East Africa: Banks to increase credit towards development of manufacturing sector

Posted on :Monday , 26th October 2015

According to the Bank of Tanzania (BoT) monthly economic review, strong credit was extended to manufacturing, hotels and restaurants and transport and communication activities.

During the month under review, credit extended to agriculture increased to 12.9 per cent compared to 6.0 per cent in July and 2.0 per cent in the corresponding period year before.

Similarly the annual growth of bank's credit to the manufacturing sector jumped to 36.7 per cent compared to 30.7 per cent in the preceding month and 22.4 per cent in the year before. Hotels and restaurants received highest credit by 33.6 per cent in the month under review compared to 13.6 per cent in July and 0.4 per cent in the previous year.

Annual growth of extended broad money (M3) increased to 17.8 per cent in August 2015 from 16.4 percent in the preceding month and 13.9 per cent in August 2014. The growth of money supply was supported by increase in net foreign assets (NFA) of the banking system and banks' credit to the private sector.

The NFA of the banking system grew by 33.1 percent in the year ending August 2015 compared with 0.4 percent in the preceding year, partly due to valuation gains resulting from depreciation of the shilling against the US dollar and increase in commercial banks' deposits with banks abroad.

In terms of composition of credit, the shares remained almost the same, with trade accounting for 21.1 percent, followed by personal loans (16.9 percent) and manufacturing activities (12.5 percent).

Expogroup

Expogroup is a full service exhibition organiser with over 28 years experience in International trade exhibitions. Our current portfolio includes 28 annual exhibitions from a diverse range of industries being held across the Middle East & Africa.

Facebook

EXPOGROUP