Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-11-19T06:37:10.437Z Has data issue: false hasContentIssue false

Lonrho in Africa: The Unacceptable Face of Capitalism or the Ugly Face of Neo-Colonialism?

Published online by Cambridge University Press:  15 April 2015

CHIBUIKE UCHE*
Affiliation:
Chibuike Uche is a senior researcher at the African Studies Centre, Leiden, The Netherlands. Contact information: Pieter de la Courtgebouw / Faculty of Social Sciences, Wassenaarseweg 52, 2333 AK Leiden . E-mail: [email protected].

Abstract

Under the leadership of Tiny Rowland, Lonrho became the largest and most widely established company in post-independence Africa. Using newly available materials mainly from the National Archives London, this article investigates the activities of Lonrho in Africa and the company’s relationship with the British government during the period. Although Prime Minister Edward Heath publicly labeled the company as the “unacceptable face of capitalism,” evidence presented in this article suggests that this was at best a normative assertion. The subsequent Department of Trade and Industry investigation of Lonrho was carefully guided by the British government with the objective of protecting wider British interests in Africa. Evidence in this article therefore contradicts the view that the British government did not work “in concert” with British businesses in Africa once political independence became imminent.

Type
Articles
Copyright
Copyright © The Author 2015. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved. 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bibliography of Works Cited

Books

Bower, T. Tiny Rowland: A Rebel Tycoon. London: Heinemann, 1993.Google Scholar
Cronje, S., Ling, M., and Cronje, G.. Lonrho: Portrait of a Multinational. Harmondsworth, UK: Penguin, 1976.Google Scholar
Ezera, K. Constitutional Developments in Nigeria. Cambridge: Cambridge University Press, 1964.Google Scholar
Fieldhouse, D. Black Africa 1945–1980: Economic Decolonization and Arrested Development. London: Allen and Unwin, 1986.Google Scholar
Fieldhouse, D. Merchant Capital and Economic Decolonization: The United Africa Company, 1929–1987. Oxford: Clarendon Press, 1994.Google Scholar
Grant, T. and Pederson, J.. International Directory of Company Histories, vol. 21. Detroit: St. James Press, 1998.Google Scholar
Hall, R. My Life with Tiny: A Biography of Tiny Rowland. London: Faber and Faber, 1987.Google Scholar
Jarrett, A. The Underdevelopment of Africa: Colonialism, Neo-Colonialism and Socialism. New York: University Press of America, 1996.Google Scholar
Leys, C. Underdevelopment in Kenya: The Political Economy of Neo-Colonialism. London: Heinemann, 1976.Google Scholar
Nkrumah, K. Neo-Colonialism, the Last Stage of Imperialism. London: Thomas Nelson and Sons, 1965.Google Scholar
Stockwell, S. The Business of Decolonization: British Business Strategies in the Gold Coast. Oxford: Oxford University Press, 2000.CrossRefGoogle Scholar
Tignor, R. Capitalism and Nationalism at the End of Empire: State and Business in Decolonizing Egypt, Nigeria and Kenya, 1945–1963. Princeton, NJ: Princeton University Press, 1998.Google Scholar
White, N. British Business in Post-Colonial Malaysia, 1957–1970: Neo-Colonialism or Disengagement? London: Routledge Publishers, 2004.CrossRefGoogle Scholar

Articles, Papers, and Book Chapters

Boyd, B., Haynes, K., and Zona, F.. “Dimensions of CEO-Board Relations.” Journal of Management Studies 48 (2011): 18921923.Google Scholar
Brautigam, D. and Knack, S.. “Foreign Aid, Institutions and Governance in Sub-Saharan Africa.” Economic Development and Cultural Change 52, no. 2 (2004): 255285.Google Scholar
Bridge, J. “The United Nations and English Law.” International and Comparative Law Quarterly 18, no. 3 (1969): 689717.CrossRefGoogle Scholar
Cain, P. and Hopkins, A.. “The Political Economy of British Expansion Overseas, 1750–1914.” The Economic History Review 33, no. 4 (1980): 463490.Google Scholar
Cammack, D. “The Logic of African Neo-Patrimonialism: What Role for Donors?Development Policy Review 25 (2007): 599614.Google Scholar
Charney, C. “Political Power and Social Class in the Neo-Colonial African State.” Review of African Political Economy 38 (1987): 4865.Google Scholar
Dumett, R. “Sources for Mining Company History in Africa: The History and Records of the Ashanti Goldfields Corporation Ghana Limited.” The Business History Review 82, no. 3 (1988): 502515.CrossRefGoogle Scholar
Eriksen, K. and Eriksen, K.. “Zambia: Class Formation and détente.” Review of African Political Economy 9 (1977): 426.Google Scholar
Executive Intelligence Review Investigative Team. “The ‘Tiny’ Rowland File.” Executive Intelligence Review 16 (1989): 4547.Google Scholar
Executive Intelligence Review Investigative Team. Tiny Rowland: The Ugly Face of Neo-Colonialism in Africa. Washington DC: Executive Intelligence Review, 1993.Google Scholar
Flint, J. “Planned Decolonization and Its Failure in British Africa.” African Affairs 82 (1983): 389411.CrossRefGoogle Scholar
Frynas, J. and Wood, G.. “Oil and War in Angola.” Review of African Political Economy 90 (2001): 587606.Google Scholar
Haag, D. “Mechanisms of Neo-Colonialism: Current French and British Interests in Cameroon and Ghana.” Institut Catala Internacional Working Paper No. 2001/6, 2001.Google Scholar
Handley, A. “Business, Government and the Privatization of the Ashanti Goldfields Company in Ghana.” Canadian Journal of African Studies 41, no. 1 (2007): 137.Google Scholar
Hodges, N. “Neo-Colonialism: The New Rape of Africa.” The Black Scholar 3 (1972): 1223.Google Scholar
Hopkins, A. “Economic Imperialism in West Africa: Lagos, 1880–92.” The Economic History Review 21 (1968): 580606.Google Scholar
Kahler, M. “Political Regimes and Economic Actors: The Response of Firms to the End of Colonial Rule.” World Politics 33 (1981): 383412.Google Scholar
Kew, D. “Building Democracy in 21st Century Africa: Two Africas, One Solution.” The Whitehead Journal of Diplomacy and International Relations (Winter/ Spring 2005): 149161.Google Scholar
Kraus, J. “Capital, Power and Business Associations in the African Political Economy: A Tale of Two Countries, Ghana and Nigeria.” The Journal of Modern African Studies 40 (2002): 395436.Google Scholar
Larmer, M. “What Went Wrong? Zambian Political Biography and Post-Colonial Discourses of Decline.” Historia 51 (2006): 235256.Google Scholar
Libby, R. “Transnational Class Alliances in Zambia.” Comparative Politics 15, no. 4 (1983): 379400.Google Scholar
Martin, G. “Africa and the Ideology of Eurafrica: Neo-Colonialism or Pan-Africanism?The Journal of Modern African Studies 20 (1982): 221238.Google Scholar
McDougal, M. and Reisman, W.. “Rhodesia and United Nations: The Lawfulness of International Concern.” The American Journal of International Law 62 (1968): 119.Google Scholar
Meyers, B. “OAU’s Administrative Secretary General.” International Organization 30 (1976): 509520.Google Scholar
Mlambo, A. “From the Second World War to UDI: 1940–1965.” In Becoming Zimbabwe: A History from the Pre-Colonial Period to 2008, edited by Raftopoulos, B. and Mlambo, A., 75114. Harare, Zimbabwe: Weaver Press, 2009.Google Scholar
Munslow, B. “Lonrho: There Is Nothing Tiny about Rowland.” Crime, Law and Social Change 21 (1994): 381385.CrossRefGoogle Scholar
Nwaubu, E. “Getting Behind a Myth: The British Labour Party and Decolonization in Africa, 1945–1951.” The Australian Journal of Politics and History 39 (1993): 197216.Google Scholar
Nye, J. “Corruption and Political Development: A Cost Benefit Analysis.” The American Political Science Review 61 (1967): 417427.Google Scholar
Onoge, F. and Gaching’a, K.. “Mazrui’s ‘Nkrumah’: A Case of Neo-Colonial Scholarship.” Transition 30 (1967): 2527.Google Scholar
Phillips, A. “The Concept of ‘Development’.” Review of African Political Economy 8 (1977): 721.Google Scholar
Pitcher, M. “Recreating Colonialism or Reconstructing the State? Privatization and Politics in Mozambique.” Journal of Southern African Studies 22, no. 1 (1996): 4974.Google Scholar
Rao, G. “Neo-Colonialist Aid and Trade.” Social Scientist (1976): 5761.Google Scholar
Rood, R. “Nationalization and Indigenization in Africa.” Journal of Modern African Studies 14 (1976): 427447.CrossRefGoogle Scholar
Schirmer, D. “Anti-Imperialism and Neo-Colonialism.” Science and Society 35 (1971): 219226.Google Scholar
Shen, W. “The Dynamics of CEO-Board Relationship: An Evolutionary Perspective.” Academy of Management Review 28 (2003): 466476.Google Scholar
Shohat, E. “Notes on the ‘Post-Colonial’.” In Third World and Post-Colonial Issues (Social Text Number 31/32, 1992): 99113.Google Scholar
Smedt, J. “’No Raila, No Peace!’ Big Man Politics and Election Violence in the Kibera Grassroots.” African Affairs 108 (2009): 581598.Google Scholar
Smith, T. “A Comparative Study of French and British Decolonization.” Comparative Studies in Society and History 20 (1978): 70102.Google Scholar
Special Correspondent. “The Strange Case of Lonrho.” Africa Report 19 (1974): 4045.Google Scholar
Stockwell, S. “Political Strategies of British Business During Decolonization: The Case of the Gold Coast/Ghana, 1945–1957.” Journal of Imperial and Commonwealth History 23 (1995): 277300.CrossRefGoogle Scholar
Stockwell, S. “Trade, Empire, and the Fiscal Context of Imperial Business During Decolonization.” Economic History Review 57 (2004): 142160.CrossRefGoogle Scholar
Tanzi, V.” Corruption Around the World: Causes, Consequences, Scope and Cures.” IMF Staff Papers 45 (1998): 559594.Google Scholar
Thachuk, K. “The Contingency Perspective: MNC-Personal Rule Relationships in Sub-Saharan Africa—the case of Lonrho.” Master’s thesis, Department of Political Science, University of British Columbia, 1989.Google Scholar
Tickner, V. “International-Local Capital: The Ivory Coast Sugar Industry.” Review of African Political Economy 8 (1977): 119121.Google Scholar
Tignor, R. “Decolonizing and Business: The Case of Egypt.” The Journal of Modern History 59 (1987): 479505.Google Scholar
Uche, C. “A Threat to Historical Research.” Archives: the Journal of the British Records Association 25 (2000): 136141.Google Scholar
Uche, C. “Oil, British Interests and the Nigerian Civil War.” Journal of African History 49 (2008): 111135.Google Scholar
Uche, C. “British Petroleum vs. the Nigerian Government: The Capital Gains Tax dispute, 1972–9.” Journal of African History 51 (2010): 167188.Google Scholar
Uche, C. “British Government, British Businesses and the Indigenization Exercise in Post-Independence Nigeria.” Business History Review 86 (2012): 745771.Google Scholar
Vines, A. “Oil, Diamonds and Death.” The World Today (March 2002): 1920.Google Scholar
Vysotskaia, N. “The Struggle of the African Peoples against Neo-Colonialism.” The International Journal of Politics 6 (1976–77): 1249.Google Scholar
Wai, D. “Domestic Policy and Foreign Relations Under Nimiery.” African Affairs 78 (1979): 297317.Google Scholar
Werlin, H. “The Consequences of Corruption: The Ghanaian Experience.” Political Science Quarterly 88 (1973): 7185.Google Scholar
Westphal, J. “Collaboration in the Boardroom: Behavioral and Performance Consequences of CEO-Board Social Ties.” Academy of Management Journal 42 (1999): 724.Google Scholar
White, N. “The Business and Politics of Decolonization: The British Experience in the Twentieth Century.” Economic History Review 53 (2000): 544564.CrossRefGoogle Scholar
White, N. “British Business Groups and the Early Years of Malayan/Malaysian Independence, 1957–1965.” Asia Pacific Business Review 7 (2000): 155176.Google Scholar
White, N. “The Survival, Revival and Decline of British Economic Interests in Malaysia, 1957–1970.” Twentieth Century British History 44 (2003): 222242.Google Scholar

Newspapers and Magazines

Daily Mail (UK) Google Scholar
Economist (UK) Google Scholar
Guardian (UK) Google Scholar
News Statesman (UK) Google Scholar
Sunday Times (UK) Google Scholar

Other Sources

Department of Trade. “Lonrho Limited, Investigation under Section 165 (b) of the Companies Act 1948, Report by Allan Hayman QC and Sir William Slimmings, CBE, CA (inspectors appointed by the Department of Trade).” London, 1976.Google Scholar
Hansard (UK) House of Commons parliamentary debates (various dates).Google Scholar
Lonrho Limited, Annual Report (various years).Google Scholar
Monopolies and Mergers Commission, Lonrho Limited and Scottish and Universal Investments Limited and House of Frazer Limited. “A Report on the Proposed Merger of Lonrho and Scottish and Universal Investments and on the Resulting Merger Situation Between Lonrho and House of Frazer Limited.” London: Her Majesty’s Stationary Office, March 15, 1979.Google Scholar
National Archives (NA) London (various files).Google Scholar