African Entrepreneurship Record

As early as two months before the treaty was signed, Kapulivi had already returned to Germany, since as the Prime Minister of the Empire, it was impossible to stay abroad for too long, especially given how far East Africa is from Germany.

European leaders generally travel within Europe, which isn’t too far, similar to how Confucius traveled around various states but was essentially within the Central Plains region.

Many European countries placed in East Africa are actually equivalent to provinces or cities in terms of size. Of course, there are large countries like Tsarist Russia, with its vast domestic areas, and colonial powers like the United Kingdom and France, with extensive overseas colonial territories.

After signing a cooperation agreement with Germany, East Africa once again turned its attention to Austria-Hungary. East Africa’s development cannot be separated from Austria’s support, especially since the cooperation between the two countries has been ongoing for many years.

Of course, as the saying goes, Austria is not equivalent to Austria-Hungary, which is the only unfortunate aspect, but Austria has played a significant role in the construction of East Africa’s coastal areas.

Back then, East Africa opened up the northern industrial belt to cooperate with Austria, but the results were not significant, mainly relying on East Africa’s own accumulation to barely support the development of the northern industrial belt. Austrian investment was primarily focused on Mombasa and did not delve into the interior. This, of course, had to do with East African policies and the basic conditions of the northern industrial belt.

The northern industrial belt was never a resource-rich area, but that was in the past. Since the expansion of the northern railway, resources from northern East Africa can continuously reach Mombasa via the northern railway. This is the main reason Mombasa can stand alongside Dar es Salaam.

Moreover, Mombasa is closer to the international market, which to some extent compensates for the gap between it and Dar es Salaam City.

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The Austrian government greatly valued East Africa’s invitation, after all, East Africa was no longer to be underestimated. Since the South African war, no country dared to overlook East Africa’s potential. So this victory in the South African war not only improved East Africa’s geopolitical security but also significantly enhanced its international status.

In early 1892, Rudolph, Crown Prince of Austria-Hungary, represented the Austrian government in negotiating cooperation matters with East Africa.

”Rudolph, you’ve matured quite a bit over the years. How are things with the family?”

Upon meeting, Ernst couldn’t help but inquire about this ”little brother’s” situation. After all, Ernst had left Europe for many years and didn’t know if Rudolph was back on his historical path.

Rudolph smiled bitterly: ”Brother-in-law, let’s not talk about it. In my letters I’ve mentioned that the great Emperor thinks little of me; now we live mostly separate lives.”

Observing Rudolph’s complaints, Ernst understood but had little advice to offer as this was Rudolph’s family affair. Ernst could only act as a sounding board for Rudolph, hoping to guide this future leader of Austria-Hungary to avoid pitfalls.

Ernst reassured him: ”Your father is quite stubborn, adhering to old ways of thinking; but this isn’t necessarily bad for Austria-Hungary, as managing an empire perpetually on the verge of division is indeed worrisome.”

With age, Rudolph was better able to comprehend Franz’s difficulties, but a chasm had already formed between father and son, making change difficult.

Rudolph said: ”I understand the reasons behind my father’s actions but the inefficiencies of the court are numerous, especially when it comes to uncontrollable destiny, unlike your decisive control in East Africa.”

”One cannot govern a country impulsively, and for nobles, destiny is a duty; maintaining a broad perspective makes for fewer complaints. After all, we naturally enjoy certain rights,” Ernst said.

Of course, Ernst understood Rudolph’s circumstances, but seeing Rudolph alive and well today was a source of satisfaction.

Historically, at the end of 1888, after his romantic failures led to mental breakdown, Rudolph chose to end his life. But now it’s 1892, and Rudolph is alive, history has changed completely, though it remains to be seen whether this is fortune or calamity for the future of Austria-Hungary.

In Ernst’s view, this is a good thing; after all, Rudolph is already in his thirties, a few more years will see him fully mature. The old saying goes, ”At forty, one has no doubts,” and Rudolph’s character will likely settle down. Ernst even predicts that Rudolph is highly likely to become someone like Franz.

After catching up, Ernst no longer focused on Rudolph’s emotional issues, for this path requires Rudolph’s own exploration, and external help is limited. At least nowadays, Rudolph hasn’t met the mistress of his previous life, and he is still alive, which is the greatest change.

”This cooperation arises because Germany has already reached an economic agreement with our East Africa, and such opportunities should not favor one party over another. In the past decades, though our cooperation with Austria has been long-lasting, it hasn’t been deeper. Now, as you know, we’ve gained quite a bit of territory, and for developing these lands, we need Austria’s help.”

The collaboration with Austria-Hungary naturally involves the Mozambique region, as East Africa’s own capacity is limited, requiring external support. Moreover, without the backing of an economic crisis, East Africa must seek more partners.

Rudolph asked: ”We wish to deepen cooperation with East Africa, but the issue lies in your excessive isolation; many businesses find operation difficult, with laws overly stringent and labor costs comparable to Europe.”

In this aspect, East Africa is quite similar to the historical trajectory of India, notably strict in managing foreign investments, which undeniably restricts its development.

However, Ernst didn’t intend to resolve this issue now, as the 19th century is inherently an era of great contention. Excluding the United Kingdom, regardless of economic system, countries are essentially the same.

Especially after the economic crisis of the 70s, various forms of trade protectionism prevailed. Therefore, East Africa’s policy of isolation is not abrupt in such an international setting.

Even the United Kingdom, an advocate of free trade, became somewhat passive after being hammered by Germany and the United States. Yet free trade remains mainstream in backward regions and colonies.

East African domestic monopolies are quite large, akin to Germany and the United States, although as a non-free market country, East Africa has pursued it even more thoroughly.

”East Africa’s system is indeed difficult to alter, with laws designed to protect national citizens’ interests. But we do have a basis for cooperation; to a certain extent, we can offer Austrian-Hungarian investment enterprises five years of favorable conditions, including tax exemption and factory building expenses,” Ernst said.

Ernst’s generosity, naturally stemmed from the overwhelming Black population in East Africa, which is challenging to manage, thus continuing to exploit their residual value was straightforward.

Furthermore, East Africa urgently needs development along its coastlines. After acquiring Mozambique and Angola, East Africa’s coastline doubled, with nearly three-quarters of it undeveloped effectively.

First, let Germany and Austria establish factories along East Africa’s coastlines, levying fewer taxes and supplementing with cheap indigenous labor to accelerate the construction along Mozambique and Angola’s coastlines.

And for the East African government, this is merely a matter of earning less revenue. Tax income is temporarily dispensable for East Africa, as the number of companies investing there surely isn’t large, given East Africa’s reputation isn’t stellar. If not for size and market reasons, there’s no guarantee more would be attracted.