The company was established on February 11, 1891, with a capital stock of about 5 million dollars obtained from financiers from Germany, the United Kingdom and South Africa.

Having only limited capital, the company did little to develop the area, deriving most of its income from its ability to tax and its power to use conscripted labor on its plantations and for lease to adjacent estates.

Despite the company's obligation under its charter to provide forces to maintain law and order, it was unable to meet these crises, and on both occasions, Portugal had to mount expensive interventions.

The Governor of Manica and Sofala commented: They did nothing to develop the potential wealth of this entire region, preferring to plunder it and alienate the natives.

[2] On 18 July 1942, the territory of Manica and Sofala passed to the Portuguese colonial authorities and the Mozambique Company continued to operate in the agricultural and commercial sectors.