Great Depression in South Africa

The Great Depression had a pronounced economic and political effect on South Africa, as it did on most nations at the time.

As world trade slumped, demand for South African agricultural and mineral exports fell drastically.

However, like the situation with the Boers, the National party lost support as the weak economy forced the gold corporations to replace white labourers with lower-paid blacks.

The National Party-led government staved off bankruptcy by raising taxes on imports, petrol and postage, amongst other things.

Hertzog was successful in 1933 partly because Smuts presented the public with a mock budget showing how South Africa's economic malaise could be lifted by floating the South African pound and removing it from the Gold standard, thus making exports more attractive, and creating a scenario in which undue taxation could be removed.