section_path: Causes/Africa and global markets
section_name: Africa and global markets
paragraph_text: Africa and global markets
  
  Sub-Saharan Africa, one of the last regions of the world largely untouched by "informal imperialism", was attractive to business entrepreneurs. During a time when Britain's balance of trade showed a growing deficit, with shrinking and increasingly protectionist continental markets during the Long Depression (1873–1896), Africa offered Britain, Germany, France, and other countries an open market that would garner them a trade surplus: a market that bought more from the colonial power than it sold overall.
  
  Surplus capital was often more profitably invested overseas, where cheap materials, limited competition, and abundant raw materials made a greater premium possible. Another inducement for imperialism arose from the demand for raw materials, especially ivory, rubber, palm oil, cocoa, diamonds, tea, and tin. Additionally, Britain wanted control of areas of the southern and eastern coasts of Africa for stopover ports on the route to Asia and its empire in India. But, excluding the area that became the Union of South Africa in 1910, European nations invested relatively limited amounts of capital in Africa.
  
  Pro-imperialist colonial lobbyists such as the Alldeutscher Verband, Francesco Crispi and Jules Ferry, argued that sheltered overseas markets in Africa would solve the problems of low prices and overproduction caused by shrinking continental markets. John A. Hobson argued in Imperialism that this shrinking of continental markets was a key factor of the global "New Imperialism" period. William Easterly, however, disagrees with the link made between capitalism and imperialism, arguing that colonialism is used mostly to promote state-led development rather than corporate development. He has said that "imperialism is not so clearly linked to capitalism and the free markets... historically there has been a closer link between colonialism/imperialism and state-led approaches to development."