Cacheu developed a European/Afro-European population from the late sixteenth century through informal settlement of Cape Verdian and Portuguese traders, adventurers and outcasts (lançados).

[4] Due to such threats and a period of social conflict with their hosts the Papels, in 1589 the traders sought and received permission from the king of Cacheu to build a fort.

[13] When representative of the Company arrived the 'Republic of Cacheu' refused to let them land, demanding control over trade and direct communication with the king.

A triumvirate, which included Bibiana's brother, ruled the town "in the name of the people", meaning the Afro-Portuguese traders for several months before the company regained control.

In 1878, a reinforced Portuguese force successfully attacked Cacanda in retaliation for the earlier assassination of the captain-major of Cacheu, the first of a series of 'pacification campaigns' that would culminate in the final conquest of the region in 1914.

As Portuguese Guinea expanded and solidified, however, towns such as Bolama, Bissau and Canchungo became administrative centers at the expense of Cacheu.