Uganda’s private sector credit extension grew 6.2% in August from the same month in 2016, accelerating from July’s 5.7%, figures from the Bank of Uganda show.
The total amount of loans from all deposit-taking corporations except the central bank to the private sector was Shs12.2 trillion, which is 0.5% higher than the Shs12.1 trillion extended in July. The biggest portion, Shs2.5 trillion representing a 20.6% share, was the to the trade sector.
Commercial bank loans rose 6.4% year-on-year to Shs11.6 trillion, faster than the 5.9% growth recorded in July.
The increase in commercial bank lending was led by a rise in personal loans and household loans, and a rise in credit to the agriculture and trade sectors. Personal and household loans increased by 18.8% year-on-year, while lending to agriculture and trade rose 21.5% and 15% respectively.
However, commercial bank credit to the building, mortgage, construction and real estate fell by 4.4% from August 2016 to Shs2.4 trillion. The sector received the biggest portion of commercial bank loans with a 20.9% share. It was followed by trade with a 19.4% share and personal and household loans with 18.2%.
On a month-on-month basis, commercial bank credit to the private sector rose 0.4%, driven by a 2% increase in personal loans and household loans, while lending to the building, mortgage, construction and real estate sector inched up by 0.8%.