African Entrepreneurship Record

Chapter 1207: Chapter 216: Iron Ore Business Opportunity

Dar es Salaam City southern port area.

This is where Dar es Salaam City’s industrial essence lies, with a multitude of towering chimneys belching vigorous smoke into the sky, rendering the entire sky ink-black. Under the smoke, factory zones witness trucks bustling with goods loading and unloading, while workers labor intensely.

Below these factories lies a developed pipeline system constantly channeling factory wastewater into the Indian Ocean, while the port area appears relatively tidy and clean.

”Mr. Pasteur, East Africa’s industry is truly astonishing. Although I often travel to Dar es Salaam City for work, each visit leaves me amazed by its development,” said Australian businessman Howard.

Due to being a British colony, Australia did not send official personnel to attend the East Africa World Expo; instead, business organizations from Australia attended, with Howard being the president of the Western Australia and East Africa Business Association.

Western Australia is a primary administrative division, occupying about one-third of the entire Australia, and is the most active region in Australia-East Africa trade.

Pasteur smiled and said, ”Thank you for your compliments, President Howard, but this is one of the main reasons why Dar es Salaam City has been able to seize opportunities. I suppose Australia is also profiting handsomely from the current war.”

This is almost beyond doubt. As a British colony, Australia has sent troops and provided various supports, but ultimately, the benefits provided by the United Kingdom to Australia are immense.

Undoubtedly, this is influenced by East Africa’s reality; Australia urgently needs the British Royal Navy to secure its position in face of East Africa, a superpower in the Indian Ocean.

There’s no doubt that East Africa’s rise is deemed a huge threat by the Australian government, a role played by Japan in past generations.

Ernst believes the Australian government has assessed accurately. In fact, Ernst has always wanted to meddle in Australia but hasn’t found an opportunity.

Nonetheless, East Africa’s geopolitical pressure on Australia is evident, especially in the Indian Ocean region, while East African colonies form a looming threat over Australia, especially in the Southern Pacific and near the equator.

Australia is inherently loyal to the British, so its government’s resistance and distrust toward East Africa is understandable.

Of course, outwardly, Australia dares not directly refuse East Africa, especially since 1914 when the UK declared war on the Allies, resulting in the Australian government significantly easing restrictions on East Africa.

At the root of it, during this era, Britain cannot extricate itself, and Australia feels defenseless without its protector, thus not daring to make relations with East Africa too tense.

During the South African War, Australia often sarcastically joined the British against East Africa, even deploying troops, though merely in small numbers, hence attracting little attention.

In sum, before East Africa and the UK reconcile, Australia’s attitude towards East Africa is like a rabid dog, consistent with Ernst’s past understanding of the Anglo-Saxons people, inclined towards misconduct.

However, as a dog, it ultimately possesses pragmatism; now Australia lacks its former arrogance.

In past generations, Australia followed the UK in aggressively targeting Germany’s Pacific colonies, while these German colonies have now become East Africa’s strategic points of coercion against Australia.

To further irritate the current Australian government, East Africa deliberately enhances Western Australia’s economic power, given that Australia’s main economic and political bodies are situated in eastern Australia.

Western Australia was previously the chief source of separatist activities within Australia, so Eastern Africa maintains frequent trade with Western Australia, leading to the creation of the Western Australia and East Africa Business Association.

”President Howard, under the current European war, it’s undoubtedly a rare opportunity for most external countries and regions. Given Europe’s past industrial and economic power, the world’s other regions found development arduous, whereas the European war provides them a crucial breathing pause,” Pasteur remarked.

Howard laughed heartily and said, ”Mr. Pasteur is right. This year, Australia’s wool exports to Europe have set new records, a feat previously unimaginable.”

Howard has enjoyed successful business ventures in recent years, and with the facilitation of East African markets and the boost from the European war, the entire Western Australian economy has entered a thriving state, where life burgeons in vitality.

Pasteur asked, ”Mr. Howard, what kind of exhibits have you brought this time?”

Howard replied, ”Mainly products from Australia’s agricultural and mining sectors, such as wool, woolen textiles, artworks, iron ore, and wheat.”

Pasteur continued, ”Your country’s woolen textiles are quite popular in East Africa; however, given our environment, textile demands are relatively low, although they could be welcomed if repurposed for other uses.”

East Africa’s climate, with minimal variations year-round, inevitably curtails the demand for clothing compared to regions with distinct seasons, somewhat limiting East Africa’s textile industry development.

This consideration is why Pasteur urges Howard towards diversification.

Howard said, ”Indeed. Our cashmere and clothing products primarily serve Europe and America. We certainly have special positioning for the East Africa market, focusing our exhibition primarily on various artifacts.”

East Africa is not devoid of wool needs; rather, East African wool is sufficient for national self-sufficiency. Most regions in East Africa are suitable for pastoral development, especially provinces in the south, which are East Africa’s wool industry hubs.

Since Howard has his ideas, Pasteur naturally doesn’t dwell on the matter further, though he did gain some intriguing information from Howard earlier.

”Mr. Howard, you mentioned earlier about iron ore among your exhibition items, didn’t you?” Pasteur inquired.

Howard nodded and said, ”Indeed, the iron ore was discovered by an employee at my ranch. I then hired someone for a preliminary survey, initially identifying a substantial iron deposit.”

”I brought some samples this time to explore partnership opportunities for developing this deposit. My ranch is quite distant from the coast and lacks workers, making development challenging.”

Mining demands numerous prerequisites, with transportation being a fundamental issue, as minerals can’t be utilized unless exported, akin to the plight of past Bolivia—abundant iron resources hindered by poor transportation and inconvenient mine locations, leaving riches untapped.

This era’s Australia typifies expansive land with sparse population, requiring considerable manpower for profitable mining, recalling how East Africa’s mining evolution initially relied on Black Slaves’ sacrifices.

Yet Australia’s indigenous population is minimal, significantly diminished by present Australians, and they certainly wouldn’t involve themselves in such hazardous tasks, given the numerous opportunities in Australia, where even basic livestock breeding or agriculture suffices for wealth accumulation.

Nonetheless, it’s not that local mineral resources lack allure; it’s the hesitation toward initial investment, as mineral development intuitively demands infrastructure solutions—a sizable expense encompassing railways and ports.

Thus currently advancing mining, with its high risk and heavy investment, appears counterproductive; land remains under control with development inevitably forthcoming, since minerals won’t magically disappear.

Pasteur finds Howard’s information intriguing because East Africa indeed is an industrial power. Despite East Africa’s varied but unevenly distributed resources, consumption levels are immensely high.