7 Examples of Monopoly in South Africa

There are many examples of monopoly in South Africa. But, here we are specifically focusing on the 7 examples of monopoly that exist in South Africa as of 2025. These 7 examples are: Eskom, Transnet, South African National Roads Agency (SANRAL), South African Post Office, SAB (South African Breweries), MultiChoice (DStv), and De Beers.

All these examples fall under what is called “dominant market control by a single supplier”, which is the true basis of what consists of monopoly.

Monopoly is known as a market structure where there is only one seller or service provider that controls the entire supply of a product or service, with no close substitutes, and where entry into the market is either legally restricted or extremely difficult.

Now, when we look at this definition, we can see that all these South African examples of monopoly mentioned above are made up of:

• exclusive control,
• limited competition,
• high entry barriers,
• price-setting power, and
• dependence by the public

….which are all the defining characteristics of monopoly.

In the following section, we will look deep into these examples and understand why they are called monopolies and how they fit into the South African economy.

It is often common to confuse monopoly with oligopoly or government-owned enterprises. Well, monopoly is unique in a sense that there is no real competitor. The consumer either accepts the price and service or goes without it.

7 Examples of Monopoly in South Africa

In this section, we take a close look at the 7 examples of monopoly in South Africa, so you can understand why each one qualifies as a monopoly in its own space:

Example 1: Eskom

Eskom controls almost 90% of electricity generation in South Africa. There are no real alternatives for most households and businesses, and private energy options are expensive and not widely accessible. That makes Eskom a monopoly in the power supply industry.

Example 2: Transnet

Transnet operates and controls all major railways, ports, and pipelines in South Africa. Other companies cannot just enter and compete in this space due to infrastructure ownership and strict regulation. This gives Transnet full monopoly in bulk freight transport.

Example 3: SANRAL (South African National Roads Agency)

SANRAL has exclusive control over national toll roads, and no one else is allowed to build or manage toll roads without government approval. That means it operates as a monopoly when it comes to South Africa’s toll route infrastructure.

Example 4: South African Post Office (SAPO)

Even though the Post Office has declined over the years, it still holds monopoly rights over delivering letters and legal documents under the Postal Services Act. Courier companies cannot legally deliver certain categories of mail, giving SAPO a legal monopoly in that area.

Example 5: South African Breweries (SAB)

SAB has controlled the majority of the beer market in South Africa for decades. Even with new craft breweries, SAB still dominates distribution, pricing, and supply, especially in rural and township areas. It behaves like a monopoly through market dominance.

Example 6: MultiChoice (DStv)

In the pay-TV space, DStv has held a strong monopoly for years. It controls sports broadcasting, popular entertainment channels, and has exclusive rights to some content. No real competitor offers the same package, especially for sports lovers in South Africa.

Example 7: De Beers

De Beers historically had a monopoly in diamond mining and distribution, both in South Africa and globally. Although competition has increased, De Beers still controls a huge portion of the diamond value chain — from mining to retail — giving it monopoly influence.

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Now that we have explored examples of monopoly in South Africa, we can conclude that the momentum of monopoly in SA is growing, especially in sectors where control over infrastructure, content, or networks guarantees dominance. Look at how MultiChoice continues to lock in exclusive sports broadcasting rights, leaving no real competition in the pay-TV space. Or how Rain, Telkom, and MTN are fighting over spectrum, while Vodacom quietly remains the top player in mobile data, with over 40% market share.

Monopoly can be good and bad at the same time. In South Africa, monopoly can ensure stability and large-scale delivery, like how Eskom powers most homes or how Transnet moves goods across the country — which is a desirable economic function when managed well.

But on the other hand, monopoly can devastate consumers through high prices, poor service, and no alternatives. It can also slow down innovation, because there is no pressure to improve when there is no competition.

All the best with your exams