African Entrepreneurship Records 2

Chapter 1114 Choice
This round of crazy borrowing in East Africa around the world has indeed created a carnival of capital from various countries. Now is an important stage for capital outflow from various countries, and the "eternal iceberg" of East Africa has actually thawed!

Therefore, a large amount of hot money quickly flowed into East Africa. As for whether the East African government can repay the money, no one will doubt it. After all, East Africa is one of the few major countries in the world. No matter how much it borrows, as long as it takes it slowly, there will always be a day when it can pay it back.

This also led to a consequence, that is, between 1911 and 1912, East Africa's unplanned economy expanded rapidly, and a large number of factories appeared in East Africa for a time.

These factories were basically built by private and international capital and grew wildly. Of course, after the market was liberalized, heavy industry and agriculture controlled by the East African government were also affected.

However, this impact is of positive significance, because the wild growth of the light industry sector has greatly promoted the development of heavy industry and agriculture in East Africa. After all, light industry originally needs heavy industry and agriculture to provide it with raw materials for production.

For a time, the East African economy developed comprehensively, showing a vibrant and prosperous state. Of course, under the new economic policy, many problems also emerged, including public security, overproduction and other areas, but these were covered up in the context of the overall economic improvement.

Ernst is also very clear about this. East Africa is now like a person who overeats. If he does not exercise to digest the food, it will eventually backfire on East Africa. If East Africa's economy does not want to burst, its greatest hope is to wait for the outbreak of World War I. On the contrary, if there is peace in Europe and the world, East Africa will most likely suffer the consequences.

……

Kabwe City.

Kabwe Mining Company.

"General Manager Klein, these are the current orders. The national economy is booming right now, and the investment sector is booming. There is a craze for starting businesses and building factories everywhere, which has led to an increase in our factory's orders. If we continue with our current production capacity, these orders may have to be developed until the year after next, and we won't be able to meet the current market needs at all."

After hearing the report from her subordinates, Claire also felt a headache and said, "We have already completed the production task according to the planned indicators this year, but it is not justifiable to leave the money unearned, especially for those small orders, which are too complicated."

Today, the East African economy is in an overheated state, so the demand for lead and zinc ore has greatly increased, which is also the main business of Kabwe Mining Company. However, Kabwe Mining Company is indeed a genuine East African state-owned enterprise.

In this round of new economic policies, East African state-owned enterprises also face difficulties in dealing with the free market, mainly because they have no relevant experience in the past.

Marketing Director En Luo also said: "The entire market is now a mess, there is no order at all, which is completely different from our previous trade form. So if we want to expand the private market, we should also make some changes. Of course, we still have some advantages. After all, the mining industry is not open to the private sector. We have bargaining advantages, but we should be wary of our foreign counterparts."

Kabwe Mining Company is a seller, and a seller with a certain degree of monopoly, which makes Kabwe Mining Company actually occupy a dominant position in the market.

Will, project director: "In my opinion, the most important thing now is to increase production capacity. If we can increase production capacity to three times the current level, all problems can be solved."

After listening to everyone's opinions, General Manager Klein looked at Chairman Morse who had been in deep thought, and asked, "Chairman Morse, what do you think of our company's current situation? Should we take measures to deal with this social and economic change?" Morse: "According to my opinion, it is of course to take the initiative to reform. Now the new economic policy is the country's major economic development policy, and it will not change easily. As an important state-owned enterprise, we should be consistent with the central government on economic issues."

Morse does not simply consider the company's economic benefits. Political benefits are equally important to him. After all, as a manager of a state-owned enterprise, whether the company can make a profit is a minor issue compared to whether he can be promoted. Of course, under normal circumstances, economic benefits are also an important consideration for political achievements. If you can't even manage a large enterprise and it suffers losses year after year, and you promote such a person, wouldn't that be a threat to national security!

So Klein said to Morse, "I agree with the chairman's idea, but we want to be consistent with the central government. The greatest sincerity is to make more profits for the country. The current turmoil in the market is our opportunity."

"So it is necessary to expand production capacity. Although this year's plan has been completed, exceeding the task is definitely a plus."

"At the same time, we can also use this to fight for some benefits for our company's employees, such as higher wages and more overtime pay."

"Although the market is hot now, it does not mean that we have no competitors. Moreover, the emergence of a large number of companies in the market will naturally increase labor costs, so we must also cope with this change."

Klein is very perceptive. In the past, large state-owned enterprises like Kabwe Mining Company were certainly popular in the eyes of many East Africans. But now that the market has opened up, people have more choices. If Kabwe Mining Company uses the previous standards to recruit talents, it will only lead to talent loss.

Moreover, the Kabwe Mining Company can only be regarded as a regional enterprise in East Africa, and the external attractiveness of the city of Kabwe is obviously not as great as the nearby New Frankfurt or the capital Rhine City, and is even not as good as Lusaka in the south.

In short, the new economic policy in East Africa is not very friendly to industrial and mining cities, especially those with a single industry. As soon as the market is liberalized, talents and resources will flow more to comprehensive cities in coastal or central areas.

For example, the city of Mbeya is thriving under the new economic policy, while Harare is facing difficulties in transformation, and the situation in Kabwe is even more serious than that in Harare.

This will certainly have a certain impact on businesses in Kabwe City, including the Kabwe Mining Company. Of course, mining companies like the Kabwe Mining Company have basically no risk of bankruptcy as long as resources are not exhausted, but it is also a fact that they are less attractive to talent, especially young people.

Of course, the most important thing in this regard is how the Kabwe City Government views it. If it chooses to just live a life of idleness and wait for death, Kabwe will eventually become a relic of the industrial age in East Africa.

The success of Nambeya is not impossible to replicate if a suitable development path is found for the city. After all, although Kabwe is an industrial and mining city, it is also a capital city in East Africa, which gives Kabwe some natural advantages.

During the Third Five-Year Plan, local governments and state-owned enterprises in East Africa were faced with a choice. If they chose the right path, they would not be eliminated by society. Otherwise, they would inevitably be eliminated by society. Of course, the competition in the free market, that is, the unplanned economic market, was even more brutal. Many companies died before they could achieve their goals. The tests they faced were obviously more arduous than those of state-owned enterprises, and those who could successfully survive the mountains of corpses and seas of blood must be tough guys.

(End of this chapter)