African Entrepreneurship Record

”Captain Corred, how’s trade this year?”

In Asuncion, East African diplomatic envoy Raleigh met with Captain Corred, in essence, it was just a meeting between old friends.

Communication between East Africa and South America isn’t very convenient. Even as the East African ambassador in Paraguay, Raleigh relies on Captain Corred and other personnel engaged in trade between East Africa and Paraguay for information.

”Business has been good in recent years. Trade between Paraguay and East Africa has been on the rise. Previously, I led a team of only four ships, and this year we have three. Besides Asuncion, Eastern City has also become an important trade location for the two countries.”

Raleigh nodded and said, ”It seems that our trade development with Eastern City is good. I remember the relevant policies started in 1892, when trade between East Africa and Paraguay was still mainly centered in Asuncion.”

Captain Corred said, ”Yes, Eastern City’s location is quite special, not only in Paraguay but also backed by Brazil and Argentina. Argentina’s economy has grown rapidly these years, and our trade with Argentina is increasing swiftly.”

Raleigh: ”Argentina’s situation is unique, mainly due to advantageous geography and climate. Therefore, in recent years, the United Kingdom has been investing heavily in Argentina, especially its rapidly growing railways. However, Argentina’s economy is also relatively distorted. If the British withdraw their investments or if the market changes, a country like Argentina with a single economic structure is most vulnerable to impact.”

Of course, Captain Corred had a different view: ”Without the British investment and construction, Argentina would still be barren. The Argentine government should be grateful for the British investment and construction. Even without the British, Argentina’s conditions can attract other countries. As for the economic structure, agriculture is always relatively stable. Even if Argentine agriculture were to collapse, it wouldn’t be completely disastrous. Previously, they had nothing at all. At least the British helped them build many railways and factories.”

Raleigh expressed neutrality: ”It’s better to be more independent. Of course, I mean not to rely on other countries. For example, the East African economy is self-sustaining. Even if there are some gaps compared to other countries, we have found our path, while Argentina’s economy is more like drinking poison to quench thirst.”

The conversation between Ambassador Raleigh and Captain Corred was quite on point. The Argentine government has poor governance capabilities, at least from an economic development perspective, it is not mature and susceptible to external disturbances.

For this, Raleigh also gave an example of Paraguay: ”The Paraguayans are much more insightful than the Argentinians. Before the Paraguay War, the Paraguayan rulers understood the importance of industrial development, and after the Paraguay War, Paraguay was essentially devastated. But through years of effort, it has already restored its former glory.”

Captain Corred agreed on this point, he said, ”Indeed, at least from the development of Asuncion, it is evident. When I first came to Asuncion, the population was just over twenty thousand, and now it has grown to around seventy or eighty thousand!”

Raleigh smiled and said, ”Your eyesight is also not very good! The population of Asuncion exceeded one hundred thousand last year. In the context of South America, it’s no longer a small city. Now, the total population of Paraguay is likely around ninety million.”

Ninety million is already quite a lot in the region. At the time, Argentina’s population was just over four million, Brazil’s was eighteen million, but Argentina and Brazil are too large in area. Meanwhile, neighboring Bolivia had just over one million people, and Paraguay’s brother, Uruguay, had less than a million.

Historically, at this point in time, Paraguay’s population was just over sixty thousand, nearing seventy thousand. Thus, Paraguay’s population was twenty thousand more than historically.

Currently, Argentina’s population is just over four times that of Paraguay’s. If the two countries were to go to war again, it’s hard to say who would win or lose, provided Brazil and Uruguay don’t participate.

Paraguay’s total area now is over three hundred thousand square kilometers, not counting the support from the Bolivian government to Paraguay (Paraguay gained eighteen thousand square kilometers through the Chaco War). Therefore, Paraguay’s population density in the region is already considerable.

Captain Corred said, ”With the increase in population and economic recovery, it’s not surprising that trade volume between East Africa and Paraguay is rising. However, other South American countries are also not weak in development, if not compared to East Africa.”

East African development outside Europe and America is completely unique. After all, East Africa has existed for just thirty-odd years, yet it’s leaving South America’s number one, Brazil, far behind, population alone is several times of Brazil’s, and growth rates in agriculture and industry far surpass Brazil.

Not to mention, now Brazil’s population is just more than Argentina’s. In reality, its economic conditions are far inferior to Argentina and Paraguay.

Of course, the achievements of Paraguay’s economy are closely tied to East Africa, though if the Paraguayan government isn’t competent, it’s all in vain.

Captain Corred: ”I have news for you, on my way here, the domestic newspapers have been increasingly focusing on South America, so South America will definitely be a key development direction for our country in the future.”

Raleigh took a sip of coffee and said, ”That’s inevitable. Since our country gained Angola, East Africa is destined to make a mark on the Atlantic Ocean. In terms of the Atlantic, besides West Africa, South America is the area where our country can achieve results the fastest.”

East Africa, West Africa, and South America are all located in the South Atlantic region, so East Africa’s bid to expand influence and trade in the South Atlantic is bound to start with West Africa and South America. Given that West Africa is now all colonies without the right to develop independently, the relatively independent South American countries become the only choice for the East African government.

”The only unfortunate point is that our current best relationship in East Africa is with Paraguay, after all, it’s not a Great Power,” Raleigh lamented. After all, he is the Paraguayan ambassador, not the ambassador to Brazil or Argentina. The level of importance that East Africa places on these two countries might be higher than on Paraguay.

Besides what Raleigh said regarding Brazil and Argentina, actually Ernst is also quite interested in countries like Peru, although Peru is considered a Pacific country and the Drake Strait is riskier than the Cape of Good Hope route. Even in the 21st century, it’s difficult for ten thousand-ton freighters to pass through the Drake Strait, let alone 19th-century ships.

Thus, even if East Africa wants to bypass the Drake Strait and develop trade with Peru, it won’t be easy, replacing the Drake Strait might also be one of the significant purposes for constructing the Panama Canal.

The Panama Canal is tougher than the Suez Canal, so it’s still yet to be completed, while the United States mainly relies on railroads for trade between the Atlantic and Pacific coasts.

However, relative to Peru’s rich resources, the dangers are not worth mentioning; Peru alone has more copper mines than the entire East Africa, and other resources are also quite abundant, of course, it is also relatively close to East Africa.

East Africa’s current key strategic direction in South America mainly focuses on the south and east, which are, in fact, the five countries of Paraguay, Uruguay, Brazil, Argentina, and Peru.