African Entrepreneurship Records

Chapter 980 Atlantic Economic Area

 East Africa also had the same "Westward Expansion Movement" as the United States in the past, but as time goes by, the connotation of the Westward Expansion Movement is also changing.

The original westward movement was to develop what is now the central region, including industrial areas such as Bohemia Province (Zambia, Zimbabwe, southern Congo, etc.). However, after the South African War, the geographical west of East Africa has actually shifted further west to Angola and other areas. region, so this is the result of the changes in the territory of East Africa.

So Ernst added: "Now the western part of our country has transformed from the central part before the South African War to the Ubangi River Basin, the Congo River Basin, the Angola region and the South-Western Province from the north, so the original western movement should also follow Times change.”

“Southwestern Province, also known as Southwest Africa, was incorporated into our country relatively early, but was not effectively developed due to traffic conditions in the past. The Ubangi River Basin was developed earlier, but it has always been on the edge of our country. Congo The estuary area of ​​the river basin was also incorporated into the territory of East Africa along with Angola, so among these areas, only Angola has the highest degree of development.”

“However, there is still a big gap between Angola and the developed regions in the east and center. Therefore, in the next ten years, the western region with Angola as the core will be the focus of national development.”

"Our country has moved its capital from the first town on the eastern coast to today's Rhine City. Therefore, with Rhine City as the center, there are two important radiation lines, corresponding to the Indian Ocean and the Atlantic Ocean. The economic development level of the Indian Ocean coast is higher than that of the Atlantic coast. , which is unbalanced.”

"So how to make the west catch up with the development level of the east in a short period of time is a key issue we should discuss. In turn, I think East Africa should form three major economic cores in the future, namely the already formed Indian Ocean Economic Zone, with the Rhine City as the The central economic zone in the center and the yet-to-be-formed Atlantic Economic Zone are three major vertical economic development regions.”

Of the three vertical economic zones proposed by Ernst, the two ocean economic zones mainly rely on the advantages of maritime transportation, while the central part relies on the advantages of mineral resources and land transportation.

At this time, Siweite said: "According to His Highness's request, we are prepared to develop related advantageous industries in Angola and other western regions, and use national power and policies to significantly improve the local industrial level."

“This includes the construction of a deep line of the Atlantic Coast Railway to break the traffic congestion in Angola and the Ubangi River Basin, the Congo River Basin, and the Southwest Province. This is a key project for future railway transportation in Angola.”

The Atlantic Coast Railway has been built a long time ago, but it only covers the coastal areas of Angola. Now the East African government’s idea is to completely turn it into an artery like the Indian Ocean Coast Railway, which can connect the entire west.

"The technical difficulty is that the extension line has to pass through two climate zones: tropical rainforest and tropical desert, and cover complex terrains such as mountains, plateaus, plains, hills, deserts, rainforests, grasslands, rivers, etc. This railway will also be the foundation for the founding of our country in East Africa. The most difficult railway ever built.”

“Once the railway is built, the journey from Bangui to Kinshasa will not only rely on the water transportation of the Ubangi River. Although the Ubangi River can reach Bangui directly, it cannot guarantee smooth flow all year round due to the seasonal climate. , and the railway will supplement the shipping on the Ubangi River. At the same time, after the railway is completed, it will also completely connect the two major railway arteries of the Northern Railway and the Atlantic Coast. "

“The Southwestern Province Railway Extension Line is also for the same reason. It can connect the Atlantic Coast Railway and the Southern Railway network in series, which is of great significance to the economic development of the western region.”

“Especially in the transportation of energy and minerals, although the west is also rich in minerals, it also needs the support of minerals in the south, especially the relatively scarce coal resources.”

Angola is currently self-sufficient in iron ore, but far less so in coal mines. Therefore, the coal resources it requires still need to be transported from southern East Africa before the mineral exploration work in the region is completed. In the past, the coal needed for Angola’s industrial development needed to be transported through the central government. The railway transits through the central region, which increases costs out of thin air.

 Although East Africa, like Japan, a resource-poor country, also imports foreign mineral resources to develop its own industry, the difference is that imported minerals in East Africa account for a small proportion of its own industrial development, and it mainly relies on resources in the central and eastern regions.

There is another key issue here, that is, in order to balance the accounts, many East African industrial products are exported to backward countries and regions, in the absence of advantageous markets, mainly through material exchange with the locals.     Many backward countries and regions, including some colonial areas, have insufficient funds and purchasing power due to their backward economic level.

In this case, they are naturally unable to consume more industrial products, so the East African government will directly carry out a "barter" trade situation based on local resource conditions, similar to a large Eastern country in the previous life that implemented the "barter" trade situation in order to bypass the U.S. dollar. currency swap.

Of course, East Africa has not developed to the level of a major country, and the times have not developed to this level. For example, the currency issuance rights and finance in many colonial areas are in the hands of the mother country. The locals have no autonomy, and there are no conditions for direct and equal exchanges with East Africa. , so bartering is more acceptable.

For example, this is the case with the trade between East Africa and India. Although India is a British colony, India also has its own lower-level governance system, mainly local princes and nobles and local British officials. East Africa bypasses the British mainland by negotiating with these forces. interference.

After all, it is impossible for East Africa to directly accept the Rhine shield from the Indian colonial government. It would be a big taboo if the British discovered it, and the goods would be much easier to handle. After all, the place of production may not be directly stated on the goods. At the same time, the goods Prices are not fixed like currencies.

 One pound is one pound, but it is not certain how much one pound of goods will sell for on the market. This provides room for middlemen to earn the price difference, and the Indian colonial government plays the role of middleman.

And in general commercial activities, the purpose of businessmen is to obtain more currency. It is very difficult for East Africa to directly extract a piece of money from other countries and forces, but if it is an exchange for unimportant local things, Much simpler.

For example, India is rich in coal resources, but as a colony, India's industry has little demand for coal. At this time, corrupt officials in the colonial government and local princes and nobles can exchange local coal for goods with East Africa.

Although this is inefficient, has slow returns, and has a long cycle, and is not as convenient as currency settlement, it allows East African commodities to successfully circulate, thereby promoting the development of local industry.

This is feasible in East Africa. After all, East Africa, as an economy dominated by state-owned economies, can reallocate and integrate resources at the national level, while commercial activities in general countries are mainly conducted through private individuals.

Just imagine, in the 19th century, a British rag merchant sold his products in India. The return he wanted was obviously pounds. If you asked him to bring back a pile of coal of the same value, he would definitely be out of his mind. This is abnormal. After all, coal is abundant in the UK, has been developed a lot, and costs are low. He has to pay more for transportation costs, which further increases the risk, unless this batch of coal is given away for free and he has a market in the country.

Therefore, it is not that this form of trade cannot be done in other countries, but it must be done by capable people. But even European monopolies have profit as their main goal and will not do the East African thing. Money can definitely be made. But it’s too much effort and thankless.

Therefore, in the development path of the East African government in the Atlantic Economic Zone, in addition to normal commercial and trade activities, direct barter trade with backward countries and regions along the Atlantic coast will also be a focus. This is essentially a challenge to East Africa's trade in the Indian Ocean. a kind of copy.

 For the East African government, this is beneficial to the current economic development of East Africa. After all, as a late-developing country, East Africa does not have traditional business paths.

 (End of this chapter)