African Entrepreneurship Record

Chapter 1039: Chapter 48: Early Completion of the Steel Industry Plan

The year turned to 1905 in the blink of an eye. At that time, the Russo-Japanese War had not yet ended, and the African region was also unstable. In addition to the Southern German Kingdom busy with westward expansion, France, Germany, and the United Kingdom were also intensifying their infiltration of West and North Africa. Spain and Portugal constantly strengthened military forces in their African colonies to protect their dwindling colonies, plunging the whole of West and North Africa into chaos.

In contrast, the situation around East Africa was generally good. Although Italy had some designs on the Abyssinia Empire, it had already turned into an economic colony of East Africa, and its security was naturally assured by East Africa, the big brother. Thus, a potential regional dispute quietly dissipated with East Africa’s mediation.

For neighboring countries or colonies around East Africa, East Africa unknowingly became the undisputed powerhouse in the region. After the South African war and the absorption of areas like Angola and Mozambique, even the British could no longer take East Africa lightly as they did before the South African War.

This was because the United Kingdom was already the most powerful force around East Africa. Its control over the British Somaliland and Egyptian (Sultanate) colonies was the strongest, yet it could not pose any threat to East Africa.

Among other countries or colonies bordering East Africa, French colonies of Gabon and Madagascar were too backward to be considered in the discussion.

The Belgian Congo, Italian Red Sea Colony, and the Southern German Kingdom were essentially political forces supported by East Africa. The only traditional African nation, the Abyssinia Empire, had entirely become a follower of East Africa.

In such a favorable geopolitical situation, East Africa’s First Five-Year Plan landed smoothly. The East African Government could focus all its energy on industrial and agricultural construction.

Geopolitics is vital to a country’s development, and the East African Government has always been committed to maintaining political stability domestically and around its borders.

In the past, Americans liked to use geopolitical conflicts to interfere with the normal development of some countries, such as inciting small nations to make small moves around the Far East Empire, using Pakistan or Bangladesh to limit India’s development, pressing Russia’s living space with NATO, or preventing Arab nations from growing through Israel.

Therefore, East Africa’s positive attitude towards the security situation around its borders should not be underestimated. If East Africa emulated Tsarist Russia or the United States, perhaps the entire African region would become chaotic.

And through these efforts, East Africa naturally reaped many rewards. On the one hand, the nation’s industry developed steadily, and on the other hand, trade with neighboring powers continuously expanded, strengthening East Africa’s economic and political influence in the region.

The first point is easy to explain: without a solid foundation of national security, the implementation of East Africa’s First Five-Year Plan would inevitably be affected. The Soviet Union’s Third Five-Year Plan in past times was interrupted due to the impact of war.

As for the second point, East Africa provided more stable governance conditions for neighboring countries or colonies, accelerating their development, which was also beneficial for East Africa.

After all, the resources of these countries or colonies would eventually need to be realized. If a Sovereign Country existed, it could naturally handle it internally, but selling the developed minerals and other products to nearby East Africa was more advantageous.

Transporting these outputs back home incurs freight costs, and some resources might not even be digestible domestically, as in the cases of Belgium and Italy.

Although economically advanced, their size was too small, and their industrial chains incomplete. Under such circumstances, some colonial products were worthless, but if the approach changed to choose East Africa, they might turn waste into treasure.

Moreover, East Africa was right next to its colonies, and through sea transport or railway, East Africa could absorb these outputs locally, offering a cost advantage.

To some extent, this already formed a rudimentary economic area around East Africa, akin to the German Customs Union.

The Abyssinia Empire and the Southern German Empire need not even be mentioned, as they were already fully integrated into East Africa’s economic circle and belonged to East Africa’s subordinate forces.

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Rhein City.

As the First Five-Year Plan approached its end, the East African industrial sector began evaluating some industrial data during the plan. The steel industry, being one of the most fundamental industrial sectors, updated its results first.

”At the end of 1904, with the production start of the steel plant in Leta Province (southern Angola, northern Namibia), our country’s steel industry assignments during the First Five-Year Plan have been completed ahead of schedule. Last year, our national steel production reached 5.3 million tons, and this year the steel enterprises in Leta Province should be able to increase production by tens of thousands of tons based on this. In other words, in 1905, our country’s steel production capacity is likely to approach, or even break through, 6 million tons.”

In East Africa’s First Five-Year Plan, the goal for steel production was to exceed 5 million tons. In 1904, East African enterprises had already completed the task ahead of schedule, which was very encouraging news for the East African Government.

”Our country’s steel industry has not only achieved outstanding results in terms of quantity. According to predictions by the Ministry of Industry, in 1904, our steel industry further widened the gap with Russia and France, and is very close to the UK’s steel production. By the end of 1905, it might even surpass the UK’s steel industry, reaching the third place in the world, second only to the United States and Germany.”

Last year, British steel production was also above 5 million tons, though the exact data is unknown. However, estimates suggest it was between 5.4 million and 5.8 million tons. In terms of scale alone, East Africa was already infinitely close to the UK’s level.

Meanwhile, Russia remained in fifth place worldwide, and France was in sixth, both around the 2 million tons level. In comparison, France’s steel industry developed quickly compared to Russia.

In 1900, France’s steel production was only just over 1 million tons, while Russia had already reached over 2 million tons. Thus, Russia essentially made no progress, having been heavily impacted by the economic crisis from the early 20th century onwards.

Currently, Russia’s steel industry was in recovery following the economic crisis, aided by the catalyst of the Russo-Japanese War. From 1900 to 1902, Russia’s steel industry did not increase but actually decreased due to the crisis, so the lack of significant increase in Russia’s steel production was entirely expected by the East African Government.

As for France’s rapidly developing steel industry, it could be described as reaping the rewards of hardship. Since the Franco-Prussian War, through to the last decade of the 19th century, France’s economy first suffered heavy blows, then remained in a state of slow growth, forming a stark contrast with Germany’s rapid progress.

But in the late 1890s, France’s economy finally broke away from its long-term doldrums. Firstly, with time, France emerged from the war’s effects. Secondly, French overseas colonies began to provide significant resources for the French mainland industries.

During East Africa’s First Five-Year Plan, it was also arguably the best period for France’s economy in decades. Under conditions of inadequate domestic energy and minerals, the rapid expansion of steel production keeping pace with Russia spoke volumes, with East African Government estimates indicating that between 1906 and 1907, France’s steel production might likely surpass Russia again.

Because of its earlier industrialization, France’s steel production was originally above Russia’s, and Russia only surpassed France in recent years.

As for Austria-Hungary, it is currently vying with Belgium for the seventh spot in the world. Despite Belgium’s small territory, it is a formidable power in the steel field, often neck and neck with Austria-Hungary.

Belgium’s domestic coal and iron ore resources are abundant, a blessing from heaven. Whether Germany or France incorporates Belgium, it would significantly advance their national industries.

In 1900, Belgium’s steel production was over 500,000 tons, surpassing many major nations globally. According to predictions by the East African Government, last year, in 1904, Belgium’s steel production might have exceeded 1 million tons, a level that far outstripped the vast majority of countries worldwide.