Macandrew was born in Scotland (probably in Aberdeen). He became active in the Free Church of Scotland, and from there, in the proposed colonisation of Otago (which was being advocated by the Lay Association of the Free Church of Scotland, later the Otago Association). In partnership with his brother-in-law, Macandrew bought a schooner, loaded it with cargo, and set sail for Otago with his family. He arrived in January 1851.
Still working in partnership with his brother-in-law, Macandrew immediately became a major figure in the business community of Dunedin. His brother-in-law began to build up a shipping business, while Macandrew himself established a trading firm in the city. The partners later established a steamer service between Dunedin and Melbourne, Australia. The two soon became very wealthy.
When it was formed, Macandrew was elected to the New Zealand Parliament, representing the Town of Dunedin electorate. In Parliament, he fought what he saw as a bias towards northern provinces (Auckland and Wellington) at the expense of his own Otago. He also defended the practice of opening Parliament with prayers (describing them as a necessary "acknowledgement of dependence on the Divine Being"), and lobbied that all Parliamentary debates be published. As well as serving in Parliament, Macandrew was also Superintendent of Otago Province from 1860 to 1861, and again from 1867 until abolition in 1876. He remained in Parliament until his death on 24 February1887, having served in nine separate terms.
The town of Macandrew Bay on the Otago Peninsula is named after James Macandrew.
JamesMacandrew, the son of a merchant, Colin Macandrew, and his wife, Barbara Johnston, was baptised in Aberdeen, Scotland, on 18 May 1819.
Macandrew endorsed this demand, declaring that 'we have two governments, and so need to dispense with one.' He carried the nomination meeting decisively, but a poll was demanded.
Yet there was an air of unreality in the alliance between Macandrew, the separatist, and Vogel and the runholders, for the latter increasingly saw the provinces as obstacles to progress.