Private sector credit recorded a year-on-year growth of 23.7 per cent, compared with 5.6 per cent in October last year and the target of 10.7 per cent for the 2022/23 financial year.

According to the Bank of Tanzania (BoT) monthly economic review for November, the private sector credit performance is attributed to the normalisation of economic activities from the Covid-19 pandemic, coupled with supportive monetary policy conditions.

During the year ending October this year, all major economic activities recorded positive growth of credit, except hotels and restaurants.

The outstanding credit to hotels and restaurants shrunk by 4.5 per cent following the writing-off of non-performing loans to comply with regulatory requirements.

Credit to agriculture maintained the highest growth rate, partly responding to monetary policy measures implemented to support cost-effective credit intermediation for agriculture and agri-business activities.

Money supply remained on a rising trend in line with the ongoing implementation of monetary policy that is geared towards balancing between taming inflationary pressures while stimulating recovery of economic activities.

Specifically, the extended broad money supply grew by 13.3 per cent, slightly lower than the 13.6 per cent recorded in October last year. The growth of M3 is generally consistent with the target of 10.3 per cent for 2022/23.

The growth of credit extended by the banking system to the private sector and the central government remained high on account of sustained high growth of credit to the private sector.

Annual growth of 34.2 per cent was recorded in October this year higher than 9 per cent in the corresponding period last year.

Meanwhile, personal activities--mainly small and medium-sized undertakings, continued to account for the largest share of the total outstanding credit to the private sector, at 38.4 per cent, followed by trade, manufacturing and agriculture activities.