Efforts to support township industrialists face significant structural constraints in South Africa’s concentrated economy. The case of Soweto Gold, a craft beer brand founded in Soweto by black entrepreneur Ndumiso Madlala, highlights the persistent barriers to entry for new firms – particularly those led by historically disadvantaged individuals. Despite a strong brand, local roots, and initial support, Soweto Gold faced challenges related to access to finance, distribution, routes to market, and marketing – all within an industry dominated by large, vertically integrated incumbents.

While the acquisition of Soweto Gold by Heineken in 2017 expanded the brand’s reach and scale, it also meant the exit of black ownership and township-based production from the mass market segment. The case illustrates the limitations of transformation in the absence of structural change, and the need for development finance institutions, metros, and policymakers to take a more proactive role in enabling genuine market access and competition.

The publication was produced as part of the Cities Support Programme by National Treasury, with research conducted by the Centre for Competition, Regulation and Economic Development (CCRED).