In a review published almost two decades ago, Hopkins (1976, 29) observed that business history had “no following in African Studies.” A decade later, however, the situation had changed remarkably, though the important subject of the relationship between the State and the business community in colonial Africa still required further in-depth analysis based on case studies. Hence, Hopkins (1987, 131) stressed the “need to evaluate the precise balance of…[the] forces (which underpin this relationship) by placing them in the context of a particular colony at a specific historical moment.” He called for “additional research” in the form of case studies, such as is presented below, to shed light on the dimensions of business-government relations under colonial rule.

Although scholars acknowledge the centrality of the State in the colonies (Smith 1979; Cooper 1981), they differ on the characterization of its role in the contest between indigenous and expatriate economic interests in the colonies. The conventional view (Crowder 1968, 305; Hopkins 1975, 189) depicts the colonial state as the “Great White Empire” which limited itself to mediating between these competing interests. The opposing school of thought (Rodney 1972; Smith 1979; Lonsdale and Berman 1979; 1980) posits that the colonial state was interventionist; it collaborated with expatriate business groups to exploit the colonies in the imperial interest. The weight of empirical evidence clearly tips the scales in favor of the latter position but the relationship between these dominant actors in the colonial economies was much more complex than this. As Berman (1990) has shown in a Kenyan case study, it was characterized by crisis and contradictions.