Private sector credit growth up in May, 2022 on improved business environment

Private sector credit growth scaled to 15 per cent in May, 2022 up from 13.4 per cent recorded in the preceding month according to the Bank pf Tanzania Monthly Economic Review for June, 2022.

According to Central Bank data, the growth was attributed to improved business conditions, coupled with supportive monetary and fiscal policies.

“During the period under review, growth of credit to the private sector was more pronounced in mining; Micro, Small and Medium  Enterprises (MSMEs) personal loans, trade and manufacturing activities .

“Personal loans continued to hold the largest share of the outstanding stock of private sector credit growth,” the report said.

Meanwhile, interest rates charged on loans by banks remained broadly unchanged in May 2022, with the overall lending rate averaging 16.25 percent compared with 16.31 percent registered in the preceding month.

Meanwhile, negotiated lending rates charged to negotiated lending rates charged to prime customers averaged 14.4 per cent, compared with 14.1 per cent recorded in the preceding month.