Africa-Press – Tanzania. THE credit extended to the private sector continued to pick up after recording an annual growth of 5.6 per cent in October this year compared to 4.6 per cent in the preceding month and 4.9 per cent recorded in the corresponding period last year.
According to the Bank of Tanzania (BoT) monthly economic review for November, the private sector credit growth is expected to maintain an upward trajectory towards average growth target of 10.6 percent in 2021/22.
Domestic credit ex- tended to the private sec- tor and central government recorded an annual growth of 9.1 per cent in October this year compared with 10.7 per cent in October last year.
This is supported by ongoing implementation of policy measures rolled out by the BoT in July this year coupled with recovery of the global economy that has begun to filter into the do- mestic economic activities.
The profile of private sector credit by economic activities indicates continued dominance of credit growth extended to personal activities, mainly small and medium enterprises, followed by trade and manufacturing.
In terms of share, credit flows to the private sector continued to be mostly con- centrated in four economic activities led by personal activities, tracked by trade, manufacturing and agriculture.
Money supply continued to expand as the BoT sustained implementation of liquidity easing monetary policy in October this year in support of recovery of economic activities from the adverse effects of the Covid-19 pandemic.
As a result, the extended broad money supply grew by 13.6 per cent in the year ending October compared with 5.9 per cent in October in the previous year.
Similarly, annual growth of broad money supply responded to accommodative monetary policy measures, registering an annual growth of 14.7 per cent, up from 10.7 per cent.
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