Basic economy

Basic Economy. South Africa accounts for forty percent of the gross national product of sub-Saharan Africa, but until the late nineteenth century, it had a primarily agricultural economy that had much marginally productive land and was dependent on livestock farming. Because this was the primary economic enterprise of both black Africans and white colonists, conflict between those groups centered on the possession of grazing land and livestock. In 1867, the largest diamond deposits in the world were discovered at Kimberley in the west central area. The wealth from those fields helped finance the exploitation of the greatest gold reef in the world, which was discovered on the Witwatersrand in 1886. Above this gold vein rose the city of Johannesburg. Diamond and gold magnates such as Cecil Rhodes used their riches to finance political ambitions and the extension of the British Empire. On the strength of mining, the country underwent an industrial revolution at the turn of the twentieth century and became a major manufacturing economy by the 1930s. Despite the discovery of new gold deposits in the Orange Free State in the early 1950s, the mining industry is now in decline and South Africa is searching for new means to participate in the global economy.

Land Tenure and Property. African communal notions of territory, land usage, and tenure differ fundamentally from European concepts of land as private or public property. This led to misunderstandings and deliberate misrepresentation in the dealings of white settlers and government officials with African chiefs during the colonial period. In the establishment of African reserves, some aspects of communal and chiefly "tribal trust" land tenure were preserved, and even in white rural areas, forms of communal tenure were still practiced in areas with African communities. African Christian mission communities in some areas drew together to purchase land after colonial conquest and dispossession, only to have that land expropriated again by the Land Acts of 1913 and 1936, which confined black Africans to thirteen percent of the land area.

After the democratic transformation of 1994, programs for land restitution, redistribution, and reform were instituted, but progress has been slow. The white minority still controls eighty percent of the land. In the wake of agricultural land invasions in Zimbabwe, the Department of Land Affairs has pledged to speed land redistribution. However, it is not certain whether dispossessed people who qualify for land redistribution can make profitable economic use of the land.