Good news for businesses in South Africa

New data from Statistics South Africa (Stats SA) shows that the total number of liquidations in April decreased by 12.7% compared to a year ago.

Voluntary liquidations decreased by 29 cases, while coercive liquidations increased by nine cases, he said.

Liquidation refers to the liquidation of the business of a closed company or company when the liabilities exceed the assets and can be resolved by voluntary action or by court order.

According to Stats SA, the total number of liquidations decreased by 11.0% in the first four months of 2022 compared to the first four months of 2021.

The data also showed that there were a total of 600 liquidations between January and April 2022, 74 fewer than last year.

The following table highlights the business categories that recorded the highest number of liquidations in April 2022.

Financing, property insurance and business services recorded 34 liquidations in the period under review, while trade, catering and accommodation (32) and construction (13) were the hardest hit.

The Business Confidence Index (BCI) of the South African Chamber of Commerce and Industry (SACCI) continued its recovery path after the unrest and disruptions of July 2021. The BCI improved by 2.8 index points between January and February 2022 before dropping 1.3 index points in March 2022 to reach 95.6.

However, the general trend in business confidence in the first months of 2022 remained positive.

The SACCI BCI fell to 92.0 in the third quarter of 2021 and was hesitant before rising 1.2 points to 93.2 in the fourth quarter. After pointing to a more rapid recovery in January and February 2022 when the Covid-19 effect wore off, the unexpected Russian war campaign in Ukraine added to the uncertainty in global affairs and caused the BCI to slow down in March 2022. .

The SACCI BCI average in the first quarter of 2022 improved by 2.3 index points from the fourth quarter of 2021 to 95.5, or 1.2 index points more than in the first quarter of 2021.

In the short term, a higher volume of cargo imports, an increase in the real value of approved construction plans, and more new vehicles sold are helping to improve the business climate, he said.

Financial services group Absa meanwhile said in a statement earlier this month that South Africa’s economic recovery from the pandemic has been stronger than expected, “but a weaker global environment and supply shock is likely. internal slowdown the momentum of growth “.

Absa expects GDP growth of 2.0% this year and 1.7% next year. This is a more optimistic outlook than the South African Reserve Bank forecasts. The SARB said last week that it sees GDP growth of less than 1.7% in 2022, up from 2.0% previously, and unchanged at 1.9% in 2023 and 2024. The revision is attributed to the load reduction and flooding in KwaZulu Natal.

The FNB Property Broker survey for the first quarter of 2022 showed greater optimism regarding short-term property sales activity across all three major property classes – retail, office and industrial – than the survey response. on the expectations of the previous quarter.

Unsurprisingly, the industrial property class continued to be the one where brokers were most optimistic about short-term activity, with demand for this property class having long been the strongest.

In the industrial property market, greater accessibility is implicitly seen as an advantage over other classes, with significant growth in small businesses seen as an advantage for demand in this market, FNB said.

FNB interviewed a sample of commercial real estate agents in South Africa’s six major subways, namely the city of Joburg and Ekurhuleni (Greater Johannesburg), Tshwane, Ethekwini, Cape Town and Nelson Mandela Bay.

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