Economic And Commercial Conditions In British East African Territories

Bay of Plenty Times, Volume LXXVII, Issue 14859, 22 December 1948, Page 5

Economic And Commercial Conditions In British East African Territories

REVENUE AND EXPENDITURE INCREASES MORE THAN TWO-FOLD SINCE 193 S

An Overseas Economic Survey recently published tor the Export Promotion Department of the Board of Trade reviews the economic and commercial conditions in the British East

African territories of Kenya, Uganda, Tanganyika and Ermziba doing the immediate post-war period, reports The Recorder. The survey points out that the eeonomv of East Africa was never seriously dislocated by the war. Indeed, several of the Territories main products were in increased demand and every effort was made ro obtain maximum production of such commodities as\ sisal, pyrethrnni, coffee, tea, maize, wheat and other foodstuffs. The uncertainty of prices, which had such a depressing effect on pre-war production, was removed by the system of guaranteed purchases, under Government sponsorship, at prices sufficiently high to encourage the producer. In view of these developments it is not surprising that the end of the war found the East African territories in a comparatively tl r.urish ing cend it i on.

The revenue and expenditure of all the East African territories have increased, in most instances more than two-fold, since 1938, and the combined revenue of the four territories in the year 1946 was over £l9 million.

is a valuable dollar-earner,£si million worth having been exported to the dollar area in the past 12 months.

Sisal, the raw material for making ropes and twine, is another important dollar-earner; purchase agreements with the Board of Trade have been in force since 1939 but terminate in December 1948, after which, sisal wil come onto the free market. Total production, In 1947, was 133,000 tons. Coffee is an important crop in all three mainland territories; total production in 1946 amounting to about 46,000 tons. The Ministry of Food has made limited sales contacts with all three territories.

The value of the total import and export trades of the East African territories has also increased rapidly though this Is partly accounted for by the general rise in prices and values.

The United Kingdom now has a larger share in the import and export, trade of Tanganyika compared with 1938. but a smaller share in that of Kenya and Uganda. The Commonwealth as a whole, however is now taking a larger part in the trade of all four East African territories compared with 1938. Trade with foreign countries has naturally decreased in all territories compared with 1938, particularly in the case of Tanganyika, which formerly had large imports from Germany and Japan. Agriculture The Mainstay

Tea is also important, especially in Kenya, and producers are now concentrating on improving the quality of'their'tea by finer plucking and improved methods of processing. Production in the three territories totalled 8,260 tons in 1947. •Cotton and cloves are the principal crops of Uganda and Zanzibar respectively. The cotton crop of Uganda has decreased in recent years, and production in 1946-47 stood at 104 million lb. This is probably owing to the greater attention given to food crops during the war, and the fact that cotton prices have not increased at the same rate as those of some other crops. Production Is entirely in the hards of Africans. wdu« neries are mostly owned by Indians. Clove-growing in Zanzibar is in the hands of African, Indian and Arab f-'-mers who are nrs-nispr! in a Clove Growers’ Association which has the financial backing of the Government. Exports totalled 16,800,000 lb in 1947. which was less than half the 1946 figure. The industry is at present threatened by the spread of the “sudden death” disease which is, however, being investigated by a special research unit. Mining and Industry Tanganyika lias groat mineral wealth, including rich diamond deposits around Shinyanga; important deposits not yet worked on a Argo scale include lead, coal and iron. Kenya’s most Important mineral products are gold and soda ash.

Agriculture and , animal husbandry form the mainstay of East African economy, and are the. orincipal occupations both of the European population and of the Africans. Guaranteed prices and markets have been of great benefit to East African agriculture, and the chief difficulties which the farmer now faces are labour shortage, delay in the supply of machinery and equipment. and the depredations of insect pests.

Mai'ze is the most important cereal crop as it is a staple foodstuff of the African population and it is grown both in the native reserves and on ihc European farms. Its distribution, as well as that of other cereals of which wheat is the most important, is regulated by a Maize Control Board which works closely wi'th the East African Production and Supply Council. Most of East Africa’s other agricultural crops arc export, commodities in the production of which East Africa has specialised. Pvrethrum, the source of a valuable incecticide was first grown rn about 1929, and Kenya’s favourable soil and climatic conditions brought it lo first place in world production by 1939. Tl-io crap ; S py’w-torl to he about 1 POO tons' The whole crop is marketed through the Pyrethrum Board a statutory body with members nominated by the Government and by the growers. Pyrethrum

In Uganda large deposits cf rock phosphate, which is valuable as a fertiliser, are being worked, and copper in the Western Provinces may bo developed if communications can be improved.