HSY2603

ASSESSMENT 4

ESSAY WRITING

Unique assessment number: 704219

The significance of the discovery of rich resources of diamonds and gold in Southern
Africa between the 1860’s and the 1890’s.

The discovery of diamonds in the 1860s and gold in the 1880s marked a critical turning
point in Southern African history. These mineral finds triggered extensive social, political,
and economic changes that continue to shape the region. While the discovery of natural
resources led to significant economic development, it also reinforced systems of
imperialism, racial inequality, and labour exploitation. Cities like Kimberley and
Johannesburg evolved from rural outposts into urban industrial centres. Simultaneously,
the discoveries intensified colonial interest, particularly from the British Empire, and
redefined class and racial structures in South African society. This essay explores how
these discoveries fundamentally reshaped the region, analysing their influence on
urbanization, labour systems, imperial expansion, and social hierarchy.

The discovery of diamonds in 1867 near the confluence of the Harts and Vaal Rivers
marked the beginning of South Africa’s mineral revolution. The find sparked a diamond rush
that saw over 10,000 people converge on the region between Hopetown and Kimberley by
1870. Volcanic pipes bearing diamonds were discovered, most notably the “Big Hole” in
Kimberley. The land, originally bought by the De Beer brothers for £50, was later sold for
£6,600, and within fifty years, the region had produced diamonds worth £95 million. This
exponential increase in mineral wealth triggered rapid industrial development. The influx of
prospectors, entrepreneurs, and workers created a booming mining industry that formed
the foundation of South Africa’s capitalist economy. The diamond industry laid the
groundwork for further industrial expansion and revealed the extent of the country's
untapped resources.

As mining expanded, power consolidated in the hands of large corporations, often at the
expense of small-scale and Black claim holders. Initially, individual diggers, including Black
entrepreneurs like Reverend Gwayi Tyamzashe, owned claims. However, the increasing
difficulty and cost of mining led many to sell their claims to wealthier investors. By 1881, 59
diamond companies were operating in Kimberley, with monopolies forming to stabilize
declining diamond prices. This concentration of power marginalized small holders and
entrenched racial and economic inequalities. The diamond industry’s evolution toward
monopolization reflected broader global capitalist trends and revealed how natural
resource control was often tied to social exclusion and systemic discrimination. As small
operators were pushed out, Black miners were increasingly relegated to low-paid, unskilled
labour.

The discovery of gold on the Witwatersrand in 1886 was even more transformative, shifting
the country’s economic centre from the Cape to the interior. While smaller gold deposits
had been found in Pilgrim’s Rest and Barberton in the 1870s and 1880s, George Harrison’s
discovery at Langlaagte near Johannesburg sparked a massive gold rush. The scale of the
find demanded deep-level mining, requiring advanced technology and significant capital.
As a result, Johannesburg emerged rapidly, growing from a small camp of 3,000 in 1886 to
nearly 100,000 residents by 1896. Investors from Europe poured money into the region, and
stock exchanges in London, Berlin, and Paris began trading shares in South African mines.
The establishment of Johannesburg as a mining hub signalled the shift of economic power
and established the city as the financial heart of South Africa.

The capital-intensive nature of gold mining encouraged labour exploitation, particularly

through a racially segregated and migrant-based system. Deep-level gold mining required
large, cheap, and controllable workforces. To maintain profitability, mine owners reduced
costs by recruiting unskilled Black labourers under coercive conditions, while reserving
skilled positions for whites. Labour was sourced through a migrant system in which
workers were brought in from rural areas, lived in tightly controlled compounds, and
returned home periodically. In contrast to white workers, who organized trade unions to
resist job desegregation, Black workers had limited avenues for advocacy. This labour
structure institutionalized racial inequality, laid the foundation for apartheid-era job
reservation policies, and created a cycle of dependency and impoverishment for Black
rural communities.

The implementation of compound systems to house migrant workers on the Witwatersrand

was influenced by earlier practices in Kimberley. In 1903, a Rand commission visited De
Beers’ operations and noted how its compound model helped maintain a stable workforce.
Although the Rand did not fully adopt Kimberley’s system, the use of compounds became a
widespread mechanism to control labourers. Workers remained tied to their rural homes,
paid taxes to local chiefs, and were not fully integrated into urban life. Mining companies
even provided cattle to inkosanas (household heads) to safeguard the loyalty of absent
workers. This system ensured a consistent labour supply while preventing the development
of a permanent, urbanized Black working class²². The compound model reflected and
reinforced colonial ideas about race, control, and segregation.

The discoveries of gold and diamonds drastically reshaped South Africa’s urban landscape,
leading to rapid urbanization and population growth. Johannesburg transformed from a
rural outpost into a sprawling metropolis within a decade. Its population grew from 3,000 in
1886 to 100,000 by 1896, attracting migrants from across Africa, Europe, and Asia. Among
them were 64,000 Chinese labourer’s, 150,000 Indian workers, and 86,000 British settlers.
While white immigrants often occupied managerial or commercial roles, Black migrants
were relegated to menial jobs. Black women, too, joined the urban economy by working in
domestic services, laundry, or brewing beer illegally. The city’s growth was chaotic and
poorly planned; overcrowding and lack of sanitation were common. Olive Schreiner
described Johannesburg in 1898 as a “great fiendish hell,” emphasizing the city’s rapid,
unregulated development and its social and moral decay.

Alongside economic transformation, the mineral discoveries intensified British imperial

ambitions and political intervention in the region. As Britain’s dominance in global trade
declined in the 1870s due to the rise of Germany and the United States, South Africa’s
mineral wealth became strategically significant. Lord Carnarvon’s confederation plan
aimed to unite the British colonies (Cape and Natal) with the Boer republics (Transvaal and
Orange Free State) to secure control over resources and trade. This desire for unity under
British rule also sought to suppress independent African polities like the Zulu and Pedi. The
British invasion of Zululand in 1879 and subsequent military victories were part of this
larger imperial agenda. Control over gold and diamonds became a driving force in the
region’s political realignment and imperial conflict.

The discoveries also directly contributed to the outbreak of two Anglo-Boer Wars, both of
which were rooted in Britain’s desire to control mineral wealth. After initial defeat in the
First Anglo Boer War (1880–1881), British imperialism intensified following the discovery of
gold in the Transvaal. Tensions between British and Boer interests culminated in the
Second Anglo-Boer War (1899–1902), the most destructive colonial war in South Africa’s
history. Britain’s objective was to consolidate its control over the Transvaal’s resources and
eliminate Boer resistance. The war had devastating consequences, including civilian
casualties, scorched-earth policies, and concentration camps. Ultimately, it led to the
annexation of Boer territories and paved the way for the formation of the Union of South
Africa in 1910 under British dominance³⁹.

In conclusion, the discovery of diamonds and gold between the 1860s and 1880s was a
defining moment in Southern African history that reshaped the region’s economic, social,
and political fabric. While these resources generated immense wealth and fuelled urban
and industrial development, they also entrenched systems of racial segregation, labour
exploitation, and colonial domination. Cities like Johannesburg and Kimberley symbolized
both opportunity and oppression, prosperity and inequality. The mineral revolution not only
restructured South Africa’s economy but also intensified imperial ambitions, contributing
to war and the erosion of African political autonomy. The legacies of these discoveries
continue to influence the country’s development, making this period a critical lens through
which to understand modern South Africa.

FOOTNOTE

• The “wives of the mine” evidence in the previous extract contradicts this theory to
some extent.

• See Eric Itzkin, Gandhi’s Johannesburg (Witwatersrand University Press in

association with Museum Africa, Johannesburg, 2000)

REFERENCE

• Study Guide for HSY2603 p. (258 – 276)

DECLARATION

Name: Nontokozo Nyembe

Student number:20610610

Module code: HSY2603

Assessment number:704219

I declare that this assessment is my own original work. Where secondary material has been
used (either from a printed source or from the internet), this has been carefully
acknowledged and referenced in accordance with departmental requirements. I
understand what plagiarism is and am aware of the Department’s policy in this regard. I
have not allowed anyone else to Copy my work.

Signature: N.Nyembe