Tanzania: Banks Credit to Zonal Economic Activities Up By 2.2%

LOANS advanced by banks to various economic activities grew by 2.2 percent in the quarter ending December last year on account of the

expansion of construction and trade activities.

According to the Bank of Tanzania (BoT), consolidated zonal economic performance report, credit extended to finance various economic activities increased to 14.50tri/-in the quarter ending December last year compared with 14.19tri/-extended in the corresponding quarter 2018.

The highest growth of bank loans was recorded in Central and Lake Zones, consistent with expansion of construction and trade activities.

Loans extended to economic activities in the central zones amounted to 1.13tri/-in the reference period which is equivalent to 23.3 percentage change compared to 919.6bn/-in the corresponding period.

Credit extended to economic activities in the Lake zones increased to 1.87tri/-, which is 21.1 percentage change compared to 1.54tri/-in the corresponding period 2018.

The amount of credit disbursed to finance economic activities in Dar es Salaam zones slowed to 8.15tri/-equivalent to negative 1.2 percent change compared to 8.31tri/-in the corresponding period 2018.

During the period under review, the amount of credit to various economic activities in the northern zone declined to 1.79tri/- which is negative 13.9 percent change compared to 2.08tri/-in the corresponding period.

The amount of loans extended to economic activities in the south eastern increased to 636.1bn/-, which is equivalent to 17.7 per cent change compared to 540.4bn/-. Despite the increment, amount of credit was the lowest compared to other zones.

Out of the outstanding stock, 66.1 percent of the total loans were directed to personal, trade and agriculture activities.

The deposits mobilisation improved during the period under review partly on account of increase in bank branch networks, agent banking and improved efforts in deposits mobilisation.

On aggregate, bank deposits grew by 8.5 percent to 20.21tri/-, with Dar es Salaam zone contributing the largest share of 64.4 percent, while South Eastern zone accounted for the least share of 3.9 percent.