Uganda’s stock of outstanding private sector credit grew by 0.8 percent to Shs23.3 trillion in March 2025 from Shs23.12 trillion recorded in February 2025.
This is contained in the Performance of the Economy Monthly Report for April 2025 released recently by Ministry of Finance, Planning and Economic Development’s Macroeconomic Policy Department.
According to the report, this growth was mainly driven by the increase in foreign currency-denominated credit, which grew by 1.2 percent to Shs6,783.69 billion in March 2025 from Shs6,702.49 billion in February 2025.
Similarly, the stock of Shilling denominated credit grew by 0.6 percent to Shs 16,522.14 billion in March 2025 from Shs 16,418.89 billion in February 2025.
The report adds that the value of credit approved increased by 16.9 percent to Shs 1,563.78 billion in March 2025 from Shs 1,337.86 billion approved in February 2025.
“This reflected an overall increase in credit extended to the private sector during the month. As was the case in February 2025, personal and
household loans accounted for the largest share of credit extended, representing 34.8 percent (Shs 544.95 billion) of total approved credit. Other notable recipients included Building, Mortgage, Construction and real estate at 19.7 percent (Shs 307.90 billion), trade at 15.1 percent (Shs 235.48 billion), and manufacturing at 9.2 percent (Shs 144.07 billion),” the report reads in part.
Lending Rates
According to the report, the weighted average lending rate for Shilling-denominated loans declined to 17.74 percent in March 2025 from 18.76 percent in February 2025, partly on account of more lending to prime borrowers during the month who are considered less risky and hence borrow at lower lending rates.
On the other hand, the weighted average lending rate for foreign currency-denominated credit rose to 8.51 percent in March 2025 compared to 8.30 percent in February 2025.
