Show the Illegitimacy of the so called 'Legitimate trade'.

AI image showing exchange during legitimate trade

Legitimate Trade in 19th Century Africa.

Following the abolition of slave trade in 19th century, particularly after closure of Zanzibar slave market and the end of the Transatlantic (Triangular) Slave Trade, a new form of commerce developed between Europeans and Africans known as legitimate trade.

Legitimate trade replaced slave trade and focused on the exchange of commodities Instead of human beings. 

These commodities included;

• Minerals such as gold and diamonds, 

• Cash crops like cotton, cocoa, rubber, and sisal, 

• Animal products like ivory and skins.

This trade was named 'legitimate', meaning legit or legal trade, replacing 'illegal trade', the 'slave trade'.

Items of the trade.

African traders exported products like: Palm oil, Ivory, Peanuts, Cocoa, Gold.

In return, European traders supplied:

Textiles, Alcoholic beverages, Guns and Mirrors.

Although it was termed "legitimate," this trade was exploitative and had long-term negative effects on African economies and societies.

Illegitimacy of the So-Called Legitimate Trade/ Negative effects of legitimate trade.

1. Unequal Exchange of Commodities.

African valuable goods like gold and ivory, were exchanged for cheap European items such as mirrors or axes. 

The value of goods was not balanced, and Africans received much less in return for their exports.

2. European Price fixing.

When money began to be used as a medium of exchange, prices were fixed by Europeans. 

Africans had no power to negotiate prices. They sold commodities on prices offered by Europeans, they were not in a position to determine the value of their products, making the trade unfair and one-sided.

3. Destruction of African Local Industries.

Massive importation of European manufactured goods into African markets led to collapse of local industries. 

There were no protection laws. European manufactured goods were cheap compared to African local products, making it impossible to compete in the markets. 

As a result, traditional craftsmen and industries were automatically driven out of market.

4. Economic Dependency.

Legitimate trade made Africans producers of crops they did not consume and consumers of products they didn't produce. 

Africa shifted from a self-sustaining economy to a dependent economy. Instead of producing goods for local use, Africans focused on growing cash crops for export. 

At the same time, they became heavily reliant on imported European goods for everyday needs.

Europeans now decided what Africa should produce or consume, killing Africans' autonomy to decide a commodity for trading.

5. Revival of Slave Raids.

Legitimate trade indirectly encouraged a return to slavery within Africa. Cash crops like cocoa and palm oil required intensive labor, leading African leaders to capture and enslave people to work on plantations. 

For example, the Asante Kingdom raided the neighboring communities to capture laborers, who worked just as slaves.

6. Collapse of the Barter System.

Introduction of currency-based trade replaced the traditional barter system, which had been main medium of exchange in African trade. 

When money became dominant medium of exchange, local and communal methods of exchange lost value and eventually disappeared.

7. Environmental Degradation.

Some mining sites were near rivers and streams. Waste from mining (including dirt, rock, and human waste) was sometimes dumped into water sources.

This led to polluted drinking water and destruction of aquatic life. Also when miners finished working, they left open pits and dangerous holes like the South African Gold mines.

These areas became hazardous to people and animals and could no longer be used for farming or grazing.

8. Cultural Disruption.

Legitimate trade introduced foreign goods, values, and lifestyles that weakened traditional African cultures. Items like alcohol and foreign clothes changed social customs, values, and identities, especially among the youth and elite.

Locals abandoned their native dishes and drinks made from bamboo, coconut trees and local grains and started to consume and praise European canned products.

9. Foreign Companies Became Rulers.

European trading companies, like British Royal Niger Company (RNC), German East Africa Company (GEACO) and British South African Company (BSACO) did not only conduct trade, they also ruled territories on behalf of home governments. 

Instead of operating as business counterparts, they collected taxes, made laws, and used private armies to control people. 

Chartered Companies acted as governments,  exploiting African resources while ignoring the rights and welfare of local people. 

This marked beginning of corporate colonialism, which later transitioned into direct government control during full colonial rule.

Companies were not business corporations, they were colonialists in disguise.

Conclusion,

Though the term “legitimate trade,” suggested a more humane and lawful form of trade, it continued many of its exploitative patterns. 

African economies were reorganized to serve European interests, local industries were destroyed, and cultural values were eroded. 

In truth, legitimate trade became another tool of imperial control, laying the foundation for colonialism.

Related topics;

Transition to Industrial Capitalism.