Trading companies

Question 1

What was the role of chartered companies

Answer 1

• attitudes to chartered companies changed when Britain’s economic supremacy was challenged by both European and American industrialisation and the onset of the Long Depression.
• idea of a chartered company was revived as a way of extending British trade and control.
• Primary purpose of trading companies was to generate profit for shareholders in Britain -> led to exploitation of local peoples and environment.

Question 2

Give 3 examples of chartered trading companies

Answer 2

• the National African Company, renamed the Royal Niger Company (RNC), this permitted trade in lands along the Niger and Benue rivers and also gave permission for expansion Northwards -> company was to serve as a government of the Niger region.
• the Imperial British East Africa Company
• the British South Africa Company

Question 3

What was the RNC

Answer 3

• George Goldie founded the company and pushed the government for a charter.
  -> finally given one in 1886 to protect trade from the growing German and French influence as a result of the Berlin Conference.
• The Companies main area of interest was the Niger River basin in West Africa, it had over 30 trading posts along the river.
• mainly traded for palm oil (used for lubricating machinery in factories among other things) and cocoa.
• The Company secured its interests by making treaties with local chiefs which gave the company access to trade
  in return for offering protection to the local rules. They made over 400 such treaties.
• seized land in order to control all aspects of the production and trade of palm oil, cocoa and coffee by establishing their own plantations.
• The charter was revoked in 1900 but by this point Goldie had established British control in what became the colony of Nigeria.

Question 4

What was the Imperial British East Africa Company (IBEAC)

Answer 4

• granted a charter in 1888 largely as a response to growing German interest in East Africa.
  -> founded by William Mackinnon who had made his money in shipping.
  -> He was not motivated by power or money but rather by spreading Christianity and ‘civilisation’.
• Its area of interest was what was to become the British colonies of Uganda and Kenya as well as Zanzibar
  aimed to facilitate the introduction of tea and coffee plantations in the region.
• The company made treaties with local chiefs to gain access to land and open up trade.
• made plans to build a railway to improve trade with the interior of East Africa.
  -> This would eventually
  connect Lake Victoria with Mombasa on the coast (Lunatic Line).
• ultimately failed in its financial aim to develop British trading and commercial interests in the area and its charter was revoked in 1894.
  -> However, it had established control in Kenya and Uganda.

Question 5

What was the British South Africa Company (BSAC)

Answer 5

• set up by Cecil Rhodes who had made his wealth from the diamond and gold mines in the area.
  -> He was influential and persuaded the gov to grant him a charter to expand British control in the region.
• Its main area of interest was lands north of the Cape Colony and the Boer republic of the Transvaal.
• hoped to mine for gold, diamonds, coal, copper and iron ore.
  -> hoped the wealth from these minerals could be reinvested to pay for new infrastructure to aid British settlement in the region.
• used force to secure its interests. A ‘Pioneer Column’ of soldiers marched into native lands and demanded
  the right to mine in the area. They established Fort Salisbury to protect its interests.
• Treaties were also signed with local rulers to gain access to the mineral wealth.
• Rhodes wanted power to bring ‘uncivilised’ cultures together under the Union Jack.
• The areas of land they seized would eventually become the colony of Rhodesia (Zimbabwe).