Overview:
The total value of credit approved for disbursement during February 2023 amounted to Shs 1,268.1 billion, an increase from Shs1,250.1 billion registered the previous month.
Personal and household loans accounted for the largest share of loans extended by commercial banks and other financial institutions to Ugandans in the month of February 2023, a new report indicates.
According to the Performance of the Economy Report for March 2023 released by the Finance Ministry on Monday, 17 April 2023, personal and household loans accounted for 38.0 percent (Shs481.7 billion), followed by manufacturing and trade at 15.7 percent (Shs 199.0 billion) and 13.3 percent (Shs 193.7 billion), respectively.
Other notable recipients included agriculture at 10.4 percent, community, social and other services at 9.2 percent, transport, water, communication and electricity at 3.6 percent and mining and quarrying at 1.4 percent of total credit extended to the private sector.
The total value of credit approved for disbursement during February 2023 amounted to Shs 1,268.1 billion, an increase from Shs1,250.1 billion registered the previous month.
According to the report, the stock of outstanding private sector credit in February 2023 was Shs20,103.6 billion, a 0.2 percent decline from Shs 20,138.9 billion in Jnuary 2023 partly driven by the tight monetary policy stance and increased lending rates.
During the month, shilling denominated credit accounted for 69.4 percent (Shs 13,955.72 billion), while foreign currency denominated credit was 30.6 percent (Shs 6,147.85 billion) of the total stock.
According to the report, private sector credit growth remains generally lower than the pre-COVID 19 levels mainly on account of subdued economic activity occasioned by the lagging effects of the Covid-19 pandemic, the spill-over effects of the Russia – Ukraine war as well as the tight monetary stance by the central bank.