The spectre of business closures is a grim reality that characterises our economy. The dreams of many aspiring entrepreneurs who were once brimming with optimism at the prospect of success and making a social impact have been dashed by slow starvation occasioned by a lack of local support.
According to StatsSA, a staggering 1,534 companies were liquidated by the end of August last year, with 88% of total liquidations being voluntary. These chilling statistics are indicative of a challenging economic environment that many businesses must navigate.
But behind these bleak statistics are people, families, and livelihoods whose lives have been torn asunder by diminishing foot traffic and dwindling customer orders. The liquidation statistics are not just a clinical business failure, but the loss of a dream.
Behind the chilling statistics are people who have seen their life’s work turn to rubble as local support fizzled away, from once proud legacy companies that were household names, to your regular mom and pop corner store. The stories of these brave entrepreneurs were shared firsthand by the men and women whose businesses have faced closure due to the many challenges that small businesses encounter, including limited local support.
In a bid to put the faces behind the statistics, Proudly South African lined up two companies at the media launch of its annual flagship programme, the Buy Local Summit & Expo, who shared their journeys that laid bare how reduced local support can snuff life out of any enterprise. These businesses are renown confectionary BreadBox Bakery and manufacturing engineering company, JA Engineering. On the flip side of the coin, the local advocacy campaign also gave a platform to three companies that shared inspirational and uplifting testimonies that showcased the importance of local support.
The companies that shared their stories of triumph over adversity are coffee company Sonwaro, and electricity products manufacturer Lesco Manufacturing.
“The importance of consumer support and inclusion of localisation in the value chains of public and private sector entities is critical to the survival and prosperity of micro, small and medium-sized businesses. South Africa has the ignominy of being ranked as one of the countries with the highest failure of small and medium-sized businesses, which are generally regarded as the backbone of many economies.
By aggregating our demand and supporting our local enterprises, we will not only be enabling them to scale up and create more jobs, but we will also be unlocking the growth potential of the SME sector in South Africa, which is still lagging behind compared to our counterparts around the world. By going behind the numbers and putting faces and testimonies to the statistics, Proudly South African sought to amplify the importance of supporting companies with local manufacturing capabilities and demonstrate the far-reaching impact of our decisions on hard-working citizens who depend on our rands and cents for survival.
These testimonies have shone the spotlight on two ends of the spectrum – on the one hand how local support can serve as a catalyst for growth and job creation, and on the other how withdrawal of this support can sound a death-knell not only to these businesses, but to the hopes and aspirations of more people who rely on their sustainability for survival,” says Eustace Mashimbye, Chief Executive Officer of Proudly South African.
The latest liquidation figures from StatsSA reveal that under 100 businesses were liquidated in the first month of 2026, with StatsSA recording 96 closures in the first weeks of the new year.
According to the latest liquidation stats, these closures were centred on the finance, insurance, real estate, and business services sector, accounting for a quarter of the liquidations. This was followed by the trade, catering and accommodation sector.
“We commit ourselves to doubling down on our buy local advocacy campaign by rallying South Africans to support local enterprises and lobbying the public and private sector to ramp up their procurement spend on local companies. We believe that the long-term sustainability of our economy, the commercial viability of our enterprises, and the welfare of our people hinges on the unwavering support of all our stakeholders, including consumers, the public and the private sector,” says Mashimbye.
The storytelling event is a prequel to the 14th edition of the Buy Local Summit & Expo, which is taking place on 16 and 17 March 2026, at the Sandton Convention Centre in Johannesburg. High-powered panel discussions have been lined up at the event, including dialogues on the impact of unfair and illegal trade practises, the impact of offshore, e-commerce retailers on the local retail, clothing, textile, footwear and leather industries, and how enterprise supplier development can be used to drive localisation.
The key highlight of the Buy Local Summit & Expo will be a protest march around the Sandton precinct that draws public attention to the impact of illicit trade.
To register attendance at the Buy Local Summit & Expo, please click on this link: Self Registration | Buy Local Summit and Expo 2026
Standard Bank is the lead sponsor of the 2026 Buy Local Summit & Expo. Other sponsors include the Department of Small Business Development (DSBD), Coca Cola Beverages South Africa (CCBSA), South32, Telkom, Hulamin, AITF, Adreach, Haleon, W&R SETA, Brand SA, Arena Holdings, Brand SA, AIDC, GGDA, SAB and Nestlé.
