This system involved the production of cash crops at a larger scale.European and some Asiansettlers owned these large-scale farms. Examples of these areas where settlers introduced this type of economy are Kenya, Zimbabwe, South Africa, Algeria. Settlers in Africa were favoured through on of the following methods:
1. Colonial governments built social services in areas with settlers such as hospital, roads, schools to attract more settlers to Africa.
2. Settlers were favoured in the pricing of cash crops compared to peasants (crops from the settlers were bought at a higher price).
3. Colonial governments tended to force Africans to work on settlers’ farms, it helped increase production due to availability of labour.
4. Colonial governments favoured settlers through the use of the Land Act. In 1919 the Crown Lands Act helped settlers obtain land in Kenya.
5. Africans were restricted from growing the same type of cash crops produced by settlers e.g. in Kenya. Africans were restricted from growing coffee, this benefited settlers in marketing their product.