African Entrepreneurship Records 2

Chapter 422 Railways and Copper Mines

Compared with Zimbabwe, the Katanga Plateau (Zambia, southern Congo) is actually the heart of East Africa, but its mineral resources are relatively limited. Copper reserves are among the top in the world, and other mineral resources are too few compared to copper mines. .

Even so, the coal and iron resources in Katanga are still much stronger than those in eastern East Africa, but they are also concentrated in the intersection with Zimbabwe.It can be seen from this distribution that most of the coal and iron ore resources in the East African Kingdom are naturally concentrated in the South Africa region.

As the British said during World War I, the German colonies were just a piece of bad land, and the overall development level of East Africa in later generations also lagged behind North Africa, West Africa and South Africa, which was better than Central Africa.

So Ernst said: "While the central railway is being built, we must also develop the Katanga region at the same time, and achieve economic integration with the eastern region before Matabele Plateau (Zimbabwe), and narrow the gap between the two places. .”

"Among them, the copper resources in the Katanga region are the focus of our development, and we must form a core competitiveness based on the development of copper mines."

"I think everyone is familiar with the importance of copper mines. It is currently the second most consumed metal in the world after steel, and it is also our advantageous resource in East Africa."

"The development and utilization of copper mines requires railway support. Our demand for copper mines is huge, so the construction of the central railway is of great significance to the development of copper mines in Katanga."

Historically, Europe was the world's main supplier of copper mines from the 17th to the 19th century. However, Europe's demand for copper was actually not large. However, this situation changed at the end of the 19th century.

That is copper, one of the main industrial materials as a common conductor of electric current. The world's demand for copper has increased significantly, which is closely related to the invention and use of electricity in the second industrial revolution and the rapid development of the electrical appliance industry.The shift of the world's copper supply status from Europe to the United States just shows that as a major country in the second industrial revolution, the rapid development of the copper smelting industry and electrical appliance manufacturing industry in the United States is generally higher than that of Europe.

But this situation changed with the emergence of Ernst, because the rapid development of the Hechingen Electric Power Company accelerated Europeans' attention to the huge economic value of copper mines.

At present, the price of copper mines in Europe has increased, which is too unfriendly to the Hechingen Power Company, so now is the time to develop the copper mines and power industry in East Africa.

Moreover, in the field of electric power, a new industrial track in the world, the conditions in East Africa are not bad. This is the confidence given to Ernst by the copper mines in Katanga.

Not to mention other things, there is a huge market for the production of optical wires and cables, especially now that countries are vigorously developing and promoting technological products such as submarine cables, telegraphs, telephones, and electric lights.The production of wires and cables requires copper and rubber. Isn’t this what nature has prepared for East Africa?
Of course, this was a railway construction meeting, so Ernst did not need to talk to the people at the meeting about the prospects of the power industry in detail.

However, Ernst has planned to develop the power industry in Dar es Salaam and Mombasa first. Due to the existence of the Hechingen Electric Power Company, there is no shortage of personnel, technology and funds, but there is a shortage of minerals. It needs railways to make it happen.

The reason why the power industry is located in the coastal areas is mainly because the power industry is a high-tech industry and is highly dependent on technology, talent and market.

East Africa is not lacking in technology, but talents need to be imported from Europe and the United States, and Dar es Salaam and Mombasa are the two most attractive cities in East Africa in this regard.

The market is divided into domestic market and foreign market. Currently, the domestic market in East Africa is narrow and mainly distributed in the east. Therefore, the power industry in East Africa mainly relies on the European market. In this regard, Hechingen Electric Power Company already has sales channels in Europe, and East Africa itself What needs to be done is to transport East African power products by sea to Europe.This is also the reason why Ernst is currently deploying the power industry in the eastern coastal area of ​​East Africa. The biggest advantage of East Africa lies in maritime transportation and the most favorable agricultural conditions in Africa. However, in the era of industrialization, the favorable agricultural conditions may not be transformed into Competitive advantage, just like the relationship between Austria and Hungary.

However, Ernst does not think that the conditions in East Africa are poor. All it needs is a good overall environment. According to the experience of his previous country, areas without rich mineral resources can still achieve rapid development through international division of labor and cooperation, while shipping Convenience is the basis of this condition.

For example, in terms of resource distribution in the Far East, most coal and iron ore, as well as oil and gas and other energy sources are concentrated in the north (including the northeast and northwest), while the south (including the southwest) has a strong advantage in transportation conditions. This transportation advantage is Built on developed maritime and inland waterway shipping.

A golden waterway can cover the entire Yangtze River Basin (excluding Tibet), and its economic synergy capabilities far exceed those of other regions.

Of course, the north also has a coastal area, but there are only a few excellent ports in the north. It also faces the problem of freezing in winter and being unable to navigate. Moreover, the hinterland economy is narrow (or not smooth, and the radiation range is too small). If the port conditions in the Far Northeast are placed on In other countries, it is also top-notch.

Take East Africa for example. If East Africa had the conditions of the Far Northeast, Ernst would wake up smiling from his dreams.The seaport conditions in East Africa are actually very poor worldwide, but they are definitely better than those in Central Africa, South Africa, and West Africa.

North Africa surrounds the Mediterranean Sea and the Red Sea, while East Africa relies on the Indian Ocean. The Indian Ocean waterways are undoubtedly the most important in the world economy, even in the 21st century.

The advantage of central and western Africa is the Atlantic Ocean, but the Atlantic Ocean can actually be divided into two parts, the north and the south. Africa is mainly connected to the South Atlantic, and across the South Atlantic is South America. It can only be said that we are brothers in the same boat. Economically, it is best not to have too many illusions. Unless there is a Rendu line that can be developed, shipping in the South Atlantic can be opened up. However, judging from the past history, the two have been competing to see who has the lower limit.

In this way, the trade between the two in the previous life was not frequent, but formed a shipping trade centered on Europe and the Far East. Moreover, both continents are at the bottom of the international division of labor, and their output products are highly competitive. If it were a top strategic resource like oil, it would be It's easy to say, but it mainly focuses on less important minerals and agricultural products.

The problem facing East Africa is that there is a certain deviation from the main international waterways. This is also a problem faced by the Far East in the previous life. From this perspective, India is in a central position with the most favorable conditions. If India rises, it can rely on the Indian Ocean and large-scale navigation. The Arab region before the era also completed its monopoly on East-West trade.

How serious this problem is!It can be assumed that if the positions of the Far East and India are swapped, the world's hegemon will immediately change from the United States to the Far East.

If we control the world's shipping center, no sanctions will pose a threat to the Far East. What chokes the development of the Far East is raw materials and markets, and the foundation of international raw materials and markets is shipping.

As for other areas along the Indian Ocean, none of them have the same conditions as India. The natural conditions of Arab countries are too poor and are not suitable for industry. Southeast Asia is too fragmented. East Africa is a bit remote. Australia can simply ignore it.

Therefore, in Ernst's industrial blueprint, eastern East Africa is the vanguard in developing an export-oriented economy, and the current industry that can realize this vanguard is the power industry.Putting aside industry, East Africa's foreign trade mainly relies on agriculture, especially the export of tropical cash crops.

(End of this chapter)