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 Form 4 CRE lessons on Christian approach to wealth, poverty and money

The impact of the Introduction of money economy in traditional African society

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Answer Text:
The impact of the Introduction of money economy in traditional African society.
-Money economy refers to the use of money as a means of exchange in economic activities such as banking, investment, insurance and payment for goods and services.
-Before the coming of missionaries and colonialists in the 19th century, the use of money in African communities was limited to Arabs along the East African coast.
-Traditional African communities practiced barter trade as the main method of exchange.
-Money was introduced in African society by the missionaries, European settlers and the colonial administration. Positive impacts of introduction of money economy.
-As the need to use money to purchase goods and services increased, many people left their homes to look for wage employment in towns and farms.
-Others got employed as clerks in mission hospitals, schools and government offices.
-Cash crops were introduced such as coffee, tea, pyrethrum and cotton.
-Some Africans started growing these crops as small-scale farmers.
-The development of towns where industries were set up thus making people to move from rural to urban areas in search of employment.