Tanzania: Lending to Private Sector Increases

Aug 22, 2014

According to the Bank of Tanzania (BoT) monthly economic review, credit to the private sector grew at an annual growth rate of 21.4 per cent to the end of June 2014, higher than 17.1 per cent recorded in the year ending June 2013.

According to the Bank of Tanzania (BoT) monthly economic review, credit to the private sector grew at an annual growth rate of 21.4 per cent to the end of June 2014, higher than 17.1 per cent recorded in the year ending June 2013.

Credit growth was also higher than the 18 per cent year-on-year growth to May 2014, which was only slightly higher than the 18.7 per cent growth recorded for the same period in 2013.

Other things being equal, the strong credit growth data reflects an improving economic outlook.

On an annual basis, credit to building and construction grew by 26 per cent (compared to 23.7 per cent of the previous month), credit to agriculture was a strong 11.2 per cent (compared to 4.9 per cent in May), trade saw an 18.9 per cent growth (compared to 14 per cent), and credit to transport and Communication grew 29.3 per cent (compared to 24 per cent).

Extended broad money supply (M3) grew 15.8 per cent, compared to 14.9 per cent recorded in the year ending June 2013, mainly due to this increase in credit to the private sector and to the growth of Net Foreign Assets (NFA) of the banking system.ADNFCR-2976-ID-801743933-ADNFCR