Cocoa, Credit, and Agro-Capitalism

This article explores the merchant capitalist firm John Holt & Co. and its diverse business interests on the Spanish-controlled island of Fernando Po in the early twentieth century. We show that this well-capitalized firm struggled to make money in cocoa production due to market and labor volatility, but used its position to undercut competitors, exploit small farmers by offering financial services like high-interest credit and mortgages, and develop new profit lines such as providing packaging, shipping, and retail services to other planters. Holt & Co. enjoyed advantages over smaller competitors through its regional network and connections in Spain and Britain, which allowed it to more readily attract laborers and grow its influence and power. This case study provides new insights on how expatriate firms squeezed smaller partners and rivals during a tumultuous period in post-partition west-central Africa, and shows how this impacted Fernando Po’s workers and its economic development.