TMA-SA pointed to the rescue of Tongaat Hulett as an example of how preserving a distressed company can protect significant social and economic value that might otherwise be lost through liquidation.
South Africa needs to fundamentally change how it approaches corporate distress and business failure, according to the Turnaround Management Association Southern Africa (TMA-SA), which is calling for a stronger national business rescue culture as the number of financially distressed companies continues to rise.
The call comes as new research prepared for TMA-SA reveals that 48 companies entered business rescue in February 2026 alone – the highest monthly figure recorded since the introduction of the business rescue regime under Chapter 6 of the Companies Act.
The research, based on an analysis of 4,373 Companies and Intellectual Property Commission (CIPC) proceedings between 2005 and March 2026, shows that 1,409 companies are currently in business rescue.
The findings were presented at TMA-SA’s inaugural Conference on Distressed Investment and Business Rescue, which brought together business rescue practitioners, investors, legal experts, academics and government representatives to examine the state of South Africa’s restructuring environment.
