Why Did Egypt Go Bankrupt After Constructing the Suez Canal?
Despite strong opposition from Britain, the Suez Canal Company, backed by France, completed the Suez Canal at a construction cost of 400 billion francs. This was an enormous undertaking, costing 100 times more than the original estimate. The 8-meter-deep Suez Canal was engineered in such a way that, by using several lakes, no locks had to be installed.
Bays were formed every 25.6 km to allow ships to pass. The project was initiated under the leadership of Ferdinand de Lesseps and had, in fact, begun about ten years earlier. Until 1866, progress was slow due to issues with forced labor. However, once a large amount of machinery was introduced, construction advanced rapidly.
Meanwhile, many Britons feared that the completion of the Suez Canal would reduce Britain's influence in the Far East. They were especially concerned that India, the crown jewel of the empire, might open its doors to other Western nations. However, merchants welcomed the opening of the Suez Canal, celebrating the new maritime route that promised great commercial benefits.
But…
The Suez Canal, which cost $100 million, began construction on April 25, 1859, and was completed on November 17, 1869. On this historic day, the Egyptian government hosted the grandest party in history, inviting 6,000 prominent figures from all over Europe.
Verdi composed the commemorative opera Aida, the world’s finest wines were shipped in by boat, and the most extravagant fireworks lit up the sky. Additionally, 500 special chefs and 3,000 waiters were hired. In throwing such a magnificent celebration, Egypt nearly went bankrupt.