Private sector credit grows 19.5 pc

DAR ES SALAAM: Private sector credit grew by 19.5 per cent in the year ending September, compared to the 22 per cent growth in the same period last year.

This decrease can be attributed to an improved business environment.

The Bank of Tanzania (BoT) stated in its monthly economic review for October that supportive monetary and fiscal policies, as well as ongoing structural reforms, contributed to this growth.

The growth of extended broad money supply has slowed for the second consecutive month, indicating a less accommodating monetary policy stance.

During this period, agricultural activity experienced the highest growth in credit at 55.5 per cent, followed by mining and quarrying at 33.4 per cent.

The agriculture sector, which attracts commercial lenders and employs three-quarters of the country’s workforce, represents almost 30 per cent of the country’s GDP.

Personal loans accounted for the largest share of outstanding credit to the private sector at 38.1 per cent, followed by trade, agriculture, and manufacturing at 15.4 per cent, 10.4 per cent, and 9.2 per cent, respectively.

In comparison to August 2023, the annual growth rate decreased to 14.5 per cent from 17.4 per cent.

However, this growth rate was slightly higher than the 13.6 per cent recorded in the same period last year.

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