ECS2609 Assignment 1 2026
DUE 15 APRIL 2026
Discuss the secondary industry from 1910 to 1960.
1. Introduction
At the time of Union in 1910, South Africa’s economy was dominated by mining and
agriculture. Secondary industry (manufacturing) was very small, contributing only 5.6% of
GDP in 1911. The country was overwhelmingly an importer of manufactured goods, even
of basic items like cheese, butter, and bacon. The period from 1910 to 1960 marked the
take-off of industrialisation in South Africa, driven initially by external shocks and later by
deliberate government policy. This essay discusses the factors that promoted and
hampered industrialisation, the four key phases of its development, the geographical
concentration of industry, and the government’s role, particularly through protectionist
policies and state-owned corporations.
2. Factors Promoting and Hampering Industrialisation
Promoting factors included:
Abundant cheap raw materials from agriculture and mining.
The mining industry acted as a leading sector, creating large demand for food,
materials, and equipment, and attracting capital, entrepreneurs, and skilled labour
from overseas.
Hampering factors included:
A small domestic market due to a limited affluent population, which made large-scale
production uneconomical.
Great distances, isolation from advanced industrial countries, and lack of cheap water
transport.
, The dominance of mining, which drew factors of production away from manufacturing.
Political affiliation with Britain, which led many to believe it was better to import cheap
British goods than to manufacture locally.
3. The Four Phases of Industrialisation (1910–196
0)
3.1 Period 1910–1925: The Stimulus of World War I
World War I cut South Africa off from traditional sources of manufactured goods, causing
shortages and rising prices. This gave a powerful stimulus to local industry. The number
of factories mushroomed from 2,743 in 1911 to 7,005 in 1921, and secondary industry’s
share of GDP rose from 5.6% to 10.6%. However, after the war, renewed foreign
competition and the post-war depression led to a decline. The Smuts government was
reluctant to adopt protection because mining relied on cheap imports.
3.2 Period 1925–1939: Deliberate Protection and the “Civilised Labour” Policy
The Nationalist-Labour Pact government (from 1924) ushered in an era of avowed
protectionism. The Customs Tariff and Excise Amendment Act of 1925 imposed
protective duties, but with a condition: protection was linked to the employment of
“civilised” (white) labour to solve the “poor-white problem”. The Board of Trade and
Industries was reconstituted to advise on protection. Secondary industry’s share of GDP
rose from 10.9% in 1925 to 16.8% by 1940. However, protection failed to stimulate
capital-intensive industries; it mainly benefited existing industries like clothing, footwear,
and soap. The establishment of Iscor (1928) was a milestone, providing the foundation
for industrialisation.
DUE 15 APRIL 2026
Discuss the secondary industry from 1910 to 1960.
1. Introduction
At the time of Union in 1910, South Africa’s economy was dominated by mining and
agriculture. Secondary industry (manufacturing) was very small, contributing only 5.6% of
GDP in 1911. The country was overwhelmingly an importer of manufactured goods, even
of basic items like cheese, butter, and bacon. The period from 1910 to 1960 marked the
take-off of industrialisation in South Africa, driven initially by external shocks and later by
deliberate government policy. This essay discusses the factors that promoted and
hampered industrialisation, the four key phases of its development, the geographical
concentration of industry, and the government’s role, particularly through protectionist
policies and state-owned corporations.
2. Factors Promoting and Hampering Industrialisation
Promoting factors included:
Abundant cheap raw materials from agriculture and mining.
The mining industry acted as a leading sector, creating large demand for food,
materials, and equipment, and attracting capital, entrepreneurs, and skilled labour
from overseas.
Hampering factors included:
A small domestic market due to a limited affluent population, which made large-scale
production uneconomical.
Great distances, isolation from advanced industrial countries, and lack of cheap water
transport.
, The dominance of mining, which drew factors of production away from manufacturing.
Political affiliation with Britain, which led many to believe it was better to import cheap
British goods than to manufacture locally.
3. The Four Phases of Industrialisation (1910–196
0)
3.1 Period 1910–1925: The Stimulus of World War I
World War I cut South Africa off from traditional sources of manufactured goods, causing
shortages and rising prices. This gave a powerful stimulus to local industry. The number
of factories mushroomed from 2,743 in 1911 to 7,005 in 1921, and secondary industry’s
share of GDP rose from 5.6% to 10.6%. However, after the war, renewed foreign
competition and the post-war depression led to a decline. The Smuts government was
reluctant to adopt protection because mining relied on cheap imports.
3.2 Period 1925–1939: Deliberate Protection and the “Civilised Labour” Policy
The Nationalist-Labour Pact government (from 1924) ushered in an era of avowed
protectionism. The Customs Tariff and Excise Amendment Act of 1925 imposed
protective duties, but with a condition: protection was linked to the employment of
“civilised” (white) labour to solve the “poor-white problem”. The Board of Trade and
Industries was reconstituted to advise on protection. Secondary industry’s share of GDP
rose from 10.9% in 1925 to 16.8% by 1940. However, protection failed to stimulate
capital-intensive industries; it mainly benefited existing industries like clothing, footwear,
and soap. The establishment of Iscor (1928) was a milestone, providing the foundation
for industrialisation.
