PwC's Global insolvency year in review 2024 offers a comprehensive analysis of worldwide insolvency trends that shaped business landscapes across major economies, including specific country relevant content, developed by PwC Africa colleagues, covering South Africa, Ghana and Kenya, providing key insights into trends being experienced on the continent.
Our expert team has documented a significant increase in corporate insolvencies globally, with particularly acute challenges in technology startups, traditional retail and commercial real estate sectors. The report provides a detailed explanation of how rising interest rates, persistent inflationary pressures and post-pandemic operational adjustments created a perfect storm for financially vulnerable enterprises, while highlighting the surprising resilience demonstrated in certain industries such as renewable energy, healthcare technology and specialised manufacturing. The report also highlights that the general operating environment for businesses is anticipated to remain constrained in what is a highly volatile and interconnected global economy. The report presents a thorough regional breakdown, revealing how North American insolvencies were characterised by larger-scale corporate restructurings, whereas European markets experienced a higher volume of small and mid-sized enterprise failures despite continued regulatory intervention. Across African markets, there was some room to be cautiously optimistic with lower insolvency proceedings being noted in certain jurisdictions versus prior years (although this was off a high base due to COVID), and there was a clear trend towards maturing insolvency frameworks and legislation, thereby facilitating greater optionality for formal and consensual restructuring mechanisms to be used for value preservation.
PwC's analysis also identified key differences in creditor behaviour across jurisdictions, noting an increased willingness among financial institutions to pursue alternative restructuring solutions before formal insolvency proceedings. Our data visualisation tools tracked quarter-by-quarter progression of insolvency rates across 38 countries, offering unprecedented insight into how macroeconomic factors influenced business failure rates across different regulatory environments.
Drawing on PwC's global network of restructuring professionals, the report concludes with actionable insights and strategic considerations for businesses navigating financial distress in the current economic climate. The analysis highlights emerging best practices in distressed debt management, operational restructuring approaches and stakeholder communication strategies that have proven effective in preserving business value. Additionally, the report's forward-looking section examines how AI-driven financial monitoring tools, changing creditor attitudes and evolving insolvency legislation are likely to transform distressed business scenarios through 2025 and beyond, providing essential guidance for corporate leaders, creditors and advisors operating in uncertain market conditions.
