The greater portion of their trans-Zambezian possessions along the East coast and immediately south of the lower Zambezi and north of Inhambane and the Sabi River was in 1891 handed over to the administration of a Chartered Company,—which although theoretically Portuguese derives its capital mainly from English, French and Belgian sources, and is mainly managed by Englishmen. This “Moçambique Company” since its institution has done much to open up the country; the railway construction however is chiefly due to the British South African Company, who have constructed a line of railway from the capital, Beira, to the eastern frontier of Southern Rhodesia. In addition, under the auspices of the Moçambique Company, a northern line is being constructed to the Zambezi and across that river to join the Shire Highlands railway at Port Herald. When this is finished, Beira, instead of Chinde or Quelimane, will become the seaport of British Nyasaland.

South of the Sabi River and up to the frontiers of British South Africa the country is directly ruled by Portugal, the large town of Lourenço Marquez (Delagoa Bay) being now the supreme capital of the State of East Africa, as the Moçambique provinces are called. Here resides the Governor-General, with subordinate officials at Moçambique, Quelimane, Sena, Zumbo, Tete, Chinde and Inhambane.

The recent revolution in Portugal (1910), and the change from a monarchy to a republic, have slightly affected the Portuguese African possessions for the better. Long-standing abuses are being enquired into, and some remedies are being applied. Yet the resources of little Portugal are grievously strained in men and money to maintain rule, law, and order in these vast African possessions—possessions which stretch from North-west to South-east Africa and include an area of 794,000 square miles. In 1898, when the unsettled state of Africa and the rivalry between Britain, Germany, and France made it advisable to forecast an allotment of the Portuguese colonies, should they slip from the grasp of Portugal or be offered for sale, an agreement was entered into between Britain and Germany partitioning the Portuguese African possessions into spheres of influence. But it is understood that at a later date Great Britain, on renewing her old alliance with Portugal, guaranteed her the undisturbed possession of her colonial dominions.