“Describe the factors that enabled European corporations to accumulate huge profits from their enterprises begun in Africa between 1885 and 1914.”
Several factors enabled European corporations to accumulate huge profits from their enterprises between 1885 and 1914. These events include the Berlin Congress laying ground rules to annex Africa, the economic depression in Europe that lasted from 1873 until 1898, and the expansion of the transport networks linked to Europe.
In 1884 the Berlin Congress laid the ground rules to annex land in Africa is seen as the event that kicked of the “Scramble for Africa.” A few countries in Europe started to claim grounds in Africa and thus a meeting of the European nations interested in Africa had an international conference. They discussed grievances about land in Africa and also future conduct among each other to avoid wars. Some of these countries, Britain and Germany, started to divide up the land south of the Congo. The majority of all the fertile land in Africa was taken up ad claimed by one of the powerful countries in Europe. Some of the land didn’t come easy. Blood shed wasn’t an uncommon thing in “the Scramble for Africa.” In the end only 3 great powers controlled the bigger share of Africa. Britain, Germany, and France controlled the new grounds.
Another factor that lead to European corporations to large profits comes from the economic depression that lasted from 1873 to 1898. Many capitalists that had surplus capital didn’t want to invest in Europe because return profits would be too small. This created a bit of pressure on the governments to annex rich, fertile, land that would yield high investments. Many capitalists around Europe put their money towards more secure places such as the railways in Argentina and Canada. It wouldn’t be long though, until these investors would notice the booming copper mining industry in the Congo. This new mine cre...