liquidations | Radio 94.7 FM

According to the figures released by Statistics SA the number of liquidations increased by 24.9% in the second quarter of this year compared with the same period for last year.

The estimated number of insolvencies increased by 4.6% in May and a 15.2% increase was estimated in the first five months of this year.

Economist Mike Schussler said: “We are in trouble. A lot of firms are in trouble and South Africa is getting poorer. I think we are in a space where its not going to get easy getting the economy going.”

Schussler said the companies have felt a pinch where there has been little to no growth,

“There is no demand any more for certain industries and when there is no demand its difficult to match prices compared to other companies. We are not on our last leg just yet but we are in a very vulnerable position,” he said.

The StatsSA figures showed that the three worst-hit industries were agriculture with nine business closin
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While the ANC president, Cyril Ramaphosa made huge promises of foreign investors and many jobs for the 28% who are looking for jobs and not getting, new setbacks are coming to the surface.

The number of liquidations recorded in South Africa has increased by 50% during April this year, indicating the real state of the country.

Companies are losing the battle one after another due to the rough condition in the country.

Economists point out that a country’s growth is closely linked to power supply, violence, strikes, corruption, and a number of other factors.

Liquidations increased by just over 53% while in February and March it was less than 10% compared to previous periods.

What makes this remarkable is that the largest number of businesses voluntarily went into liquidation, which means there is no confidence in the business that the country’s economy will improve.

Businesses have now taken an expectant stance to
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