Neo-Colonialism: The Last Stage of Imperialism

The British South Africa Company is “a creation of Cecil Rhodes’ genius in empire building” (153). During the colonial scramble for Africa, Cecil Rhodes sought to get ahead of other European powers and prevent large tracts of Africa from remaining in the hands of local people. Through agents, he provoked wars among the local peoples and deceived the local leaders into signing over the mining rights to the land.

The British South Africa Company remains “extremely powerful” (156), even as states push for a share of the profits from the resources extracted from their lands. The company is ideologically and bureaucratically linked with Oppenheimer’s firms. This is an example of the many “complicated links between superficially separate entities” (157) found throughout neo-colonialist enterprises.

The existence and fate of the people of Zambia and Rhodesia are dominated by these “tightly braided interests” (159). The chairman of the specially established local Rhodesian Board for the British South Africa company is Sir Frederick Crawford, the former Governor of Uganda who is renowned for his experience in dealing with “natives” (160). His appointment demonstrates, Nkrumah believes, the way in which imperial agents are “rewarded for their services to their real masters” (160). Many Englishmen sit on the boards of numerous Western companies, having served in the colonial administration before the independence of these states.

Documenting the “complicated network of foreign companies which at present governs so much of Africa’s economic life” (162) would be impossible in just one book, yet Nkrumah feels compelled to share the broad outlines with his readers. One such company is Tanganyika Concessions, founded in London and now operating out of Rhodesia.

When negotiating for a concession in Congo, Nkrumah describes how Tanganyika Concessions offered a 60% royalty share in an exchange for a seat on the Katanga Committee which administered mining rights. This then gave them greater access to even more profitable ventures in vaster expanses of land. Tanganyika Concessions works similarly in rail, lumber, and other industries, with provisions in contracts often directly tying the corporation to the British Government and other Western companies to “explore and exploit” (166).

The Rio Tinto Co. Ltd. is another example of the way in which superficially separate Western companies invest in joint efforts to further neo-colonial resource extraction in Africa and elsewhere. The Rio Tinto company also had close ties to General Franco during the Spanish Civil War and was rewarded for its “Spanish patriotism” (168) many years later with cash, shares, and contracts. The board is populated by names familiar to anyone with knowledge of the structures of neo-colonial Western companies. Though many aspects of Rio Tinto seem to have “no connection with Africa” (173), a closer examination reveals the tight ties with the Oppenheimer network of interrelated firms. Through mergers and alliances, Rio Tinto and its subsidiaries have emerged as one of the most important sources of aluminum in the United States.

The great profits associated with this industry do not filter down to African people, even though many of the raw materials are taken from Africa. Nkrumah also points to Unilever as an example of the opaque way in which the American economy is intrinsically linked to neo-colonialism, as it strives to eliminate future competition and to “prevent developing countries from taking any decisive steps towards industrialization” (178).

Patino of Canada Ltd. operates a “tin empire” (179) that stretches across the globe. As with companies detailed in previous chapters, the Patino corporation is deeply entwined with neo-colonial enterprises at the expense of South American and African states and their people. The investments of Patino of Canada “extend the Patino empire substantially into fields other than tin” (180). A nationalization program in Bolivia has caused Patino to relinquish a number of assets. Bolivia was long exploited by Western powers, until many foreign-owned assets were nationalized in 1952.

London Tin Corporation Ltd. is not directly related to Patino, yet many members of its board sit on the boards of companies which are related to Patino and other mining ventures. With regards to the connection between one of these ventures, London and Rhodesian Mining, and the Oppenheimer group, “there can be no doubt” (184).

Nkrumah provides extensive details of other associated ventures, their subsidiaries, their shared board members, and their extensive mining contracts in developing countries. The connections technically adhere to anti-trust laws, even if connections between the various firms exist. Various members of the Mellon family are among the richest in America, and they sit on different boards of technically independent companies, pursuing resources in Africa and South America.

Pechiney is the continuation of a century-old French mining and metallurgical company with close ties to French banks. It produces 80% of France’s aluminum and works closely with the other largest aluminum producer, Ugine. According to Nkrumah, “there is hardly a new consortium springing up in Africa today, particularly in the Maghreb, in which Pechiney does not have an oar” (192). As with many other companies, the interlocking directorships of Pechiney reveal the “continuity of power” (194) between supposedly independent companies. Together, these giant combinations are “draining away the mineral resources of Africa” (196).

Union Miniére has been one of the most widely publicized companies of the past five years due to its interference in “the establishment of Congo independence and unification” (197), since it has become a point of contention between the independent Congolese government and the secessionist Katanga Province. Control of Union Miniére, however, has remained with Belgian and British financiers. Nkrumah himself has addressed the Ghana National Assembly to discuss the way in which the apparent victory won by the independent Congolese government was mired in administrative hell, only for Western powers such as the United States and (former colonists of Congo) Belgium to demand $900,000,000 in what Nkrumah refers to as “invented debts” (199).

After years of looting the colonial-controlled Congo, the Western powers then demanded to be compensated for Congo’s independence, extracting money in the form of debt which could have been used to improve the lives of Congolese people. While ostensibly claiming to have “forgiven” part of the debt, the Western powers then inflicted more massive debts on Congo while congratulating themselves on their generosity. This arrangement, Nkrumah says, is an attempt to “to enrich the monopolies further and to defraud the suffering people of the Congo” (200). This imperialism and neo-colonialism affects all the developing countries of Africa.

To explain the significance of Union Miniére in this, Nkrumah examines the interested parties. Many of these are “leading insurance, financial and industrial houses in Europe and the United States” (201). Others are the continuation of colonial pre-independence institutions which involve “all sectors of economic activity” (203) in the country. Nkrumah delves deeper and deeper into these connections, tying them to bank and oil interests in countries such as Venezuela and Italy.

There are also links with the Belgian military and NATO, as well as materials essential for nuclear research. The profits made by Belgium from interests in Congo helped to rebuild Belgium’s economy rapidly after the devastation of World War II at the expense of the Congolese people. In spite of the secessionist efforts, Union Miniére has continued to make vast profits. Nkrumah also notes the connections between these companies’ histories and the Nazis. Such people, he suggests, “are the real directors of neo-colonialism” (211).