This article discusses the changing context in which European, Lebanese, and African traders have conducted business in Pendembu, Eastern Province, Sierra Leone, since the establishment of the railhead there in 1908. The branch offices of several European import-export houses at first dominated local commerce, which was mainly concerned with palm products and cheap imported goods. Their major competitors were several independent Lebanese traders, who eventually gained the upper hand in large-scale commerce when the basis of trade changed from cash to credit after 1940. In recent years the emergence of a large number of small-scale African entrepreneurs has made retailing less lucrative for the Lebanese, who have concentrated increasingly on wholesaling and produce-bulking. Even in this latter activity, however, the Lebanese are now experiencing competition from a few large-scale African businessmen. Nevertheless, African participation in large-scale commerce is still hampered by extended-family ties and by lack of managerial training. When these obstacles are removed in the course of general economic development, the Lebanese and other "stranger-traders" will lose their special functions in the commercial sector.