Credit to the private sector recorded an annual growth of 14.6 per cent for the year ended, November last year, up from 13.7 per cent of the corresponding period in the preceding year.
However, loans to the agricultrural sector, during the period marginally declined, thus compromising the impact of credit development on the economy.
The Bank of Tanzania (BoT) monthly economic review for November last year saw the percentage share of commercial bank’s credit to agriculture declining to 10.1 per cent compared to 11.8 per cent recorded in the year before.
Similarly, in the period under review the credit extended to personal, trade, hotels and restaurants activities dropped.
However, during the period in question, building and construction, transport and communication as well as manufacturing activities recorded an outstanding performance and increased by 29.3 from 22.7, 16.5 from 13.6, 10.4 from 3.7 per cents respectively.
Also, the extended broad money supply (M3) recorded an annual growth of 10.3 per cent, compared with 10.6 per cent recorded in the corresponding period the year before.
The growth was, however, lower than 13.2 per cent recorded in the preceding month, mainly on the account of slowdown in net government borrowing from the banking system.
The government borrowed a total of 599.2bn/- on net terms from the banking system compared to 1.15tri/- recorded in the year ending October 2013. Likewise, the Net Foreign Assets (NFA) of banks contracted by 66.7 per cent.
By SEBASTIAN MRINDOKO, Tanzania Daily News
