ABSTRACT

When it gained independence in 1962, Uganda had one of the most prosperous economies in Africa. The country, which possessed a good climate and fertile soil, was self-sufficient in food. Approximately 93 percent of the population worked in the agricultural sector, which was a source of considerable foreign exchange earnings. The manufacturing sector satisfied most of Uganda’s consumer needs and also earned some foreign exchange through textile and copper exports. Export earnings financed the country’s import requirements and resulted in a current account surplus. Uganda’s transport infrastructure, which ranked among the best in Africa, included effective networks of roads, railways, and port and air transport. There was also a small wage-earning class, concentrated in Uganda’s cities and towns, that was employed in the service sector. The Asian community dominated trade, small industries, and businesses.