- The credits market in Tanzania has continued to recover with personal loans taking the driving seat, outshining trade which was leading in terms of share.
Dar es Salaam. Individual borrowers beat businesses in receiving the highest share of bank loans during the third quarter of this year compared with a similar quarter of last year.
Yesterday’s report by the Bank of Tanzania showed that the share of personal loans grew to 26.6 per cent of all banking loans from 17.4 per cent during the same period.
The percentage of personal loans during the period under review also rose to 60 per cent during the third quarter of this year from a contraction of 6.7 during a similar quarter of last year.
Trade accounted for 19.3 per cent of all loans issued to the private sector, down from 21 per cent during the same period.
Trade credit contracted by 1.3 per cent during the third quarter of this year, compared with a contraction of 0.3 per cent during the third quarter of last year.
The share of credit to the manufacturing sector gained to 11.2 per cent in the third quarter of 2018 from 11.1 per cent during a similar quarter last year.
According to the bulletin, credit extended to the private sector by banks grew by 4.9 per cent compared with 4 per cent in the year to June 30, 2018 and 0.8 per cent in the corresponding period in 2017.
The recovery in credit to the private sector was supported by accommodative monetary policy stance, improvement of business environment, banks credit risk management, as well as slowdown in banks’ appetite in investing in government securities due to a decline in yields.