South Africa’s business rescue regime, introduced under the 2011 establishment of Chapter 6 of the Companies Act (71, 2008), was a bold step toward modernising corporate recovery. Yet, with a success rate hovering around 12%, it is clear that the local profession still has room to evolve.
As global economic pressures mount and financial distress becomes more complex, South African business rescue and turnaround professionals can gain valuable insights by looking beyond our borders; we are not a microcosm. International jurisdictions, particularly the United States, United Kingdom, and Australia, offer tested frameworks and practical lessons that can sharpen local practice and improve outcomes.
Here are two key lessons from international counterparts that could reshape the future of business rescue in South Africa.
Prioritise early intervention and pre-packaged solutions
In the United States, Chapter 11 of the Bankruptcy Code is widely regarded as a gold standard for corporate reorganisation. One of its most effective tools is the pre-packaged bankruptcy, where a company negotiates a restructuring plan with creditors before formally entering proceedings. This approach reduces uncertainty, shortens the rescue timeline, and preserves more value for stakeholders.
In contrast, South African business rescue often begins too late, when liquidity has dried up and operational viability is already compromised. By the time a practitioner is appointed, options are limited, and creditor confidence is low.
What South Africa can adopt:
- Encourage earlier engagement with business rescue professionals through education and incentives.
- Develop a framework for pre-negotiated rescue plans that can be fast-tracked through the courts.
- Promote creditor engagement before formal proceedings to reduce resistance and delays.
Early intervention is not just a procedural improvement, it’s a mindset shift. It positions business rescue as a proactive strategy rather than a last resort.
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Strengthen the role of data and performance metrics
In jurisdictions like the UK and Australia, turnaround professionals are increasingly leveraging data-driven diagnostics to assess viability, model recovery scenarios, and track progress. These tools help practitioners move beyond intuition and anecdotal evidence, enabling more transparent, accountable decision-making.
For example, UK administrators often use structured viability assessments and stakeholder dashboards to communicate progress and justify strategic pivots. This builds trust with creditors, regulators, and employees, critical in high-stakes turnarounds.
In South Africa, however, the lack of standardised success metrics and post-rescue tracking makes it difficult to evaluate effectiveness or learn from past cases.
What South Africa can adopt:
- Introduce standardised KPIs for business rescue outcomes (e.g. going concern status, creditor returns, re-filing rates).
- Encourage the use of digital tools for financial modelling, scenario planning, and stakeholder reporting.
- Establish a national database of rescue outcomes to inform policy and professional development.
By embedding analytics into the rescue process, professionals can improve transparency, reduce bias, and build a stronger case for long-term recovery.
Looking ahead: A more strategic profession
South African business rescue professionals operate in a uniquely challenging environment, marked by structural economic constraints, limited access to post-commencement finance, and often, a lack of early warning systems. But these challenges also present an opportunity: to build a more strategic, data-literate, and globally aligned profession.
By learning from international best practices, particularly around early intervention and data-driven execution, South Africa can enhance the credibility and effectiveness of its business rescue regime. The goal is not to replicate foreign models wholesale, but to adapt their strengths to local realities.
In a world where resilience is the new currency, the future of business rescue lies in agility, foresight, and professional excellence. And that future starts with learning from those who’ve walked the path before us.
Benefitting shareholders and stakeholders alike
In an increasingly uncertain and interconnected business landscape, the role of business rescue and turnaround professionals in South Africa has never been more critical. Drawing lessons from international leaders, particularly the value of early engagement and the power of data-driven intervention, offers a blueprint for elevating local practices.
By adopting these globally proven strategies and tailoring them to local realities, South African professionals can not only improve recovery outcomes, but also position themselves as architects of long-term resilience and sustainable growth. The future of business rescue lies not in replication, but in evolution, and now is the moment to lead it.
