Economic History of South Africa - Sanctions

Sanctions

The imposition of international sanctions on the country began economic pressure that saw the unravelling of apartheid. There were oil sanctions but South Africa continued to be able to buy oil on international markets and developed technology that allowed the conversion of coal into oil. A small gas field was discovered off the coast of the Cape.

But the most damaging isolation was the denial of investment funds and the boycott of South African investments particularly by influential universities and foundations in the United States.

Ironically, during the 1980s gold reached its highest price as a result of international tensions reaping huge profits for the mining company conglomerates. However, because of currency restrictions they were unable to invest abroad. The result was that they used their surplus funds to buy up businesses in virtually every activity in the economy.

However, the financial benefit for the mining companies of continuing to support the system eroded as international capital stopped flowing into the country.

Read more about this topic:  Economic History Of South Africa