The fallout from the Middle East conflict is reversing the economic props that have supported South African businesses, with insolvencies expected to start ticking up in 2026 after several years of decline.
This year, local business insolvencies — the state in which companies can no longer pay their debts — are expected to edge up to 1,540, having tracked lower from 1,657 in 2023 to 1,534 by 2025. Insolvencies should rise further to 1,590 in 2027, international insurance company Allianz Trade says in its latest global insolvency outlook.
The report comes after Stats SA data last week showed that liquidations — the formal legal process of closing companies including those that are insolvent — increased by 1.1% to 377 in the first…