“The African Native Has No Pocket”: Monetary Practices and Currency Transitions in Early Colonial Uganda

One of the most significant institutional changes of the colonial period was the introduction of a single currency, issued by the colonial state. Building one currency in the place of regional, locally circulating currencies was considered a necessary step towards "civilization", as its use implied the recognition of the institution that had issued it. The “currency revolution” literature has interpreted this transition as the rise of a monetary economy that facilitated exchanges and the expansion of trade. Critics of this approach have, however, underlined that colonial monetization was only a phase in a long history of monetary changes that characterized African societies. This article engages with this literature and discloses the mechanisms behind the introduction of currencies in early colonial Uganda. It situates this currency transition in a longer process of historical change and monetary dynamism of the societies involved. By looking at how different forms of money were used and combined in the early colonial period, such as in the payment of wages, in the settlement of fees and fines, and in the negotiation of bridewealth payments, this article casts light on the divergence between the specificity of African monetary systems and the European intention of building one, single currency in the colonies. The article argues that the monetary system that resulted from this transition was not a replacement of the old currencies with new ones, but rather the result of the convergence of different systems of value and monetary practices. By doing so, it also sheds light on the problematic nature of the British control on the circulation of currency as well as on the limited reach of the colonial state.