2024-02-19
Lonrho was a small Rhodesian (today Zimbabwe-based) mining company founded in 1909. In 1961, Tiny Rowland took over and expanded it at a 16% annual rate, making it one of the largest corporations in Britain. By 1992, Lonrho employed 100,000 people, with only 25,000 in Zimbabwe. It operated in 29 African countries, engaging in manufacturing, ranching, farming, and mining of coal, platinum, gold, and rhodium. Lonrho and Rowland played a significant role in shaping the stories of many African countries. They were feared by writers and editors, as those who delved too deeply into Lonrho often faced dire consequences, including death or destruction. Rowland essentially built a new British East India Company in Africa.
Roland Walter Fuhrhop, originally named, was born on the 27th of November 1917 in a British internment camp in India. His father, Wilhelm Friedrich Fuhrhop, was a German merchant, and his mother was the daughter of a Dutch shipping agent. He himself claimed to be the product of his mother and the head of the Rawalpindi Railway in India, Sir John Rowland.
When World War I ended, he and his family relocated to Hamburg, Germany. There, they lived a relatively luxurious life with servants and attended a prestigious gymnasium. He joined the Hitler Youth in June 1933, at a very early age. However, in 1934, he moved to England, where he enlisted in the British Army in 1939. In 1940, both his mother and father were sent to the camps on the Isle of Man. Rowland was expelled from the British Army in 1942.
One of his roommates shared a story in which Rowland, at night, listened to a German propaganda channel, Lord Haw Haw, on his radio. Allegedly, he began clapping when they announced that the Japanese had sunk the HMS Prince of Wales and HMS Repulse, exclaiming, "Sink the bastards." Due to this incident, he was also imprisoned on the Isle of Man. Some rumors suggest that he may have been sent there as an informer, but his wartime files remain locked.
When Rowland was recruited for Lonrho in 1960, he navigated through several hurdles. An interesting point to note is that most of the Lonrho board had previous experience working at MI-5 and MI-6.
After working for some time in London as a car driver and selling refrigerators after WW2, Rowland also faced troubles with tax authorities. As a result, he decided to move to Africa. Initially, he purchased a dry goods store, but when this venture did not succeed, he bought a farm with his partner Eric Smith from London, whom he later married his wife. However, this endeavor also proved unsuccessful.
Subsequently, he worked for the Cleminson Trading Company, where he became a "big-time" arms dealer, selling weapons to the Defense Minister of India. Following this, he acquired some chrome mines and engaged in fraudulent activities with some of his business partners.
Rowland's first significant success came through a clever deal. He approached Rio Tinto, a mining company looking to expand its assets, and suggested that instead of conducting their research, they could acquire another company. He proposed that they acquire the Cam and Motors Gold Company, with Lonrho being the main shareholder. Rather than Rio Tinto approaching Lonrho directly to purchase Cam and Motors Gold, Rowland went to them. When questioned by Lonrho about how he had the funds, he responded, "Ask my bank?" Lonrho then contacted Rowland's Rhodesian bank for the necessary funds. Prior to this, he instructed Rio Tinto CEO Val Duncan to inform his Rhodesian bank that the funds were available. After the deal was completed, Rowland revealed that it was Rio Tinto, not him, who orchestrated the deal.
Tiny joined Lonrho as chief executive in 1962. Under his leadership, the firm expanded beyond mining and became a conglomerate, involved in newspapers, hotels, distribution, textiles, and various other lines of business. He managed to acquire 800 companies at his peak, personally negotiating each deal. One of the most famous acquisitions was Ashanti Gold in Ghana, which, at the time, was one of the largest gold mines globally. Lonrho, at one point, contributed to half the GDP of Mozambique. The conglomerate was also known for engaging in a significant amount of bribery. For instance, Olimpio, the son of Togo's first president, received $1 million merely for making introductions to Nigerian and Sudanese Presidents. Before his time at Lonrho, Rowland also bribed geologists from Johannesburg to salt mines, artificially inflating their value.
Towards the end of his career, Rowland faced more controversy, including selling Lonrho assets to Muammar Gaddafi and financing a film about the bombing of Pan Am Flight 103. He was forced to step down in 1993 due to a coup engineered by the German tycoon Dieter Bock. Rowland succumbed to cancer in 1998. This write-up covers perhaps 20% of the whole story and serves as a small summary. I recommend reading the full story, as there are many books published on Lonrho and Tiny Rowland.
Thanks,
Finn