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Rhodes and the Imperial Factor

Rhodes used his wealth and that of his business partner Alfred Beit and other investors to pursue his dream of creating a British Empire in new territories to the north by obtaining mineral concessions from the most powerful indigenous chiefs. Rhodes' competitive advantage over other mineral prospecting companies was his combination of wealth and astute political instincts, also called the "imperial factor," as he often collaborated with the British Government. He befriended its local representatives, the British Commissioners, and through them organized British protectorates over the mineral concession areas via separate but related treaties. In this way he obtained both legality and security for mining operations. He could then attract more investors. Imperial expansion and capital investment went hand in hand.

The imperial factor was a double-edged sword: Rhodes did not want the bureaucrats of the Colonial Office in London to interfere in the Empire in Africa. He wanted British settlers and local politicians and governors to run it. This put him on a collision course with many in Britain, as well as with British missionaries, who favoured what they saw as the more ethical direct rule from London. Rhodes prevailed because he would pay the cost of administering the territories to the north of South Africa against his future mining profits. The Colonial Office did not have enough funding for this. Rhodes promoted his business interests as in the strategic interest of Britain: preventing the Portuguese, the Germans or the Boers from moving into south-central Africa. Rhodes's companies and agents cemented these advantages by obtaining many mining concessions, as exemplified by the Rudd and Lochner Concessions.