Between Public Duty and Private Profit: Government Officials and Real Estate Investments in the Cape Colony, 1897–1902

Munashe Chideya () and Johan Fourie
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Munashe Chideya: Department of Economics, Stellenbosch University

No 02/2026, Working Papers from Stellenbosch University, Department of Economics

Abstract: Between 1897 and 1902, despite formal prohibitions, Cape Colony civil servants and politicians invested in private real estate joint-stock companies. Using Cape company records, civil service registers, newspapers and government correspondence, this article reconstructs these investments and traces how parliamentary procedures, especially private bills for railways, harbour works and water rights, were leveraged to inflate land values for personal gain. Across eight companies, twenty-two politicians and seven civil servants invested 57,907 pounds, representing 23.17 per cent of the total paid-up capital. While civil servants, who invested 1,770 pounds of the total, were largely passive investors, politicians, who invested 56,137 pounds, dominated capital subscriptions and occupied directorates, shaping legislation and land-use policy. Case studies of the Milnerton Estates and Saldanha Bay companies reveal that such conflicts of interest were publicly debated but poorly contained. This article argues that real estate speculation illustrates how enterprise and state power co-produced colonial urban space in the Cape.

Keywords: corruption; real estate; joint-stock company; government official; civil servant; politician; land speculation (search for similar items in EconPapers)
JEL-codes: D73 N47 N97 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-his
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