South Africa 1867 – 1910: Economic Effects of Mining and Minerals in South Africa

Early image of Johannesburg.

• There was infrastructural development in South Africa, for example, railways, food industries and roads
• Railways were built to link major towns such as Kimberly, Transvaal, Cape town, Port Elizabeth, East London, Johannesburg and Durban
• Ports and banks were also established
• Agriculture was developed in-order to feed the growing population
• The growing of maize and wheat and the production of sugar and wine increased in South Africa
• The export of farm produce such as wool and ostrich feathers
• Land prices were raised especially for those around the mining towns
• Some Africans became commercial farmers to complement settler farmer
• The mining industry became more lucrative, popular and took over from the agricultural sector
• Many foreigners thronged to South Africa in search of job opportunities
• Investors and fortune hunters also came to South Africa in search of investment opportunities and they invested a lot of capital in infrastructural development and other key economic sector drivers
• Capital investment enabled the Rand to supply 50% of the world’s gold by 1897
• The Kimberly made profits of about R40 million during its first 10 years of operation
• A readily available market for agricultural produce was created
• The demand for manufactured good led to massive industrial revolution in South Africa
• Trade was increased between Britain and South Africa
• There was employment creation for local people
• They were able to earn money which they used to buy commodities such as food, guns and pay taxes
• However Africans lost their productive land and started living like squatters in their own country
• They were also highly exploited in their work places

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