| A German named Carl Peters had secured treaties with tribal leaders on East Africa's coast, that provided the German government with legitimate reasons to negotiate with Britain over spheres of interest in East Africa. In the treaty of 1886, Germany renounced it's claims on the Witu Area and Britain recognized Germany's claim to what was to become German East Africa. In another treaty of 1890, Germany traded the islands of Zanzibar and Pemba for the much smaller island of Heligoland, The Germans also bought off the Sultan of Zanzibar's rights to the Tanganyikan coast for $ 800,000.
The German East Africa Company established Bagamoyo as their colonial capital, soon moving it to Dar Es Salaam. The colony was called Deutsch-ostafrica (German East Africa). The colony's borders had been established in treaties with Britain and Kenya, Uganda, Northern Rhodesia, Belgium (as the Belgian Congo) and Portugal (Mocambique); interests of the indigenous people were disregarded. From the coast, the Germans penetrated the country and established their rule. The currency was 1 Rupia = 64 Pesa.
The Germans established an infrastructure - roads, railways, hospitals, schools (Swahili being the language of education). Slavery was effectively suppressed, and a plantation economy introduced, (based on sisal, cotton, rubber, coffee, sesame, copra and peanuts.) In 1905, a new currency was introduced, 1 Rupia = 100 Heller.
The establishment of German rule did not occur without African resistance. -From WHKMLA
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