When Uganda became a British protectorate on 18th June 1894, efforts were invested in
securing Britain’s economic interests — raw materials, markets and taxes.
The only possible export for Uganda was ivory, sold in Zanzibar at up to £1,000 a tone but made no appreciable change in the structure of the economic system.
Later, a new economic era was inaugurated and subsisted marking the beginning of the development of Uganda.
With most of the minerals not yet discovered, copper was discovered in the then remotely located Rwenzori area, traces of tin on the southwestern border and ivory.
The only obvious existing resources to generate revenue were hides and skins, raffia and sansevieria fibers, vine rubber, chilies and the indigenous Robusta coffee.
With exception of simsim and groundnuts, ‘native crops’ were deemed not valuable enough to be worth exporting.
In 1906, a poll tax was introduced to encourage the Africans to cultivate cotton and other cash crops. In addition, a monthly tax was imposed on all uncultivated African land.
Major capital projects were embarked on in the 1950s, including the construction of the
HEP station in Jinja, promotion of mineral exploration in Kilembe and Tororo in western and
eastern Uganda respectively.
Furthermore, the UDC was established in 1952 to promote manufacturing enterprises.
By the late 1950s, however, in view of impending political changes, the ‘affluent years’
of development expenditure were coming to an end.
