African Entrepreneurship Record

Chapter 1160: Chapter 169: Thriving Trade

Similar to Carson Department Store, East African enterprises plotting to enter the Belgian Congo market are numerous. Many companies in Cabinda and Kinshasa have participated, and even the enterprises and capital from farther cities such as Luanda, Lobito, and Benguela have stepped in.

This will clearly unleash a wave of competition in the small Belgian Congo, with the final winner determined by who is most skillful.

Of course, when it comes down to it, Belgian Congo is merely a colonial market with a population of several hundred thousand. Several cities in East Africa boast populations that exceed that of Belgian Congo, so the competition occurring in Belgian Congo is merely a minor skirmish for the East African Government.

Currently, Europe is the global market that East Africa prioritizes most, aside from various regions in Asia, Africa, and Latin America which are also rather significant. Compared to them, Belgian Congo’s colonial market is merely one of the appetizers.

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Rhein City.

East Africa’s transportation department has recently been extremely busy, exerting full efforts in railway, highway, waterways, and sea transport.

Materials continuously flow from the inland regions of East Africa to the coastal areas, then through East African ports to Europe and other regions, before urgently returning to the East African mainland.

The demand from Europe alone is already causing the East African Government to feel strained, let alone the need to accommodate numerous markets across Asia, Africa, and Latin America, which also boast grand ambitions.

John Lier, Director of East Africa Maritime Bureau, reported: ”Currently, our nation’s registered merchant fleet tonnage has exceeded five million tons, with over three million tons dedicated to cargo transport serving the European market. Additionally, merchant ships from Germany and Austria-Hungary are also serving us. Including ships from other countries, there are approximately thirteen million tons of global merchant shipping directly or indirectly serving our trade.”

Since the initiation of the Three-Five Plan, East Africa’s civilian shipbuilding industry can be said to have powered its production of ocean-going vessels, substantially increasing East African merchant fleet tonnage from over three million tons to over five million tons.

This was aided by the influence of reconciliation treaties between East Africa and the United Kingdom at the time. In the first year of reconciliation, East Africa indeed adhered to the UK’s arrangements and did not take major action regarding its navy, allowing East Africa to concentrate on expanding its civilian shipbuilding industry.

”Currently, our trade volume with the German Region is enormous. It’s safe to say that a lot of merchant vessels from the German Region are serving the trade between us and the German Region, with our country’s merchant ships, as a third-party nation, shouldering the primary task.”

Among the commercial vessels of the German counterpart within the Three Kingdoms, about seven million tons serve East African and German Region trade, which is quite substantial.

After all, in the Three Kingdoms of the German Region, comprising Germany, East Africa, and Austria-Hungary, the total merchant fleet tonnage recorded is over ten million tons, with East Africa ranking first, Germany second, and Austria-Hungary last. Most of Germany’s merchant fleet is dedicated to East African trade.

The primary reason lies in the threats from the United Kingdom, Russia, and France, which have compelled multiple European countries to restrain and limit their trade with Germany.

Take wheat, for instance, Germany is barely self-sufficient regarding food supply, including wheat, barley, potatoes and other crops.

Wheat is a critical staple for Germans, yet Germany’s wartime self-sufficiency rate hovered around eighty percent, creating a twenty percent shortfall to be filled by imports from other countries annually.

A large portion of this twenty percent gap was formerly filled by Tsarist Russia, yet now Russia has severed trade ties with Germany.

Under these circumstances, East African wheat of lesser quality gains entrance. Though it doesn’t match the standard of East European plains in quality, it is abundant, filling, and inexpensive.

East Africa always occupied a considerable area of wheat-producing land. In recent years, irrigation facilities and agricultural technologies have enabled East African wheat harvests to exceed two seasons a year, and unit yield has also improved greatly, fully capable of meeting Germany’s national needs.

Still, when Germany has to import a staple like wheat, other non-staple crop gaps such as meat, eggs, milk, fruits, and vegetables are naturally significant.

The warring parties mobilize armies in the millions, creating a condition where vast numbers of labor force are drawn into combat, leaving major voids in agriculture and industry, and armies’ consumption rates are noticeably higher than usual. Hence, Germany’s wheat importation is surely higher than just before the war, with estimations from the East African Government suggesting up to thirty percent.

Fortunately, although wheat is a crucial staple for Germans, it is not the sole choice; Napoleon had relied on European farmers’ potatoes to sustain his troops back in the day.

Considering wheat is a foundational ingredient for making bread, it is vital for military combat effectiveness; thus, priority is given to military supply, which explains Germany’s urgent need for substantial wheat imports from East Africa.

Ultimately, during this era, Europeans’ pursuit of bread equates to their quality of life, evidenced by a certain World War II fanatic promoting bread as a primary slogan upon taking power, while the Soviet Union used black bread as a critical guarantee of frontline Soviet Army’s combat power, to the extent of increasing sawdust to boost satiety because of grain shortages. In the First World War, Russian government’s collapse was precipitated by citizens demanding bread and renouncing war.

John Lier continued, ”The operational pressure on ports nationwide is rather significant. Over the years, we’ve completed building and refurbishing over twenty modern container ports. Nevertheless, Europe is not lacking in related facilities, complicating cargo coordination.”

Containers are the formidable instrument of East African transportation industry since 1908 when East Africa initiated the nationwide promotion of standardized containers for freight transport.

To further enhance the intermodal transport between railways, highways, and maritime routes, it necessitates upgrades and refurbishments of existing East African ports, for although containers are convenient, they require substantial equipment for hoisting.

Now, the primary ports in East Africa have largely achieved this goal, yet outside of East Africa, conditions differ, like in Germany where some smaller ports lack substantial equipment for handling containers. However, that’s not East Africa’s concern; East Africa simply needs to get the cargo delivered.

The main advantage of containers is their compatibility with railway transport, permitting many goods to be directly moved to the frontline via port railways, which suits Germany quite well regarding containers.

Early in the war, many East African exported military supplies were sent directly to the frontline in large crates to meet the needs of the German Army, including items like medicines and medical cotton.

In this respect, the German Army has been quite satisfied with East African products; not only in quantity but quality is also quite high. This is a given, as East Africa did not decline in stock due to the sudden outbreak of war; Ernst had started preparations long beforehand.

Contrastively, the United States presents a different case. U.S. enterprises were not prepared, and following the abrupt outbreak of war, many U.S. companies scrambled to manage orders, struggling excessively in production, leading to concerns over product quality on the battlefield.

This resulted in current European combatant nations opting for East African products for key military supplies, particularly medical supplies, essential for soldiers’ lives and safety, with no room for carelessness.

The ”black heart cotton” from the United States and the battlefield-specific ”medical cotton” from East Africa can easily be discerned based on simple frontline feedback, guiding various countries’ back end procurement departments in making informed choices.

In summary, early in the war, East Africa gained leverage in the commercial competition between East Africa and the United States, while U.S. enterprises, yet to establish production lines, could only watch funds flood into East African pockets.

Admittedly, the U.S. will eventually fill these gaps, but in the First World War, Europe offers notably lucrative opportunities, though markets outside Europe are equally vital. By the time the U.S. makes its mark in Europe, East Africa will have secured an advantage in other regions; as the saying goes, falling behind in one step means lagging in all.

Although pre-war the U.S. was the world’s largest economy, East Africa is now comparable, especially in industrial domains, putting East Africa on equal footing with the U.S., surpassing Germany.

This is most directly mirrored in steel production; currently, East Africa’s steel production has reached over thirty million tons, whereas the U.S., due to pre-war economic crisis, even with temporary expansion, is just recovering past thirty million tons, making East Africa the world’s leading steel producer in terms of output.

Both East African and U.S. steel production exceed thirty million tons, with Germany placing third at only thirteen million tons, less than half that of East Africa and the U.S., and other countries are even less comparable to the Three Kingdoms.