Final answer:
The discovery of gold and diamonds had a significant impact on the South African economy, leading to economic growth and development. However, it also resulted in the exploitation of workers and contributed to social and political tensions.
Step-by-step explanation:
The discovery of gold and diamonds had a significant impact on the South African economy. With the discovery of gold in 1886, mining became a major industry in the country. Immigrants from various parts of the world flocked to the mining areas, leading to the growth of cities and the development of infrastructure.
The mining industry, particularly gold mining, played a crucial role in the economic development of South Africa. It generated wealth, created job opportunities, and attracted investment. The revenue from gold and diamond mining contributed to the growth of other sectors of the economy, such as manufacturing and finance.
However, the discovery of gold and diamonds also had negative consequences. The mining industry relied heavily on cheap labor, which led to the exploitation of workers, particularly black miners. The racially segregated mining culture contributed to social and political tensions in the country.