The Sierra Leone Company was the successor to the St. George's Bay Company that had been founded in 1790 following a mostly unsuccessful effort by the Committee for the Relief of the Black Poor in 1787 to establish a free settlement for the "Black Poor" of London, many of whom were Black Loyalists, who had escaped and fought for the British following Dunmore's Proclamation during the American War of Independence). The 1787 expedition was made up of 300 of London's Black Poor, 60 English Working-class Women, and an assortment of white officials, clergy and craftsmen to assist in building the colony – 411 men, women and children in all. Upon landing, they founded Granville Town as their base. This first colony only lasted about two and a half years, decimated by disease and later abandonment. The coup de grace occurred in 1789, when the neighbouring Temne people burned the settlement during a dispute between the Temne and slave traders. Although Granville Town was re-founded in 1791 under the auspices of Alexander Falconbridge, this settlement was not the basis for the colony or settlement established by the Company in March, 1792.
Both ventures were promoted by the anti-slavery activist Granville Sharp, who published a prospectus for the proposed company in 1790 entitled Free English Territory in AFRICA. The prospectus made clear its abolitionist view and stated that several respectable gentlemen who had already subscribed had done so "not with a view of any present profit to themselves, but merely, through benevolence and public spirit, to promote a charitable measure, which may hereafter prove of great national importance to the Manufactories, and other Trading Interests of this Kingdom". Among the early subscribers are many friends of Sharp involved in the Clapham Sect: Henry Thornton, William Wilberforce, Rev. Thomas Clarkson, Rev. Thomas Gisbourne, Samuel Whitbread Initial attempts to gain a royal charter for the company proved fruitless following opposition from the attorney general, Archibald Macdonald. The company then proceeded to gain incorporation through act of parliament. However this too received opposition, particularly from the Committee of the Company of Merchants Trading to Africa, who called a meeting in March 1791. This led to three petitions being organised by slave trade merchants in London, Liverpool and Bristol. Slave traders in Lancaster also organised a petition as did the Africa Company. Further opposition was organised by the Standing Committee of West India Planters and Merchants, who arranged for two meetings with William Pitt, the Prime Minister. Nevertheless, Henry Thornton was able to successfully guide the Sierra Leone settlement bill through parliament, despite the efforts of the Liverpool MPBamber Gascoyne and other anti-abolitionists. On 30 May 1791, the bill was passed 87 votes to 9.
In 1792, John Clarkson led over 1100 black settlers from Halifax, Nova Scotia, to establish a new colony and it was on this basis that the Nova Scotian Settlers founded Freetown, Sierra Leone. The majority of these settlers were former slaves of the American colonies, freed by the British during the American Revolution and forced to relocate after the British defeat. It was the determination of these settlers that caused Freetown to take shape and survive after they founded it in March 1792. The Company issued decimal currency in the form of dollars and cents struck by Matthew Boulton at Soho Mint and issued in 1791 and 1796. When war broke out between Great Britain and France the Company lost supplies and a number of ships to privateers and the French navy. American merchantmen, as neutral traders, used the opportunity to establish trade. Trouble continued, though, for in September 1794 the French burned Freetown in a raid. The colonists rebuilt, and American merchants aided by selling the company vital supplies. During these years the colony's acting governor, Zachary Macaulay, and his council agreed to accept American blacks as settlers with a gift of free Sierra Leone land if they met four criteria: they must have letters of recommendation of their upright character from their clergy, they must agree to become British subjects and abide by British law, they must secure their own passage to the colony, and they must clear at least one third of the land given to them for agriculture within two years of arrival. The Sierra Leone Company was succeeded in 1807 by the African Institution
Ships of the Sierra Leone company
: captured by a French naval squadron in September 1794 off the coast of West Africa
: destroyed by a French naval squadron in September 1794 off the coast of West Africa
