Private sector credit growth in the country increased by 22.6 per cent on year-on-year basis in November last year , almost tripling from 7.8 per cent registered in November 2021 according to the latest figures from the Central Bank.
This reflects improving economic activity and impact of monetary and fiscal policies executed to limit adverse spillover effects of the global supply shocks.
According to the Bank of Tanzania (BoT) Monthly Economic Review for December 2022, almost all the major economic activities recorded increase in credit.
Credit extended to agriculture continued to record the highest growth, partly due to monetary policy measures rolled out in July 2021 to support cost-effective credit intermediation to agriculture and agri-business activities.
“In terms of share, personal related activities, trade, manufacturing and agriculture activities remained the major holders of the outstanding loans extended to the private sector by banks,” the statement said.
In November 2022, the BoT continued to implement monetary policy that is geared towards balancing between taming inflationary pressures and supporting economic activities.
This policy drive was implemented by lessening monetary policy accommodation and as a result, money supply and private sector credit growth has been satisfactory.
Extended broad money supply (M3) grew by 12.7 per cent, in line with the target of 10.3 percent for
2022/23.
