In a series of decisions made in 1864, 1865, and 1869, the UK's government decided that every colony should have a distinctive badge, to be displayed on flags at sea.

The Molteno ministry decided to introduce a coat of arms, which would also serve as the flag badge.

[2] The coat of arms was first displayed on a flag at the laying of the foundation stone of the Houses of Parliament on 12 May 1875.

[3] It was formally granted by Queen Victoria on 29 May 1876, and made its official appearance as a flag badge shortly afterwards.

The flag badge consisted of the Cape Colony coat of arms on a white disc.