African Entrepreneurship Record

Chapter 521: Chapter 199 Economic Sanctions

Leopold II, this betrayer, leaked information to East Africa, letting East Africa understand the British intentions. It seems that East Africa holds considerable allure for the British.

After communicating with Leopold II, Britain simultaneously contacted countries like Italy, Abyssinia, Egypt, and even the Imerina Kingdom across the Mozambique Channel, engaging them in amicable discussions.

A simple encirclement in all four directions — south, east, north, and west — began to take shape. However, it was clear to anyone perceptive that although this encirclement had its uses, it was ineffective as well.

Especially the northern countries, whose stance towards East Africa was ambiguous; the only nation genuinely siding with Britain was Portugal. Even if other countries actually joined Britain in blockading East Africa, it would be unattainable, much like when Britain once blockaded America, and America easily sidestepped their tactics by turning to the Pacific.

East Africa doesn’t need to mimic America; its naval capabilities in the Indian Ocean are quite formidable, maintaining trade is feasible as the threat of the Royal Navy is significant but its forces are rather dispersed.

Moreover, the geographical location of America made it more susceptible to sanctions compared to East Africa. After all, the U.S. is far from the global market center (Europe), while East Africa is near the core regional corridors of world trade. Despite some deviations, this makes encircling East Africa quite challenging — if sea routes fail, there are still land routes available.

Even the Imerina Kingdom was not spared by the British. This is intriguing, indicating that in their effort to blockade East Africa, the British were resorting to any means necessary.

In July 1879, the British government passed a sanctions act against East Africa, targeting its agricultural exports, especially tropical agricultural products, while prohibiting domestic and colonial enterprises from exporting technologies and machinery to East Africa and banning the purchase of East African mineral and manufactured exports.

The British sanctions act quickly reached East Africa via telegraph.

”Sanctioning us? What’s the British reason?” Ernst asked curiously.

”Your Highness, according to the British themselves, we in East Africa have violated the so-called principles of free trade.”

”Ha, what kind of reason is that from Britain? Why don’t they talk about free trade with other countries?” Ernst scoffed, ”The more the enemy opposes, the more correct our actions are. We simply mustn’t give the British a chance to interfere in East Africa.”

The so-called British free trade was now, at best, unilateral British free trade, aiming to turn East Africa into a supplier of raw materials and a dumping ground for British goods. Neither Germany nor the Austro-Hungarian Empire has such a privilege, so Britain shouldn’t expect this either; Ernst is not about to be a comprador, living off the British.

”Your Highness, the British sanctions do pose a threat, particularly in the agricultural sector, as the British market is significant.”

Although Ernst dismissed Britain’s market, showing little interest in developing trade with them, Britain was still the world’s largest empire by area with a population second only to the Far East Empire. Inevitably, East Africa did trade with Britain and its colonies, and the British consumer market was affluent and generous, making it a valuable market. Thus, in the face of British sanctions, Ernst had to devise strategies.

”We should focus on Britain’s colonies, particularly larger, distant ones like India and Australia. Perhaps Britain will strictly enforce laws at home, but I doubt their colonies have the same resolve.”

”Your Highness, in fact, we are rivals with India, especially in agriculture.”

”I am aware of that fact. I merely wish to exploit internal British channels. There are no walls without cracks in this world. Britain’s massive size and its globally dispersed empire could offer us openings.”

East Africa’s tropical agricultural products hold a prominent position globally, especially due to their scale advantage, which makes them highly competitive. East Africa can employ strategies of reduced profit margins to outmaneuver competitors or make hard-earned money by benefiting collaborators.

”The area where British sanctions affect us most is agricultural products, but this was within my expectations. Britain can only apply sanctions in this area; there are few links between us and Britain elsewhere.”

This is likely one of the reasons why Britain isn’t fond of East Africa — the abundant resources and population in East Africa benefit only Germany and Austro-Hungarian Empire, leaving nothing for Britain.

The British don’t know East Africa’s exact population, but given its vast land, the Black population must be immense, certainly in the tens of millions. Resource-wise, there’s not much to say; East Africa’s vast area naturally means abundant minerals.

Since the Crown Prince isn’t worried, there’s nothing troubling for oneself either. In fact, circumventing British sanctions is entirely feasible for the Heixinggen consortium, though it’s a bit more complicated.

”Your Highness, how should our government officially respond to the British sanctions?”

”Respond to what? We don’t need anything from the British. Let them impose sanctions if they wish!”

Ernst isn’t afraid at all. Unlike the U.S. in a past life, although thanks to the efforts of Britain and others, a world market has formed, the current world market isn’t a one-voice dominance.

Previously, U.S. economic sanctions were fatal for many countries; those that could withstand them were significant powers.

Currently, if the British wish to sanction East Africa economically, they would need military means — other methods are ineffective against East Africa.

East Africa is self-sufficient in energy and minerals; funds and technologies could come from the German region. Market-wise, there’s minimal trade between East Africa and Britain, so while losses might occur, East Africa’s development would not be hindered.

What distinguished Britain during the first Industrial Revolution were accumulated technologies in textiles, steam engines, and similar fields. East Africa might experience some impact here, but it can acquire desired machinery and technologies through third-party countries.

The second Industrial Revolution hasn’t yet overshadowed the influences of the first; especially in energy, where steam engines remain central for land and sea transport and factory production, granting Britain decades more in the world’s dominant position.

Considering this, Ernst felt East Africa shouldn’t rush; the British held the initiative, and they were full of cunning. Thus, maintaining stability is crucial because as long as East Africa experiences no internal problems, British agitation becomes ineffective; any showdown between Britain and East Africa would first burden Britain. Various other nations were eying Britain’s status, unlike East Africa, which was just emerging.

In other words, East Africa was merely a potential threat, while other nations already posed immediate threats to Britain. It’s improbable Britain would focus its entire attention on Africa in the long term.

Contemplating further, Ernst remarked, ”It seems timely to show some weakness, but how to disguise ourselves as innocuous?”

Feigning weakness could indeed lull enemies; Ernst noted how well the U.S. played its disguise. After all, they currently didn’t even want a military; weren’t they harmless then!

East Africa couldn’t follow suit. The U.S. had a democratic system where even after being beaten, consensus could form, leaving little recourse for Britain. Should East Africa disarm, it might survive, but the reign of the Heixinggen monarchy would undoubtedly cease.

Since military compromise was off the table, some strategies must involve international rhetoric. Could promoting an East African collapse theory work? It seemed unfit; a collapse required prior rise, much like Haiti in the past. If actual collapse occurred, it could even be beneficial. The collapse theory didn’t suit East Africa; better to pit neighboring countries against each other — after all, assisting countrymen in America and others could deflect pressure towards them.