THE CHARTERED COMPANIES IN THE 19TH CENTURY

Chartered companies were European trading companies granted rights (Permission) to perform the administrative role, pacify African territories and carry out trade on behalf of the metropolitan governments. They were given charters to carry out effective occupation of the spheres of influence after the Berlin conference. They were expected to define boundaries of the spheres of influence (Colonies) and exercise exclusive right over taxation, minerals and land. They were also to ensure protection of home markets and protect the sources of raw materials.

The actual Scramble and Partition of Africa was handled by many agents.  Most prominent of which were chartered companies i.e once a sphere of this had been established, the problem of control immediately arose which more than anything else gave an impetus to the foundation of trading companies under such circumstances that chartered companies played an important role in the scramble and partitioning of Africa. 

Chartered Companies were trading companies that were given charters or permission by their metropolitan governments to work in their spheres of influence.  The most prominent of the chartered companies were formed by British traders and among them included the Imperial British East African Company (IBEACO) which operated in the British East Africa.  The royal Niger company that operated in what later was Nigeria, the British South African company that operated in South and Central Africa and the Germans founded the German East African Company (GEACO) that operated in Tanganyika.

THE IMPERIAL BRITISH EAST AFRICAN COMPANY  (1888-95)

The I.B.E.A.C.O. was founded by a group of humanitarian, businessmen, imperialists who held a charter from 1888 until the British government took over full control in 1895.  It was founded under the leadership of William Mackinon who mainly believed in the expansion of commerce/trade, the extension of British rule in East Africa.  The activities of the company were from the coastal strip i.e Zanzibar mainland towards Kenya where they established their station at Machakos under the leadership of John Ainsworth and later after 1890 following the conclusion of the Anglo-German treaty the company having realized the worsening religious-political situation in Buganda decided to send Captain Fredrick Lugard to restore law and order and to also find a British footing there.  It was under these circumstances that in December 1890 Captain Lugard reached Mengo with a small force of Sudanese and Somali soldiers who were armed with fire arms including the maxim gun.

The arrival of Lugard was received with mixed feelings because most groups of missionaries and their converts looked at his arrival as an event likely to favour the Protestant party however Lugard tried to deal with both groups with complete fairness although he sided more with the Protestants.  It was on December 26th 1890 that Captain Lugard signed a treaty with Mwanga that gave the company political control over Buganda.  It was hereafter that Lugard spent a few months in an attempt to settle conflicts between the Protestants and Catholics and then launched yet another attack.

On the other hand, there was a problem of the Muslims who had been defeated earlier in 1890 and many of whom had taken refuge in Bunyoro however in 1891 Captain Lugard and Apollo Kaggwa led a combined force of the Baganda and Sudanese soldiers against the Muslims in Bugangaizi whom they defeated.  Hence, the company can be commended for having created a conducive atmosphere for European imperialism.

Having resolved the religious conflicts, Lugard set out of Buganda leaving Captain William in charge of Kampala, traveled and reached the Ankole Kingdom which he put under the protection of the company by signing a treaty with Omugabe Ntare. 

Later he marched North through Toro and while in Buganda, Lugard had met Daudi Kasagama the ruler of Toro who had been deposed by Kabalega.  Lugard restored him to the throne and like elsewhere in Uganda he signed a treaty of protection in 1891 whereby Toro came under the company’s control.  It was hereafter that Lugard moved back to Kampala where he found a letter asking him to withdraw however this withdrawal was postponed until late 1892 when Lugard moved back to Britain and begun to convince the imperial powers to come and take over the regions of the British East Africa.

Lugard convinced the British government that unless Uganda was taken over by the British, missionaries especially Protestants were in danger and so he advocated for the protection of the missionaries by the British government.

Similarly, he convinced the British that Germans were likely to take over the control of Buganda which was the source of the Nile and therefore jeopardize the British’s stay in Egypt.  Hence he advocated for the British take over of Uganda for the sake of securing the control of the source of the Nile.

He also told the British government that Uganda was commercially viable and the British could easily get ready markets and raw materials from the area.  It was from this background that the British government decided to send Sir Gerald Portal to make an assessment of Lugard’s report.  The arrival of Gerald Portal saw the withdrawal of the IBEACO. flag in April 1893 and subsequent replacement with the union Jack.  Symbolically Uganda was declared a provisional British protectorate and in June 1894 a recognized protectorate was declared over Uganda.

Having withdrawn from Uganda, the Company continued to operate in what became the British East Africa (Kenya).  In this region however, the company was operating at a loss although they like in Uganda laid a foundation for the British occupation of Kenya which was declared a protectorate on 18th June 1895 and the company given a compensation of 250,000 pounds for the services it had rendered in East Africa.  Thus the company withdrew from East Africa in 1895.

A number of factors have been advanced by historians in an attempt to account for the withdrawal of the company which include;

It’s argued that the company’s expenditure far exceeded her income she was getting much less, thus operating at a loss.  It’s therefore from this basis that the company was later to withdraw.

In addition the area in which IBEACO operated had no mineral and profitable export commodities moreover the little trade available was not within easy reach of the coast.

The company was also affected by absence of large navigable rivers into the interior which made travel and transport of  goods slow.

Closely related, there was no proper link between the headquarters in Europe and the company officials on spot which led to unnecessary delays, wastage of time and misunderstandings.

It is also argued that the company had a weakness of inexperienced officials many of whom lacked commercial accumen and had a very little knowledge of commercial activities.   It was therefore this poor leadership that greatly undermined the continued operations of the company in East Africa.

Lastly African resistances and conflicts also greatly undermined the existence of the company because in addition to being poorly formed, and grossly under capitalized, the companies resources were largely vested in solving conflicts and African resistances which worsened the financial stand of the company thus leading to withdrawal.

In conclusion, in as much as a number of factors have been advanced to account for the withdrawal  of the IBEACO, its imperative to note that the company came for a purpose which had by now been accomplished  and it was high time the company withdrew.  Its therefore not surprising that the withdrawal of the company saw the subsequent occupation of the metropolis power.

GERMAN EAST AFRICAN COMPANY (G.E.A.Co.)

In November and December 1884 when the Berlin conference was in session, Karl Peters and his associates entered mainland Tanganyika and made treaties with chiefs in parts of Usagara, Uzigua, Unguru, Ukami which were signed by the respective chiefs without actually knowing the content involved because both parties did not understand the other.  The chiefs however thought that the treaties they signed were treaties of friendship to Germany so in March 1885 on the day the Berlin conference ended Karl Peters took these treaties confirming that the chiefs had willingly given in themselves for German protection.

It was from this basis that Karl Peters and his company were granted German recognition and the right to set up administration in East Africa which was after they had presented these treaties to the German government and therefore proceeded to establish the administration of their company as a way of entrenching German colonisation in East Africa.

The company right from the genesis was faced with financial burdens for very few capitalists in Germany were interested in East Africa even the German government had little interest as evident in the words of the German chancellor Otto Von Bismarck “colonies are not even worth the bones and blood of a single German soldier”  which is a portrayal of the limited interest of the German government in colonial acquisition explained partly by Bismarck as diplomatic moves and the failure by the capitalists to see any advantage in investing in East Africa hence the company lacked strong financial support to run its day to day affairs before 1884.

Because of this lack of financial support, the company decided to introduce white settlers in Tanganyika in order to start plantation farming and use the money for administering the territory.  Unfortunately, the areas where the German settlers were put mainly Usagara were unhealthy for them hence the scheme was abandoned.  Even where climate was favorable for the Germans, those who started their farms incurred heavy costs hence the company’s resources were over strained.

The company tried to trade but it was a failure because she couldn’t compete with the already established traders at the coast like the Arabs, Swahili, Hehe and Nyamwezi so the company’s economic failure in the first three years led to its seeking for control over the coastal belt ruled by the Sultan hence in 1887 the company put pressure on Sultan Bargash and forced him to lease the customs offices at Dar-es-Salaam and Pangani to the company.  Similarly in 1888 the company pressurized the Sultan of Zanzibar to give up his territories between R. Ruvuma and surrender them to the company.

In these undertakings, the company had the idea that by controlling the coastal ports, it would be in position to control the route to its economic salvation hence through threats the Sultan of Zanzibar was forced to recognize the German claims in the interior of Tanzania as far as Ujijji in the North and the Eastern coast of Tanganyika.  In this way the Sultan authority was eroded away and the company claimed all the areas from the coast of Tanganyika as far as the West to be put under the company’s protection.

In November 1886, the company was able to secure Tanganyika for Germany with the signing of the Anglo-German treaty of 1886 which made clear the boundaries between Kenya and Tanganyika and in July 1890 due to the threats of Karl Peters, when he signed treaties with the Kabaka of Buganda, great Britian was forced to interfere in Uganda’s affairs because of the source of R. Nile which forced Britain and Germany to reach an agreement which divided Uganda as a sphere of British influence and Tanganyika as a German sphere of influence which is what came to be the Anglo-German agreement of 1890.  From then the company established its headquarters at Dar-es-Salaam after it had mercilessly crushed the Abushiri rising of 1889-90.

By this time, the company had become bankrupt and therefore the German government directly took over the administration of Tanzania. 

In conclusion therefore, the GEACO can be commended for having gained Tanganyika for Germany.  For all the boundaries that identified Tanganyika as a German sphere of influence had by 1890 been properly laid out and it also paved way for the easy administration of Tanganyika by the German government for it crushed the coastal rebellions, established administrative posts which were to be used by German government and indeed the home government used the same set up and methods of administration established by the company until 1914.

Discuss the role played by the GEACO in the colonization of Tanganyika.

THE ROYAL NIGER COMPANY

Unlike the French who started their influence in West Africa through activities of the state officials, the British relied mainly on Private traders for example the region of modern North Nigeria was acquired for Britain by a trading company.  In 1870’s trade on the Niger beyond the delta was dominated by four British companies among which included James Pinnock and company of Liverpool, the West African company of Manchester, Alexander Miller and Brothers of Glasgow, Holland and Jacques company of London.  These companies were in active cut-throat competition which made the Niger trade less profitable and its from this background that a British capitalist George Tubman Goldie amalgamated the four companies to form what came to be called the United African company.

Even after this amalgamation, the competition remained stiff especially from the French and German companies which were operating in the region.  To avoid bankruptcy the United African company dealt with the new threat by buying off the French companies such that by 1884 the British interests and influence were again supreme on the lower R.Niger.  The Royal Niger moved in to sign treaties with African communities along the Nigerian coastline which treaties gave the company a measure of political powers in the region such that through these treaties, European powers like France, Belgium, Portugal and Germany easily recognized the Niger region as a British sphere of influence in West Africa.

Goldie himself was present at the Berlin conference where his recognition was given and at the end of 1886 the company was granted a royal charter which gave it the right to undertake the government’s defence of the region and it was from this basis that the company’s name was changed from West African company to Royal Niger company.

Following the issue of the Royal charter, and the subsequent change of this company’s name to Royal Niger company, the company used its charter to achieve certain objectives;  it provided protection and security for interior trade which was done when the company acted as an administrative institution to administer the territory under its powers.  The company set up its headquarters at Akassa, instituted a high court of justice and raised  on armed police force therefore what can rightly be said is that the company set up an administrative structure on which the colonial government later used thus paving way for the colonial occupation of  West Africa.

Through use of force, the companies influence was extended Northwards where the Emirs of Nupe and Ilorin were conquered in 1897.  They used a number of excuses like the Emir of Nupe was accused of interrupting trade by raiding for slaves in the company’s area of jurisdiction while the Emir of Illorin was  accused of aiding the Emir of Nupe to be against the company.  Through these excuses, their regions were conquered and put under the protection of the company and these became sphere of influence for the British government.

Furthermore the company took steps to secure an effective monopoly of the Niger trade for example  in 1891 the company was granted a strip of land running through the oil rivers and joined Asaba with the chief port at Akassa.  The rest of the delta was excluded from its area of control, the company introduced regulations which excluded all African and European traders outside its territory thus giving itself a monopoly of trade in the Niger districts for example traders outside its area of jurisdiction were required to pay 50 pounds per annum for licenses together with a further sum of 40 pounds a year to operate at each of the Niger company stations.  With these conditions the company was able to secure a monopoly of trade without any competition from other traders.

Thirdly the company’s South limits were defined leaving out the Northern region which was bound to be claimed by either the Germans or the French however the company didn’t want to give up this region and therefore the company’s officials begun to sign treaties with the chiefs of the Northern region who ended their powers to the company for example in 1891 Captain Fredrick Lugard an official of the company signed a treaty with Chief Nikki which placed Borgu under British protection.  Following the French advance in the Niger South of Bussa in 1897 the British government decided to create the West African frontier force to help the company to stop the  French advance into this region.

Following the conclusion of the company’s activities, on December 31st 1899, the British government revoked the charter of the Royal Niger company, that is, its powers as a political agent of the government in Northern Nigeria.  On January 1st 1900 the British government formerly and officially declared a protectorate over the company’s territories in Nigeria given that the government was no longer in need of the company’s services and she was thus paid 450,000 pounds as compensation for her expenses incurred in the administration of the region.  Similarly the British government bought the company’s administrative buildings and also assumed the responsibility for the company’s public debt which was the conclusion of the company’s activities in Nigeria and subsequent occupation by the British government.

THE BRITISH SOUTH AFRICAN COMPANY

Discuss the role played by Cecil Rhodes establishment of colonial role in Central Africa.

It was a brain child of Cecil Rhodes a British imperialist who was born of an English pastor in 1853 but due to poor health moved to South Africa hoping to get better.  It was during his time in South Africa that diamond was discovered at Kimberly in 1867 in a Boer territory of Orange Free state and he proceeded to monopolize the mining operations by forming the De Beers consolidated company which was given a royal charter in 1889 altering company’s name to British South African company.  This companies operations were to be in South and Central Africa because following the discovery of minerals, Cecil Rhodes had a misconception that there was gold in the North of Transvaal and therefore he dreamt of constructing a road from the Cape colony to Cairo to get access to this wealth.

Using the company, Cecil Rhodes begun to extend the British imperialism to Central Africa through signing treaties with the leaders of what later came to be Rhodesia and Zambia.  These treaties included the Moffat treaty that was signed with King Lewanika grating him Barogge land. Others included the Rudd concession of 1888 between Ruda and Lobengula and the Lochner treaty with the Lewanika.

The company also chased other British rivals like the Portuguese from the East, Germans from the West and the Boers in Transvaal hence holding a monopoly of the British imperialism in Central Africa.

It established infrastructure like telegraphic lines, roads in Mashona and Matebele land hence fulfilled the theory of effective occupation.

It also played an important role in suppression of resistances in Central Africa like the British Ndebele wars of 1893, and the Shona-Ndebele wars or the Chimurenga wars of 1896-97.

The company laid an economic back bone for colonial rule through land alienation, taxation and introduction of agriculture and mining industries.

Lastly the company laid an administrative foundation in the areas of R. Limpopo which made it easy for the British to occupy the states of Zambia, Zimbabwe and Malawi.

In conclusion, its largely as a result of the role played by the British South African company under the leadership of Cecil Rhodes in the colonization of Central Africa that modern Zambia had been named Northern Rhodesia and Zimbabwe Southern Rhodesia after the personality of Cecil Rhodes.

THE ROLE PLAYED BY CHARTERED COMPANIES IN THE COLONISATION OF AFRICA.

Alongside their trading activities, the chartered companies played an important role in the colonisation of Africa. Their roles were similar in many respects and they include the following:

They signed treaties: The African chiefs signed treaties with chartered companies which provided a legal basis for their home powers to claim the control of respective areas in Africa for example George Goldie signed many treaties which brought almost the whole of West Africa under British control i.e. they were over 37 in number. The German East African Company signed many treaties in Tanganyika while Cecil Rhodes with his British South African Company Signed many treaties in central Africa. Lugard of the Imperial British East African Company Signed treaties with Mwanga, Omugabe Ntare of Nkore and Kasagama of Toro. These treaties were documentary evidence which empowered the Europeans to colonise Africa. However, the African chiefs were illiterate and didn't discover the impact of signing until after losing their independence for example the impact of 1901 Ankole agreement, the 1900 Toro agreement with Lugard, 1888 Rudd concession between Lobengula and Cecil Rhodes agent of Charles Rudd.

Suppressed slave trade: This fulfilled the Berlin theory of effective occupation that required them to first stabilise the area before any meaningful development could take place. This created peace and stability in colonial areas of exploitation for example in the Niger Delta State, George Goldie condemned the African chiefs who practiced slave trade. In East Africa, William Macknon built the Uganda railway to stop using people as porters to carry commodities on their heads to the coast. Even Mwanga signed a treaty with Lord Lugard in 1890 where he promised to stop slave trade.

In a related case, British South African Company traders emphasised the legitimate trade. Africans were settled in their own homes where they were enslaved in growing of cash crops that were on high demand by European industries at the time. However, slave trade wasn't completely stopped as, for example, in Nigeria it continued until the 20th century. Through legitimate trade, Africans were able to get money to pay to colonialists.

They were influential in defining the boundaries of European colonies and solving the imperial rivalries that existed between trading companies from Europe for example George Goldie of the Royal Niger Company assisted in partitioning of West Africa among the imperial powers. The Anglo-German treaty of 1886 by German East African Company helped to establish the British spheres of influence and to keep the Portuguese advance away from Matabeland and Nyasaland.

More still, chartered companies put up the first infrastructure system that became the ladder for colonialists to occupy areas where the traders worked. This fulfilled the Berlin theory of effective occupation for example in South and central Africa, British South African Company created a direct link with Central African areas of Matebeleland and Mashona land in South African government by building the telegraph line and the railway network in the area. In East Africa Imperial British East African Company built a railway line from Mombasa to Uganda, Lord Lugard built a fort at Old Kampala. All these helped colonial administration in Africa although they were mainly established in the most productive areas of the continent.

They furthermore suppressed most of Africa resistance wars against Europeans for example the Royal Niger Company with its frontier forces suppressed many resistances in Nigeria and by 1897 the area had become a British colony. In Uganda Lord Lugard of Imperial British East African Company tried to pacify the Baganda who had indulged themselves in religious wars that he suppressed in 1893. He went on to beat offKabalega's forces out of Toro and restored King Kasagama of Toro who had been overthrown by Kabalega. In Central Africa, British South African Company defeated chief Lobengula of the Ndebele in 1893-94 British - Ndebele war and then became vulnerable to European  colonisation.

More important to note is that chartered companies had armies which were later inherited by these colonial governments for example in West Africa British colonies had to use the frontier police force in the administration of their areas which were left by the Royal Niger Company, in Uganda, the Sudan soldiers of Lord Lugard of the I.B.A.E.Co were taken over by the British administrators in entrenching their colonial rule to the rest of Ugandan provinces. In South Africa, the pioneer column force of the British South African Company helped the British colonialists in the administration of South and Central Africa.

They were given responsibility to operate in Africa because of their financial soundness and African chiefs who were opportunistic and hungry for European materials could easily be bought off by these chartered companies hence creating a ground for colonialists for example British companies which wished to trade in Africa were straight away given charters to go and trade in Africa in British territories and assist in the keeping of law and order, planting of taxation system, establish some infrastructure using the company money and some profits out of trade hence preparing for future colonisation of the area.

It was important for these companies in a way that after preparing these territories properly their home governments had to withdraw the charter and take over the direct control of the area making members of these chartered companies to withdraw their activities while some stayed in Africa and worked under their home government colonial administration.

Led to the foundation of colonial economic backbone. In a bid to supplement their financial requirement for colonial administration, the chartered companies started the taxation of Africans. To get money to pay taxes, Africans had either to accept the growing of cash crops or to work on the European farms for wages. This agricultural means of income came to define the growth of cash crop economies on which colonialism survived. Other than this, Africans were made to work in the mines for slave wages in order to get money for taxation.

Land alienation policy. Through this policy, a lot of land was secured. Most of which was mineralised and fertile influenced the coming of Europeans in South Africa, Congo, Kenya highlands and Senegal where they became settlers. These took upon themselves to administer Africans, tax them and enjoy lot of superiority over African cultures hence leading to the colonisation of Africa.

However, the colonisation of Africa was a team work involving the explorers, missionaries, imperialists and collaborators for example missionaries influenced the Africans with their biblical teachings, condemned slave trade, pacified Africans and appealed for home government protection of the areas under their cooperation.

Explorers drew maps, discovered navigable rivers, lakes, studied the political, social and economic organisation of the African societies which provided vital information for the colonialists.

Imperialists like Leopold II of Belgium, Cecil Rhodes of South Africa, Lord Crommer of Egypt and their involvement in these African regions caused a threat and competition for imperial wealth that made many Europeans to search for more colonies in Africa.

African collaborators like Chief Lewanika, Kabaka Muteesa 1, Chief of the Fante also played a major role that influenced the colonisation of their areas by welcoming the European hospitably.

Factors that led to the withdrawal of Chartered Companies in Africa

By the end of the 19th century, most chartered companies had been terminated by their Metropolitan governments that had given them charters or trading licenses. Responsibility for further administration of those areas were taken over by the home governments. Different reasons worked hand in hand to explain the withdrawal of the chartered companies from Africa by 1900.

Royal Niger Company out of its good performance in what the British wanted in West Africa, its Charter was terminated and British Imperial government tookover its services for example it had pacified the areas, promoted trade in Gold, palm oil and generally had turned Nigeria into a British asset. In South and Central Africa Cecil Rhodes' achievements were great and the British government could not fail to take over. In East Africa although the Imperial British East African Company was largely a failure, it helped in bringing Kenya and Uganda under the British control.

 The companies had a number of differences which propelled their home governments to take over their work for example the Royal Niger Company had oppressive rules and harsh conditions in trading activities which were resented by African and European traders. In South and Central Africa, the British South African Company oppressed the Shona and the Ndebele traders whose trade with the Portuguese was banned. Their trade monopoly and mistreatment of other traders generated protests from their home government that later decided the closure of the chartered company activities in central Africa.

Another weakness was that the companies had failed to stop slave trade completely for example Royal Niger Company failed to stamp out slave trade in Nigeria and also Imperial British East African Company in East Africa had failed. This was contravening the Berlin conference theory of effective occupation that agitated for stopping of slave trade to promote stability for effective colonial administration in Africa. The failure to stamp out slave trade by specific chartered companies made the home government to come and take over the control of the African territories.

There was pressure from other European powers who were interested in the area where these companies operated for example the Royal Niger Company was faced with the French pressure in West Africa. The French traders had been outcompeted by the Royal Niger Company and its leader George Goldie who established stringent policies against the French companies forced the French to leave West Africa unhappy.

In Central Africa, the British South African Company was faced with Portuguese pressure. The Portuguese from Mozambique wanted to link their political control with Angola, their colony in South West Africa hence they had to disorganise the activities of British South African Company across Central Africa.

In East Africa, Carl Peters of the German East African Company was interested in taking over Buganda and so was Lord Lugard and William Mackinon of the Imperial British East African Company. Such pressure from other European governments made the home governments withdraw the chartered companies from Africa and take over the direct administration of these African territories.

The financial problems:- Companies like the Imperial British East African Company were forced to withdraw because of the reduced funds and under capitalisation. Lord Lugard lacked funds to run the company and was forced to recommend the British government take over of their area. This came about as a result of spending a lot of their money in silencing of religious wars in Buganda for example by 1891, its annual budget of 40,000 pounds was over and it was saved by financial assistance from the Church Missionary Society in the period between 1892-1893. This forced the British government declare a protectorate over Buganda in 1894. In 1895 Kenya was declared a British colony leading to the closure of the Imperial British East African Company activities in East Africa.

Failure to locate the needed resources: Some companies came to Africa following the mineral discovery in South Africa and imagined that everywhere in Africa, there were minerals hence leading to the collapse of many chartered companies for example the Imperial British East African Company and Germany East African Company operated within the poor zone of East Africa. Apart from Ivory, there was no dependable export to keep these companies in business. East Africa had no minerals and it was greatly inhabited by the pastrolists who had little to offer in terms of European trade.

Lack of inadequate experienced staff: Most of the chartered companies employed local and foreign staff who were not experienced. The Africans who were employed were illiterate and had no skills in government and trade issues. Similarly, at the London headquarters of the Imperial British East African Company, directors lacked proper coordination, their plans were often confused, unserious and quite unreliable. William Macknon himself was full of sheer and mockery (pretence) and one British scholar had this to say;

"William Mackinon had no quality for pushing an enterprise that depended on quick decisions and smartness".

Mackinon is blamed to have employed staff from outside East Africa without much regard of their experience and qualifications leading to the poor performance of the Imperial British East African Company. A similar story affected other chartered companies in Africa

Poor communication system: Generally, the whole of the pre-colonial Africa had, railways, no established water canals and even most rivers and lakes were not navigable. Traders used local paths until they established some feeder roads and railway lines by themselves which were also inadequate. These problems made trade expensive which resulted into improper coordination which created inefficiency hence leading to the closure of their activities in Africa.

Lack of home support: It should be noted that after they had been given charters by home governments, the traders took over the whole responsibility of keeping law and order, signing treaties, carrying out administration, looking for valuable economic ventures for their home governments. All these were done at the company's cost. Because of such a heavy duty without home government financial support, companies like the Imperial British East African Company and German East African Company had to withdraw from East Africa.

African hostility: Local revolts were also strong problems to chartered companies. African chiefs had grown rich because of slave trade for example Jaja of Opobo in Niger Delta states. Such chiefs were at loggerheads with company agents who were busy stopping slave trade and promoting legitimate trade.

In suppression of such revolts, companies had to incur high costs which culminated into their bankruptcy hence leading to their closure. A good example was Abushiri revolt in Eastern Tanganyika which hindered the operation of the German East African Company in the area. Such resistances were common in West Africa under George Goldie and even was one of the cause of the Shona-Ndebele uprising against Cecil Rhodes in Central Africa in 1897-98 period.

Presence of wild animals and hostile tribes: This was because they operated in tropical rain forests. As a result, a good number of traders were eaten by wild animals. More to this, some African tribes like the Nandi never welcomed the company administrators due to their natural hostility against foreigners and their long standing desire to keep their independence intact.

Presence of diseases:- All the above problems coupled with tropical diseases were a great hinderance to the activities of these companies. This caused their respective home governments to come and take over the administration of these areas under their control.

In conclusion therefore, the factors that led to the withdrawal of the chartered companies were mainly grouped into two categories i.e. the companies inherent internal and external weakness plus the physical and human nature of Africans. This forced the Metropolitan governments to come and occupy these prepared areas in the name of colonisation by 1900.