Industrialization

              The meaning of the Industrial revolution in Eritrean term is to design machines or factories in Eritrea and Israel. Then make the components and parts of those machines and factories in Eritrea. Then assemble them in Eritrea. Then the maintenance service and spare part supply will make Eritrea and Israel. In short industrial revolution is the process of developing the ability and capacity to design and produce any kind of component and parts of any machine, engine factory etc in Eritrea and Israel and assemble them in Eritrea. When we have this capacity and ability it means we have industrialized economy.

In short to our industrial revolution is about creating efficient and competitive industrial researching designing and developing system, industrial supply chain, assembly factories and management and marketing system in Eritrea and Israel.

Now Eritrea buys all machines, factories and engines from foreign companies and plants them for use in manufacturing or service industries. We depend for spare part supply from the same foreign suppliers. We need always hard currency to maintain our factories, machines and engines. Like any African country we are becoming an exporter of cheap raw materials like gold and potash. That has must change as soon as possible before too late to exporting it as processed and value added product that generate highly paid professional tens of thousands jobs and multibillion economies for Eritreans.

First Phase

 Our industrial revolution in its first phase has four goals to make cement, steel, electricity and internet broadband universally affordable, accessible and available to all Eritreans, to lay strong industrial foundation, to trigger manufacturing, real estate/construction and tourism driven long term economic growth/boom within three to five years. When I say affordable, accessible and available means that Eritrean teachers, soldiers, civil servant, farmers can afford to build three to five bedroom decent high standard houses for their family.  Eritrean Diaspora and other Eritrean groups or individuals that they can afford to build commercial hotels, factories, dams, schools, universities, hospitals, church, sport and cultural infrastructure etc. All Eritreans can afford to cook and bake their food using electricity; they can wash and clean their goods, clothes, houses etc. using electrical appliances. Every Eritrean school and house/family can afford super fast internet broadband.  In other way make Eritrea very competitive and attractive country in price, service and quality first for our citizens then to other investors.

Let me clear here, it is not possible to make substantial and sustainable food security and high standard nationwide all kinds of infrastructures without affordable, available and accessible cement, steel, electricity and internet broadband. Making these strategic materials and infrastructure affordable, and having the capacity to make machinery and other tools ourselves in our country will trigger construction and manufacturing boom that can go for 40 to 50 years.

These industrialization and making cement, steel, electricity and internet broadband affordable, accessible and available to all Eritreans will make our government objectives and priorities such as food security, social justice and minimizing the national security threat achievable at the same time. When our economy starts to industrialize and when construction materials, communication system, and energy are affordable, accessible and available to our farmers it is natural our animal and crop farming too will industrialize. In this first phase of Industrialization process we can create one million jobs that pay $3000-$6000 a year within three to five years since its launch. And 10 to 20 times of the entire Eritrean work force of jobs will create in second and third phase of the industrialization process. So the objective of social mobility and social justice will be realized.

These looks very ambitious and unrealistic to many because we couldn’t produce a single ton of steel in 25 years of our independence how came we would make cement, steel, electricity and internet broadband to make universally affordable, available and accessible to all Eritreans within three years. This is a fair and good argument but the reason that we are not producing a single ton of steel is not because of we are incompetent as people, country and organization (PFDJ). Not because we have cultural problems like tribalism, clan, corruption, crime. Not because we are internal instable country. Not because 20 years is a short time for developing a country.  Not because we live in a very instable region. Not because we live in no peace no war situation. Not because we don’t have natural resources. Not because we don’t have entrepreneurial culture.  Not because we don’t have highly skilled human resources. Not because we don’t have foreign investment or access to capital. Not because we don’t have civilization history.

Because it wasn’t Isaias Aferwrki and the Eritrean ruling elite priority agenda. Ant it is only until now we didn’t articulate our vision and strategy to industrializing our country.  Chairman Mao like Isaias Afewerki was experimenting for 30 years (1948-1978) with cultural revolution using Chinese people life’s.  Isaias Afewerki and other greedy elite will play and experiment untested ideas about creating new national cultural identity among nine tribal and clannish ethnics by brutal social engineering like our people is laboratory rats until they been removed from power.

The strategy to start industrialization is to design a component, parts, machinery and factories in Israel in Europeans standard by using Israel and European engineers. Then by importing component, parts, and importing component and parts making machinery that we will setup component and parts making factories/workshops in Eritrea to produce components and parts of machines, engines and factories. By setting up assembling lines we will assemble the machinery, engines and factories in Eritrea using the best European, American, Asian, African and Eritrean engineers and managers.

To achieve the objects we will setup steel smelting industry with capacity ten million tons a year, cement factory with ten million tons production capacity a year, a coal fired power station with 6000 megawatts generating capacity a day, Laying a modern new national smart Electric grid, Laying new submarine fibre-optic cable from Israel to Eritrea, laying fibre-cable all over Eritrea and other small factories such as building materials, transformer, electric and fibre-optic manufacturing factories. These big volume productions will overwhelm the demand and will help to hold profit at the very low margin of 2-5% and making the business very profitable and sustainable.

The use of Israeli, American, European expertise in technology engineering, management and marketing will able us to command the latest efficient technology, advance designing and branding and the most advanced management system. These will make our product to be affordable, high quality and highly competitive. On-site practical and theoretical training of our citizens will transform them to highly skilled personnel in a short time in cheaper price tag. This strategy will jump us to become the first African country processing/manufacturing economy in short way.   If there is qualified Eritrean or become qualified in the process for any post we will give priority to him or her.  We will build a corporate culture based on Eritrean culture and values that will be very competitive globally. All this will able us to be competitive with the Chinese and South African steel and cement producers, and afford us to build much cheaper and high quality hotels, houses, roads, dams, and railways than those in Egypt and Dubai.

In Israel, Europe and America it is easy and legal to set-up design and engineering company and builds it where you want. It is easier and cheaper to hire engineers who design air plane, missiles or nuclear reactor than a lawyer or medical doctor. When we buy machines now in Eritrea 65-75% of the price we pay has been calculated for design, development and marketing only 25-35% goes to production cost. We will design it for very small fraction of this price by hiring engineers and adopting and copying the best proven design out there in operation. We will produce it by 5-10% what it cost to produce in Europe and 10-20% what it cost in China by making the component, parts and assemble it in Eritrea and Israel.

For same time we will buy coal and iron ore from the international market.  May be we will have iron ore and limestone deposits in Eritrea that we can mine but our strategy is to set up our own mining companies to mine everywhere because like human labour coal, limestone and iron ore are abandoned and cheap resources in Africa, Latin America, USA and Asia.  On 17 August 2012 Hadas Eritra editorial under the title of “Secret of success People of Eritrea” like all Isaias Afewerki arguments are based he used information he got from so-called “African annual economic forecast” report without giving information like who is African annual economic forecast, and when, where and why an African annual economic forecast published this report.

I did a search and contacted IMF, World Bank, African development Bank, OIDC etc but there is single international financial or economic organization that published that Isaias Afewerki is basing his argument. There is one report with a similar name called “African Economic Outlook Forecast” published by OIDC that had information about Eritrean economic outlook but it is nothing to do with those information in Hadas Eritra. Because he has no any economic success that our people can see and feel and his own data/statics to refer he fabricated this nonexistent institution to tell our people the unfounded economic success.

On 17 August 2012 Hadas Eritra editorial under the title of “Secret of success People of Eritrea”  Isaias Afewerki lashed out without mentioning its name Ivory Coast or Cote d’Ivoire for being number one Cocoa producer in the world but its people never eat or tested chocolate. He lashed out without mentioning its name Nigeria for being 7^th world’s biggest oil exporter but its people suffered in extreme poverty.  He lashed out without mentioning its name Ethiopia for having a lot of water resources and arable land but became famine stricken country.

But what Isaias Afewrki doesn’t know but every Eritrean with simple common sense know that Eritrea is probably the richest country in the world in construction material that have different kind abandon stones, abandon sands, abandon clays, abandon limestone, and abandon marble, abandon iron ore. But there is no country or people that are suffering from lack of infrastructure like dams, roads, soil erosion and lack of affordable housing, and by substandard housing in the world or Africa like Eritrean people. Our people are suffering from lack of housing and sanitary facilities more than Ethiopian, Nigerian and Cote d’Ivoire  people. Our people live in a very humiliating way than any African thanks to Isaias Aferwerki and our ruling elite nine ethnics ideology.

Every successful country in the world its industrialization process is driven by the construction industry. If we produced cement, steel and electricity at high quantity and high quality at a very competitive cheap price and making it available in every corner of our country our people will build its own houses, dams, schools, hotels, factories etc that will create hundreds of thousands of jobs in Eritrea. Because the high quality of our construction material with high standard planning we can build easily the best houses, hotels, offices, roads, dams, ports etc in the world. The only material we need to import is coal.    No country can industrialized by renewable energy sources like hydropower, solar and wind because they are not reliable. If there is drought rivers couldn’t have enough flow of water to produce hydropower. According World Bank data 68.8% of Australia, 100% of Botswana, 75.9% of China, 71.1% of India, 38.5% of USA, 40% 0f UK, 46.1% of Germany and 84.5% of Poland electricity in 2012 comes from burning coal.

Coal is 90% cheaper than oil and it doesn’t fluctuate its price as oil. When the Hirgigo power plant was built Index Mundi oil was $15 a barrel in 1 September 1995 and on 1 October 2012 it was $112.58 same time reaching $150 but according Index Mundi Australian Thermal coal was $58.74 per metric ton on 1 September 1980 and $85 on 3 October 2012.

Eritrea will need to have more than 170 GW electricity power capacity in the next 25 years, if it has transform its economy to worlds first class. We can’t produce 170 GW from coal. We must diversify source of our electricity to nuclear, gas and renewable in second or third face of our industrial revolution but we can reduce pollution from the start by making our coal fired power station high tech and using electricity efficiently.  Eritrea is blessed with abundant industrial mineral, located in a very strategic place with free access to technology, science and modern management know how and above all with high level of civilization.

No civilization, culture and country survived and succeeded for long on subjective untested theories based policies and strategies. We can’t solve our problems by hiding and denying them.  We can’t seek solutions without recognizing and acknowledging our problems. We can’t prescribe the right medication and cured the disease without diagnosing the disease rightly and exactly. Our problem is the greedy and the corrupt Eritrean elite that created by Italians and their Ideology nine ethnics Eritreanism. We have to go back to our roots that is Aga’azianism.

We can build a coal fired power station with 6000 megawatts generating capacity a day within three years, We can setup steel smelting industry with capacity ten million tons a year within three years, We can build a cement factory with ten million tons a year production capacity within three years, We can Lay a modern new national smart Electric grid all over Eritrea within three years. We can lay new submarine fibre-optic cable from Israel to Eritrea; We can lay fibre-cable all over Eritrea within three years. We can create millions of jobs that will pay $3000 to$50, 000 a year within three to five years. We can stop the exodus of our youth completely within three years. We can be food secure within five years in affordable, competitive and sustainable way. We can achieve all these goals without compromising our core values and principles.

Without government subside we can sell cement for $60 a ton with profit that is selling in 2013  $360 a ton by the new cement factory in Gedem. Without government subside we can sell electricity for $0.4 cent per kilowatt hour that is selling 2013 on average at $0.17 cent per kilowatt hour by Electricity authority, without government subside we can sell steel at 70% to 80% lower prices than the imported steel selling now in Eritrea .

We can make our GDP per capita per person $30,000 within 10 years. We can build millions 0f world’s first class 3-6 bedroom houses in 10 years. We can bring back 90% of all Eritrean refugees who left home in the last 40 years with 10 years. This is nationalist objective, our people inspirations, very practical and easily achievable.