The economy of Uganda has great potential, and it appeared poised for rapid economic growth and development. After the turmoil of the Amin period, the country began a program of economic recovery in 1981 that received considerable foreign assistance.
Economy
Endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed the whole of Africa, if it was commercially cultivated.
The economy of Uganda appeared poised for rapid growth and development. However, chronic political instability and erratic economic management have caused a persistent decline that has left Uganda among the world’s poorest and least-developed countries.
The national energy needs have been historically more than domestic energy generation, though large petroleum reserves have been discovered in the west.
History
In 1966, the first Ugandan Shilling replaced the East African Shilling at par.
In 1987, following high inflation, a new Shilling was launched with a value of 100 old Shillings.
The shilling is now a stable currency and predominates in most financial transactions in Uganda, which has a very efficient foreign exchange market with low spreads. The pound sterling, and increasingly the euro, are also used.
The Bank of Uganda launched redesigned banknotes in May, 2010. The present 1,000- and 5,000-shilling notes incorporate the latest security features and arguably have a longer life through new production processes. In addition, a new note with the value of 2,000 shillings was launched, equivalent to approximately 1 US Dollar.
