Credit to Tanzania’s private sector sustained strong growth in the fourth quarter last year averaging 22.9 percent compared with 7.8 percent in the corresponding quarter in 2021 according to the Bank of Tanzania (BoT) Economic Bulletin for the quarter ending December, 2022.
The result was mainly attributed to recovery of various economic activities from the effects of COVID-19 pandemic coupled with monetary and fiscal measures carried out to mitigate adverse effects of external economic shocks.
According to the report released yesterday, all major economic activities recorded strong lending during the quarter, except hotels and restaurants.
“Agricultural activities continued to register the highest growth, responding to monetary policy measures rolled out by the Bank to support cost-effective financing for agriculture and agribusiness activities,” the report said.
Personal loans continued to hold the largest share of outstanding credit,followed by trade, manufacturing and agriculture activities
Interest rates charged on loans by banks remained almost unchanged averaging 16.07 percent during the quarter compared with 16.47 percent in the corresponding quarter in 2021 with negotiated lending rates stabilizing at around 14 percent.
“Interest rates offered by banks on deposits recorded an increase with overall time deposit rates averaging 7.18 percent, from 6.62 percent in the quarter ending December 2021,” the report said.
Negotiated deposit rates eased to an average of 9.30 percent, from 9.77 percent