By the early 20th century

By the early 20th century the Portuguese had shifted the administration of much of Mozambique to large private companies, like the Mozambique Company, the Zambezia Company and the Niassa Company, controlled and financed mostly by the British, which established railroad lines to neighbouring countries. Although slavery had been legally abolished in Mozambique, at the end of the 19th century the Chartered companies enacted a forced labor policy and supplied cheap – often forced – African labor to the mines and plantations of the nearby British colonies and South Africa. The Zambezia Company, the most profitable chartered company, took over a number of smaller prazeiro holdings, and established military outposts to protect its property. The chartered companies built roads and ports to bring their goods to market including a railroad linking present day Zimbabwe with the Mozambican port of Beira.[5][6]

Because of their unsatisfactory performance and because of the shift, under the Estado Novo regime of Oliveira Salazar, towards a stronger Portuguese control of Portuguese empire's economy, the companies' concessions were not renewed when they ran out. This was what happened in 1942 with the Mozambique Company, which however continued to operate in the agricultural and commercial sectors as a corporation, and had already happened in 1929 with the termination of the Niassa Company's concession. In 1951, the Portuguese overseas colonies in Africa were rebranded as Overseas Provinces of Portugal

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