African Entrepreneurship Record-Chapter 522 - 200: Starting Out
Britain had just taught East Africa a lesson when Germany approached. However, the Germans were clearly unwilling to fall out with the British, and at this time, relations between the two countries seemed to be maintained quite well on the surface.
"Your Majesty Constantine, do you need Germany’s help? We have heard about Britain’s sanctions on East Africa, which are not very friendly to your country’s development," Ambassador Klein asked.
"Thank you for your country’s concern. If we need it, we will not hesitate to ask for help." Constantine declined Germany’s goodwill.
In fact, there is nothing East Africa desperately needs at the moment. If it were a decade ago, East Africa would certainly not have adopted this attitude, but times have changed now.
This made Klein feel more regretful. If Germany had offered assistance in the early days of East Africa’s establishment, it might have gained a powerful ally for the future. Of course, Germany wanted a puppet regime more, while East Africa clearly had its own interests and did not want to be anyone else’s follower.
East Africa’s opening is quite successful now. After biding its time for over a decade, it re-emerged on the international stage, no longer the weak East Africa it once was.
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Dar es Salaam’s southern district.
"Woo..."
As the train arrived, stevedores began unloading resources transported from the inland, piling them onto ox carts, and then heading towards the industrial park.
Most of these materials are directly exported from the industrial district of New Port, or processed and then exported, or consumed by East Africa itself.
Thus, the southern district of Dar es Salaam is lined with smokestacks, with plumes of black smoke polluting the African sky, obscuring the sun. Industrial wastewater flows through pipes into the sea, where the discharge point water is pungent. The entire southern district of Dar es Salaam resembles the cyberpunk aesthetic seen in cultural works from previous eras, full of violent beauty.
It looks quite spectacular, but it is very damaging to the environment. Fortunately, First Town has no industry, or else with this level of pollution, Ernst would definitely have to move.
The factory director of Dar es Salaam Cable Factory No. 2, Stephen, was in high spirits seeing the loads of copper ore being transported into the warehouse, indicating that Factory No. 2 could begin production.
"Since the end of the East-Portuguese War, the Central Railway has resumed operations. Now copper ore can be continuously transported from the inland to Dar es Salaam, allowing us to further expand production this year finally."
"Previously, due to the war, raw materials were prioritized for Factory No. 1. Now, our Factory No. 2 can finally benefit from the railway."
During the East-Portuguese War, the Central Railway was requisitioned by the military, impacting East Africa’s production significantly, especially in copper, rubber, and tobacco.
Copper and rubber are important raw materials for cable production. Therefore, the Central Railway prioritized military support, which certainly constrained the development of the electrical industry. However, the Central Railway’s high specifications allow it to simultaneously meet military and economic demands, though there was a shortage of railcars.
Now that the war has ended, transportation capacity has recovered, and with abundant copper and rubber, the second phase of the Dar es Salaam cable factory expansion has also begun,
Adhering to the principle of not putting all eggs in one basket, two additional cable factories have been established in Mbeya and Lubumbashi. One cable factory is controlled by the East African National Power Company, while three are controlled by the Heixinggen Power Company. East Africa’s power manufacturing sector is quietly starting up, and all four cable factories are located along the Central Railway line.
"Our current market supply mainly consists of two parts: the Far East and domestic. As for the foreign markets, the product quality is not yet sufficient to support exports, and the yield rate is somewhat lower than in the German region."
In fact, East Africa’s cable production capacity does not even meet its own needs, but it is better to prioritize meeting customer demands than using it for oneself.
Thus, although East African cable quality is a bit lower, it can still fetch a good price, especially in less economically developed regions, which do not require high-end products, prioritizing price instead.
Meanwhile, mid-to-high-end power manufacturing is mainly concentrated in America and Germany.
Ernst, although holding the Heixinggen Power Company, with many factories and R&D departments in Germany and Austria, cannot just move them to East Africa.
So he first places industries with lower technical content or those unsuitable in Germany and Austria in East Africa, with cable production being one of them, given East Africa’s advantage in raw material production.
The main materials for cables are no other than copper and aluminum, and with the price of aluminum still not low, affordable copper ore becomes the preferred choice.
Of course, Ernst knows that electrolytic aluminum can significantly reduce production costs, but electricity prices are not cheap now.
Electricity, as a high-tech industry, is not to be taken lightly. Unlike the past, power plants are rare commodities, the first one being built in 1882, so surplus power is simply impossible, even extremely short. As the saying goes, things are precious when they are rare; with power shortages, electricity prices are naturally high.
Thus, power investment is an absolutely high-risk, high-reward industry. This might also be why countries like Britain and France are being overtaken in the electrical field.
Just like the early promotion of electric cars, it was extremely difficult, and no one could predict the rate of technological development, especially with many entrepreneurs who are business specialists and might not have foresight regarding scientific development.
Once someone achieves a breakthrough, capital is the most ruthless, rapidly occupying the new market, as demonstrated by the development of Heixinggen Power Company.
"The government plans to support business development by expanding investment in the power industry in East Africa, including communications and lighting. They plan to connect telegraph lines between various cities and some important towns and renovate the lighting systems in Mombasa, Dar es Salaam, and Nairobi."
"This is our initiative to cultivate the domestic electricity market. East Africa’s consumer demand is not exactly booming, mainly in a state of deflation. However, doing this in the initial stages won’t have too many problems. In just a few years, from a colony to now, even opening the market cannot cultivate more consumption power than other countries, so it all relies on government promotion."
The wealthiest in East Africa is the Heixinggen royal family, followed by the East African government. As for others, the wealth gap is not really that large, so the development of the electrical industry must rely on the joint efforts of the Heixinggen group and the East African government.
For example, regarding power demand, ordinary East African people certainly cannot afford it and have no desire to consume in this area. They live healthy early-to-bed, early-to-rise lifestyles, essentially because there is a lack of diverse entertainment forms.
"Government agencies, factories, and post offices are the major power consumers in East Africa. First, provide them with electricity, then the cities, especially Soga and First Town, must achieve electrification first."
Sogana is East Africa’s tech city, so it’s alright to prioritize good things there, also reflecting the Heixinggen royal family’s emphasis on scientific talent, while First Town is a political need, and other cities depend on economic strength.
Based on economic strength, these are Dar es Salaam, Mbeya, Nairobi, and Mombasa. Of course, some strategic locations can also be deployed in advance, mainly in the communication field, facilitating East Africa’s monitoring of the surrounding environment, especially against Portugal and Britain, such as New Hamburg City in the southernmost part of East Africa.
