some trade-offs.

“What we need to remember is that the poultry industry during the last five years has got various tariffs in place for imported chicken. That was a net income for the fiscus, so there’s a large portion of the monies that one can net off against the additional income that government got from tariffs.”