During the 1880s, Cape vineyards had been devastated by a phylloxera epidemic. The diseased vineyards were dug up and replanted, and farmers were looking for alternatives to wine. In 1892, Rhodes financed The Pioneer Fruit Growing Company at Nooitgedacht, a venture created by Harry Pickstone, an Englishman who had experience with fruit-growing in California. The shipping magnate Percy Molteno had just undertaken the first successful refrigerated export to Europe. In 1896, after consulting with Molteno, Rhodes began to pay more attention to export fruit farming and bought farms in Groot Drakenstein, Wellington and Stellenbosch. A year later, he bought Rhone and Boschendal and commissioned Sir Herbert Baker to build him a cottage there. The successful operation soon expanded into Rhodes Fruit Farms, and formed a cornerstone of the modern-day Cape fruit industry.
In 1892, Rhodes's Franchise and Ballot Act raised the property requirements from a relatively low £25 to a significantly higher £75 which had a disproportionate effect on the previously growing number of enfranchised black people in the Cape under the Cape Qualified Franchise that had been in force since 1853. By limiting the amount of land which black Africans were legally allowed to hold in the Glen Grey Act of 1894, Rhodes further disenfranchised the black population. To quote Richard Dowden, most would now "find it almost impossible to get back on the list because of the legal limit on the amount of land they could hold". In addition, Rhodes was an early architect of the Natives Land Act, 1913, which would limit the areas of the country where black Africans were allowed to settle to less than 10%. At the time, Rhodes would argue that "the native is to be treated as a child and denied the franchise. We must adopt a system of despotism, such as works in India, in our relations with the barbarism of South Africa."