Our 2024 Restructuring Survey saw the highest participation since the inception of our survey in 2014 , with a 42% increase in responses compared to 2023. This year, we broadened our reach to include four key African nations: South Africa, Kenya, Nigeria, and Ghana making its debut. Our survey provides valuable insights into the current state of restructuring across Africa amidst global and local headwinds.
Key findings from South Africa’s restructuring professionals and C-suite include:
Cautious optimism. Respondents reported a slight improvement in their outlook on growth prospects. Pessimism dropped from a record high of 81% in 2023 to 75% in 2024.
Increased business restructuring expected. 64% of respondents anticipate a rise in business rescue activity, particularly focusing on operational restructuring, advisor-led restructuring, and informal management-led initiatives.
Internal threats identified. Weak board governance ranked highest among internal factors likely to trigger financial distress. This was followed by concerns about cash management and inadequate financial controls.
Call for improved insolvency legislation. The top three suggestions for improving South Africa's insolvency framework included better protection of post-commencement financing (PCF), specialised insolvency courts, and a new unified Insolvency Act.
