The role that chartered companies played in the colonization of East Africa is as follows:.
- Traders from European countries into East Africa were clearly known as the chartered Companies.
- They were trading organizations which had been given rights or permission (charter), to carry out trade and administration in East African territories, on behalf of their home governments.
- In East Africa the major Chartered companies were: the Imperial British East African Company (IBEACo) and German East African Company (GEACo).
- Chartered Companies were business enterprises that were formed mainly to curve out colonies for their respective European countries.
- IBEACO was founded by William Mackinnon in 1888. The GEACO was founded by Karl Peters in 1884.
- They signed a number of treaties with African chiefs, the GEACO signed Usagala, where as IBEACO signed the 1901 treaty with Nkore.
- They promoted legitimate trade, the profits of which attracted colonialists.
- They stopped slavery and hence made Africans believe that Europeans were very good, later they used this to colonize East Africa.
- The Chartered companies promoted agriculture upon which the colonial economy depended.
- They also provided information concerning Africa’s minerals and other resources that encouraged the scramble.
- They set up infrastructures like roads that greatly aided colonization.
- When they became bankrupt, they surrendered to their home governments to come and take over.
- They set up administrative headquarters; forts and garrisons, which all quickened the scramble and partition.
- They offered protection to the missionaries who were the fore runners of colonialism in East Africa.
- Their rivalries gave their home countries a chance to occupy East Africa.
- The Chartered companies acted as experimental governments for the colonial masters.
- They fought and defeated rebellious societies, for example IBEACO under Lugard fought Bunyoro, the Nandi and others.
- They financed colonial administration on behalf of their home governments. They constructed administrative posts, for example IBEACO built an administrative post at old Kampala and at Rabai.
