Credit to private firms increases in Tanzania
Credit to businesses in Tanzania's private sector is on the up, new figures from the Bank of Tanzania (BoT) have shown.Credit to businesses in Tanzania's private sector is on the up, new figures from the Bank of Tanzania (BoT) have shown.
Funds have increased at an annual rate of 31.9 percent as banks gain confidence the global economic downturn is easing, the Daily News reports.
"The increase in growth rate is almost 57.14 percent compared to the previous months," the financial institution stated.
It was also claimed enterprises are becoming more disciplined in their borrowing habits, which is encouraging banks to lend more.
Many companies have also changed their views on borrowing money from commercial banks, which is supporting economic growth, the BoT suggested.
Some of the fastest growth rates were seen in the agricultural, trade and building and construction industries.
Last month, a study of Agriculture Finance Markets Scoping released at an event hosted by the BoT suggested rural and agricultural small and medium-sized enterprises in Tanzania can only access finance from a limited number of outlets.