DOMESTIC credit extended to the private sector and the Central Government by the banking system grew by 33.7 per cent in the year ending September, compared with 6.8 per cent in the corresponding period last year.
The outturn, according to the Bank of Tanzania (BoT) monthly economic review for October, was driven by sustained strong growth of private sector credit that recorded a year-on-year growth of 22 per cent, compared with 4.5 per cent in September last year.
The continued strong growth of private sector credit was largely attributable to the continued recovery of economic activities, following improved business conditions.
The BoT report state further that most of the economic activities registered positive growth of credit in the year ending September this year saving for hotels and restaurants.
During the period under review, the agriculture sector continued to record the highest growth rate, attributable to the monetary policy measures rolled-out to support cost-effective credit intermediation to the agriculture sector and agri-business activities.
Meanwhile, personal loans continued to hold the largest share of the outstanding stock of private sector credit, accounting for 38.6 per cent, followed by trade, manufacturing and agriculture.
Money supply growth sustained an upward trend in the year ending September this year consistent with strong growth of credit to the private sector.
Specifically, the extended broad money supply recorded an annual growth of 13.6 per cent, broadly in line with the target, compared with the 12.7 per cent recorded in September last year.
Likewise, the broad money supply grew by 14.4 per cent, slightly below the 15 per cent registered in a similar period last year.
