By 1884 the African Lakes Company was almost bankrupt: its failure lay from the modest initial share capital of £120,000 it raised to achieve its ambitious plans and its failure to make adequate profits from its trading activities. The latter arose because it had difficulty supplying promptly the range of acceptable trade goods needed to exchange for ivory, and because it could not compete with Swahili traders. It tried to revive its fortunes by diverting ivory away the Swahili traders, which led to conflict.