Tanzania Individual borrowers beat businesses in receiving the highest share of bank loans during the five years to 2019 indicating strong financing for the domestic economy and small and medium enterprises (SMEs). According to a report by the Bank of Tanzania showed that by 2019 personal loans accounted for 29.04 percent of total loans, which is higher than 17.8 percent that the segment accounted for in 2015. The rise of financial access is critical for the growth of small and medium-size enterprises (SMEs). It allows entrepreneurs to innovate, improve efficiency, expand to new markets, and provide millions of jobs. During the five year period Trade activities accounted for 16.15 percent of all the credits extended by commercial banks, followed by Building, Construction and Real estate’s 10.88 percent , Manufacturing (9.89%), and Agriculture (9.64%). The remaining sectors accounted for 24.40% of the loan portfolio. Steadfast financing from banks is important in improving the country's economic structure and so is the capital they provide. Extension of credit allows firms (businesses) to diversify and households to meet their expenses. Among other factors, the general softening of the cost of borrowing in the recent months contributed to influencing credit growth. Central bank reported that the average lending rates by banks remained stable with a gradual downward trend over the last two years. The rate declined to 16.9% in 2019 from to 17.0% in 2018 and 18.0% in 2017. Credit growth was observed prominently in agriculture, building and construction, and transport and communication activities. Sustained accommodative monetary policy coupled with ongoing measures implemented by the Government to improve business environment has also influenced the significant growth of credits to the private sector. The Government continued to streamline fiscal operations to facilitate sustainable economic growth, by enhancing revenue collection efforts and rationalizing expenditure patterns based on available resources and priorities. During the quarter ending December 2019, Government resources, which comprise domestic revenue and foreign grants, amounted to Sh5.78 trillion, while expenditure was Sh6.44 trillion. Interest Rates Interest rates offered on deposits and those charged on loans by banks exhibited a mixed trend across the maturity spectrum but with a general softening as reflected by movements in overall time deposits and overall lending rates. This reflects adequacy of liquidity in the banking system in line with accommodative monetary policy pursued by the Bank. According to the Bank of Tanzania (BoT) the overall time deposit rate decreased to an average of 7.02 percent in the quarter ending December 2019 from 7.77 percent in the corresponding quarter of 2018, while one-year deposit rate increased to an average of 9.04 percent from 8.18 percent. Ends