Comment by Khaine

I think this misses something fundamental. Most of the colonies Britain created until the race for Africa were to support the Navy. During the 16th century they were efforts to create colonies to support trade (i.e. North America, India). Britain then needed a strong navy to support its merchant vessels who sold English goods all over the world, and bought goods from all over the world to Britain. Which is why colonies like the cape were created. It is this growth in merchants that brought riches. Those riches would not have lasted without a Navy to protect the merchants from piracy or privateers.

Colonies were not originally intended to be profitable, they were way points for ships to stock up on goods, water, men, etc. Leaders in those colonies on their own initiatives then looked to expand the colonies to make themselves a big name.