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Tanzania’s central bank to give $432 mln loan for lending to private sector

TANZANIA’S central bank will provide a 1 trillion shilling ($432 million) loan to commercial banks for lending to the private sector, as part of measures aimed at tackling the effects of the COVID-19 pandemic.

The Bank of Tanzania said in a statement that it asked commercial banks to cap the lending rate to borrowers in the agriculture sector at 10%.

The bank said the loan to commercial banks will have a 3% interest rate, and they can use it to pre-finance or refinance loans to private businesses.

Tanzania, which under late President John Magufuli had downplayed the impact of COVID-19 last year, has started acknowledging the crisis and its effects after President Samia Suluhu Hassan took over in March.

The finance ministry said in June it had asked the International Monetary Fund for a $571 million loan to help it tackle the challenges caused by the pandemic.

By The African Mirror