Chapter 579: The East African Model
"Also, migration should still focus on the inland Matabele Province, so we must not shift the overall direction. Especially in the eastern regions, there are still too many settlers compared to other areas."
Although Ernst said this, the eastern region's population wasn't actually that high. Even excluding the arid areas of Somalia and Kenya, the east had nearly two million square kilometers of land and fewer than twenty million people—remarkably sparse.
"Matabele Province is an industrial hub and has a high demand for industrial workers. However, because it is inland, the population remains low. And with the migration market currently sluggish, the government must take the initiative in job assignments to promote east-to-inland population movement."
This was the advantage of having a strong central government. East Africa's government controlled national resources and could direct the population accordingly. It was much like the Soviet Union's top-down approach—assigning jobs in Siberia whether people wanted to go or not.
Matabele Province, being a major hub for both agriculture and industry, had the most job opportunities. Its only flaw was poor transportation. Although the railway passed through, rail was more expensive than river shipping—and East Africa's inland waterways were underdeveloped. This couldn't be solved with manpower or policy alone. However, lake transport had developed well on Lake Victoria, Lake Tanganyika, Lake Malawi, and Lake Turkana.
As for railways, East Africa only built 1,500 kilometers this year due to numerous national projects drawing from the rail budget.
But Ernst saw this as a good thing. East Africa's railways and navy had both been built quickly with massive spending. That kind of "get-rich-quick" approach was unsustainable.
As a late-developing country, East Africa had limited funds. But thanks to vast land and a population nearing fifty million (including Africans), its fiscal revenue was now quite healthy—better than most of the world.
This was also due to Ernst's restraint. East Africa had established many state-owned enterprises instead of treating the country like a cash cow. Royal enterprises—the private ventures of the Hohenzollern family—were profit-driven, separate from the state, and similar to most countries. Although they occasionally supported East Africa, their accounts were separate.
In recent years, Ernst focused heavily on East Africa and allowed the Hechingen Consortium to grow steadily. The consortium had reached its natural limit—like a massive economic engine supporting millions.
Today, its main roles were investment and controlling trade networks. It linked East Africa and the German regions through technology, capital, talent, and markets.
Especially in technology, East Africa had faced no major barriers—thanks in large part to the consortium's patent portfolio.
Currently, East Africa was developing its mid- and low-end industries, but was also preparing for future fields—especially electricity and automotive.
Still, it was unwise to take on too much. The automotive industry hadn't yet emerged. Ernst simply asked Hechingen Energy and Power Company to keep improving its tech and build experience.
Ideally, he'd develop electricity and automobiles in parallel, but East Africa didn't yet have the financial capacity—there were too many other expenses. So he prioritized basic infrastructure.
"You want to get rich? Build roads first. Have fewer kids and plant more trees." This was the development model Ernst had seen succeed in the Far East, and he intended to replicate it. A strong support system would also help when launching the car industry.
As for when to launch, Ernst decided to wait until truck technology matured. Automobiles would be produced in Europe first.
Trucks and tractors greatly boost productivity, while early cars were luxury goods—more symbolic than useful. They served the rich and powerful.
So building an automotive industry in East Africa wasn't worthwhile—at least not yet. But small-scale production for government and trade could proceed.
Ernst had another goal: "branding." He valued brand recognition, and even if East Africa wouldn't mass-produce cars now, it had to claim a stake.
Imagine being the maker of the world's first commercial automobile—that would instantly boost prestige. Cars were status symbols, and everyone—from poor to rich—wanted them. So East Africa didn't need to rush production but had to make a name.
Ernst planned for the world's first commercial car to be assembled in East Africa. That headline alone would be worth it.
The Hechingen Consortium had already developed prototype cars in Europe. They were improving performance and cutting costs to seize the market and outpace future rivals.
Another reason East Africa wasn't ready for mass car adoption was its economy. As a semi-planned economy, it struggled to adapt to market shifts, which could hinder automotive development.
That's why manufacturing would stay in Europe. The money would go to the Hechingen Consortium—but East Africa would focus on productivity.
Cost was not always the main concern. Many investments were meant to get things started. This model suited East Africa's current stage well.
East Africa was like a light version of the Soviet Union. The Soviet model had clear advantages in heavy industry—and East Africa had already seen the benefits. Until the third technological revolution, this model posed no real problems.
One major difference was that East Africa emphasized trade. Its economy was complementary—leveraging strengths and covering weaknesses.
This was still the 19th century—no bipolar world order, no unipolar dominance. It was a multipolar system that the former Far Eastern Empire had long hoped for.
East Africa didn't need to choose sides. It could maneuver between powers and avoid being trapped. Japan, even after being targeted, could still cooperate with Britain and the U.S. Russia could play England, Germany, Austria against each other.
East Africa did the same. Strategically, it cooperated with the Far Eastern Empire, which had many flaws but huge potential. Every nation wanted a piece of that "juicy steak."
East Africa gained what others couldn't—because it was willing to treat the Far Eastern Empire as an equal. If you can eat standing tall, why crawl?
That was one flaw in East Africa's economic system—it resembled the Soviet Union. But Ernst never believed in giving things away. East Africa would earn every penny. Even close allies like Germany and Austria-Hungary weren't exempt.
The Soviets never learned that. After the USSR broke up, few former allies had kind words. Yet the Soviets gave generously—too generously.
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