Establishment Of Colonial Economy Colonial economy refers to the system of production and consumption which were introduced in the colonies by the colonialists in order to fulfill their economic demands such as raw materials, markets, area for investment and areas for settlement. It included Agricultural, mining, communication, and transportation of Commerce and Trade. The purpose of establishing colonial economy was to ensure a constant supply of raw materials, cheap labor, market, area for investment, and area for settlement. During the colonial economy period, African economy was transformed and made inferior. OBJECTIVES OF COLONIAL ECONOMY Colonies were expected to provide raw materials, both agricultural products and minerals to the factories of the European countries. Examples of agricultural products were cotton, coffee, sisal, pyrethrum, tea, cocoa, and palm oil. Colonies were expected to import manufactured goods like clothes, sh