African Entrepreneurship Record

The ”Europe-Asia Fruit Basket Plan” in the two provinces of Somali is the vanguard of East African agriculture actively integrating into the international market, whereas in 1882, the most dazzling industrial development in East Africa was in the three inland provinces (Matebel Province, Hohenzollern Administrative Province, Swabian Province).

In 1882, the total steel production in East Africa reached 1.23 million tons, with Matebel Province alone accounting for more than 300,000 tons, nearly 400,000 tons, quickly catching up with eastern coastal cities, northern industrial areas, and the Malawi Lake industrial zone.

Currently, the annual steel production in East Africa is close to the level Germany had ten years ago at its founding. However, after Germany’s national unification and domestic market integration (newly added areas like Alsace and Lorraine are important steel production regions), steel production saw explosive growth in a short time, followed by shrinkage after the 1873 economic crisis. Nonetheless, it fared much better than prior situations, mainly because East African railway construction absorbed excess capacity in the German region, so current German steel production is more than double that of East Africa.

Currently, the steel production in the UK is over 7 million tons, more than six times that of East Africa. The US triples East Africa’s steel output, whereas East Africa is more than double Austria-Hungary’s production, lower than France but not by much.

This is mainly due to the development and utilization of East Africa’s iron ore resources and benefits gained during the economic crisis. However, it’s worth noting that Russia’s steel output is far lower than East Africa’s, not even reaching Austria-Hungary’s levels.

To say Russia lacks mineral resources is surely impossible, as Russia’s population is nearly twice that of East Africa, and so is its territory size.

The difference between East Africa and Russia might lie in Russia’s industrial investment relying heavily on European and American capital, with foreign capital making up even over 70%.

East Africa, on the other hand, predominantly relies on German capital headed by the Heixinggen Consortium, while East Africa has established a large number of state-owned enterprises, enabling the government to control substantial wealth and resources.

Development of East Africa and growth of the Heixinggen Consortium are interconnected. Without support from the Heixinggen Consortium, East African development would not be this rapid, while without East African national strength, the Heixinggen Consortium could not become a top financial power.

Furthermore, East Africa is a nation of immigrants. Though initially fully dependent on agricultural development and plundering wealth from colonial natives, Ernst has started deploying East Africa’s industry, mining, and other sectors.

For example, during the economic crisis, East Africa’s mass recruitment of European and American workers bolstered urban and industrial development, while czarist Russia was dragged by the accompanying agricultural crisis.

Utilizing foreign capital isn’t unfeasible, but Russian aristocrats and bureaucrats along with European capital aren’t controllable by Russia itself.

Given the virtue of Russian aristocrats and bureaucrats, along with efficiency and transportation conditions in Russia, Ernst himself wouldn’t dare to invest massively in Russian industry.

Mining and agriculture, on the other hand, are relatively stable, making Russian industry effectively subordinate to the European industrial system, becoming an essential raw material supplier and market.

Of course, this is also related to Russia’s technological weakness, a challenge East Africa faces as well. Supporting technology for East Africa is provided by the Heixinggen Consortium, a significant patent holder in the German region.

Simultaneously, East African industry focuses on key sector layouts, especially power, steel, and railway industries, whereas light industries like textiles and commercial sectors develop less than those in Russia or other countries.

This allows the East African government to focus its efforts, reducing unnecessary losses; after all, biting off more than one can chew prevents rapid development, requiring abandonment of some areas East Africa isn’t adept at.

For instance, East Africa essentially lacks a financial sector, while commerce is confined to a few coastal cities. Light industries like textiles rely heavily on Far Eastern empires and German regions, hence apart from Nairobi City, East Africa hasn’t established a second textile industry center. Bulawayo City strives toward this direction but needs more time.

The current primary driver of East Africa’s economy is the railway industry, which indirectly spurs steel industry development. As for the power industry, East Africa has invested heavily but initially can’t recoup costs.

In East Africa’s steel industry, the Malawi Lake industrial zone continues to lead in steel production capacity, exceeding 600,000 tons, but it has a much earlier development history than Matebel Province.

The third-ranked steel production comes from the northern industrial belt, including Mombasa and Nairobi, with production exceeding 100,000 tons, with Mombasa belonging to both the northern industrial belt and coastal cities. Therefore, part of northern industrial belt’s coal and iron resources are locally developed while some are sourced from the Middle East and India.

Finally, coastal city industries centered on Dar es Salaam and New Hamburg Port City, except New Hamburg Port City with ample coal resources; a significant portion of industrial minerals in other coastal cities needs importation.

Matebel Province boasts diverse minerals, especially gold mines, diamonds, iron, coal, chromium, copper, etc., with gold mining in its provincial capital Harare City, Bulawayo City, and towns like Guilu.

As the leader of the central three provinces, Matebel Province’s copper resources are also notable. ”Rhodesia,” known for copper production in past British times (including Heixinggen Administrative Province and South Salzburg Province), extends power industry arrangements in Harare City East Africa, with comprehensive industry types, forecasted to surpass Mbeya City within five years, becoming East Africa’s lead heavy industrial city.

”In 1882, Matebel Province added thirteen new towns distributed on both sides of the Central Railway. Guilu and Gwanda are established as cities, and Lupane, not on the railway line in the northwest area, is also included in this upgrade.”

Industries tend to gather populations. In actuality, many agricultural small towns in East Africa don’t necessarily have a smaller population than these industrial towns, but industrial towns have a more apparent chance to elevate their status.

Most of these industrial towns developed relying on transportation and mineral resources, making Matebel Province currently the fastest urbanizing region in East Africa.

Take Guilu and Gwanda for example, both are cities along the Central Railway and key mineral development areas. Kuikui, similarly upgraded to industrial town status, is expected to upgrade to city status next year.

Kuikui is centrally positioned between Harare and Bulawayo and also during the Matebel section of the Middle East Railway, though its delayed development results in its current standing below Guilu City.

Lupane, not along the railway, is considered due to its location in the northwest region of Matebel Province. The lack of cities, combined with rich coal and other resources within Lupane City, prompts its upgrade to city status.

”By October this year, Matebel Province has a total of eleven city-level administrative districts, nine of which are industrial cities, with only two city-level areas belonging to administrative management planning. City population accounts for more than 30% of the provincial population, ranking first nationwide, with Bulawayo City holding great potential, aiming to enter East Africa’s top ten cities within the next two to three years, while Harrell City is poised to enter the top five.”

East Africa’s industrial investment in Matebel Province far surpasses other regions. Many cities haven’t reached the standard size, yet based on potential, population, and resources allocation, Matebel Province’s industrial data in ten years will outpace other East African regions, becoming its most critical industrial area.

The only shortcoming of Matebel Province is lacking a coastal outlet, presently under Portuguese Mozambique colony. In Matebel Province’s economic map, Bela Port in Mozambique will build a direct railway to Harare in the future, propelling further development in Matebel Province.