Tanzania: Banks Deposits Increase By Over 10 Per Cent

THE deposits mobilized by banks in the country increased by 10.1 per cent to 21.41tri/- in quarter ending September from 19.45tri/- recorded in the corresponding quarter in 2019.

According to the Central Bank’s Consolidated Zonal Economic Performance Report the deposits mobilization increased across all zones with the exception of Central and Northern zones.

The highest growth in deposits mobilization was registered in South Eastern and Lake Zones, while the least growth was recorded in Central zone.

The Dar es Salaam zone remained dominant, accounting for 63.8 per cent of the total deposits, trailed by the Northern zone at 11.3 per cent.

Meanwhile, loans extended to various economic activities by banks increased by 9.4 per cent to 16.75tri/- in the quarter under review from 15.30tri/- recorded in a similar quarter in 2019.

The increase was particularly notable in Lake zone where it increased by 49.2 per cent and Central zone by 29.2 per cent.

Loans extended by banks in Southern Highlands zone declined by 31.0 per cent attributed to decrease in lending to mining, trade and manufacturing activities.

The Dar es Salaam zone accounted for 61.5 per cent of the total loans, followed by Lake Zone 13.5 per cent and Northern Zone by 10.1 per cent.

The main beneficiaries of loans issued were personal related activities, which absorbed 30.8 per cent of the total loans, followed by trade by 20.2 per cent, health and education by 14.7 per cent, and agriculture related activities by 11.3 per cent.