Uganda’s outstanding private sector credit rises to nearly Shs22 trillion

The stock of Uganda’s outstanding Private Sector Credit increased by 1.3%, to Shs21.919 trillion June 2024.

This is compared to Shs21.634.92 trillion in May 2024. This is contained in the Performance of the Economy Report for July 2024 released by the Ministry of Finance.

The report states that this growth was driven by a rise in Shilling denominated credit which increased from Shs 15.222.09 trillion to Shs 15.629.53 trillion.

“The rise was partly supported by lower Shilling-denominated lending rates and higher credit extensions, particularly to borrowers in the trade and building, mortgage, construction & real estate sectors,” the report states.

Conversely, foreign currency-denominated credit decreased from Shs6.412.84 trillion in May 2024 to Shs6.289.98 trillion in June 2024.

According to the report, in June 2024, a total of Shs 1.360.87 trillion was extended to the private sector by lending institutions, an increase from Shs 1.331.47 trillion in the previous month. This translated into an approval rate of 66.0% during the month.

The trade sector accounted for the biggest share of the loans extended to the private sector, accounting for 29.0% of the total credit approved. This was followed by the personal and household loans at 22.7% and building, mortgage, construction & real estate at 15.2%.