Domestic credit to the private sector rose by 6.2% in December from the same month in 2016, accelerating from November’s 3.2% growth, figures from Bank of Uganda show.
The growth was driven by an increase in credit to the agriculture sector and personal loans and household loans. Loans from commercial banks and other financial corporations to the private sector in December amounted to Shs12.8 trillion.
Commercial bank loans, which were 95.4% of total credit to the private sector, also rose 6.2% year-on-year to Shs12.2 trillion, faster than November’s 3.2% increase.
An increase in lending to the agriculture sector and personal loans and household loans was responsible for the growth in commercial bank credit to the private sector in December. Loans to agriculture grew by 31.2% year on year to Shs1.4 trillion. Personal loans and household loans rose 16.1% compared to the same month last year to Shs2 trillion.
The building, mortgage, construction and real estate received the biggest share, 21.2%, of commercial bank loans in December. Lending to the sector however fell 3.8% compared to the same month in 2016. Personal loans and household loans were 18% of the total, while the trade sector absorbed 18.9% of total loans.