Chapter 1182 Middlemen
Germany has actually become path-dependent on East Africa. The emergence of East Africa has allowed Germany to unexpectedly gain access to a vast market and raw material supply areas that it could not reach in its previous life since the 1980s. .
Although East Africa is not a German colony, its advantages such as land area and population size can bring greater economic benefits to Germany. After all, without East Africa, Germany would not be able to compete. Although Britain, France, and Germany had many colonies in Africa in their previous lives, the real benefits they could bring to Germany were far less than what they could earn from direct trade with this super-large country in East Africa.
At that time, East Africa had a public-owned economy, so trade with Germany was not purely profit-oriented. Instead, political, cultural, geographical and other factors had to be considered.
At that time, Germany had developed into a powerful industrial country, while East Africa was still a backward agricultural country that had just formed. Therefore, in the early days, Germany was in an advantageous position in trade with East Africa.
This advantage will slowly dissipate over time, especially now that East Africa has caught up from behind in industrial construction, and the trade between Germany and East Africa has actually been reversed.
East Africa’s industrial products can barely compete with Germany, while East Africa’s agricultural products, minerals and other resources are something Germany cannot refuse. Moreover, with the advent of the war, most of Germany’s domestic civilian industries have been shut down, making it even more unacceptable. and compete with East Africa.
It can be said that if there is no war, if this development continues, Germany is bound to fall out with East Africa, especially when the markets of the two countries actually overlap greatly. For pre-war Germany, Central and Eastern Europe is one of its most important markets, and the same is true for East Africa. Central and Eastern Europe has long been East Africa's largest overseas market, which of course also includes Germany and Austria-Hungary.
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City of Mombasa.
As the most representative city in northern East Africa, Mombasa almost monopolizes most of the overseas trade in northern East Africa.
Although East Africa has now acquired the land of Gabon and Cameroon, this means that northern East Africa also has access to the sea on the west coast.
But it has little impact on the current city of Mombasa. On the one hand, Gabon's huge tropical rainforest is a natural geographical barrier. Until now, the western section of the Northern Railway is still under planning and has not started construction.
On the other hand, although Gabon does not lack natural harbors, its population and industrial base are in its infancy, and its economy is not even as good as the hinterland of northern East Africa. Therefore, the current Gabon region does not pose any threat to Mombasa.
After the war began, Mombasa's development also entered the fast lane. As the second largest city in East Africa that can compete with Dar es Salaam, Mombasa's population now exceeds one million. .
Unfortunately, there are too many "rookie" cities in East Africa. Even strong cities like Dar es Salaam and Mombasa that understand traditional economies are facing tremendous pressure.
Red Plum Hotel.
As a high-end consumption place in Mombasa, it is also a place where many businessmen discuss business.
At this time, in the private room on the second floor of the Red Plum Hotel, the Italian businessman Teka was bargaining with the East African businessman Dupin.
"Dupin, your grain prices are too high this year. Let's drop it by twenty rhine guilders per ton. Otherwise, we would rather burn more coal and trade it in Dar es Salaam or Beira. I I think they should be willing to give a more reasonable price," Teka said bluntly to Du Ping, who was already a little tipsy.
Although he was a little drunk, Du Ping's mind was still very clear. He did not directly agree to Teka's request, and analyzed: "This year's grain prices are indeed higher than last year, but this is a reasonable market change."
"Nowadays, the wars in European countries have not yet seen an end. Instead, they are getting bigger and bigger, and the demand for food is also getting bigger and bigger, so your trading company will definitely be able to earn more price differences. Now The market environment is such that supply exceeds demand. I am a small businessman, although I don’t expect Make a fortune, but you can't make too many concessions."
Teka pretended to complain: "Du Ping, we are old friends. You know that when you were working in a state-owned enterprise in East Africa, I helped you get it done. We have done a lot of business. In the past few years, you have placed orders. Qian, I have done a lot to help your company go through the most difficult stage, so for the sake of an old friend, you should also help your brother. "Du Ping's company can develop smoothly. It does have a lot to do with the connections he accumulated while working in a state-owned enterprise.
Teka met Du Ping when he was sent to Italy on a business trip by the company, so the two were indeed old friends.
Of course, in Du Ping's eyes, what Teka said was not the same thing. Teka did contribute some help in his own entrepreneurial stage later, but the two of them were more about getting what they needed. After all, state-owned enterprises in East Africa did not Inflexible, but Du Ping, as a grassroots employee, can obtain lower purchase prices in the Great Lakes District through many channels.
This is also the basis for Teka and Dupin to hit it off. In the past, grain trade in East Africa was monopolized by the state, and the emergence of businessmen like Dupin followed the rapid rise of the new economic policy in East Africa. Only then did Dupin become what he is today. Pingliang Trading Company.
So when faced with the emotional card of "friend", Du Ping said matter-of-factly: "Teka, don't say I don't take care of you. You must know that you will never find someone lower than me in Mombasa. If the price of grain is reduced by another 20 rhine guilders, then I will be paying too much."
"Of course, as a brother, I can bite the bullet again. 20 rhine guilders is too much, and a reduction of 3 rhine guilders per ton is already enough. yes My bottom line is, if you can’t accept a price, then I can do nothing to help you. After all, my people also need to eat, and the annual transportation cost from the Great Lakes Region to Mombasa is not low.”
Although the result was not achieved, Teka was satisfied. This should be the biggest concession Duping could give. This price was already far lower than the market price given by the Mombasa farmer's trade.
He added a glass of wine and said to Teka: "Brother, I didn't understand your difficulties before, but now that I hear you say it, I became a villain in vain. Don't worry, I will definitely not forget your support today if there are benefits in the future. "
Du Ping smiled and said: "It's easy to talk, it's easy to talk, but we brothers are a little different. As long as we continue to cooperate, there will be a lot of potential in the future. "
For Teka, this business partner. , Du Ping still attaches great importance to it, mainly due to Du Ping's latest judgment on the current trade situation in East Africa and Europe.
In Dupin's view, the trade risks between East Africa and Europe, especially the Allies, are very high today. After all, the only way for trade between East Africa and the Allies is controlled by Britain and France.
For example, Gibraltar, the Suez Canal, and even the Atlantic Ocean. If forced by the Allies, Britain and France will most likely increase their efforts to hinder trade between East Africa and the Allies.
Teka's advantage as an Italian was reflected at this time. Italy is now a neutral country.
After all, Italy is not the great power it was in its previous life, and its morale is far less than it was in its previous life. This makes Italy maintain neutrality to this day and dare not give up easily.
And Italy borders France, the Austro-Hungarian Empire, and Switzerland, which allows Italy to act as a neutral country and do business in both the Allies and the Entente.
If the British go crazy and completely block the Adriatic and Black Seas, then part of the trade between East Africa and the Austro-Hungarian Empire will definitely be transferred to neutral countries such as Italy.
So by wooing Teka in advance, you can increase your company's escape route in the future. Of course, it's not a good idea to say retreat. It should be said to be channels.
After all, Du Ping has made a lot of money in the feast of the European war so far. At this time, Du Ping will not lose money if he retires after his success, but as a businessman, Du Ping naturally wants to make more.
So Europe's grain trade cannot be interrupted. Selling some to Teka now is cheaper, and it may play a big role in the future.
Don’t be afraid even if Italy joins the Entente. After all, Italy itself is a good consumer market and has always been an important buyer of East African grain, so Teka’s value has always been very high in Dupin’s eyes.
(End of this chapter)