The economic war proved too costly for Uganda. At the time of the expulsion, the
Asians were engaged in commerce, agro-industry and manufacturing.
The expulsion did little to improve income distribution or the welfare of the ‘common
man’ in Uganda.
Instead, it put an end to the little economic improvements Uganda was making at the time.
Skilled managers were replaced by largely unskilled people and in experienced business class (the so called “mafuta-mingi”) leading to gross mismanagement of the economy.
The ‘mafuta-mingi’ ran down the factories and shops that were handed to them after the
expulsion of the Asians.
For example, the Madhvanis (owners of Kakira Sugar Factory) left a fleet of 120 tractors in 1972, but on their return in 1983, only four were functional.
Additionally, 18,000 acres out of the 21,000 acres they left behind had been reclaimed by the bush. Movable parts in the factory had also been taken away.
As a result of this mis management, the country was hit by scarcity of essential goods and services.
Sugar production, for example, reduced by 75% to only 20,000 tones by 1976.
The rampant shortages of goods and services led to high inflation, prompting Amin to introduce several economic distortions that further ruined the economy.
One of the distortions was price control, popularly known as fixing of price.
