Chapter 422: The Railway and the Copper Mine
Compared to Zimbabwe, the Katanga Plateau (Zambia and southern Congo) is actually the heart of East African territory. However, its mineral resources are rather unbalanced—its copper reserves are among the world's top, but other minerals are scarce in comparison.
Even so, Katanga's coal and iron resources are still better than those in eastern East Africa, although they're concentrated near the border with Zimbabwe. This distribution clearly shows that most of East Africa's natural coal and iron reserves are naturally abundant in southern Africa.
Just like the British said during World War I, German colonies were worthless. In later history, East Africa's overall development lagged behind that of North, West, and South Africa—it was only slightly better than Central Africa.
So Ernst said, "As we build the Central Railway, we must also develop the Katanga region. It should be economically integrated with the eastern regions before the Matabele Plateau (Zimbabwe) is. We need to close the gap between the two areas."
"The copper resources in Katanga will be the focus of our development. They'll become the core of our competitive advantage."
"Everyone should understand the importance of copper. It's currently the world's second-most consumed metal after steel—and it's one of East Africa's strengths."
"And developing copper mines is impossible without railway support. Our demand for copper is huge, so the Central Railway is vital to unlocking the potential of Katanga's copper."
Historically, from the 17th to the 19th century, Europe was the main global supplier of copper. But demand was low. That changed in the late 19th century, when copper became essential for electricity. The invention and widespread use of electricity and electric appliances led to a surge in global demand. The U.S. replaced Europe as the main supplier, which showed that America had surpassed Europe in refining and electrical manufacturing.
But with Ernst's arrival, that historical trend shifted. The rapid rise of Hechingen Electric Company made Europeans quickly realize copper's strategic economic value.
Copper prices have been rising across Europe, which is bad news for Hechingen Electric. That's why now is the perfect time to develop East African copper and the electrical industry.
And when it comes to electricity, East Africa is not lacking in potential. That's all thanks to Katanga's copper, which gives Ernst the confidence to act.
For example, the production of wires and cables has a massive market—especially now, with countries rushing to install underwater cables, telegraphs, telephones, and electric lighting. These products need copper and rubber. What could be more perfectly suited to East Africa?
Of course, this was a railway planning meeting, so Ernst didn't dive deep into the electricity sector.
However, Ernst already planned to develop the electrical industry in Dar es Salaam and Mombasa. With Hechingen Electric already in place, East Africa had the manpower, technology, and funding. The only thing missing was the raw materials—materials that required the railways.
The electrical industry is being placed along the coast because it relies heavily on advanced technology, skilled labor, and access to markets.
East Africa had the technology—but not yet the human talent. That would have to be imported from Europe and the U.S. Dar es Salaam and Mombasa were East Africa's most attractive cities in that regard.
As for the market, East Africa's internal demand was small and mostly in the east. The main target was still Europe, where Hechingen Electric already had established sales channels. East Africa's role was just to manufacture and ship goods by sea to Europe.
This is why Ernst planned to place electrical manufacturing in East Africa's eastern coastal region. That region's greatest asset is its sea access and fertile agriculture. But in the industrial era, fertile farmland doesn't always translate to a competitive advantage—just like Austria and Hungary.
Still, Ernst didn't believe East Africa was at a disadvantage. With the right environment, even resource-poor regions could thrive through global trade. Convenient sea routes were key.
Take Far East Asia, for example. Its coal, iron, oil, and gas were mostly in the north (northeast and northwest), but the south (including the southwest) had an edge in transportation—especially because of its access to the sea and inland waterways.
China's Yangtze River, for example, made all of southern China (except Tibet) one vast economic region. That river made China's heartland far more connected than other areas.
China's north also has ports—but only a few excellent ones. And winter sea ice blocks shipping. Inland trade is limited. But if those northern Chinese ports were located in another country, they'd be considered world-class.
If East Africa had those kinds of natural advantages, Ernst would have been laughing in his sleep. In reality, East Africa's ports are poor by global standards—but still better than those in Central, Southern, or Western Africa.
North Africa, which borders the Mediterranean and Red Seas, has far better access. East Africa, on the other hand, faces the Indian Ocean—and the Indian Ocean is one of the most important shipping routes in the world, even in the 21st century.
West and Central Africa connect mainly to the South Atlantic, but the South Atlantic is mostly poor. Its counterpart, South America, is in no better shape. The two are like two struggling brothers—neither could lift the other.
So there was little trade between them. Instead, Europe and the Far East dominated global trade routes, and both Africa and South America sat at the bottom of the global supply chain—sending out cheap agricultural goods and raw materials.
East Africa's biggest challenge is that it sits slightly off the world's main trade routes—just like China in the past. In this regard, India has a far better position. If India rose, it could become the gatekeeper of world trade in the Indian Ocean—just like the Arab world was before the Age of Exploration.
How serious is this problem? Let's imagine China and India swapped locations. If that happened, the U.S. would immediately lose its superpower status, and China would become the world's number one.
Whoever controls the global shipping lanes holds the key to raw materials and international markets—two things that currently limit China's rise.
As for other Indian Ocean countries, none have India's advantages. The Arab world is too dry and poor for industrial development. Southeast Asia is too fragmented. East Africa is too far off the main routes. And Australia can be ignored entirely.
That's why, in Ernst's industrial blueprint, East Africa's eastern coast will be the launchpad for export-led industries. And the best candidate for now is the electrical industry. Other than that, East Africa's exports will continue to focus on agriculture—especially tropical crops.
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