The Performance of the Economy Report for the month of April 2023 released by the Ministry of Finance has revealed that more people are asking for personal and household loans from banks.
According to financial experts, this increased appetite for credit among the citizens ably represents the stressful economic hard times Ugandans are living as they try to recover from the shocks caused by the Covid-19 pandemic.
According to the report, of the Shs1.4 trillion that was advanced to the private sector in March, at least 23 % amounting to Shs344 billion went to personal and household loans.
Building, mortgage, construction, and real Estate took up 20.8% followed by trade at 15.9%.
Meanwhile, agriculture which employs about 70% of Uganda’s population only took 12.1% of the loans while business, community, social and other services at 8.8%.
According to the report, the value of credit approved for disbursement in March 2023 grew by over 67% from Shs1.2 trillion to Shs1.4 trillion.
