# South Africa late payment and accounts receivable statistics

South Africa's national and provincial government departments ended March 2026 owing suppliers R16.8 billion on 88,403 invoices older than 30 days, and paid R45.3 billion late over the 2025/26 fiscal year. In the private sector, 62% of small businesses reported cash flow problems in the past year.

Source page: https://www.paidnice.com/accounts-receivable-statistics/south-africa

## Headline numbers

- South African national and provincial government departments owed suppliers R16.8 billion on invoices older than 30 days at the end of March 2026, down 7.5% on 2024/25.
- 88,403 government supplier invoices were unpaid past 30 days at the end of March 2026, down 38.1% on 2024/25.
- South African government departments paid 475,421 supplier invoices worth R45.3 billion after 30 days in 2025/26, up 4% on 2024/25.
- 98.6% of the March 2026 backlog sat with provincial departments.
- 62% of South African small businesses had cash flow issues in the past year (Xero survey, 2026), against 24% in 2024.
- 46% of South African small businesses spend one to two months a year chasing late payments (Xero survey, 2024).

## Is government late payment getting worse in South Africa?

| Fiscal year | Invoices paid after 30 days | Value paid after 30 days | Invoices unpaid at year end | Value unpaid at year end |
|---|---|---|---|---|
| 2019/20 | 421,303 | R33.9 billion | 43,699 | R4.8 billion |
| 2021/22 | 401,691 | R33.7 billion | 67,862 | R6.1 billion |
| 2022/23 | 344,653 | R32.7 billion | 75,147 | R6.9 billion |
| 2023/24 | 362,068 | R35.1 billion | 114,908 | R10.7 billion |
| 2024/25 | 464,188 | R43.6 billion | 142,801 | R18.2 billion |
| 2025/26 | 475,421 | R45.3 billion | 88,403 | R16.8 billion |

The quarter-end backlog peaked at R18.2 billion in Q4 2024/25.

## Which provinces pay suppliers late?

- Gauteng: R4.7 billion on 13,007 invoices unpaid past 30 days at the end of Q4 2025/26, and R8.2 billion on 47,978 invoices paid late.
- KwaZulu-Natal: R4.5 billion on 14,610 invoices unpaid past 30 days at the end of Q4 2025/26, and R14.6 billion on 126,691 invoices paid late.
- Eastern Cape: R4.1 billion on 35,002 invoices unpaid past 30 days at the end of Q4 2025/26, and R6.7 billion on 94,959 invoices paid late.
- North West: R1.5 billion on 15,316 invoices unpaid past 30 days at the end of Q4 2025/26, and R5.7 billion on 75,156 invoices paid late.
- Northern Cape: R954 million on 5,136 invoices unpaid past 30 days at the end of Q4 2025/26, and R1.5 billion on 10,234 invoices paid late.
- Free State: R831 million on 3,911 invoices unpaid past 30 days at the end of Q4 2025/26, and R1.6 billion on 12,394 invoices paid late.
- Western Cape: R1 million on 62 invoices unpaid past 30 days at the end of Q4 2025/26, and R329 million on 4,811 invoices paid late.
- Limpopo: R0 on 0 invoices unpaid past 30 days at the end of Q4 2025/26, and R66 million on 168 invoices paid late.
- Mpumalanga: R0 on 0 invoices unpaid past 30 days at the end of Q4 2025/26, and R109 million on 591 invoices paid late.

## How are South African small businesses doing?

- 2022: 25%. "Over a quarter of small businesses are currently owed money outside of their payment terms" (Xero, 2022, https://www.xero.com/us/media-releases/xero-releases-south-african-sme-report/)
- 2022: 45% of those currently owed money outside terms. "Of this group, nearly half (45%) are owed over R100 000" (Xero, 2022, https://www.xero.com/us/media-releases/xero-releases-south-african-sme-report/)
- 2024: 24%. "This year's data revealed 24% experienced some degree of cash flow issues" (Xero, 2024, https://www.xero.com/us/media-releases/state-of-south-african-small-business-2024/)
- 2024: 92%. "Despite these challenges, 92% have not applied for funding or loans in the past 12 months" (Xero, 2024, https://www.xero.com/us/media-releases/state-of-south-african-small-business-2024/)
- 2024: 46%. "Furthermore, 46% of respondents said they spend 1-2 months on average chasing late payments." (Xero, 2024, https://www.xero.com/us/media-releases/state-of-south-african-small-business-2024/)
- 2024: 72% of those with cash flow issues. "and out of those, 72% have used personal funds to keep the business afloat" (Xero, 2024, https://www.xero.com/us/media-releases/state-of-south-african-small-business-2024/)
- 2026: 45%. "nearly half (45%) have already adopted online invoicing with payment links to speed up collections and improve liquidity" (Xero, 2026, https://www.xero.com/za/media-releases/state-of-south-african-small-business-2026/)
- 2026: 63%. "and 63% are checking their bank balance daily or weekly" (Xero, 2026, https://www.xero.com/za/media-releases/state-of-south-african-small-business-2026/)
- 2026: 62%. "With 62% of small businesses experiencing cash flow issues over the past year" (Xero, 2026, https://www.xero.com/za/media-releases/state-of-south-african-small-business-2026/)
- 2026: 66%. "Two thirds (66%) are monitoring cash flow" (Xero, 2026, https://www.xero.com/za/media-releases/state-of-south-african-small-business-2026/)

## Frequently asked questions

### How much do South African government departments owe suppliers in late invoices?

At the end of March 2026, national and provincial departments reported 88,403 supplier invoices older than 30 days that were still unpaid, worth R16.8 billion. Over the 2025/26 fiscal year they paid 475,421 invoices worth R45.3 billion later than the 30-day limit set in the Treasury Regulations. Source: National Treasury 30-day payment reports.

### Which province is worst at paying suppliers on time?

By rand value, Gauteng had the largest backlog at the end of Q4 2025/26: R4.7 billion across 13,007 invoices older than 30 days. By invoice count, Eastern Cape led with 35,002 unpaid invoices. Limpopo and Mpumalanga reported no invoices older than 30 days unpaid.

### What share of South African small businesses have cash flow problems?

62% of South African small businesses said they experienced cash flow issues over the past year in Xero's 2026 State of South African Small Business survey (427 respondents, fieldwork Jan-Feb 2026). In the 2024 edition, 24% reported some degree of cash flow issues, and 46% said they spend one to two months a year chasing late payments.

### Is there Xero Small Business Insights data for South Africa?

No. Xero Small Business Insights publishes monthly payment-time and late-payment series for Australia, New Zealand, the United Kingdom, the United States and Canada only. For South Africa, Xero runs an annual survey (State of South African Small Business, every year since 2022), which this page tracks alongside the National Treasury data.

### Can I charge interest on late payments in South Africa?

Yes, if your terms say so. South Africa has no statutory late-payment interest for business-to-business invoices, so the rate and any late fee must be in your agreed terms of trade. Where no rate has been agreed, the Prescribed Rate of Interest Act sets a default rate of the repo rate plus 3.5 percentage points (10.50% from 2026-05-28), which is the rate courts apply to unpaid debts.

### What is the 30-day payment rule for government?

Treasury Regulation 8.2.3, issued under the Public Finance Management Act, requires national and provincial departments to settle all supplier invoices within 30 days of receipt. National Treasury Instruction Note 34 (2011) requires every department to report its invoices paid after 30 days, and its invoices older than 30 days still unpaid, to Treasury each month. The figures on this page are those reports, aggregated by Treasury each quarter.

### Where does this data come from?

Government payment figures come from the National Treasury's quarterly and annual reports on the payment of suppliers within 30 days, which are self-reported by departments and cover national and provincial departments only (not municipalities or state-owned entities). Small business figures come from Xero's annual State of South African Small Business survey. Context series come from the South African Reserve Bank and Stats SA. Paidnice presents the data with independent analysis.

## Methodology

- Invoices unpaid past 30 days: supplier invoices older than 30 days from receipt that a department had not paid at the end of the period (the backlog on that date).
- Invoices paid after 30 days: supplier invoices a department settled more than 30 days after receipt during the period. Fiscal years run April to March.
- Coverage: national and provincial departments only, as self-reported to National Treasury under Instruction Note 34. Municipalities, state-owned entities and the private sector are not included.
- Sources: National Treasury, Payment of suppliers within 30 days (https://www.treasury.gov.za/publications/30_Day_Payment/default.aspx), 2019/20 to 2025/26. Xero, State of South African Small Business, 2022 to 2026. Xero Small Business Insights does not cover South Africa, so this page combines National Treasury's 30-day supplier payment reports with Xero's State of South African Small Business survey.

## Cite

South Africa late payment statistics, analysed by Paidnice. https://www.paidnice.com/accounts-receivable-statistics/south-africa

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