Arc 42Industrial Ambitions and Crisis

East Africa completed its First Five-Year Plan with major gains in heavy industry, transport, agriculture, and military production, then began the Second Five-Year Plan with ambitious targets for steel, railways, electrification, and light industry. A financial crisis disrupted exports and forced officials to manage agricultural surpluses while cities sought new paths to industrial growth.

  • East African officials celebrated steel output nearing six million tons and set plans to expand industry, defense, and overseas trade while keeping the mainland out of future wars.
  • After the Russo-Japanese War ended, Ernst and his officials launched the Second Five-Year Plan with targets for steel, railways, electrification, light industry, and military expansion.
  • East Africa developed its first Dreadnought, expanded its navy and army, and exchanged limited battleship technology with the Austro-Hungarian Empire for artillery assistance.
  • Antaled directed Harare to diversify beyond steel and heavy machinery by expanding textiles, food processing, appliances, automobiles, and agricultural support.
  • Tal showed inspectors how Kosa Town’s electric pumps and irrigation supported expanding cotton fields, mechanized farming, and plans for fertilizer and cotton-processing plants.
  • Ernst ordered greater attention to agricultural research, chemical safety, nuclear-research safeguards, and improvements to existing higher-education institutions.
  • A financial crisis weakened East African exports, leading Ernst to redirect production toward domestic demand and use industry to absorb agricultural surpluses.
  • Hermes urged Randall to build Iringa’s flour-processing industry into a wider domestic food business focused on biscuits, pastries, and other consumer goods.
Chapters 1031–1055 Vol. 11 Read

Ch. 1031Steel Industry Plan Completed Ahead of Schedule

East Africa’s stable regional influence supported its First Five-Year Plan, while its steel industry surpassed its target ahead of schedule. Officials projected that production could approach six million tons in 1905 and potentially overtake Britain to rank third worldwide.

  • East Africa’s government maintained regional stability and expanded trade with neighboring colonies and states, drawing them into its economic sphere.
  • East African steel output reached 5.3 million tons in 1904, exceeding the First Five-Year Plan target of five million tons.
  • Officials projected that new steelworks would push East Africa’s 1905 production close to or above six million tons.
  • The Ministry of Industry estimated that East Africa was nearing Britain’s steel output and might surpass it in 1905, behind only the United States and Germany.
  • East African officials assessed France’s industrial recovery and expected its steel output to overtake Russia’s again around 1906 or 1907.

Ch. 1032Alloy Steel

East Africa’s steel industry made rapid progress during the First Five-Year Plan, especially in alloy steel, and began exporting special steels. Ernst considered the government’s goal of surpassing Germany during the Second Five-Year Plan unrealistic and stressed the need for measured growth while keeping East Africa out of future world wars.

  • East African officials reported that advances in alloy steel had strengthened the defense and shipbuilding industries, and that Germany and Austria-Hungary were importing East African special steels.
  • The Ministry of Industry set goals to surpass Britain before 1905 and Germany during the Second Five-Year Plan.
  • Ernst judged that overtaking Germany within five years would be difficult because East Africa’s steel production would need to nearly double while Germany’s industry kept growing.
  • Ernst concluded that East Africa should set industrial targets according to its circumstances and avoid excessive optimism about the First Five-Year Plan’s gains.
  • Ernst believed East Africa’s mainland must stay out of future world wars so the country could benefit from the opportunities they created.

Ch. 1033Economic Conditions in 1904

Ernst reviewed East Africa’s economic conditions in 1904, as the First Five-Year Plan drove rapid growth in construction materials and industry while agriculture shifted toward cash crops and rice. The report showed that East Africa had built a substantial heavy-industrial base, though light industry still lagged.

  • East Africa’s annual cement output exceeded three million tons, and officials projected more than 3.5 million tons by the end of 1905.
  • Ernst considered how construction growth and infrastructure renovations would increase demand for labor and cement, while East Africa’s extensive use of enslaved labor kept it politically isolated.
  • The Ministry of Industry reported that East Africa had nearly closed its heavy-industry gap and advanced in electricity, petroleum, automobiles, and chemicals, but light industry remained comparatively weak.
  • East African agriculture became more mechanized and productive, and exports of cash crops reached record levels as grain exports made up a smaller share.
  • Improved waterworks expanded rice cultivation, while East Africa continued importing some high-quality grain and meat to support domestic needs.

Ch. 1034Defense Industry

East Africa’s agricultural production shifted toward rice and other high-yield crops as water infrastructure and territory expanded, while its First Five-Year Plan advanced military aviation, vehicles, weapons, and naval shipbuilding. The chapter left East Africa’s submarine program ahead of other powers and its battleship research awaiting lessons from the coming Russo-Japanese naval battle.

  • East Africa expanded rice, corn, and potato cultivation as water infrastructure improved and new regions with abundant water joined the country.
  • The government built three aircraft plants between 1901 and 1904, with production focused on military use and only limited trial purchases by civilian departments.
  • East Africa expanded automobile and armored-vehicle production, though the army retained cavalry as its main mobile force and equipped only three armored units.
  • Advances in alloys and military-industrial research helped East Africa produce rifles and artillery that ranked among the world’s most advanced.
  • East Africa’s naval industry caught up with the great powers in submarine and battleship construction, but battleship research paused pending data from the Russo-Japanese War.
  • East African submarines led the world, while France and Germany showed the strongest interest in developing submarine warfare.

Ch. 1035Joining the Naval Arms Race

As the Russo-Japanese naval battle exposed the limits of existing battleship designs, East Africa revised its plans around all-heavy-gun ships and prepared to expand its navy during the Second Five-Year Plan. Ernst approved a long-term construction program while warning the navy to adapt designs to changing technology.

  • Reports from the Far East led Rolalaina to propose larger battleships with uniform heavy guns, powerful engines, and stronger armor.
  • Ernst approved immediate construction of an East African Dreadnought and ordered the navy to study foreign shipbuilding, especially Britain's.
  • Ernst set a target of building one battleship each year during the Second and Third Five-Year Plans, aiming for at least fifteen by 1915, and cautioned that designs must keep pace with technological change.
  • The East African Navy welcomed the plan as a chance to expand its capacity for overseas operations and future wartime influence.

Ch. 1036Arms Trade

Ernst planned to expand East Africa’s military forces and defense industry during the Second Five-Year Plan so the country could compete in global arms markets and prepare for the expected European war. He left East Africa focused on improving weapons quality, building its reputation, and increasing industrial capacity, especially in light industry.

  • Ernst argued that East Africa needed a navy second only to Britain, the United States, Germany, and France, and noted that its battleships were mostly intended to be dreadnoughts.
  • Ernst ordered the army expanded to at least 350,000 men by 1915 and called for greater investment in defense manufacturing and overseas projects.
  • Ernst identified weak export volumes and lingering doubts about East African weapons as obstacles to arms sales, despite rifles having caught up in quality with German products.
  • Ernst directed East Africa to improve weapons standards, promote its rifles and artillery abroad, and offer competitive prices to build its reputation.
  • Ernst planned to expand military and civilian production, including light industry, so East Africa could supply global markets during a European war without expecting to match the United States.

Ch. 1037The World's Largest Closed Country

In Luanda City, German businessman Klovey discussed East Africa’s rapid development and its tightly managed urban economy. On June 12, 1905, East Africa expanded trade and opened more ports, while its vast inland industrial regions and restrictions on foreigners kept its true strength difficult to assess.

  • Klovey and other Germans discussed East Africa’s urban growth, compulsory education, assigned employment, and limits on social competition.
  • Klovey reflected on the profits he had made trading in East Africa and the restrictions that limited merchants’ opportunities.
  • On June 12, 1905, the East African government expanded its opening-up policies, welcoming more foreign traders, opening additional port cities, and reducing tariffs on selected goods.
  • The East African government’s industrial growth and rising urbanization were described as results of the First Five-Year Plan, though population figures remained uncertain without a recent census.
  • The account explained that East Africa’s heavy industry was concentrated inland and that foreign diplomats and merchants faced limits on travel and access to the country’s interior.

Ch. 1038The Final Stage of the First Five-Year Plan

East Africa assessed the Russo-Japanese War and concluded that Russia’s defeat showed the dangers of neglecting intelligence and underestimating industrial rivals. As the First Five-Year Plan ended with major gains in heavy industry but weak light-industry production, Ernst set defense and light industry as priorities for the Second Five-Year Plan.

  • On October 6, 1905, the Russo-Japanese War ended with Russia’s Far Eastern influence and navy devastated, while Japan gained great-power status at severe financial cost.
  • Chief of Staff Merke warned East African officials not to become complacent after Russia’s defeat and urged them to learn from its poor intelligence and arrogance.
  • Ernst said East Africa needed greater industrialization and identified defense and light industry as priorities for the Second Five-Year Plan.
  • East Africa completed its First Five-Year Plan with steel output approaching six million tons, 150,300 kilometers of railways, and exceptionally high automobile, electric-equipment, and petroleum production.
  • East Africa’s heavy industries had advanced rapidly, but light industry lagged behind Europe and America, reflecting decades of investment focused on heavy and emerging industries.

Ch. 1039Automobile Capital

The chapter described Rhine City's extraordinary automobile ownership and East Africa's rapid industrial rise, while foreign diplomats debated how the country had achieved it. It ended with the Far East Empire's ambassador praising East Africa as a model for his country's revival.

  • Rhine City had 33,000 registered automobiles among a population of about 400,000, along with dense urban rail and bus networks.
  • French ambassador Thomson dismissed Rhine City's automobile numbers as a government-backed vanity project and argued that East Africa remained divided between developed cities and poorer regions.
  • Foreign diplomats struggled to investigate East Africa's automobile industry because its major factories were inland and inaccessible.
  • The chapter traced East Africa's industrial growth to the Second Industrial Revolution, educational development, and the successful First Five-Year Plan.
  • Far East Empire ambassador Li Ling praised East Africa's rapid transformation and said its development offered valuable lessons for his country.

Ch. 1040Second Five-Year Plan

East Africa announced its Second Five-Year Plan in December 1905, setting targets to expand and modernize the steel industry while developing new resource regions. The plan also called for greater imports of foreign raw materials, and the story left East Africa preparing to balance industrial growth with regional development and trade.

  • East African officials set a Second Five-Year Plan target of at least ten million tons of steel, after output exceeded six million tons during the First Five-Year Plan.
  • The government planned large steel enterprises in Cabinda and Kinshasa, drawing on local and Belgian Congo iron ore, and further expansions in Letania Province and Tete Province.
  • East African ministries focused on Belgian Congo's iron ore and potash resources to support steel production, chemical fertilizers, and agriculture.
  • The steel sector made upgrading outdated local enterprises and exploring coal and iron ore in the west and north priorities, while the government planned preferential support for weaker northern regions.
  • East Africa planned to import more coal and iron ore from India, Belgium, South America, and elsewhere to encourage trade and support industrial exports.

Ch. 1041Railway Second Five-Year Plan

East Africa’s leaders reviewed steel production and railway construction priorities for the Second Five-Year Plan, emphasizing expanded steel capacity and improved rail links, especially in the north. The plan set a target of 50,000 kilometers of new railways, bringing the national network to at least 200,000 kilometers.

  • Ernst argued that East Africa needed to expand steel output while improving the quality and variety of its steel.
  • Andre reported that East Africa had built about 150,000 kilometers of railway, including 50,000 kilometers during the First Five-Year Plan.
  • Andre described the northern railway network as sparse and warned that its gaps created national defense and security concerns.
  • Andre proposed improving northern railway construction and continuing to build the African land bridge during the Second Five-Year Plan.
  • Andre set a national target of 50,000 kilometers of new railway, which would bring East Africa’s total to at least 200,000 kilometers.

Ch. 1042Electrification

Ernst outlined East Africa’s plans to develop railway electrification alongside steam and internal-combustion railways, linking electrification to broader energy security and modernization. Andre said two experimental electrified railways would be completed in 1906–1907, and Ernst called for electricity to spread throughout East African society before mid-century.

  • Ernst said railways would remain essential during the Second Five-Year Plan and announced plans for two experimental electrified railways.
  • Ernst urged the railway sector to diversify energy sources and prepare for electrification because East Africa depended on imported petroleum.
  • Andre said the Ministry of Railways had shifted resources toward research and would complete two electrified railways between 1906 and 1907.
  • Ernst explained that East Africa’s railway industry would develop steam, internal-combustion, and electric power side by side rather than replace one with another.
  • Ernst declared electrification a major task of modernization and said electricity should be widespread throughout East African society before the middle of the century.

Ch. 1043Resource City Issues

As the Second Five-Year Plan began in 1906, East Africa emphasized expanding light industry while retaining heavy industry’s dominance. Harare’s mayor Antaled presented plans to diversify Bohemia Province’s resource-dependent economy by building on its agricultural and industrial advantages.

  • East Africa set a target for light-industry output to rise at least 50 percent above its 1905 level, while planning to double steel production and continue prioritizing heavy industry and defense.
  • The Second Five-Year Plan began in 1906 and called for the construction of more than 1,200 modern large-scale light-industrial enterprises.
  • Mayor Antaled told Harare officials that the city would serve as a model for transforming traditional industrial regions and warned that resource-dependent towns needed to prepare for eventual mineral depletion.
  • Antaled urged Harare to preserve its steel, power, and heavy-machinery sectors while expanding cotton textiles, food processing, and household-appliance manufacturing.
  • Harare’s plan called for using Bohemia Province’s agricultural and industrial strengths to diversify the city and promote electrification.

Ch. 1044Harare City's Industrial and Agricultural Development Plan

Antaled outlined Harare City's industrial and agricultural priorities for the Second Five-Year Plan, emphasizing electrification, manufacturing, automobiles, mechanized farming, tobacco, and cotton textiles. The chapter ended with Bohemia Province planning to expand cotton cultivation in its western region while Harare processed raw cotton into finished and semi-finished goods.

  • Antaled called for increased power generation and faster development of household-appliance and power-equipment manufacturing in Harare City.
  • Antaled listed thirteen planned industrial projects and announced a Provincial Steel Materials Research Institute to support the Harare City Special Steel Plant.
  • Antaled identified expanding Third Automobile and its supporting industries as a major task, noting Harare City supplied roughly 47 percent of its parts.
  • Antaled called for more tractor orders, chemical production, western-suburb pasture infrastructure, and stronger supplies of agricultural products.
  • Antaled urged further tobacco-product research and cotton cultivation, with Harare City focused on processing cotton while Bohemia Province expanded planting in the west.

Ch. 1045Pump Station Revolution

Water Conservancy Bureau inspectors visited Kosa Town to examine its new electric pump station, which Mayor Tal had built to draw Zambezi River water into farmland. They approved the station, and Tal learned that the city would report Kosa Town’s work favorably while inspections continued to uncover problems elsewhere.

  • Mayor Tal guided Water Conservancy Bureau staff to inspect the Fifth Branch Canal and explained Kosa Town’s new electric pump stations.
  • The inspector examined the pump station’s construction and equipment, then asked Tal to demonstrate its operation.
  • Tal switched on the pump, and the inspector observed river water flow through the outlet canal toward nearby fields.
  • The inspector praised the pump station’s performance and discussed the benefits and power-supply limits of electric pumps alongside older water-diversion technologies.
  • The inspector thanked Tal and said the bureau would report Kosa Town’s successful construction, while noting that other townships had serious problems.

Ch. 1046New Agriculture

An investigator from the Kapolan City Water Conservancy Bureau toured Kosa Town and discussed how irrigation, mechanization, and policy had transformed its agriculture, especially cotton cultivation. The chapter ended with East Africa planning further agricultural expansion while pursuing new machinery and technologies to address labor and productivity constraints.

  • The investigator examined Kosa Town’s fields and learned that cotton acreage had grown rapidly as irrigation improved and agricultural policy shifted toward cash crops.
  • Tal described the town’s expanding tractor fleet and the reorganization of farmland for mechanized cultivation.
  • The investigator told Mayor Tal that Kapolan City planned to build a fertilizer plant and a cotton gin during the Second Five-Year Plan.
  • Tal said Kapolan City’s agricultural and industrial output had risen by more than thirty percent and expected the city’s agricultural scale to more than double.
  • The chapter noted that labor-intensive cotton picking remained difficult to mechanize, while East Africa aimed to expand tractors, pesticides, fertilizer, irrigation, and agricultural research.

Ch. 1047Industry Nourishing Agriculture

The chapter compared Germany’s world-leading agricultural yields and machinery with East Africa’s agricultural development. In Rhine City, Ernst and Minister of Agriculture Fingel discussed East Africa’s mechanization limits and how continued industrial growth would help agriculture advance.

  • The chapter described Germany’s high crop yields, attributing its lead to advanced breeding, fertilizers, pesticides, machinery, and investment by landowning elites.
  • Fingel briefed Ernst that East Africa could produce agricultural machines such as wheat seed drills but lacked the industrial capacity to distribute enough across its vast farmland.
  • Fingel explained that tractors helped East Africa mechanize efficiently, and that its annual output of internal-combustion tractors had reached seventy thousand units.
  • Ernst said industrial development had taken priority during the First and Second Five-Year Plans, but argued that stronger industry would produce better equipment and help nourish agriculture.
  • Ernst noted that East Africa’s agricultural gains would also depend on the further development of its chemical industry and production of fertilizers and pesticides.

Ch. 1048Chemical Industry Safety

Ernst discussed the chemical industry's importance to East Africa's Second Five-Year Plan and warned that unsafe pesticide and chemical production could cause catastrophic harm. He ordered a review of chemical plants and stricter safety practices, prompting industrial departments to begin considering production safety.

  • Ernst told Fingel that the Ministry of Agriculture should pursue research, improved crop varieties, and land management instead of focusing only on machinery, fertilizers, and pesticides.
  • Ernst warned that pesticides and other chemicals could poison people and damage water and soil, and resolved to inspect East Africa's chemical industry.
  • Ernst instructed the Ministry of Industry to review chemical plant locations and improve production safety, but allowed projects already under construction to proceed with higher standards and stricter procedures.
  • Ernst ordered industrial departments to strengthen worker training, safety rules, and enforcement, and they began discussing production safety.

Ch. 1049East Africa's Utter Lack of Virtue

Ernst described East Africa’s nuclear physics program, which combined strict isolation and generous benefits at home with overseas laboratories that exposed European and American researchers to radioactive materials. East Africa’s research advanced rapidly, though its domestic scientists remained separated from foreign peers.

  • East Africa expanded nuclear physics research during the First Five-Year Plan and placed mainland institutes in remote central and western regions.
  • Ernst ordered radioactive materials and waste to be sealed, registered, and shipped in concentrated batches abroad, while granting researchers and their families the highest benefits.
  • East Africa built overseas laboratories in cities such as New York and London, where foreign scientists conducted experiments without protective measures.
  • East Africa used overseas findings to supplement its isolated domestic research, which advanced quickly and surpassed European and American peers.

Ch. 1050Education

Education Minister Muric reported on East Africa’s vast higher-education system and its growing demand for skilled workers. Ernst decided against another major expansion for now, calling instead for better campuses, teachers, and textbooks as the country absorbed earlier investments.

  • Muric told Ernst that East Africa had 217 higher-education institutions after the First Five-Year Plan and described rising demand for specialized talent in industry, research, and government.
  • Ernst said East Africa should not repeat the large university expansion of the 1890s before the Second Five-Year Plan was complete.
  • Ernst called for improving existing education by upgrading campuses, raising teacher quality, and revising textbooks.

Ch. 1051Battleship Perseverance

East Africa officially took over the battleship Perseverance at Port Bagamoyo, becoming the second country to possess a dreadnought. Bruce discussed the ship’s significance and the Austro-Hungarian Navy’s stalled development with Austrian Lieutenant General Erich.

  • The East African Navy took over the Perseverance at Port Bagamoyo, and Bruce lamented that Britain had completed its Dreadnought first.
  • Herwien explained that the British Royal Navy’s reputation had made the Dreadnought the benchmark for a new round of naval competition.
  • Erich praised the Perseverance’s size and performance, then admitted that East Africa had surpassed the Austrian Navy it once learned from.
  • Bruce credited Austria’s past assistance and argued that inadequate funding had held the Austrian Navy back.
  • Erich blamed Hungary’s parliament for refusing to raise the naval budget, while Bruce noted that East Africa had used its slower expansion to build a strong domestic shipbuilding industry.

Ch. 1052Austro-Hungarian Navy Seeks Aid

Bruce explained how East Africa’s planned economy and expanding shipbuilding industry supported its navy, while Erich described the Austro-Hungarian Navy’s funding constraints and the outdated Radetzky. Erich sought East African technical data and equipment to improve the battleship’s design.

  • Bruce told Erich that East Africa’s state-owned shipyards could coordinate resources to support ambitious naval expansion.
  • Erich envied the East African Navy’s autonomy and said the Austro-Hungarian Navy was constrained by parliament, the army, and a tight budget.
  • Erich warned that the Radetzky risked becoming obsolete after the arrival of East Africa’s new battleships and Britain’s sudden emergence.
  • Erich considered asking East Africa for technical data and purchasing components such as dreadnought steam turbines and fire-control systems to improve the Radetzky.

Ch. 1053Taking "Europe and America" as a Mirror

East Africa strengthened military cooperation with the Austro-Hungarian Empire while Ernst and Svit assessed the spreading 1907 financial crisis and planned how to protect domestic industry. The crisis disrupted the Second Five-Year Plan and put pressure on East African exports.

  • East Africa exchanged limited battleship technology with the Austro-Hungarian Empire for its assistance in artillery technology.
  • Svit told Ernst that the United States financial crisis had caused bank failures and industrial stagnation and could spread to Europe.
  • Ernst directed the government to acquire suitable machinery and keep light-industry production running by shifting capacity toward the domestic market if exports weakened.
  • Svit predicted that Japan, Tsarist Russia, and the Austro-Hungarian Empire would be hit especially hard because of their poor fiscal conditions.
  • The crisis caused setbacks to the Second Five-Year Plan as East African exporters cut prices to manage excess production.
  • East African exports of cotton, coffee, cocoa, rubber, chromite, and manganese ore to Germany declined between 1907 and 1908.

Ch. 1054Agricultural Crisis

Ernst and the Ministry of Agriculture discussed how the European economic crisis and sluggish markets threatened East Africa’s agricultural exports. Ernst urged the government to maintain production and support exports, arguing that industrialization would gradually ease the pressure and that the crisis would likely pass quickly.

  • The chapter explained how East African cotton had become a major export to Germany and Central and Eastern Europe, while East African cash crops challenged producers such as Britain, the United States, Brazil, and India.
  • Ernst told a Ministry of Agriculture official that low prices and weak international demand were hurting East African agriculture.
  • The official proposed using domestic industrial production to absorb agricultural surpluses and improving distribution and living standards to offset overproduction.
  • Ernst instructed the government to maintain agricultural production as industrialization advanced and reduced the share of the population working in agriculture.
  • Ernst said East Africa should secure agricultural exports and use its growing industrial capacity to absorb output, adding that the crisis was less severe than the 1873 Agricultural Crisis and should not last long.

Ch. 1055Industrial Exploration in Iringa City

Iringa City Mayor Randall convened officials to find new paths for industrial growth during the Second Five-Year Plan. Hermes argued that the city should expand light industry by developing processed consumer foods, especially biscuits and pastries, and Randall accepted the idea as promising.

  • Randall explained that Iringa City's limited resources and funding made it difficult to repeat the basic industries established during the First Five-Year Plan.
  • Hermes argued that Iringa could not rely on government support, mineral wealth, or the development models of major industrial and transportation cities.
  • Hermes proposed extending the city's flour-processing industry into new light-industrial products such as biscuits and pastries.
  • Randall agreed that biscuit production had room to grow, and Hermes urged Iringa to develop varied consumer foods for the domestic market.
Arc 42 of 70