More than 9,000 Businesses Shut Down in Johannesburg in 2024: JCCI

The Johannesburg Chamber of Commerce and Industry (JCCI) has raised alarms over a wave of business closures in 2024. According to the chamber, more than 9,000 businesses have shut their doors in Johannesburg since the start of the year, primarily due to the city’s escalating crime rate and the strain of South Africa’s ailing economy.

Crime syndicates have become more brazen, with a growing focus on businesses that own high-value assets such as industrial equipment, generators, and heavy machinery. Security experts warn that this targeting of valuable resources is making it harder for local companies to survive.

Crime and Economic Pressures Squeeze Local Businesses

“Especially small businesses are suffering the most. We’ve seen more than 9,000 businesses go into liquidation this year alone,” said Connie Mashaba, President of the JCCI. “The situation is dire. We need urgent intervention and renewal in the city because right now, neither residents nor business owners feel safe.”

Johannesburg’s businesses are grappling with dual pressures—rising crime and a struggling economy. The pandemic’s lingering effects, inflation, and slow economic growth are creating a hostile environment for companies. Many small and medium-sized enterprises (SMEs), which make up a significant portion of the city’s economy, are particularly vulnerable.

Call for Action: Urgent Renewal Needed in Joburg

Mashaba called on city leaders to take immediate action, emphasizing that the future of Johannesburg’s economic landscape depends on resolving both the crime crisis and the broader financial challenges. The sense of insecurity across the city not only discourages potential business investments but also stifles local entrepreneurship.

As businesses shut their doors and employees lose their jobs, the city’s economic outlook continues to weaken. Local authorities and the business community are being urged to come together to devise strategies for enhancing security and reviving economic opportunities in Johannesburg.