Refers
to an association formed by investors or stake holders for the purpose of doing
trade, exploration and colonizing colonies.
Historically
chartered companies were formed by
investors who gave
this task to the
traders and explorers
in Africa to
operate trade and
commerce for profit
maximization.
After
being formed, they were granted/ given charter/ legal identification by their
mother countries that identified them as official companies which were to
represent the interests of the metropolitan. This is why they became known as Chartered Companies.
Before
establishing colonial government, European powers gave
chartered companies the
task of establishing
an administration with
the purpose of
seizing, colonizing and administering
the virgin African
territories.
Also they
were to safeguard
the interests of
the metropolitan. These companies operated in
those areas where
their mother nations
had economic interest.
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: -
(a) Germany East Africa Company (G.E.A.CO)
(b) The imperial British East African Company
(I.B.E.A.CO)
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:-
i.
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.
ii.
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:
i.
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.
THE ROLES OF CHARTERD COMPANIES
Qn.
Discuss the roles played by chartered companies towards total colonization in
Africa.
Qn. In which ways the chartered companies
influenced colonialism in Africa.
Qn. Why European colonial powers transferred
the task of establishing colonial administration to their chartered companies?
i.
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.
ii.
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.
iii.
Abolition of Slave
Trade. The
Chartered Companies also involved much
in the abolition
of Slave trade
in Africa. They abolished
Slave trade in order
to establish a new
trade called Legitimate
trade which emphasized
an exchange of
goods and not
slaves.
iv.
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
poles. For example the
B.S.A.CO ensured the
exploitation of minerals
in South Africa, Botswana and
Zimbabwe
v.
Establishment of Infrastructures. Chartered Companies
also played a big role
in establishing and developing economic
infrastructures such as
roads , railways and
ports so as
to ensure inports
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.
vi.
Protecting the
Boundaries of Colonies. Chartered
Companies also protected
the boundaries of
their colonies by
preventing other rival
powers from occupying
them. For example: In East
Africa G.E.A.CO ( Germany) signed
the agreement of
1886 to resolve
boundaries conflict between
the two powers.
vii. Exploring the Hinterland of Africa. The companies
were responsible for
exploring the interior
of Africa and the
resources available. 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.
viii. Generating Funds. Chartered
Companies also were
responsible in generating
fund through commercial
activities so as
to finance their
administrative activities and expenses.
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.
FAILURE OF COMPANY RULE
(THE COLLAPSE OF CHARTERED COMPANY
ADMINISTRATION)
Qn.
Examine the factors
behind the decline of Chartered Company rule in Africa.
Qn.
Why Chartered Company
administration in Africa did not live longer.
Company
rule did not meet their responsibilities, they achieved very few objectives
contrary to what was expected by their mother countries. In 1900’s many
Companies did not continue with
their administration and
therefore they transferred
all their political
administrative rights to
the governments in their
mother countries.
REASONS FOR THE FAILURE OF CHARTERED COMPANIES
There were
several reasons which
led to the
failure of the
Chartered Companies in Africa as follows:
a) Financial problems. Many of the Chartered Companies later
on ran bankrupt. The bankrupt was due
to the fact
that home government did not
support much the
/company operations. Also the
Companies had many
responsibilities to fulfill, for
example Suppressing resistances
and construction of
infrastructures. Generally, this led to failure of these Companies.
b) African resistances. The Companies also faced many
resistances from the natives. This
was due to the
fact that, Africans were
not happy with
the presence of the foreigners. For example
G.E.A.CO faced a Stiff resistance from
the Coastal people
led by Abushiri
and Bwana Heri in
1888 – 1889. Also I.B.E.A.CO faced
stiff resistance from the
Nandi in Kenya. This contributed to the failure of the
companies.
c) Lack of Experienced and skilled administrators. The companies
recruited most of the staff outside
East Africa without
much regard of
their experience and
qualification. Also, much of the
Company officials and
traders were less
competent in their
responsibilities hence failure
of Company rule.
d) Presence of tropical diseases. This limited the
penetration of the company officials to reach the interior. For example
Malaria killed many
G.E.A.CO and I.B.E.CO
officials something which
resulted into shortage of
officials hence failure of
the companies.
e) Language problem (barrier). There was language
barrier between Africans and the Company Officials. It was difficult
to communicate between
the two groups( Africans and
Europeans) as each group
found the language
of other being
difficult. Hence, decline of Company rule.
f) Lack of transport and communication facilities. This was
another problem that
faced Chartered Company
administration to the
interior was not
easy as some
area lacked good
and variable transport
networks. This made the
exploitation of resources
and administration in
general to become
difficult. Hence, decline of Company rule.
g) Harsh Climatic Condition (Bad climatic condition). The climatic
condition of various
parts of Africa
was not conductive to
Europeans. For example
in East
Africa the climate
was not friendly and favarable to Company Officials hence
failure of Company’s
activities.
h) Insufficient knowledge about Africa. Most of
the Company Officials
lacked sufficient knowledge
about the areas
where the companies
were operating. For instance, the I.B.E.A.CO
Officials were not
sure on the
navigability of some
rivers such as
River Tana and
Juba
Maltreatment
of the natives. In some areas, the company rule over exploited
and harassed badly the indigenous. The
maltreatment of the companies
created hostility with
Africans, something which led
to stiff resistance. For example Karl Peters (G.E.A.CO) was
nicknamed as “Mikono ya Damu” by the natives
in East Africa
due to his
brutality. He therefore faced
a lot of resistances
and dislike until
his dismissal.
Tags
HISTORY