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Encyclopaedia Judaica

Jews in South Africa 03: Economy

Buildup of the South Africa of the Whites - Jewish immigration waves - professions and industry - diamonds and gold mines - the blacks and slavery are not mentioned

from: South Africa; In: Encyclopaedia Judaica 1971, vol. 15

presented by Michael Palomino (2008 / 2010 / 2020)

Economic Life and Social Structure.

[The Jewish help for the buildup of the South Africa of the Whites]

Jews have shared actively in most phases of South African life, so that to single out the Jewish participation in specific spheres is, in a sense, misleading: their contribution stems from the South African environment and in its turn is part of the whole South African story. Any description of Jewish participation in economic life, civic affairs, and culture must be seen (col. 202)

and assessed as the contribution of one element in a heterogeneous population belonging to diverse races, cultures, and creeds - through whose combined efforts South Africa has been built.

That Jews have played a significant role in the economic development of the country is generally acknowledged. They were able to make a distinctive contribution because of the specific economic situation prevailing in the country at various periods, which required and gave scope for their particular talents and enterprise.

[[This South Africa is a product of the Whites and not of the black and native peoples there. The Protestant state's structure is generally against the black and against the native peoples]].

EARLY 19TH CENTURY.

[since 1820: First Jewish immigration wave - trade, finance, and products]

In the early part of the 19th century, before the discovery of the diamond fields, the economy was largely pastoral and agricultural. Economic prospects of the Cape were revived, however, by the increased trade and shipping around the southern route between Europe and the East. Furthermore, the aftermath of the English industrial revolution and encouraged some emigration to South Africa; and included the group known as the 1820 Settlers from Britain, which settled along the eastern frontier of the Cape (see *Norden family). During the 1830s, the interior was further opened up by the Boer voortrekkers [[pioneers]].

The relatively small number of Jewish immigrants from England and Germany brought with them an aptitude for and experience in trade and finance, and filled a special niche in the economically undeveloped society. They were merchants and small traders, with a sprinkling of professional men and craftsmen. Through their knowledge of foreign markets they helped to develop the export of such products as wool, hides, skins, and wine. They also contributed to the improvement of the Cape wool and mohair industries, the foundation of South Africa's future development as one of the world's producers.

[Mosenthal credit system in the countryside - first banknotes of firms]

The Mosenthals from Germany, in particular, left a permanent mark on the economy through their initiative and diversity of interests. From bases in Cape Town and Port Elizabeth they set up a chain of trading stations in the interior of the Cape, usually manned by Jewish immigrants whom they had brought out from Germany. They helped to stabilize the rural economy by providing long-term credits to storekeepers and, through them, to farmers, particularly in bad seasons.

Before the advent of commercial banking, the firm's banknotes were widely accepted in the development of banking, the financing of diamond and gold mining, and the establishment of secondary industries in the Cape and Transvaal.

[since 1840s: De Pass brothers installing shipping, fishing, and trade - diamond fields in South-West Africa - installing sugar industry - Jewish traders in the countryside - Jewish shops in the small towns]

The *De Pass brothers, who came from Britain in the 1840s developed shipping, fishing, and coastal trading enterprises in the southwestern Cape. They had interests in the newly discovered diamond fields in South-West Africa, then a German possession. Daniel De Pass was one of the pioneers of the sugar industry in Natal.

The itinerant Jewish traders and peddlers (locally known as "smouses") traveled on foot or used animal-drawn transport to penetrate long distances, often amidst great hazards and hardships, to scattered hamlets and the extensive farms. They sold their wares and also provided a channel through which the products of the land could reach the ports and world markets. Many settled in the villages and at wayside stations as shopkeepers, so that eventually there was hardly a small town without one or more Jewish stores. These Jewish middlemen had a recognized place in the economy of the Cape and subsequently in the northerly territories.

DIAMONDS AND GOLD.

[Diamond industry since 1870 - gold mines since 1886 - De Beers Consolidated Mines diamond industry - Jewish leadership]

Then came the revolution which transformed South Africa's economic structure: the discovery of diamonds at Kimberley (1870) and the opening of the Transvaal gold mines (1886; see *Johannesburg). The exploitation of mineral wealth called for enterprise, technical and managerial initiative, ability and great capital resources. There was a demand for commercial techniques, and the way was opened for the later development of (col. 203)

secondary industries to supply the new communities which sprung up. The majority of Afrikaaners, still largely a rural community, were not ready for the challenges of this new economic era, and the lead was taken by the English-speaking elements and foreigners of various nationalities, who flocked to the country. Among them Jews, mainly from Western Europe, became leaders of the mining industry (see B.I. *Barnato, the *Joels, Lionel *Phillips, George *Albu and David *Harris). With Cecil John Rhodes, Barnato founded De Beers Consolidated Mines which controlled the production and marketing of diamonds (see also *Diamond industry and trade).

On the discovery of gold the same men, using the wealth and skill they had acquired in the diamond fields, took the lead in developing the gold mines. In later years, Ernest *Oppenheimer and his son Harry were at the head of De Beers and established widespread interests in the goldfields of the Transvaal and the newer goldfields of the Orange Free State, in the production of base minerals and uranium, and in the development of manufacturing industries.

Many of the early Jewish magnates had only flimsy associations with the Jewish community, and some actually abandoned Judaism. Later, other Jewish mining magnates, financiers, and executives also became leading figures in the mining industry, though in relatively small numbers.

[[Racism and racist working conditions for the blacks and native peoples are not mentioned. The earth is black earth. The Whites are stealing the wealth of the blacks in South Africa. All this is not mentioned in the Encyclopaedia Judaica]].

SECONDARY INDUSTRY.

[More Jewish industrialists in South Africa]

The next major movement forward - a latecomer in South Africa - was the development of secondary industry, which occurred after World War I and was greatly intensified during and after World War II. Jews, many of them from Eastern Europe, contributed greatly to this development through their pioneering spirit and readiness to take risks. Often starting from humble beginnings as peddlers, storekeepers, and handicraftsmen (tailors, shoemakers, cabinetmakers, bricklayers, and so on), they produced some of the most enterprising industrialists. Among the pioneers were Samuel *Marks, who immigrated to South Africa in the 1860s, and his partner Isaac Lewis, who, with the help of state concessions established a number of industries in the Pretoria area, from the production of dynamite for the mines to a distillery and glass works.

[[Only the blacks had to work with the dynamite in the mines and have to do this until today...]]

The steel plant which they established in Vereeniging was the forerunner of the South African state-controlled iron and steel industry. Assisted by protective tariffs and by wartime conditions, industries for manufacturing food, clothing, textiles, furniture, leather articles, and others were established by Jewish enterprise. Clothing and textile factories, in particular, were developed into one of the most important sectors of South African industry, and Jews remained leaders in that field.

In the 1930s, the refugees who arrived from Germany [[and probably also Austria]] also introduced many new industries. The younger generation of (col. 204)

South African-born Jews later diversified into other spheres like electronics, engineering, the chemical industries, and large-scale building construction. Jewish town planners, property developers, and builders were largely responsible for the modernization of Johannesburg and other cities to meet the needs of an increasingly urbanized population.

[Jews in the tertiary industries]

Entrepreneurs, notably I.W. *Schlesinger, were among the leading figures in the tertiary industries (insurance, mass entertainment, hotel keeping, catering, and advertising). Jews were among the first in South Africa to introduce modern distribution techniques in the retail trade, such as the department store, the supermarket and the discount house. The largest chain stores were founded by Jews, most of whom started from small beginnings.

[[By this the black trade on the markets was attacked. There is never any question to part the profits with the blacks]].

[Jews in farming]

Although few Jews took up agriculture, Jewish farmers, especially in the maize industry, fruit growing, dairy farming and viticulture, set examples of successful scientific farming. Schlesinger's citrus undertaking in the Transvaal became one of the largest of its kind in the world. Ostrich farming and marketing, until the decline of the industry after 1914, was developed by Jews in the Oudtshoorn area of the Cape, notable among them being the *Rose Brother, Max (1874-1951) and Albert (1884-   ).

[Jewish young generations in the "high professions"]

The South African-born generation of Jews turned in increasing numbers to the professions, to medicine, law, pharmacy, and later to accountancy, engineering, architecture, and pure and applied science, often achieving positions of eminence. A high proportion of young people regularly study at the universities. There have been distinguished Jewish judges in the past - Simeon Jacobs, Manfred *Nathan, Leopold Greenberg, Philip *Millin, J. Herbstein, H.M. Bloch, Simon Kuper - and several served later on the bench. Percy Yutar was appointed in 1968 attorney general of the Orange Free State. Many Jews have distinguished themselves in medicine, medical research, and the development of health and hospital services.

SOCIO-ECONOMIC STRUCTURE.

The economic structure of South Africa as reflected in the 1960 population census revealed that Jews made up just over 4% of the economically active white population: 41% (46,783) were classified as economically active, compared with 38% for the white population as a whole. Of Jewish males 61% were economically active, and of the females 21% as against 55% and 20% respectively in the case of the entire white population. A detailed analysis of the "gainfully employed" (col. 205)

showed the following distribution among the main industrial categories:

Table 3. Industrial sectors of the Jews compared with all Whites
	Yews %	All Whites %
Commerce	49.0%	22.0%
Services	25.5%	23.0%
Manufacturing	17.0%	18.0%
Construction	2.0%	6.0%
Agriculture	1.5%	10.5%
Transport	1.0%	10.0%
Mining	0.4%	5.0%
from: South Africa; In: Encyclopaedia Judaica 1971, vol. 15, col. 206

Jews formed 9% of all the white persons engaged in commerce, 5% of those engaged in services, 4% in manufacturing industries, 1.3% in construction work, 0.6% in agriculture, 0.5% in transport, and 0.3% in mining. On the basis of personal occupations within the various industrial categories, the Jewish and general distribution was as follows:

Table 4. Personal occupation of the Jews compared with all Whites
	Jews %	All Whites %
Clerical workers	20.0%	24.0%
Professional and technical	19.0%	12.0%
Administrative and executive	19.0%	5.0%
Workers, wholesale and retail trade	15.0%	7.0%
Working proprietors, wholesale and retail	13.0%	2.0%
Craftsmen and productive workers	7.0%	24.0%
Services, workers in [[?]]	1.4%	5.0%
Farmers and farm workers	1.3%	10.0%
Transport workers	0.4%	6.0%
Miners	0.07%	3.0%
from: South Africa; In: Encyclopaedia Judaica 1971, vol. 15, col. 206

Since 1960 significant changes have taken place in the social and economic structure of the white population, more particularly in the Afrikaans-speaking community.

[G.SA.]> (col. 206)

[[The racist state system, slavery, and the professions of the black and native peoples are not mentioned. The racism of the white leaders would be too obvious. The word slavery is never mentioned in the Encyclopaedia Judaica]].

Sources
Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 183-184	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 185-186	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 187-188	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 189-190
Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 191-192	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 193-194	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 195-196	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 197-198
Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 199-200	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 201-202	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 203-204	Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 205-206
Encyclopaedia Judaica 1971: South Africa, vol. 15, col. 207-208

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