Changes in South African Economy Between 1867 and 1910

Changes in South African Economy Between 1867 and 1910

Until 1867, South Africa depended on wool products from Merino sheep reared time memorial. In 1867, Diamonds were discovered at Kimberly and 1885 gold was discovered at Witwatersrand. Other minerals, which brought changes where uranium, manganese discovered Witwatersrand.

The sale of diamonds increased the value of exports from 300% (between 1870 - 1880) and by 1892 diamond exports were valued or worth 4 million pounds.

Kimberly and the rand mining areas expanded in population and they were a base for food market.

The economy also relied on agriculture for both money and subsistence. Agricultural prices increased especially the fresh products.

Cash crop farming developed in the countryside around the mines .

The economy changed from agricultural to an industrial economy, as many industries were set up diamonds and gold mines, which stimulated railway development in the region.

The Ox-wagons that had carried the Voor Trekkers to the Orange and Vaal Rivers could not match the heavy machinery required in mines; this led to railway development.

Railways were constructed by the government from private companies for example 1887 Delgoa- Transvaal railway,

1892 the Delgao- Pretoria railway, 1891 the Natal- Transvaal railway, 1892 the Cape- Rand railway. Steamer ship Companies also developed.

Telephones, telegraphs, roads and bridges were constructed and improved upon even in the countryside.

The Boer states emerged from abject poverty to wealth through taxation on gold mining Companies especially through Cecil Rhodes' Company the De' Beers Consolidate Mining Company.

The Transvaal, Cape Colony prospered from diamond, gold, agriculture, and custom duties development.

Agricultural processing industries boomed, which saw urbanization as banks were constructed like the Oriental Standard Bank

Natal made a lot of money from custom duties and sugar industries. Thousands of Africans flocked the mining areas to get work or cash jobs.

Land in the mining areas was very high in prices and farms were sold at a very high price. Migrant labor systems developed as men left their famiJies to go and work on contracts in towns.

How these economic changes affected the relationship between tbe whites in South Africa

The effects were political, economic and social;

The Boer Republics felt cheated and their relationship with the British became unfriendly. This led to the Anglo Boer wars and the climax was union.

With the annexation of Griqualand West, it polarized Anglo- Boer relations in the Boer republics and the need for imperial rivalry deepened.

The Boers were increasingly brought together to defend their interests against the British. This was a curtain raiser for Afrikaaner nationalism.

Paul Kruger was determined to defend Boer nationalism and independence. He made sure that he used all tactics to deter' British interference in the political life of the Transvaal Republics, especially his policy on the Uitlanders.

There developed an economic warfare between the Boer colonies and the Boer Republics, as the Boers were no more interested to join commercial relations with the British.

They now made contacts to the sea through Maputo- Lourenco Marques. They also raised tariffs on British goods and closed the drifts.

The splendor and opulence in Transvaal caused' anxiety among the British who were more determined to bring the republic under the British crown.

The Cape Colony became jealous and it did not want to see the Boer Republics sharing the economic prosperity brought about by diamonds.

Britain could not ignore the Boer Republics and thought that the whites could come into a union under the British flag. The Boers in Transvaal and the Orange Free State were uncomfortable and made changes in their governments.

The British annexed the diamond fields in Griqualand and this increased hostilities. The idea of the Federation of whites was raised to bring all white states together.

The Boers opposed this idea, and in 1877, the British annexed Transvaal easily because she was bankrupt or insolvent, weak, in a state of civil war and there was no armed resistance.

The increasing Uitlander population mainly coming from Britain threatened Afrikaner control of the country. They were fighting for civil rights, voting rights and no paying of taxes.

Emergence of poor whites in urban areas and begging due to scarcity of land.

Effects of these economic changes on the Africans

The effects were mainly negative on the Africans;

Male Africans moved to towns and this led to a temporary separation of husband and wife, which contributed to the break up of formal marriages.

With shortage of accommodation, urban Africans could not live in family units, as was the practice in rural areas. Young people lived separately especially after marriage.

As a result of this. communities based onjob interests as opposed to groups based on family ties emerged.

Because of high cost of living in towns, urban Africans tended to marry only one wife instead of several wives as in rural areas.

African women in towns acquired a high status because of employment and the associated income.

With poor income, many urban Africans lived in crowded and poor areas, which had a bad effect on their morals. Many of them turned to such crimes like robbery. prostitution as a means of eaming a livelihood.

There was also a change in the social values of urban Africans but before cattle had been the most important form of wealth.

A number of cattle, wives and children had determined the status of the Africans - all this was changed by trialization, urbanization and capitalism.

Instead of cattle, money became the most important form of wealth and also a medium of exchange.

The person's status was now determined by the qualisy of his education, occupation and the kind of house he lived in.

In terms of the distribution of wealth, Africans had to hold an inferior position in the economy. They were confined to unskilled tasks.

Africans were discriminated in offices, industries and business sector.

Africans were given low wages yet their labour formed the backbone of the economy.