Paper short abstract:

In 1925, a group of German investors set out to modernise Ethiopia's infrastructure and economy. Although they had hoped for high returns, their ambitious venture failed with the invasion of the Italian fascists in 1935.

Paper long abstract:

The loss of Germany's colonies limited and disadvantaged German businessmen with global ambitions. After World War I, their British and French competitors had far easier access to agricultural and mining resources in their respective colonial territories of the global South. The Ethiopian Empire was one of the few major territories not occupied by colonial powers. Following the Battle of Adwa in 1896, however, there had been diplomatic relations and, with the French-built railroad between Djibouti and Addis Ababa, a transportation infrastructure.

In 1925, a group of German investors met in Geislingen/Steige to form a business consortium aimed at mining gold in the Beni Shangul region of western Ethiopia. Unlike in colonies, land and resources could not simply be expropriated and exploited. Formal agreements had to be made with the imperial court under Crown Prince Ras Mekonnen, who had a vested interest in foreign investment and technology that would enable Ethiopia to develop into a modern nation. As a result, a series of ambitious treaties were signed that provided licenses for gold mining, oil production, cotton and oilseed plantations, the textile industry, the electrification of Addis Ababa including the construction of a tramway, an arms factory, a monopoly on alcohol production, and the establishment of air transportation to and from Ethiopia. Internal disputes, the opacity of Ethiopian power structures, and finally the Italian invasion in 1935 put an end to these far-reaching ambitions.

In 2015, a streetcar system actually went into operation in Addis Ababa - built by a Chinese company.