History of Cape Colony From 1870 To 1899 - Socio-economic Background

Socio-economic Background

See also: Economy of the Western Cape#1869 to 1900

At the time of the beginning of the diamond industry, all of South Africa was experiencing depressed economic conditions. Ostrich-farming was in its infancy, and agriculture had only been lightly developed. The Boers, except those in the immediate vicinity of Cape Town, lived in impoverished conditions. They only traded marginally with the Colony for durable goods. Even the British colonists were far from wealthy. The diamond industry was therefore considerably attractive, especially to colonists of British origin. It was also a means to demonstrate that South Africa, which appeared to be barren and poor on the surface, was rich below the ground. It takes ten acres (40,000 m²) of Karoo to feed a sheep, but it was now possible that a few square metres of diamantiferous blue ground would be able to feed a dozen families. By the end of 1871, a large population had already gathered on the diamond fields, and immigration increased dramatically, which brought in many newcomers. Among the first to seek a fortune on the diamond fields was Cecil Rhodes.