South African Economic Racism

Throughout the course of the 19th and 20th century, economic considerations played a significant role in shaping both racial discrimination and concepts of white supremacy in South Africa. When large deposits of gold and diamonds were discovered in the latter half of the 19th century, the economic structure of southern Africa was dramatically altered. The mining industry necessitated vast amounts of inexpensive labor in order to be profitable. In the post South African War period, the necessity to return the Boers to self-rule without harming the mining industry resulted in a series of legislation that legalized racial discrimination to ensure a large and cheap labor force consisting of Africans. South Africa’s industrial revolution and the legislation passed during the period immediately following the South African War provided the economic bases of racial discrimination and white supremacy in South Africa.
In 1868, the Kimberly diamond strike propelled South Africa to a position as a world leader in diamond production. Similarly, the discovery of large gold deposits in the 18th and 19th century also attracted both foreign capital investment and immigration. The rapidly growing mining industries required massive amounts of inexpensive labor in order to be profitable. Hundreds of thousands of African workers sought employment in the developing mines and cities in industrializing cities. In the face of this increased competition, white workers benefitted from racial discrimination because it protected them economically from competition with African workers. White business owners sought a large and cheap African workforce; racial discriminatory practices ensured they were cheap and pliable. In order to limit the bargaining power of African workers seeking higher wages and to ensure that none could flee in the face of harsh labor conditions, the British conquered the remaining independent African states, confiscated land, and imposed severe cash taxations during