COMPANIES AND ASSOCIATIONS
Companies and association were the European traders or merchants who came in Africa to make trade with Africans on behalf of their home governments. They received finance from their home government so as to operate effectively and differently in those areas.
NOTE:
In the abolition of slave trade, merchant companies became increasingly involved in the interior of Africa. The major aim of these companies was to establish the so called “legitimate trade”.
This was trade in commodities and other resources that industrial capitalist required as raw materials or as food for the urban working classes. The legitimate trade did not involve the selling and buying human
EXAMPLES OF THE ASSOCIATION INCLUDED
- The Royal British Geographical society, financed by John Speke to explore the river Nile.
- African Association of British, which in 1788 financed Mungo Park.
- Its major aim was to explore and identify the areas suitable for agriculture, which could produce enough materials for export.
EXAMPLES OF COMPANIES INCLUDED
COMPANIES IN EAST AFRICA
After the Berlin conference, East Africa came under control of two European powers, these were Germany and Britain. Therefore, the companies, which were operating in those colonies, come from those countries, involved: –
THE GERMANY EAST AFRICAN COMPANY (GEACO) 1884 – 1891
This was an organization established at the start of the Germany colonization of East Africa. The company in short, was responsible for the activities in the new colony (German East Africa) such as setting up leadership (administration), future explorations, development of the region etc.
Foundation
It was founded in 1885 after presentation of a treaty by Karl Peters in Berlin in Feb 1885. It was official identified in 1887.It was succeeded by the German government in 1891. It established Bagamoyo as their colony’s capital but soon moved it to Dar es Salaam.
Founder
The founder was Karl Peters who was the most significant figure in the establishment of the company.
The company generally, played a big role in signing treaties with African chiefs in East Africa. The company was also involved in the partition of East Africa where two treaties were involved i.e. Delimitation Treaty ( 1886) and Helgoland Treaty ( 1890). Karl Peters also signed treaties with chiefs like Chief of Usagara, Chief of Uzigua, Chief of Ukamietc
THE IMPERIAL BRITISH EAST AFRICAN COMPANY (IBEACO)
It was a Commercial association formed so as to develop African trade in the areas controlled by the British Colonial power in East Africa.
The origin of I.B.E.A.CO can be traced back to 1856 when William Mackinnon formed a steam ship service in Indian Ocean. In 1862, it was renamed as the British Indian Steam Navigation where in 1886, it was given an imperial charter, and thus it became known as I.B.E.A.CO
In 1888, Sir William Mackinnon and I.B.E.A.CO were authorized to serve as administrator of East Africa Protectorate ( Kenya) which was the area of influence of British East Africa. Generally the company represented and defended the British interest in East Africa.
COMPANIES IN WEST AFRICA
In West Africa there were various chartered companies that were operating for the interests of their mother countries in Europe.
These companies were as follows:-
THE ROYAL NIGER COMPANY (RNC)
This was a British Mercantile Company that involved in Commercial activities in West Africa in the 19th c for the interest of Britain. It was formed by George Goldie in 1879 as the United African Company and it was renamed as the National African Company ( NAC) in 1881.
The company became known as Royal Niger Company (RNC) in 1886 July when the British government granted it a charter and Lord Aberdare became governor while George Goldie became Vice – governor.
The Company dealt with trade, negotiating treaties with African Chiefs and defending the British interests which were in jeopardy from the Germans and French. The Company existed for a comparatively short time (1879 – 1900) but was instrumental in the formation of Colonial Nigeria.
GERMAN WEST AFRICAN COMPANY (GWAC)
This was a German Chartered Company formed so as to safeguard the interests of German and represents the interests of German in West Africa. The company was established in 1885 and given a charter to represent Germany interest in West Africa.
The company operated in Cameroon and Togoland and it influenced Germany to colonize the two countries in West Africa.
COMPANIES IN SOUTH AFRICA
The companies that were operating in this region were as follows:
BRITISH SOUTH AFRICAN COMPANY
This was the British chartered company formed by Cecil Rhodes in order to represent Britain in Southern Africa. The company was formed in 1884 and given a charter to operate in Southern Africa.
The company operated in South Africa, Zimbabwe, Botswana, Malawi and Zambia and generally influenced Britain to colonize those areas.
ROLE PLAYED BY COMPANIES AND ASSOCIATION IN THE COLONISATION OF AFRICA
Monopolization and exploitation of African resources:
These resources were highly needed by the European capitalists in their industries. In all parts of Africa Company played a crucial role of collecting raw materials and carried out trade activities.
Elimination of local middlemen and creation of custom duties and tariffs:
These were carried out by the companies which attracted the imperialist’s powers to control Africa.
The companies encouraged their home government to colonize Africa
For example; the Royal Niger Company encouraged the British to colonize Nigeria after gaining the control of the different trading areas in the region.
Creation of infrastructure
These included commercial centers, administrative headquarters, roads, railways and waterways. They were allocated in those areas where they operated where by later on were used by the imperial powers to transport administrators to colonize and impose laws on the land.
The companies laid foundations for their home government to colonize African
They suppressed African resistance through a police force used to maintain peace, order and stability within the region. For example in East Africa, the German East African Company recruited Swahili, Sudanese and Buganda soldier to counter the coastal Arab resistance of 1888-1889.
They provided important information about economic potentiality of African areas
Africa was exposed to the imperial powers which aimed to colonize the continent.
The companies provided rudimentary administration in areas of their operation
Some company leaders such as Sir. George Turban Goldie of the Royal Niger Company, Harry Johnston, the representative of Cecil Rhodes of the British South Africa Company, attended the Berlin Conference of 1884-188 5.
The company played an important role of marking of the administrative boundaries
Which were later identified as boundaries of the European spheres of influence. They prevented any other rival European imperial power from taking their territories. This was evidenced in East Africa where the German East Africa Company marked the area of the German in the Anglo-German rivalry and achieved the 1886 agreement. While in South Africa the British South Africa Company managed to map the claims of Britain, thus preventing the Portuguese from interfering in the British sphere of influence.
Furthermore
Signing of treaties.
The company had a task to sign different treaties that would enable their nations to colonize areas in Africa. For examples, a treaty between BSACO and King Lobengula of Matebelele and on 3rd October 1888. Also a treaty between GEACO and Chief Magungo of Msovero in 1884.
Suppressing African Resistances.
It was a duty of the companies to suppress all resistances in Africa which were against colonial rule. For examples, GEACO suppressed Hehe Resistance in Tanganyika, IBEACO suppressed Nandi Resistance in Kenya etc.
Abolition of Slave Trade
The Chartered Companies also involved much in the abolition of Slave trade in They abolished Slave trade in order to establish a new trade called Legitimate trade which emphasized an exchange of goods and not slaves.
Exploitation of African Resources
The companies carried out import and export activities in order to exploit the African resources particularly minerals for the industries in the metro For example the B.S.A.CO ensured the exploitation of minerals in South Africa, Botswana and Zimbabwe
Establishment of Chartered Companies
Also played a big role in establishing and developing economic infrastructures such as roads , railways and ports so as to ensure imports and export. For example, G.E.A.CO established the Central Railway Line in Tanganyika which was constructed from 1893 to 1905 – 1914, I.B.E.A.CO started the construction of a railway line from Uganda to Kisumu in 1896.
Protecting the Boundaries of Colonies
Chartered Companies also protected the boundaries of their colonies by preventing other rival powers from occupying For example: In East Africa G.E.A.CO ( Germany) signed the agreement of 1886 to resolve boundaries conflict between the two powers.
Exploring the Hinterland of Africa
The companies were responsible for exploring the interior of Africa and the resources The information brought by those companies fueled the process of colonization of Africa. For example the Royal Niger Company (RNC) explored Nigeria, Niger and Ghana for the future colonization by the British.
Generating Funds
Chartered Companies also were responsible in generating fund through commercial activities so as to finance their administrative activities and For example, the Mozambique Company by the Portuguese in Mozambique formed a private bank ( Banco de Beira) in Beira in order to run different colonial projects.
