Private-sector credit growth in Tanzania decelerated in May as commercial banks adopted a more cautious lending approach, with financing momentum weakening across several critical economic sectors despite ongoing strength in trade, agriculture, and transport activities.

The Bank of Tanzania’s latest Monthly Economic Review highlights a shifting credit landscape where financial institutions continue supporting businesses but are becoming more selective about capital deployment.Key sectors affected include manufacturing, hospitality, and industrial production, while trade, transport, and agriculture showed resilience.Manufacturing faced a 3.3% annual decline in lending growth, reversing previous expansion trends.The hospitality sector also saw a 2.9% drop compared to last year’s 21.7% growth.However, trade recorded 35% annual growth, and transport and communication led with 44.6% growth.Agriculture maintained 30.9% growth, while construction and mining saw moderate declines.The trend reflects a maturing credit market with banks prioritizing risk management over broad lending.