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How Britain gained an empire - economics and commerceOverseas industry and trade in the 19th Century

Britain's trade with other countries often led to it taking control of foreign territories so that trade and economic activity could prosper.

Part of HistoryBritain: migration, empires and the people c790 to the present day

Increases in overseas industry and trade in the 19th Century

Expansion and empire

The 19th century witnessed increases in Britain鈥檚 industry and trade which had never been seen before. This led to increased activity by British businesses and governments in overseas territories.

In territories where white British people had migrated, such as Canada and New Zealand, farming developed as a source of exports to Britain, helping to feed a rapidly increasing population that no longer worked on the land. Canada exported wheat and other grains to Britain, and New Zealand exported wool and then lambs meat after 1881 when refrigerated ships were in operation.

Suez Canal

The desire to speed up trade between Britain and Asia, especially India, led to the British becoming interested in the new in Egypt. It opened in 1869 and provided a direct route by water from the Mediterranean to the Indian Ocean. This greatly sped up the traffic in the tea, cotton and spice trades from India and the export of manufactured goods from Britain to Asia.

The British government bought Suez Canal shares off the of Egypt in 1875 and then developed a clear interest in the way that Egypt was governed. Britain held indirect rule in Egypt until the 1950s.

West African trade in palm oil

The British merchants who had operated the until the early 19th century wanted to find other lucrative trades to become involved in. They started to import palm oil from West Africa in the mid-19th century because this was good for manufacturing soap as well as lubricants for machinery. Towns, such as Old Calabar in south-eastern Nigeria, that used to be major slave ports, became palm oil export sites. Africans controlled the access to the products and made sure the British could not make direct contact with the suppliers.

In the late 19th century the price of palm oil was falling and the British wanted to get as much revenue as they could from its trade. Britain opposed local rulers, like JaJa of Opobo, who wanted to control trade. In 1887 the local British ruler tricked JaJa onto a boat that took him to the Gold Coast to face trial for 鈥榖locking the highways of trade鈥. Britain absorbed the Opobo territory and united the area in a new Nigerian colony.

Rhodes and the Scramble for Africa

A caricature of Cecil Rhodes standing on a map of Africa.

In South Africa the discovery of diamonds in Kimberley in the 1860s, and then gold in the Witwatersrand in the 1880s, enticed a number of British businessmen into staking a claim in the mining industries. The most famous of these men was Cecil John Rhodes. Rhodes built up an expansive colonial territory in South and Central Africa: one colony, now known as Zimbabwe, was named after him as 鈥楻hodesia鈥. He organised the takeover of other peoples鈥 diamond businesses and formed the giant DeBeers corporation in 1888.

Rhodes deceived King Lobengula of the Matabele and took over Matabeleland in 1891. He dreamed of a British territory which stretched from 'Cape to Cairo鈥 and of a railway that would greatly enhance transport for British trade. The railways was never built but by 1900, there was indeed a long span of British territory running from the Mediterranean to the Cape, with only a few interruptions.