The Kingdom of Italy's colonial history developed primarily along the Red Sea; in addition to the more famous Eritrea, there was the colony of Italian Somaliland. On April 5, 1908, the Italian Parliament approved the law uniting all Italian possessions into a single entity known as Italian Somaliland. Colonial governance was entrusted to a governor appointed directly by the king, who in turn had several advisors for political and civil affairs.

The Kingdom of Italy entered Somali territory in 1885, the year Massawa in Eritrea was captured under the command of Antonio Cecchi, a Royal Navy captain. Captain Cecchi convinced the government to finance an expedition to assess the lands and rivers for potential commercial expansion. He secured a trade treaty from the local sultan, signed on May 28, 1885.

In 1885, the so-called "Scramble for Africa" ​​took place, but Italy achieved nothing. There was a chance of obtaining a few crumbs of the African cake, such as the port of Kismayo, but Prime Minister Agostino Depretis refused to do so to avoid offending Germany. In 1888, Francesco Crispi became president and, after discussions with Germany, obtained control of several ports. At the end of 1888, Italy secured a protectorate over the sultanates of Obbia and Migiurtinia. In 1889, the British-controlled ports were transferred to Vincenzo Filonardi's company, which also obtained a financial concession from the Kingdom to develop the territories.

Filonardi's company failed to generate the wealth it had hoped for, and Parliament decided to create the Società Anonima Commerciale Italiana del Benadir in April 1896. The Benadir company was accused, practically every year, of using the funds from the state convention for shareholders rather than for the development of the colony. At the end of 1902, the company was accused of selling slaves, a charge that proved partially true because it did not directly sell human beings but tolerated the trade.

In 1904, management of the territories passed to the State, which faced more than one problem in managing tensions with the local populations, the Bimal, which on several occasions escalated into armed clashes. The clashes were always minor and always with a positive outcome for the Royal Army. The Kingdom of Italy thus acquired another "direct" colony, because, with the commercial management of the two companies, the aim was to avoid direct involvement of the State, because public opinion, after the events in Eritrea, did not look favourably on the colonial question.