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 biased. Its copper reserves are among the world's top, and other mineral resources are too scarce compared to copper reserves.
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 area where they meet Zimbabwe. From this distribution, it can be seen that most of the coal and iron ore resources in the Kingdom of East Africa are naturally enriched in South Africa.
Just as the British said during World War I, the German colony was a piece of rotten land, and the overall development level of East Africa in later generations also lagged behind North Africa, West Africa and South Africa, and was only slightly better than Central Africa.
Ernst said: "While we are building the Central Railway, we must also develop the Katanga region, and achieve economic integration with the eastern region before the Matabele Plateau (Zimbabwe), narrowing the gap between the two regions."
"Among them, the copper resources in Katanga are our focus of development. We need to develop core competitiveness based on copper resources."
"I think everyone is familiar with the importance of copper mines. It is currently the world's second largest metal consumer after steel, and it is also a superior resource in East Africa."
"The development and utilization of copper mines cannot be achieved without the support of railways. 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, from the 17th to the 19th century, Europe was the main supplier of copper mines in the world, but Europe's demand for copper was not actually that great. However, this situation changed in the late 19th century.
That is, copper is one of the main industrial materials for common conductors of electric current. The huge increase in the world's demand for copper is closely related to the invention and use of electricity and the rapid development of the electrical industry during the Second Industrial Revolution. The world's copper supply position has shifted from Europe to the United States, which just shows that as a major country in the Second Industrial Revolution, the United States' copper smelting industry and electrical manufacturing industry have developed at a higher level than Europe as a whole.
But this situation changed because of Ernst's emergence. The rapid development of the Hechingen Electric Company accelerated Europeans' attention to the huge economic value of copper mines.
Currently, copper prices in Europe have increased, which is very unfriendly to the Hechingen Power Company, so now is the time to develop the copper mining and power industries in East Africa.
Moreover, in the field of electricity, the 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.
Apart from other things, the production of optical wires and cables has a huge market, 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, which is naturally prepared for East Africa!
Of course, this was a railway construction conference, so there was no need for Ernst to elaborate on the prospects of the power industry with the people at the meeting.
However, Ernst has already planned to develop the power industry in Dar es Salaam and Mombasa first. Because of the existence of the Hechingen Power Company, there is no shortage of personnel, technology and funds. The only thing missing is mines, which all need railways to achieve.
The reason why the electric power industry is located in the coastal areas is mainly because the electric power industry is a high-tech industry that is highly dependent on technology, talents and markets.
East Africa is not lacking in technology, but talent needs to be introduced from Europe and the United States. 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. The current domestic market in East Africa is narrow and mainly distributed in the east, so the East African power industry still relies mainly on the European market. In this regard, the Hexingen Power Company already has sales channels in Europe. What East Africa needs to do is to export East African power products to Europe by sea.
This is also the reason why Ernst is currently deploying the power industry in the eastern coastal areas of East Africa. The biggest advantage of eastern East Africa lies in sea transportation and the most favorable agricultural conditions in Africa. However, in the industrial age, favorable agricultural conditions may not necessarily be transformed into competitive advantages, just like the relationship between Austria and Hungary.
However, Ernst does not think that the conditions in East Africa are bad. What it needs is just a good overall environment. According to the experience of his previous country, regions that are not rich in mineral resources can still achieve rapid development through international division of labor and cooperation, and the convenience of sea transportation is the basis of this condition.
For example, in the distribution of resources in the Far East, most of the coal, iron ore, oil, natural 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 based on developed sea and inland waterway transportation.
One golden waterway can cover the entire Yangtze River Basin (except Tibet), and its economic synergy capacity far exceeds that of other regions.
Of course, the north is also a coastal country, but there are only a few good ports in the north, and there is also the problem of ice blocking navigation in winter. Moreover, the hinterland economy is narrow (or it is not smooth and the radiation range is too small). If the port conditions in the Far East were placed in other countries, they would also be top-notch.
Take East Africa for example. If East Africa had the conditions of the Far East, Ernst would wake up with a smile in his dreams. The conditions of East Africa's seaports are actually very poor in the world, but they are definitely better than those in Central Africa, South Africa, and West Africa.
North Africa is surrounded by the Mediterranean Sea and the Red Sea, while East Africa relies on the Indian Ocean. The Indian Ocean shipping routes 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, north and south. Africa is mainly connected to the South Atlantic Ocean, and across the South Atlantic Ocean is South America. They can only be said to be brothers in distress. It is best not to have too many illusions economically, unless one of them can develop and open up the Ren and Du meridians of shipping in the South Atlantic. However, judging from past history, the two have always been competing to see who has a lower bottom line.
In the past, trade between the two was not frequent, but rather formed a shipping trade centered on Europe and the Far East. Moreover, the two continents were at the bottom of the international division of labor, and export products were highly competitive. If it were a top strategic resource like oil, it would be fine, but it was mainly less important minerals and agricultural products.
The problem East Africa faces is that there is a certain deviation from the main international shipping routes, which is also the problem faced by the Far East in the past. From this perspective, India is in a central position and has the most favorable conditions. If India rises, it will be able to rely on the Indian Ocean and the Arab region before the Age of Navigation to achieve a monopoly on East-West trade.
How serious is this problem? We can assume that if the Far East and India were to swap positions, the world hegemony would immediately shift from the United States to the Far East.
If we control the world's shipping center, then no sanctions will pose a threat to the Far East. What strangles the Far East's development are raw materials and markets, and the foundation of international raw materials and markets is maritime transportation.
As for other areas along the Indian Ocean coast, none of them have the same conditions as India. The natural conditions in Arab countries are too poor and not suitable for industry. Southeast Asia is too fragmented. East Africa is a bit remote. Australia can be ignored directly.
Therefore, in Ernst's industrial blueprint, the eastern part of East Africa is the vanguard of developing an export-oriented economy, and the industry that can currently achieve this is the power industry. Apart from industry, East Africa's foreign trade mainly relies on agriculture, especially the export of tropical cash crops.
(End of this chapter)
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