African Entrepreneurship Record

In the past, East Africa had a ”Westward Movement” similar to that of the United States, but over time, the connotation of the Westward Movement has also changed.

Initially, the Westward Movement was to develop the current central areas, including industrial zones like the Bohemia Province (Zambia and Zimbabwe, southern Congo, and other regions). After the South African War, the geographic west of East Africa actually shifted further west to regions like Angola, thus resulting in the change of East Africa’s territorial map.

So Ernst supplemented by saying, ”The western part of our country’s territory has now extended from the center before the South African War to include the Ubangi River Basin in the north, the Congo River Basin, the Angola region, and the Southwest Province. Therefore, the original Westward Movement should evolve with the times.”

”The Southwest Province, which is the former Southwest Africa, although it was integrated into our territory relatively early, did not see effective development due to past transportation constraints. The Ubangi River Basin was developed earlier but has always been on the margins of our national territory. The estuary region of the Congo River Basin was also merged into East Africa along with the Angola region. Hence, among these regions, Angola sees the highest degree of development.”

”However, compared to the already developed eastern and central regions, Angola still has a significant gap. Therefore, in the coming decade, the western region centered around Angola will be the major focal point of national development.”

”Our country has moved its capital from the eastern coastal First Town to the current Rhein City. Centering around Rhein City, there are two important radiating lines corresponding to the Indian Ocean and Atlantic Ocean. The economic development level along the Indian Ocean coast surpasses that along the Atlantic coast, which is unbalanced.”

”Thus, how to enable the western region to catch up with the eastern development level in a short period should be our key discussion focus. Consequently, I believe East Africa should form three major economic cores in the future: the already established Indian Ocean Economic Zone, the central economic zone centered around Rhein City, and the yet-to-be-established Atlantic Economic Zone, forming three vertical economic development regions.”

Of the three vertical economic zones proposed by Ernst, the two oceanic economic zones primarily rely on maritime advantages, while the central region relies on mineral resources and land transportation advantages.

At this time, Sivert stated, ”According to His Highness’s request, we are preparing to develop relevant advantageous industries in Angola and other western areas, significantly elevating the local industrial level through national power and policies.”

”This includes constructing a deep-line railway along the Atlantic coast, breaking the transportation bottlenecks between Angola and the Ubangi River Basin, the Congo River Basin, and the Southwest Province. This is the key project for Angola’s future railway network.”

The Atlantic coast railway has long been completed but only covers Angola’s coastal area. Now, the East African government’s idea is to transform it completely into a major artery like the Indian Ocean coast railway, connecting the entire western region.

”The technical difficulty lies in the extension line crossing climate zones of tropical rainforest and tropical desert, covering mountains, plateaus, plains, hills, deserts, rainforests, grasslands, rivers, and other complex terrains, making this railway the most challenging construction project since East Africa’s founding.”

”Once the railway is completed, transportation between Bangui and Kinshasa will not only rely on the Ubangi River’s water routes. Although the Ubangi River can reach Bangui directly, it cannot guarantee year-round navigation due to seasonal climate influence. The railway will supplement the Ubangi River navigation, and once completed, it will fully integrate the northern railway and the Atlantic coast railway arteries.”

”Similarly, the Southwest Province railway extension line will connect the Atlantic coast railway and the southern railway network. This will be crucial for western economic development.”

”Especially in transporting energy and minerals, the western region is rich in minerals but still needs support from southern minerals, particularly in lacking coal resources.”

Currently, Angola’s iron ore is self-sufficient, but it lacks considerably in coal, necessitating transportation of coal resources from southern East Africa until local mineral surveys are completed. Previously, coal needed for Angola’s industrial development was transported through the Central Railway via the central region, which increased costs unnecessarily.

Although East Africa, like resource-poor Japan, also imports mineral resources from abroad to develop its domestic industry, the difference lies in East Africa’s minimal reliance on imported minerals for industrial development, mainly depending on the resources of the central and eastern parts.

A crucial issue here is that to balance accounts, East Africa often exports industrial goods to backward countries and regions mainly through barter trade due to a lack of competitive markets.

Many backward countries and regions, including some colonial areas, have insufficient funds and purchasing power due to economic underdevelopment.

Under such circumstances, they naturally are unable to consume more industrial goods. Therefore, the East African government bases trade on local resources, directly engaging in a barter trade approach, similar to a large Eastern country in a past era bypassing US dollars for currency exchange.

Of course, East Africa has not developed to the extent of this large country, nor has the era reached such a level. For instance, many colonial regions have their monetary issuance rights and finances controlled by sovereign countries, so locals lack autonomy and conditions for direct equality in exchanges with East Africa. Thus, barter becomes more acceptable.

Take East Africa’s trade with India, for example. Although India is a British colony, it has its subordinate governing system, mainly consisting of local princely states and British officials. East Africa negotiates with these forces to bypass interference from the British mainland.

After all, East Africa cannot directly use Rhine Shield to persuade the Indian colonial government, which would be a serious breach if discovered by the British mainland. Goods, on the other hand, are easier to handle, as their production origin might not be directly marked, and commodity prices do not have fixed values like currency.

A British pound is a British pound, but the selling price of a one-pound commodity in the market can vary, providing intermediaries the opportunity to earn margins, with the Indian colonial government acting as the intermediary.

Generally, in commercial activities, merchants aim to gain more currency. Extracting even a single coin directly from another country’s or force’s hand is extremely difficult for East Africa. But exchanging with local non-critical goods is much simpler.

For instance, India is rich in coal resources, and as a colony, its industrial demand for coal is not substantial. At this time, corrupt officials of the colonial government and local princes and nobles can offer local coal to East Africa in exchange for goods.

Although this approach is inefficient, slow in yielding returns, and has a long cycle, unlike convenient currency settlement, it successfully circulates East African products, thus driving the development of domestic industry.

This works in East Africa, as it’s an economy dominated by state ownership, allowing resources to be redistributed and integrated at the national level, whereas commercial activities in ordinary countries are mainly conducted by private entities.

Imagine a 19th-century British cloth merchant selling his products in India. His expected return is British Pounds, and offering equivalent value coal in exchange would be irrational, as coal is abundant, well-developed, inexpensive in the British mainland, and he would additionally bear transport costs, increasing risks unless the coal is gifted and he has a market at home.

Thus, while this trade form is possible in other countries, it requires capable individuals to execute. Even European monopoly organizations prioritize profits and do not mimic East Africa’s approach. Though money can be earned, it’s too troublesome and unappealing.

Thus, the East African government’s development path for the Atlantic Economic Zone, besides normal commercial trade activities, also emphasizes direct barter trade with backward countries and regions along the Atlantic coast, essentially replicating East African trade in the Indian Ocean.

For the East African government, this is beneficial for East Africa’s current economic development, as East Africa, a latecomer nation, lacks traditional commercial paths.