By Business Insider Reporter
Credit extended to the private sector rose by 34.2 percent to about TSh56.4 trillion in the year to September 2026, reflecting an expansion in bank financing across key areas of economic activity, particularly transport and communication, trade and agriculture.
The growth points to an increasingly active banking sector in financing the economy, with lending to transport and communication rising by 78.3 percent, trade by 52.5 percent and agriculture by 41.9 percent, according to the Bank of Tanzania’s October 2026 Monthly Economic Review (MER).
“The strong credit performance continued to reflect rising demand for financing, associated with business expansion and overall economic resilience,” the central bank (BoT) notes on the new MER.
The expansion comes alongside strong lending growth among major banks, suggesting that financial institutions are increasing their role in mobilising savings and directing capital towards businesses and other borrowers.
CRDB Bank and NMB Bank, the country’s two leading domestic banking groups, reported combined net profits of approximately TSh1.31 trillion in the nine months to September 2026. Their performance was accompanied by growth in lending, deposits and total assets.
CRDB recorded profit after tax of TSh672.07 billion, up 29.1 per cent from the corresponding period in 2025, while NMB posted TSh635 billion, an increase of 17 percent.
More significantly for the credit market, CRDB’s net loans expanded by 43.7 percent to TSh18.44 trillion, while NMB’s increased by 27 percent to TSh12.07 trillion. Together, the two banks had about TSh30.51 trillion in net loans at the end of September.
The expansion extends beyond the two institutions. An analysis of 16 leading banks shows that their combined loans, advances and overdrafts increased by TSh4.14 trillion between June and September 2026, reaching TSh55.12 trillion from TSh50.98 trillion. This represented quarterly growth of 8.12 percent.
CRDB Group Chief Executive Officer Abdulmajid Nsekela attributes the bank’s performance partly to financing agriculture, manufacturing, trade and entrepreneurship, alongside the expansion of digital banking and regional financial connectivity. He also highlights the contribution of the group’s insurance and foundation businesses to financial inclusion.
NMB Managing Director and Chief Executive Officer Ruth Zaipuna says the bank’s nine-month results were supported by 27 percent growth in loans and advances, 20 percent growth in customer deposits and 25 per ent expansion in total assets.
“These strong results reflect the continued trust of our customers, shareholders and other stakeholders, as well as the resilience of our business model and disciplined execution of our strategic priorities,” she said.
Zaipuna identifies agriculture, manufacturing, energy, tourism and mining as strategic financing priorities, reflecting the bank’s focus on sectors with potential to support investment and economic activity.
NBC Managing Director Theobald Sabi also identifies growth in lending and deposits as important foundations for financing productive investment and business expansion. He attributes the bank’s performance to customer confidence, disciplined execution of strategy and employee commitment.
Despite the strong expansion in private-sector credit, personal loans remained the largest category, accounting for nearly 34 percent of outstanding bank credit. This is an important feature of the lending landscape, particularly as Tanzania seeks to channel more financing into productive economic activities.
“Personal loans, which are largely used to finance Micro, Small and Medium-Sized
Enterprises (MSMEs), continued to constitute the largest share of banks’ outstanding credit at 33.9 percent, followed by trade and agriculture at 15.6 percent and 13.7 percent, respectively,” BoT said in the October review, The sectoral figures, however, show substantial growth in lending to businesses and economic activities. Agriculture’s 41.9 percent expansion is significant for a sector central to employment, food production and industrial raw materials. Similarly, increased financing for trade and transport and communication points to stronger demand for capital across commercial and distribution networks.
