Neocolonialism by Kwame Nkrumah 1965
IF we examine the intricacies of the Anglo-American extension through the exploitation of Africa’s raw materials, we find its strong arm holding down the wealth of Rhodesia, South Africa and South-west Africa both through direct holdings as well as through those of its American Engelhard and Kennecott Copper associates and the British South Africa Company Ltd.
The British South Africa Company was a creation of Cecil Rhodes’ genius in empire building. Watching the scramble for the lands in South Africa in the early 1890s, he decided that unless he got in quickly, other European adventurers would take up ‘large tracts of valuable country ruled by savage native chiefs in the interior of Africa’. Using his notorious agents, Rudd, Maguire, Rochford and Thompson, war was provoked between the Matabeles of what is now known as Rhodesia and their chief, Lo Benguela. Troops of the South African Company, which was granted a royal charter in 1889, went ostensibly to the support of the chief against his people. This trick of Rhodes, described by certain historians as ‘adroit handling’, secured the company a concession to work mineral rights in the vast expanse of land that now forms the whole of Rhodesia.
When Lo Benguela woke up to the bitter realisation of the trickery that had divested him and his people of the rights in their own land, he petitioned Queen Victoria as follows:
‘Some time ago a party of men came into my country, the principal one appearing to be a man named Rudd. They asked me for a place to dig gold, and said they would give me certain things for the right to do so. I told them to bring what they would give and I would then show them what I would give.
A document was written and presented to me for signature. I asked what it contained, and was told that in it were my words and the words of these men. I put my hand to it.
About three months afterwards I heard from other sources that I had given by that document the right of all the minerals of my country. I called a meeting of my Indunas and also of the white men, and demanded a copy of the document. It was proved to me that I had signed away the mineral rights of my whole country to one Rudd and his friends. I have since had a meeting of my Indunas and they will not recognise the paper, as it contains neither my words nor the words of those who got it.
After the meeting I demanded that the original document be returned to me. It has not come yet, although it is two months since, and they promised to bring it back soon. The men of the party who were in my country at the time were told to remain until the document was brought back. One of them, Maguire, has now left without my knowledge and against my orders.
I write to you that you may know the truth about this, and may not be deceived.
With renewed and cordial greetings,
Lo Benguela.’
Who in those days gave back land filched by whatever means from ‘savage native chiefs'? And who today will give them back to the people from whom they were taken unless that people insist on their return by their determined and united will expressed by a Union Government?
At the close of the nineteenth century, Rhodes, dreaming of a Cape to Cairo empire, pushed from Matabeleland into Mashonaland across the Zambesi, into the country now called Zambia. Thus he drove a wedge between the Portuguese colonies of Mozambique and Angola. All this was done with the buccaneers of his South Africa Company, which had received three supplementary charters since the initial one was granted in 1889.
Originally the company had administrative rights over territory in Southern Africa lying to the north Bechuanaland, to the north and west of the Transvaal and west of Portuguese East Africa. It also had rights to extend the Cape railway and telegraph systems northward and to make concessions of mining, forest or other rights, and much more besides. Its administrative and monopoly rights in Northern and Southern Rhodesia were ceded to the British Government only as late as 1923-4. Mineral rights in the Rhodesias, however, were still retained, as well as a half interest for forty years in the next proceeds of the disposal of land in North-western Rhodesia. In return, the British South Africa Company received a cash payment from the British Government of £3,750,000. The commutation of its half interest in the proceeds of land disposal was made in 1956 for an annual payment of £50,000 for the remaining eight years to run from 31 March 1957.
A cash purchase of the mineral rights was made by the Southern Rhodesia Government in 1933 for £2 million, this time from African taxpayers’ money. This still left the company with its mineral rights in Northern Rhodesia which, by arrangement, it is to enjoy until 1 October 1986. However since 1 October 1949, it was paying to the Government of Northern Rhodesia 20 per cent of the net revenue from these mineral rights, which sum was regarded as an ‘expense’ for the purpose of Northern Rhodesian income tax. Furthermore, ‘net revenue’ was defined as the profits of the company derived from its mineral rights calculated in the same manner as for the purpose of Northern Rhodesian income tax, i.e. after expenses had been charged against it. The arrangement provided for the non-imposition of mineral royalties as such in Northern Rhodesia, while Her Majesty’s Government undertook to secure so far as possible that any government which became responsible during the thirty-seven-year period,that is, up to 1 October 1986, for the administration of Northern Rhodesia should be bound by these arrangements.
The British South Africa Company, in spite of recent action taken by the government of Zambia to secure mineral rights, is still extremely powerful. It owns forests, agricultural estates and real property in Zambia, Rhodesia, and in Bechuanaland. It also has mineral rights in 16,000 square miles of Malawi territory. It formed Cecil Holdings Ltd. to acquire the whole share capital of British South Africa Company’s subsidiaries, with the exception of Rhodesia Railways Trust Ltd. Another formation, British South Africa Investments Ltd., acquired the greater part of the parent company’s investments in 1958. Other subsidiaries include:
· British South African Company Management Services Ltd.
British South Africa Citrus Products Ltd.
Charter Properties (Pvt) Ltd.
Indaba Investments (Pvt) Ltd.
Beit Holdings (Pvt) Ltd.
Jameson Development Holdings (Pvt) Ltd.
British South Africa Company Holdings Ltd. (U.K.).
The British South Africa Company was divested of the greater part of its holdings in companies operating primarily in the Republic of South Africa by its participation in the 1961 exchange of shares with De Beers Investment Trust Ltd. It still retains its holding of 700,000 shares in Union Corporation Ltd.
The company’s close association with Mr Harry Oppenheimer and the Anglo American Corporation in the Rhodesias is to be drawn tighter by means of a proposed share deal between them by which 1·2 million ordinary ten shilling shares of Anglo American will be exchanged for £2·5 million in £1 shares of New Rhodesia Investments Ltd., a public company registered in Rhodesia and equally owned by Mr Oppenheimer’s Brenthurst Investment Trust (Pty) Ltd. and British South Africa’s tributary, Cecil Holdings.
New Rhodesia Investments include: mining finance, 45·94 per cent; gold, 14·45 per cent; diamonds, 9·38 per cent; coal 2·49 per cent; sundry companies, 1·9 per cent. On 31 December 1962, the market value of these holdings was put at £10,500,000 while New Rhodesia Investment’s net assets stood at £12,100,000. As for Anglo American Corporation, its net assets at the end of 1961 were £114,500,0000. New Rhodesia’s ‘important block of shares’ in Consolidated Mines Selection Trust Ltd. will be increased as a result of the current financial arrangement with Anglo American, whose own share capital will be augmented from £9 million to £10 million by the creation of another two million ten shilling shares.
The complicated links between superficially separate entities are shown by their investments in concerns of common interest. New Rhodesia’s major buyings into the Diamond Corporation, Johannesburg Consolidated Investment Co. Ltd. and Rhodesian Anglo American Ltd. tie up closely with Anglo American’s activities in the Rhodesias and in the Congo and Portuguese territories.
Johannesburg Consolidated is concerned principally with diamonds, copper, gold and platinum. It also carries on prospecting operations, mainly in South Africa and Rhodesia. Its subsidiary companies include, among others, Barnato Brothers Ltd. and Barnato Holdings Ltd., and the important African Asbestos-Cement Corporation Ltd. An associated company, Matte Smelters (Pty) Ltd., is jointly owned by Rustenburg Platinum Mines Ltd. and Johnson Matthey & Co. Ltd. Johnson Matthey, a U.K. firm treating copper, nickel, platinum and other metals, supervised the erection of plant in the vicinity of Rustenerg to treat part of the product of Matte Smelters. Johannesburg Consolidated’s last issue of shares was in 1957, when 600,000 were issued to New Rhodesia Investments.
Rhodesian Anglo American has large shareholdings in the leading copper mines of Rhodesia. These direct holdings are swollen by those of companies in which it has interest. Thus as a 52·39 per cent interest in the ordinary ‘A’ stock of Rhokana Corporation Ltd. gives it an added interest of 17·63 per cent in Nchanga Consolidated Copper Mines Ltd., in which its direct participation is 21·429 per cent. Through its penetration of Rhokana and Nchanga, Rhodesian Anglo American has an indirect interest in Rhodesia Copper Refineries Ltd. Again, its oblique participation in Mufulira Copper Mines Ltd. via Rhokana, increases its own participation of 572,213 shares to 13·29 per cent. In Rhodesian Alloys (Pvt) Ltd. a producer of ferro-chrome, it has 263,226 shares, and in Rhodesia Broken Hill Development Co. Ltd., 1,425,905 stock units. An almost 25 per cent holding of Kansanshi Copper Mining Co. Ltd. has been secured by the acquisition of 394,209 shares. Rhodesian Anglo American’s direct and indirect participation in Bancroft Mines Ltd. amounts to 24·54 per cent. Rhokana gives it an interest in Chibuluma Mines Ltd., while Rhokana in association with Nchanga leads it into Kalindini Exploration Ltd. A holding of 34,100 shares gives it a substantial purchase into Kasempa Minerals Ltd., a company carrying out prospecting operations in the western province of Zambia.
Nor are other prospecting companies ignored by Rhodesian Anglo American. Thirty-one and a half per cent of Anglo American Prospecting (Rhodesia) Ltd. has come under its control, and 333,375 shares of Chartered Exploration Ltd. Iron, steel and coal also come within its range. It owns 596,600 shares in Lubimbi Coal Areas Ltd., holding prospecting rights for coal over an area of approximately 130 square miles in the Southern Rhodesian mining district of Bulawayo. This share-holding gives Rhodesian Anglo American 65 per cent control of Lubimbi, the other 35 per cent belonging to Wankie Colliery, two million of whose shares are in Rhodesian Anglo American hands. Forty per cent gives it a major part of the Iron Duke Mining Co. Ltd., and it also has a substantial interest in the Rhodesian Iron & Steel Co. Ltd.
Sundry other interests make Rhodesian Anglo American a leading controller of Zambia’s economic life. Finance and investment are included by, among others, 20 per cent of Rhodesian Acceptances Ltd., and a half share in Overseas & Rhodesian Investment Co. Ltd. Rhoanglo Mine Services Ltd., wholly owned, provides a valuable source of income for administrative and other services. Cement and clay bring it into the building and allied trades through 148,961 shares in Premier Portland Cement Co. (Rhodesia) Ltd. and 25 per cent of Clay Products (Pvt) Ltd.
Bancroft Mines seems to provide the richest pickings for the cast-iron digestion of the Anglo American hydra. This company was formed only in 1953, to take up from ‘the owners of the mineral rights, the British South Africa Co.’ special grants of mining rights and prospecting rights acquired from Rhokana. Capital is authorised at £13,750,000. The British South Africa Co. took up three million shares, Rhokana 9,500,000 and Rhodesian Anglo American 74,700. There was an iinterchange of shares with Rhokana as well as with Rhodesian Anglo American. In 1955 an additional two million shares were subscribed for by Anglo American and British South Africa Co., who have provided loans of £2 million and £3 million respectively.
Anglo American, Rhodesian Anglo American, Nehanga and Rhokana were given an option on three million of Bancroft’s ordinary shares up to 31 March 1963. In December 1961, the right was exercised on a million of the shares, of which Rhodesian Anglo American acquired 400,000.
Rhodesian Anglo American’s own capital is £7 million and its consolidated net profit for the year ended 30 June 1961 was £20,590,783 after providing £11,541,475 for taxation. Dividends absorbed £5,403,535.
These tightly braided interests are of special concern to the people of Zambia and Rhodesia, whose existence and fate they dominate. Not for nothing is Mr Harry Oppenheimer enlarging his own personal stake through the proposals concerning the share exchange between Anglo American and British South Africa Co. in new Rhodesia Investments, a tributary of British South Africa’s tributary, Cecil Holding. By the arrangements, British South Africa will have wider share in Anglo American’s activities through the establishment of a local Rhodesian Board for the chartered company, under the chairmanship of Sir Frederick Crawford.
Sir Frederick Crawford is at present the company’s resident director in Rhodesia. As a former Governor of Uganda, he brought with him his proconsular experience in the ruling of ‘natives’. Uganda also provides as local director in Zambia, C. P. S. Allen, until recently Permanent Under-Secretary of State to its Prime Minister. Thus are imperialist agents rewarded for their services to their real masters. Opposition to the establishment of the local board was met by British South Africa Co.’s president, P. V. Emrys-Evans, with the explanation that it will provide a greater degree of autonomy for local management, and will strengthen the company’s representation in Zambia. Mr Emrys-Evans is himself a director of Anglo American Corporation, as well as of Rio Tinto Zinc Corporation Ltd. Mr Emrys-Evans carries the interests of Barclays Bank D.C.O. by his directorship of the bank, and his solicitude for Rhodesia’s development is implicit in his seat on the board of Rhodesia Railways Trust Ltd., a British South Africa Company subsidiary. His further connection with Oppenheimer’s far-flung empire is confirmed by his membership of the London Committee of Rand Selection Corporation Ltd. The death of Lord Robins elevated him from vice-presidency to the head of the British South Africa Co.’s board, where among his colleagues were the late Sir C. J. Hambro, Harry Oppenheimer, L. F. A. d'Erlanger and another former pro-consul, Viscount Malvern, who brings with him the blessings of the Merchant Bank of Central Africa, Scottish Rhodesian Finance Ltd., and the Standard Bank of South Africa.
A good deal of Mr Emrys-Evans’ 1962 annual report to the shareholders was devoted to what is described as ill-informed criticism of the ‘group’s alleged policy of removing large sums of money from the country while being unwilling to invest in its development’. The attempt to rebut this criticism by the affirmation that over ten years the company had invested over £10 million in the territory, an average of over £1 million a year, would not convince Rhodesian Africans, who were well aware that the company received in gross income from tits Northern Rhodesian copper royalties alone in the year 1961/2 the sum of £10,900,000. Taxation goes to the United Kingdom and South Africa, as also do dividends, which, for the year 1959-60, absorbed £4,128,863 out of a consolidated net profit of £8,148,245, arrived at after writing off almost £1 million for depreciation of investments and over £5,400,000 for taxation.
Rhodes’ original links with the Rand and Kimberley mines have been knit more closely together by a thousands strands with Rhodesia and Zambia than it was possible for him to envisage at the time, though it was his overriding hope and ambition. This interwoven fabric partly provides the hang-man’s rope that is trying to strangle African independence and the political unification of Africa.