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Imperialism and Export of Capital: A Survey of Foreign Private Investments in Tanzania During the German Colonial Period

Private investors contributed considerably to the process of colonization and with the aid of their States managed to make huge profits out of the colonies. It is interesting and worth noting that the very movement towards colonialism was spear-headed and financed by investors who were looking for new sources of cheap raw materials for their industries, cheap labour power, and of course markets. Colonialism was therefore first and foremost intended to combat the tendency of the rate of profit to fall and to ensure super-profits. At the dictate of the owners of capital, different colonial powers formulated specific policies concerning investments by individuals in their dominions. These policies were determined by concrete material conditions in the specific states and the precise aim for exporting capital. As well, it was important to keep competitors from other states interfering with the exclusive interests of the colonialism power.