Economic effects of 1964 Buganda crisis ?

The 1964 Buganda crisis had significant economic effects on Uganda. The crisis, which was a political conflict between the central government and the Buganda kingdom, led to widespread violence and instability in the country. This had a negative impact on the economy in several ways:

1. Disruption of trade and commerce: The violence and unrest during the crisis disrupted trade and commerce in Uganda, leading to a decline in economic activity. Businesses were forced to close, and transportation of goods was hindered, affecting the flow of goods and services in the country.

2. Decline in foreign investment: The political instability caused by the crisis also led to a decline in foreign investment in Uganda. Investors were hesitant to put their money into a country that was experiencing such turmoil, leading to a decrease in foreign direct investment.

3. Damage to infrastructure: The violence during the crisis resulted in damage to infrastructure such as roads, buildings, and other public facilities. This not only increased the cost of rebuilding and repairing these structures but also hindered economic development and growth.

4. Loss of revenue: The crisis also led to a loss of revenue for the government, as tax collection was disrupted and economic activity slowed down. This affected the government's ability to fund essential services and infrastructure projects.

Overall, the 1964 Buganda crisis had a detrimental impact on Uganda's economy, leading to a period of economic instability and uncertainty. It took several years for the country to recover from the effects of the crisis and rebuild its economy.