African Entrepreneurship Record

Chapter 612: Chapter 290: World ”First

New Year’s and Christmas in East Africa are quite lively, but in Ernst’s impression, these two holidays must be accompanied by snow to feel truly atmospheric. However, most regions in East Africa are at their hottest during this time, making the experience of celebrating New Year and Christmas in summer rather odd.

The arrival of the new year simultaneously signifies the passing of 1880 in East Africa. The entire region operates with precision like a machine, sustaining its functionality flawlessly. In the blink of an eye, the people of East Africa become busy again, continuing to participate in the nation-building efforts.

In this regard, the people of East Africa are rather sorrowful, as other regions have long winters allowing them to rest for extended periods. In contrast, East Africa sees little seasonal difference throughout the year, which is favored by capitalists as it represents year-round sustainable exploitation.

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”Is this an automobile?” Constantine exclaimed.

In front of the Sweet Palace’s square, one of the world’s first automobiles was assembled, thanks to the Heixinggen financial group’s long-term research and Ernst’s ingenious ideas. The first automobile in East Africa was already quite advanced upon its debut, featuring a windshield and a car canopy, rather than being an open-top three-wheeler.

The reason it’s one of the first is because the Heixinggen financial group simultaneously prepared a car in Germany, Austria, and East Africa, meaning there are three models worldwide.

The purpose of this is so that Germany, Austria, and East Africa can each claim that the first automobile was born in their country, facilitating market expansion.

Since the automotive industry requires market support to develop, Germany and the Austria-Hungary Empire serve as mature markets with many nobles and wealthy individuals who can afford automobiles.

Moreover, the first automobiles were offered by subsidiaries of the Heixinggen financial group to the royal families of the Three Kingdoms. Automobiles are luxury items and leveraging the aristocracy for promotion is essential, with the royal families of Germany and Austria-Hungary being particularly distinguished insignias.

”Father, this is absolutely a transformative product. The automobile industry will become the world’s greatest industry, replacing horse-drawn carriages and becoming a household staple,” Ernst said proudly.

”You had previously mentioned that automobiles can move without animal power. Is this automobile also fueled by coal?”

”Of course not, the vehicle’s fuel is gasoline, which is refined from oil. Currently, the world’s largest oil producer is the United States, but we also have initiatives in Romania.”

Many people have made fortunes in the United States through oil, particularly in the western regions where there are numerous oil fields. The uneven distribution of oil resources also indicates that East Africa’s local oil production might be less favorable in the future.

This is inevitable, but East Africa has an advantage in proximity to the world’s crucial oil region, the Persian Gulf coast. Therefore, as long as East Africa’s navy won’t be a weak link in the future, it’s almost impossible to threaten East Africa through oil.

Additionally, East Africa isn’t far from important oil-producing areas in North and West Africa, so Ernst isn’t too concerned about future energy issues for East Africa.

On top of that, local oil in East Africa can meet the basic needs of the region, at least sufficient for the future military demands, unlike Germany during WWII, which faced oil shortages. Meanwhile, East Africa also has a presence in the petroleum-producing area of Kalimantan Island in Nanyang, although the oil region is outside Lan Fang’s overseas province. The East African royal family also holds oil-rich territories belonging to the Alaskan royal family.

Thus, East Africa can basically rely on military power to ensure national energy security at major global oil-producing areas, unlike the Far East Empire, which could significantly enhance its energy security if not for the Strait of Malacca. As a two-ocean nation, East Africa doesn’t face such vulnerabilities.

In fact, according to Ernst’s vision, it would be best to establish a stronghold along the Persian Gulf coast, securing East Africa’s future energy safety. However, East Africa hasn’t found that opportunity yet.

Currently, the Persian Gulf coast is under the jurisdiction of the Ottoman Empire, Persia, Oman, and Britain—making East Africa’s involvement quite challenging.

However, the existence of oil in the Persian Gulf remains unknown, and many future oil-rich nations are still struggling with nomadic lifestyles and pearl diving to make ends meet, truly impoverished—it’s no exaggeration to say. No one would imagine that the 21st century would witness exceptional prosperity here due to oil, which is why Ernst consistently harbors desires for this region.

With the fuel replenished, the driver ignites the engine, and the world’s first automobile begins smoothly operating in the Sweet Palace square.

”It moved, without the smoke of a steam engine!” The crowd exclaimed.

The black smoke continuously emitted from the car’s exhaust pipe was automatically ignored by everyone, as it was trivial compared to the smoke from steam engines.

As the car accelerated, eventually reaching a speed of thirty kilometers per hour, it provoked cheers from the East African attendees.

Journalists from the East African official media recorded this historic moment, writing on paper: ”A horseless carriage has truly accomplished incredible mobility...”

At the same time, related performances were being held in Berlin and Vienna, although they appeared to be more lively than in East Africa.

The Heixinggen financial group intentionally arranged the auto launch events to occur simultaneously in the Three Kingdoms, as Germany, the Austro-Hungarian Empire, and East Africa are generally located around the East Second Zone, making the timings align.

All three countries could externally claim that the world’s first automobile was born in their nation, which is quite amusing, but noticing it would take some time.

”Besides establishing part of the national automotive factories, the Heixinggen Bank will invest in several private automotive plants. The former is to meet domestic demands, while the latter will focus on the international market,” Ernst told Constantine.

”What is the difference with this approach?” Constantine asked.

”The difference is significant. Our domestic automotive market is very narrow, and most citizens can’t afford such luxury products. Therefore, it’s foreseeable that the demand for automobiles can only be met through government official vehicles and those high-paid technical personnel, and such people are a minority.

The export segment is the main source of our profits. Although many countries globally are poor, there are significant disparities between the rich and the poor, and many wealthy classes exist—like in the Far East Empire. Hence, this sector should be managed by the meticulous Heixinggen financial group. If it were state-owned enterprises, they wouldn’t consider cost and profitability issues, so letting them consume the domestic market suffices, whereas the international market requires professionals,” Ernst said.

The development of the automotive industry relies heavily on market regulation. While state-owned enterprises can execute through administrative methods, it is undoubtedly less flexible compared to private enterprises without moral restrictions. This notion might not be entirely correct, but for state-owned enterprises to compete in this field with private enterprises, the management must consist of top-notch professional talents.

”Since you’re optimistic about the automotive industry, why don’t we directly establish factories in East Africa and share profits with Germany and Austria?”

”It’s because we lack the capacity to go solo; our industrial system isn’t complete, and many components need to be imported. Furthermore, even our domestic components differ greatly in quality compared to those of Germany and Austria. This is why I require some car companies to be state-owned. The orders from state-owned enterprises can at least ensure the development of other industries in East Africa; otherwise, there’s no way to compete internationally as the cost-effectiveness is too low,” Ernst explained.