Mozambique Company
Encyclopedia
The Mozambique Company, in Portuguese
the Companhia de Moçambique, was a royal company in the Portuguese
colony of Mozambique, that had the concession of the lands that include the present provinces of Manica
and Sofala
.
The company was established in February 1891 with a capital stock of about 5 million dollars obtained from financiers from Germany
, the United Kingdom
and South Africa
. Isaacman and Isaacman report that the firm was capitalised at 40,000 pounds (not $5 M), and that British and French capital quickly predominated.
The concession was granted for a period of 50 years, during which the company could not only exploit the resources and existing manpower (partly through the Chibalo
system of forced labour) but also grant subconcessions. The company was granted the exclusive right to collect tax
es, but was itself granted a 25 year tax holiday. In return the Portuguese state would receive 7.5% of the company's profits and 10% of the sold shares. The company was also required to settle 1000 Portuguese families, and provide education and public administration in its territory.
In practice, the company made only partial use of the prerogatives with which it had been bestowed; but this has balanced by the fact that it also met very few of its obligations. Having only limited capital, the company did little to develop the area, deriving most of its income from its ability to tax and its power to use conscripted labour on its plantations and for lease to adjacent estates. Resistance to the forced labour regime was a major cause of rebellions against the company which occurred in 1902 and 1917. Despite the company's obligation under its charter to provide forces to maintain law and order, it was unable to meet these crises, and on both occasions Portugal had to mount expensive interventions.
The Mozambique Company had its headquarters in Beira
, where it controlled the public administration
and the post office
s. The company also founded a private bank, the Banco da Beira, which issued currency
in Pounds.
Because of its bad performance and because of the shift, under the Salazar regime, towards Portuguese control and away from international control of the economy, the company's concession was not renewed when it ran out in 1942. The Governor of Manica and Sofala commented:
On July 18, 1942, the territory of Manica and Sofala passed to the Portuguese colonial authorities and the Mozambique Company, now with the name SARL, continued to operate in the agricultural and commercial sectors.
On October 20, 1961, The Mozambique Company became the Grupo Entreposto Comercial de Moçambique, which transformed itself into a holding on September 6, 1972, with the participation of capital from other companies, like Entreposto-Gestão e Participações (SGPS) SA.
In 1939 the President of Portugal awarded the Grand Cross of the Order of the Colonial Empire to the company, the first time it had been awarded to a company.
Portuguese language
Portuguese is a Romance language that arose in the medieval Kingdom of Galicia, nowadays Galicia and Northern Portugal. The southern part of the Kingdom of Galicia became independent as the County of Portugal in 1095...
the Companhia de Moçambique, was a royal company in the Portuguese
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
colony of Mozambique, that had the concession of the lands that include the present provinces of Manica
Manica Province
Manica is a province of Mozambique. It has an area of 61,661 km² and a population of 1,359,923 .Chimoio is the capital of the province.-Districts:*Báruè District*Gondola District*Guro District*Machaze District*Macossa District*Manica District...
and Sofala
Sofala Province
Sofala is a province of Mozambique. It has an area of 68,018 km² and a population of 1.676.131 . Beira is the capital of the province. The province is named for the ruined port of Sofala.- Districts :Districts of Sofala Province include:...
.
The company was established in February 1891 with a capital stock of about 5 million dollars obtained from financiers from Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. Isaacman and Isaacman report that the firm was capitalised at 40,000 pounds (not $5 M), and that British and French capital quickly predominated.
The concession was granted for a period of 50 years, during which the company could not only exploit the resources and existing manpower (partly through the Chibalo
Chibalo
Chibalo is the concept of debt bondage or forced labour in the Ultramar Português , most notably in Angola and Mozambique...
system of forced labour) but also grant subconcessions. The company was granted the exclusive right to collect tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es, but was itself granted a 25 year tax holiday. In return the Portuguese state would receive 7.5% of the company's profits and 10% of the sold shares. The company was also required to settle 1000 Portuguese families, and provide education and public administration in its territory.
In practice, the company made only partial use of the prerogatives with which it had been bestowed; but this has balanced by the fact that it also met very few of its obligations. Having only limited capital, the company did little to develop the area, deriving most of its income from its ability to tax and its power to use conscripted labour on its plantations and for lease to adjacent estates. Resistance to the forced labour regime was a major cause of rebellions against the company which occurred in 1902 and 1917. Despite the company's obligation under its charter to provide forces to maintain law and order, it was unable to meet these crises, and on both occasions Portugal had to mount expensive interventions.
The Mozambique Company had its headquarters in Beira
Beira, Mozambique
Beira is the second largest city in Mozambique. It lies in the central region of the country in Sofala Province, where the Pungue River meets the Indian Ocean. Beira had a population of 412,588 in 1997, which grew to an estimated 546,000 in 2006...
, where it controlled the public administration
Public administration
Public Administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal.....
and the post office
Post office
A post office is a facility forming part of a postal system for the posting, receipt, sorting, handling, transmission or delivery of mail.Post offices offer mail-related services such as post office boxes, postage and packaging supplies...
s. The company also founded a private bank, the Banco da Beira, which issued currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
in Pounds.
Because of its bad performance and because of the shift, under the Salazar regime, towards Portuguese control and away from international control of the economy, the company's concession was not renewed when it ran out in 1942. The Governor of Manica and Sofala commented:
They did nothing to develop the potential wealth of this entire region, preferring to plunder it and alienate the natives.
On July 18, 1942, the territory of Manica and Sofala passed to the Portuguese colonial authorities and the Mozambique Company, now with the name SARL, continued to operate in the agricultural and commercial sectors.
On October 20, 1961, The Mozambique Company became the Grupo Entreposto Comercial de Moçambique, which transformed itself into a holding on September 6, 1972, with the participation of capital from other companies, like Entreposto-Gestão e Participações (SGPS) SA.
In 1939 the President of Portugal awarded the Grand Cross of the Order of the Colonial Empire to the company, the first time it had been awarded to a company.