Chapter 1182 Middleman
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 in land area and population size can bring greater economic benefits to Germany. After all, without East Africa, Germany would not be able to compete with Britain and France. In its previous life, Germany Although there are many colonies in Africa, the real benefits that can be brought to Germany are far less than the profits from direct trade with this super-large country in East Africa.
At that time, East Africa had a publicly 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 taken shape. 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. With the advent of the war, most of Germany's domestic civilian industries have shut down, making it even more difficult to 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 Germany before the war, Central and Eastern Europe was its most important market. One of the 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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Mombasa city.
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 gained land in 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 dongs per ton. Otherwise, we would rather burn more coal and trade it in Dar es Salaam or Beira. 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 are not ending. 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. The current market environment is The supply exceeds the demand. I am a small businessman. Although I don’t expect to make a fortune, I can’t make too many concessions.”
Teka pretended to complain: "Du Ping, we are old friends. You must know that when you were working in a state-owned enterprise in East Africa, I helped with a lot of business. In the past few years, when you went out to work alone, I also made a lot of money. I want to help your company get through the most difficult stage, so for the sake of old friends, you should also give your brother a hand.”
The rapid development of Du Ping's company is indeed closely related to the contacts he accumulated while working in a state-owned enterprise.
Teka met Du Ping when he was sent by the company on a business trip to Italy, 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 a little bit 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, but the emergence of businessmen like Dupin followed the rapid rise of the new economic policy in East Africa, and today's Dupin Grain Trading Company was born.
Therefore, facing the emotional card of "friend", Du Ping said matter-of-factly: "Teka, don't say that I don't take care of you. You must know that you will never find a lower food price than mine in Mombasa. If it drops again, Twenty rhine guilders, then I’ll pay you back.”
"Of course, as a brother, I can grit my teeth again. Twenty Rhine guilders is too much. A reduction of three Rhine guilders per ton is already my bottom line. If you can't accept a price, then I can only do nothing to help you. After all, my subordinates also need to eat. The annual transportation cost from the Great Lakes Region to Mombasa alone is not low."
Although the result was not achieved, Teka was also satisfied. This should be the biggest concession that Du Ping could make. This price is already far lower than the market price given by the Mombasa Agricultural Trade Bureau.
He refilled a glass of wine and said to Teka: "Brother, I didn't understand your difficulties before. Now that I hear you say this, I am a villain in vain. Don't worry, I will never forget your support today when there is benefit in the future."
Du Ping smiled and said: "Okay, okay, we brothers are a little bit awkward. As long as we continue to cooperate, there is a lot to do in the future."
Du Ping still values Teka as a business partner. This is mainly due to Du Ping's latest judgment on the current trade situation in East Africa and Europe.
In Du Ping's view, the trade risks between East Africa and Europe, especially the Allies, are very high now. After all, the trade routes between East Africa and the Allies are controlled by Britain and France.
For example, Gibraltar, the Suez Canal, and even the Atlantic Ocean, if the Allies are forced into a corner, Britain and France will most likely increase their efforts to hinder trade between East Africa and the Allies.
And Teka's advantage as an Italian is reflected at this time. Today's Italy is a neutral country.
After all, Italy is not a great power in the past, and its spirit is far less than that of the past, which has made Italy maintain neutrality so far and dare not leave easily.
And Italy borders France, Austria-Hungary, and Switzerland, which enables Italy to be a neutral country and do business with the two major camps of the Allies and the Entente at the same time.
If the British go crazy and completely block the Adriatic Sea and the Black Sea, then part of the trade between East Africa and Austria-Hungary will definitely be transferred to neutral countries such as Italy.
So winning over Teka in advance can increase the retreat of his own company in the future. Of course, it is not very pleasant to say retreat, it should be said to be a channel.
After all, Du Ping has made a lot of money in the feast of the European war so far. If he retires now, he will not lose anything. However, as a businessman, Du Ping naturally wants to make more money.
Therefore, the grain trade in Europe cannot be interrupted. If he sells some of it to Teka at a lower price now, it may play a big role in the future.
Even if Italy joins the Allies, there is no need to be afraid. After all, Italy itself is a good consumer market and has always been an important buyer of East African grain. Therefore, Teka has always been very valuable in Du Ping's eyes.