German Capital, The Netherlands Railway Company and the Political Economy of the Transvaal 1886–1900

Abstract

This article tries to throw light on one aspect of the ‘business partition’ of Africa, namely Anglo–erman economic rivalry on the Rand between 1886 and 1900. It examines the activities of the German-owned Netherlands South African Railway Company (N.Z.A.S.M.), which possessed the monopoly of construction and management of all railways connecting the republic with a seaport. The article assesses this company's impact upon the relations of the South African Republic with both the maritime colonies of the Cape and Natal and with Great Britain. Whitehall regarded the N.Z.A.S.M. as the fountainhead of ever-increasing German commercial and political penetration in the Transvaal and also considered the railway company hostile to its interests in that it allegedly discriminated against British commerce. The gold-mining industry also viewed the company with hostility, since its high freightrates increased the price of imported machinery, foodstuffs, etc. The South African Republic, on the other hand, saw the N.Z.A.S.M. as a useful means of access to both the German and Dutch capital markets, while the company arranged for diplomatic lobbying in Berlin and The Hague in favour of the Republic.By 1898, German mining interests on the Rand had managed to persuade Berlin that their interests were not served by either the Kruger regime or the German-owned N.Z.A.S.M. and that an administration more favourably disposed towards their objectives, and possibly imposed by force by the British, should not be opposed. It is therefore argued that the South African War was prompted mainly by the desire to establish British commercial hegemony on the Rand, to safeguard the interests of international mining capital and to create a more pliable polity capable of articulating and responding to these particular economic imperatives.