Private sector credit stock up 23 per cent annually
DAR ES SALAAM: THE stock of credit extended to Tanzania’s private sector increased by 22.5 per cent in the year ending May, reaching 49tri/- from around 40tri/- a year earlier, as banks continued supporting businesses and investment despite a moderation in lending growth.
The latest data from the Bank of Tanzania’s (BoT) Monthly Economic Review Report shows private sector credit maintained an upward trend during the period, driven by sustained demand for financing from businesses and households.
The increase of nearly 9tri/- in outstanding loans highlights the growing role of commercial banks in financing working capital, trade activities, capital investment and business expansion.
According to the central bank report, annual private sector credit growth stood at about 23 per cent in May, easing from levels above 25 per cent recorded between December last year and March 2026.
The slowdown followed a period of faster lending expansion as banks increased credit disbursement during the final months of 2025 and the beginning of 2026.
However, growth remained strong, indicating that financing conditions continued to support economic activity.
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The BoT said the increase in credit was driven by borrowing from firms seeking funds to expand operations, improve productivity and respond to rising demand.
Private-sector credit remains a key indicator of economic momentum because it supports investment, production and employment.
Access to bank financing enables businesses to purchase equipment, increase capacity, manage cash flows and undertake new projects.
The central bank said the recent trend reflects banks’ continued willingness to support economic activity while maintaining prudent risk management.
Future credit growth will depend on factors including interest rates, borrower confidence, banks’ lending appetite and performance across major economic sectors.
As Tanzania continues to promote private-sector-led growth, sustained access to financing remains critical for boosting investment, productivity and long-term economic expansion.
