The Impact of Colonialism on West Africa’s Economy

The impact of colonialism on West Africa’s Economy

Abigail Adu

100934784

HIST 1707A

S. Lipsett-Rivera

Section A01

The imposition of colonization on Africa forever impacted world history. The African way of thinking, patterns of cultural and economic development, and ways of life were eternally impacted by the change in structure introduced by colonialism. Africa’s economy was significantly reformed by the Atlantic slave trade through the process of imperialism and the economic polices accompanied by colonization. The aim of colonization was to expand the colonizing nation. Economic growth and development through exploitation of the natural and human resources in the colony was a practice commonly used by colonial powers.. The Europeans were able to achieve this goal by lowering cost of African goods through unequal trade, a cash crop agricultural system, encouraging monoculture, and by discouraging internal development within Africa. The effects of colonialism are immensely apparent in Western Africa as a result of it being geographical located to bodies of water accessible by voyage. Colonial supremacy in Western Africa arrested the natural development of the region and led to the stagnation of their economic system.  

Prior to the arrival of Europeans, Africa had an economic structure that was evolutionary in nature. West Africa was developed and was known for its rich traditional culture, anthropological history, art architecture, commercial strength, powerful empires, scientific inventions, mineral wealth, and political influence with the Middle East.^[1] West Africa had developed good trading systems throughout the empires of Mali, Ghana and Songhai. These empires depended on gold as their primary source of wealth, however they also relied on the levying of customs, taxes, booty from foreign expeditions and fees associated with administrative office. ^[2] Additionally the Atlantic slave trade was a significant era for West Africa’s economic development.

The Atlantic slave trade existed for over three hundred years in Africa. It garnered Africa an extensive system of exchange and credit. Even though these markets existed prior to the slave trade, the great increase in trading between the Africans and Europeans stimulated their further development. “Credit, debt in currency, and interest all developed apace with trade.”^[3] The slave trade was an essential entity to African states because it resulted in economic development in Africa, as it coerced domestic and international trading. “The compulsions of the times were such that neither Europeans nor Africans had any alternatives but to engage in trade.”^[4]The development of the Atlantic slave trade transformed the relationship between Africa and Europeans.

The abolishment of the slave trade began in 1807, when the British Government made it illegal for British people to further engage in the slave trade. Legitimate trade in West Africa was characterized as cash crops, in which crops could be the exchanged or sold for European goods. The demand in agricultural products such as palm oil and groundnuts increased dramatically without any severe economic consequences.^[5]The exports of slaves made it necessary for Europeans to more actively secure the supply of these goods. The fear of losing the agricultural goods motivated the Europeans to secure the supply of the goods so that their commerce would not be affected. They accomplished this by directly intervening in local politics.^[6]The end of the slave trade and the exportation of natural products plunged Africa into the capitalist world economy.

After the slave trade ended in the nineteenth century the whole continent began commercial integration.^[7]African states became centralized politically and there began a rise of large African states influencing trade for these commercial goods. Though, some of these states separated before the “Scramble of Africa” in the 1880s, they were still involved in the production and trading of the production of commodities.

The Fante Confederation constitutional experimentation is a significant example of development of commerce and trade in West Africa. This group was formed in Ghana in 1868 to “promote agricultural and industrial pursuits, and to endeavour to introduce such new plants as may hereafter become sources of profitable commerce to the country.^[8]” The Fante confederation also wanted to “develop and facilitate the working of the mineral and other resources of the country.”^[9] Hence, the African states were demonstrating an effort to control international commerce and improve internal development. However as Europeans began to regulate the production of these commodities and establish colonies, the prices of goods in Africa were driven down. “Colonialism reduced the prices of African palm oil and kernels by 60%.”^[10] Thus, European colonizing powers began to establish more control and seized power from local governments in 1880, starting the partition of Africa.

        The aim of colonialism is to exploit the physical, human and economic resources of an area to benefit the colonizing area by maximizing economic benefit at the lowest possible price.  The Berlin conference of 1884-85 was a conference where different countries agreed upon a definition of what a colony is and the rules to carve up Africa. Sadly, areas of Africa, which were developing important trades, and economies of their own were brought under the control of European economic policies. To the British and the French, the individual needs of their colonial subjects were not important.^[11] The goal of the French and British was to gain more economic power at the expense of the colonial states.

        At the time of colonization the Industrial Revolution was at its peak, the British were rapidly developing and were in need of raw materials that Africa had. The British were advancing industrially and needed to expand their market and receive more consumers. The main export was usually capital, which needed a constantly expanding market for manufactured goods because there was not even buyers within the capitalist nations themselves.^[12] Consequently Africans became consumers and not inventors.