Chapter 144

Chapter 144: Tobacco Factory

As Zanzibar businessmen continued to conduct their trade in people and goods from East Africa, the Hechingen Consortium was equally dedicated to optimizing production costs and securing a steady supply of raw materials. Prior to the establishment of the East African colony, tobacco cultivation worldwide was largely monopolized by overseas colonial powers, but the East African colony aimed to change that.

The Hechingen Consortium had the luxury of choosing its tobacco sources from various options worldwide. With the development of the East African colony, tobacco cultivation had expanded significantly in the region over the past two years, further diversifying their sources.

Tobacco cultivation in the colonies was cost-effective, requiring only the shipment of the final product back to Europe on the returning immigrant ships. Ernst, at this point, was not even aware of the full extent of the products within the Hechingen Consortium. Given the wide range of products they dealt with, their need for diverse raw materials was substantial.

In this era, industrial scale and consumer demand were not comparable to Ernst's previous life. This increased demand allowed many raw materials to be sourced exclusively from Europe.

For example, coal from the Ruhr area played a vital role in providing abundant and affordable energy for the burgeoning German industry, setting the stage for the first industrial revolution.

The East African colony was playing a crucial role in providing raw materials, particularly timber and certain specialty products, to Germany. The return of immigrant ships was laden with wood and agricultural products, which attracted relatively little attention.

Some of this timber was retained by the Hechingen Consortium for its own use, employed for crafting razor handles and other utensils or furniture. This move saved money on purchasing wood, serving as a prime example of "eating your own words," as those who once criticized profiteers for exploiting such practices were now implementing them.

East Africa also boasted several specialty agricultural products, such as cloves, sisal, and various unique fruits and vegetables. These commodities were highly profitable, and their cultivation was thriving in East Africa.

On August 11, 1868, in Mbeya, a new European-style factory building was under construction. Overseen by German engineers, immigrant laborers worked diligently to complete the project. The building featured vents and chimney openings, suggesting it would house equipment driven by steam engines. The machinery was expected to arrive shortly, and within a month, it would be assembled and the factory would begin producing cigarettes. This factory would be the first industrial cigarette factory in East Africa.

When the East African colony was initially established, its primary goal was to provide raw materials for the Hechingen Consortium. The colony began experimenting with tobacco cultivation soon after its founding, starting near the coast and gradually expanding inland.

Many areas within the colony were well-suited for tobacco cultivation, particularly around the lakes. The coast of Lake Malawi, under the jurisdiction of Mbeya, served as an important tobacco production area.

Compared to harvesting, processing, shipping tobacco back to Germany, and then selling the finished product, producing the goods locally in East Africa proved much more cost-effective. The weight of tobacco was far less than that of the finished product, making transportation more efficient and economical.

With rich raw materials and abundant coal resources, Mbeya could supply consistent power for factory production. Transportation of finished cigarettes was straightforward, especially as cigarettes were compact and their transport was not hindered by weight restrictions. Additionally, local consumption within East Africa would help boost the meager wages of many immigrants.

Furthermore, the factory in Mbeya could directly supply Zanzibar and Arab merchants, expanding its reach in the Indian Ocean region. This move aimed to establish the reputation of Hexingen tobacco and capitalize on markets across the Indian Ocean and Southeast Asia.

In the colonies, labor costs were significantly lower than in Germany, and with access to self-sustained raw materials, production costs were minimal. The Hechingen Tobacco Factory in Germany continued to purchase tobacco from various international sources to maintain a competitive edge.

However, despite the colony's potential, it was essential not to disrupt relationships with other tobacco suppliers, especially given the short history of the East African colony. The colony's development had not yet peaked, and Germany's and Europe's tobacco demands could not be solely satisfied by the colony.

In the grand scheme of things, the colony needed to consider its role as a supplier and tread carefully in international markets. Despite the colony's potential, it was vital not to attract undue attention from more established maritime powers in the world, as East Africa was still in its infancy as a colonial endeavor.