Money supply growth sustained an upward movement in Tanzania, growing at 20.9 percent in July 2023, higher than 7.9 percent in the corresponding period in 2022 according to the Bank of Tanzania (BoT) Monthly Economic Review for August, 2023.
“This strong growth was largely attributed to a robust expansion of credit to the private sector,” the report says.
Credit to the private sector remained strong, largely backed by higher demand for loans that is associated with improving business and investment environment.
On annual basis, credit to the private sector grew at 20.8 percent in July 2023, almost the same as the rate registered in the preceding month and in the corresponding period in 2022 according to the report.
Agricultural activities continued to record the highest growth of credit at 46.4 percent, followed by building and construction at 26.1 percent.
Meanwhile, personal loans, which accounted for the major share of the total outstanding credit to the private sector, remained the main driver of private sector credit growth, followed by trade, agriculture and manufacturing activities.