Cowries to notes: The story of Uganda's money

By Samuel Sanya

If you have attended a traditional marriage ceremony, you know it is costly business. What you may not know is years before the country gained independence, our ancestors paid just two cowrie shells as bride price.

During the 17th Century reign of the Buganda king Semakokiro, that of his grandson, King Suna Kalema and great grandson king Mutesa Mukabya, a cow was worth 2,500 cowrie shells or cowries, as the British imperialists referred to them. A goat was worth 500 cowries, and a large cock 50 cowries.

More valuable than cowrie shells were the blue beads nsinda and small ivory discs sanga which were each worth 100 cowrie shells, according to Buganda Kingdom ethnography by author John Roscoe.

Since cowries had such high value, locals took to stringing them together like beads on a necklace and tying them around the waists to guarantee their safety.

In the early 1900’s when the British Colonialists invaded the region, establishing the Imperial British East African Company (IBEAC), the cowries were replaced with hollow-center coins that enabled locals to string them up just like they did the cowries.

“After 31st March 1901, the government refused to accept cowries (then reckoned at 800 to the rupee) in payment of taxes…..nevertheless popularity of the cowrie as a medium of inter-native exchange…had not fully expired by 1909,” reads an excerpt from authors Thomas and Scot in their book The Political Kingdom in Uganda.

The refusal of cowries in payment of taxes paved the way for the IBEAC rupees, the silver Indian rupees, the Florin, the Heller from the German protectorate of Tanzania, which were minted by the East African Currency Board that was disbanded in 1966.

Diana Rwomushana, the Bank of Uganda (BoU) assistant head in the money museum notes that back then, fresh currencies were issued for each British monarchy particularly during imperialists.

Thereafter, they sought autonomy, splitting up the prior shared regional currency into individual country currencies.

Jan Tibamwenda, the BoU director for communications says after independence, each country chose a different economic path. Tanzania took on socialism, Kenya taking on capitalism and Uganda took up a mix of both.

“The economies of East African countries were each going separate ways, creating the need for independent Central Banks in each country to regulate and facilitate financial transactions in the various economic systems,” he says.

In 1966, the Bank of Uganda was created by an Act of Parliament and authorised to print Uganda’s first currency. Uganda became the first East African country to print an independent country currency under Governor Joseph Mary Mubiru and his deputy Ian Lewis.

The first Ugandan currency series included coins of 5 cents, 10 cents, 20 cents, 50 cents, sh1, sh 2 and banknotes of sh5, sh10, sh20, and sh100.

Subsequent currency issues in 1973, 1979, 1982, and 1983 bore portraits of the sitting presidents. The 1985 and 1986 issues replaced the portraits with the national emblem and an artistic impressions of national historical sites such as Bank of Uganda building.

Tibamwenda points out that use of portraits of sitting Presidents on legal tender was outlawed following the amendment of the Bank of Uganda Act in 2000.

The Act was amended to include, Section 21 which reads: “The bank shall determine the design of the bank notes issued by it, but no bank note shall bear in its design a portrait of a living person or any political symbol or word.”

Tibamwenda notes that it would be wasteful to issue fresh bank notes for every new head of state.

“It is international practice that fresh currency designs are issued within seven to 10 years to keep up with the changing technology and to thwart any attempts to counterfeit the currency. Our current issue is almost counterfeit proof.

“At the moment, the 2005 and 2010 issues are all legal tender. We thought it less risky to gradually withdraw the earlier issue without disrupting the normal flow of business in the economy,” he explained.

The sh50,000 shilling note was voted the Banknote of 2010 by the Washington-based International Banknote Society for its strong design elements. The entire 2010 bank note series were voted Best New Bank Series for their excellent mix of artistic and security features by the International Currency Conference in Singapore last year.

Over the years, one thing has stood out; the number of zeroes at the end of each shilling has significantly increased as the country grapples with high inflation especially in the 1987 issue.

Tibamwenda points out that achieving zero inflation is next to impossible and doing so would be to risk deflation. The Central Bank is currently battling high inflation in a bid to bring it to the 5% target.

Latest economic statistics indicate that the tight economic stance being observed by the Central Bank has helped bring down commodity prices in most towns around the country, in turn bringing down inflation.

Money over the years...the reign of King Edward VIII, King George V and VI and Queen Elizabeth II. The period between 1962 and 1964 saw most countries in the East African region attain independence from the British

1966: First issue of 5 cents, 10 cents, 20 cents, 50 cents, sh1, sh2 coins. Banknotes of: sh5, sh10, sh20, and sh100. The Banknotes had a palm of a hand as a watermark.

1973: 1966 denominations were maintained, and a sh50 note was added. A portrait of President Idi Amin was introduced on the notes.

1979: 1973 issue were adjusted and Amin’s portrait was replaced with an artistic impression of the Bank of Uganda building.

1982/83: In 1982 new currency were issued and same denominations were maintained. In 1983, the denominations of sh500 and sh1,000 notes were introduced, and had a portrait of President Milton Obote.

1985/1986: Obote’s portrait was replaced with the National Emblem in the middle of the Map of Uganda. The sh5,000 note was also introduced.

1987: New currency with a different design was introduced. This currency had coins of 5 cents, sh1 and sh2.

1995: The sh10,000 denomination was introduced.

1996: The sh10,000 note was upgraded and put in circulation.

1999: New denomination coins of sh50, sh100, sh200 and sh500 were introduced while maintaining the sh1,000 and sh5,000. A sh20,000 note was introduced.

2000: On December 31, sh5, sh10, sh20, sh50, sh100, sh200 and sh500 ceased to be legal tender.

On December 10, 2001, a sh1,000 note with additional features was introduced.

2003: On December 01, 2003, Bank of Uganda issued a sh50,000 note.

2004: November 1, 2004, sh5,000 and sh20,000 notes were upgraded with new features.

2005: On June 20, 2005, the sh1,000 note was enhanced. It has an improved cotton paper and shifting ink.

2010: The latest family of currency was issued in May 2010. It has the sh50,000, sh20,000, sh10,000, sh5000, sh2000 and sh1000. The coins have not changed since 1987.