Vol. 25 No. 09


Week Ending
3rd March 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 3rd March 2023, minimum deposits rates for savings deposits increased,
while maximum deposits rates on the same deposit class remained unchanged. Minimum
deposits rates for deposits of 1-month tenor and 3-months tenor increased, while maximum
deposits rates on the two deposit classes declined, as shown in Table 1.


Table 1: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit’s rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

The week ending 3rd March 2023, saw a decline in commercial bank minimum lending rates for
both individual and corporate clients. However, maximum lending rates for individual clients at
commercial banks were higher than in the previous week, while those for corporate clients
marginally softened during the same week, as shown in Table 2.

Table 2: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum deposit rates for savings deposits and deposits of 3-months tenor marginally
increased, while maximum deposits rates on the two deposit classes remained unchanged during
the week ending 3rd March 2023. In the same week, minimum deposits rates for deposits of 1month tenor increased, while maximum deposits rates declined, as shown in Table 3.


Table 3: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit’s rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

During the week under review, commercial bank minimum and maximum lending rates for both
individual and corporate clients increased, as shown in Table 4.

Table 4: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

During the week ending 3rd March 2023, the National Payment Systems (NPS) processed
transactions worth ZW$694.61 billion. This represented an increase of 20.74%, compared to
ZW$575.29 billion reported in the previous week. Real Time Gross Settlement (RTGS)
transactions increased by 22.72% to ZW$559.30 billion, from ZW$455.75 billion recorded in
the preceding week. In proportions, the NPS transaction values were distributed as follows:
RTGS, 80.52%, POS, 9.34%; Mobile, 6.23%; and ATM, 3.91%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 8.72% to 12.50 million, during the week under
review, from 11.50 million recorded in the preceding week. Mobile based transactions dominated
NPS transactions volumes at 73.28% of the total, followed by POS, 23.09%; RTGS, 2.62%; and
ATM, 1.02%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
80.52%
POS
9.34%
ATM
3.91%
MOBILE
6.23%
RTGS
POS
ATM
MOBILE
RTGS, 2.62%
POS, 23.09%
ATM, 1.02%
MOBILE, 73.28%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
24th February 2023

WEEK ENDING
3rd March 2023
% CHANGE FROM
LAST WEEK
PROPORTION
%

Values in ZW$ Millions


RTGS

POS

ATM

MOBILE

TOTAL

Volumes


RTGS

POS

ATM

MOBILE

TOTAL

Source: Reserve Bank of Zimbabwe, 2023

3.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

Weekly average prices for gold, palladium and nickel declined during the week ending 3rd March
2023. However, platinum, copper and crude oil prices increased during the same week, as shown
in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 3rd March 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (20-24 Feb 23)

27-Feb-23

28-Feb-23

01-Mar-23

02-Mar-23

03-Mar-23

Weekly Average (27 Feb-3 Mar

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices continued on a negative trajectory, declining by 0.13%, from US$1,831.64 per ounce
recorded in the preceding week to US$1,829.19 per ounce, during the week under review. The
outlook for bullion prices remained clouded by prospects of further interest rate hikes by the U.S
Federal Reserve.

Platinum
During the week under review, platinum prices increased by 1.48%, from US$940.40 per ounce
in the preceding week to US$954.30 per ounce, during the week ending 3rd March 2023. This
was, in large part, due to improved demand in the automotive industry.

Palladium
Palladium prices continued the downward trend during the week ending 3rd March 2023,
following low demand for the commodity. The precious metal price slipped by 3.29%, from a
weekly average of US$1,479.20 per ounce in the prior week to US$1,430.60 per ounce, during
the week under review.

Copper
During the reporting week, copper prices increased by 0.19% to US$8,959.00 per tonne, from
US$8,941.60 per tonne recorded in the previous week. Prices rose after better-than-expected data
on manufacturing activity was released in China, positively impacting on the demand for the
commodity.

Nickel
Nickel prices declined by 4.03%, from US$25,895.00 per tonne in the week ending 24th February
2023 to US$24,851.00 per tonne, during the week under review. The decrease resulted from
weak demand from China’s downstream manufacturers that had not fully resumed operations.

Brent Crude Oil

During the week under review, international crude oil prices rebounded by 1.91%, from
US$82.46 per barrel in the previous week to US$84.03 per barrel. Prices increased due to signs
of improving economic activities in China, which were expected to boost the demand for fuel.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 1.7% against the US dollar,
from ZW$878.1825 per US$1 in the previous week to ZW$892.8117 per US$1 during the week
under review, as is shown in Table 7.

Table 7: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (20-24 Feb 23)

27-Feb-23

28-Feb-23

01-Mar-23

02-Mar-23

03-Mar-23

Weekly Average (27 Feb-3 Mar 23 )

Appr(-)/Depr(+) (%) of the ZWL

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) was characterised by positive trading, during the week
ending 3rd March 2023. As a result, the ZSE All Share index added 4.15% to close at 29 196.89
points. All the major indices registered gains with the Top 10, Top 15, Medium and Small Cap
indices adding 1.58%, 3.86%, 5.34% and 2.43% to close the week at 17 022.75 points, 20 097.27
points, 64 184.73 points and 641 428.45 points, respectively.

The increase in the mainstream index was largely attributed to share price increases for Ariston
Holdings Limited (27.12%), CFI Holdings (21.81%), Rainbow Tourism Group (RTG) Limited
(19.70%), Bridgefort Capital Limited (15%) and Zimplow Holdings Limited (13.83%). Partially
offsetting the gains were losses in share prices for OK Zimbabwe Limited (5.04%),
Amalgamated Regional Trading (ART) Limited (4.76%), AFDIS Limited (1.74%), Ecocash
Holdings Zimbabwe Limited (1.39%) and Fidelity Life Assurance Limited (1.14%). The
resources index2, also gained 14.64% to close the week at 33 482.91 points, compared to 29
207.92 points recorded in the prior week.


1 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency
2 Resource Index – Comprise RioZim Limited Share Price

Table 8: Zimbabwe Stock Exchange Statistics3

All Share
Index
Points
Top 10
index3
(points)


Mining
Index
(points)
Grand
Market
Capitaliz
ation
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
Top 15
Index3
points
Medium
Cap3
(points)
Small Cap3
(points)


27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

03-Mar-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 4th February 2022 to 3rd
March 2023.

Figure 3: Zimbabwe Stock Exchange All Share and Top 10 Indices
Source: Zimbabwe Stock Exchange, 2023


3 The Zimbabwe Stock Exchange (ZSE) adopted the Global Industry Classification Standards, effective from 1 January 2020.The ZSE indices
constitute the following categories; Top 10 Index; Top 15; Top 25; Medium cap and Small cap Indices.


4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
3-Feb-23
17-Feb-23
3-Mar-23
All Share Index
Top 10 Index

Market Turnover and Volume

The cumulative volume of shares traded on the ZSE increased by 101.81% to 30.08 million,
during the week under analysis, from 14.91 million recorded in the prior week. A 169.91% to
ZW$3.79 billion increase in turnover value of shares traded was recorded during the reporting
week, from ZW$1.41 billion recorded in the previous week. The surge in market turnover was
largely informed by block trades in which 3.17 million Econet Wireless Zimbabwe Limited
shares and 2.06 million Delta Corporation Limited shares exchanged hands at ZW$170.06 and
ZW$525.74 per share, respectively. Figure 4 shows the trend in daily market turnover for the
period from 4th February 2022 to 3rd March 2023.

Figure 4: Daily Market Turnover
Source: Zimbabwe Stock Exchange, 2023

Market Capitalization

Reflecting the positive momentum on the ZSE during the week under review, the market added
ZW$3.68 billion, or 0.15% worth of capitalisation to close at ZW$2,522.77 billion. Figure 5
shows the evolution of ZSE market capitalization for the period from 4th February 2022 to 3rd
March 2023.


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Figure 5: Daily Market Capitalization in ZW$ billions
Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) exhibited bearish sentiments, during the week
ending 3rd March 2023. Resultantly, the VFEX All Share index lost 0.36% to close at 105.82
points. The cumulative volume of shares traded on the VFEX declined by 69.50% to 0.94
million. However, the value of shares traded increased by 144.94% to USD0.32 million, during
the same week. VFEX market capitalization increased by 76.14% to US$1.06 billion, compared
to US$0.60 billion recorded in the previous week. Figure 6 shows the trend in the VFEX All
Share Index (ASI) for the period from 4th February 2022 to 3rd March 2023.

Figure 6: Victoria Falls Stock Exchange All Share Index

Source: Victoria Falls Stock Exchange, 2023


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
Billions

04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23

Johannesburg Stock Exchange (JSE) Developments

The Johannesburg Stock Exchange (JSE) All Share Index increased from 76,937.77 points in the
previous week to close at 78,293.01 points, during the week ending 3rd March 2023. JSE market
capitalization also increased by 2.34% to ZAR22.25 trillion, during the same week.

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
27-Jan-23
80,791.36
23.28
3-Feb-23
80,240.92
23.08
10-Feb-23
78,985.35
22.87
17-Feb-23
79,271.78
22.93
24-Feb-23
76,937.77
22.23
03-Mar-23
78,293.01
22.75
% Change
1.76
2.34
Source: 2023


Figure 7: Johannesburg Stock Exchange (JSE) All Share Index
Source:


RESERVE BANK OF ZIMBABWE

4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
3-Feb-23
17-Feb-23
3-Mar-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX4 AND SMEFX5
Source: Reserve Bank of Zimbabwe, 2023


4 Main Foreign Currency Auction
5 Small and Medium Enterprises Foreign Currency Auction

MAINFX
10-Feb-23 17-Feb-23 24-Feb-23 03-Mar-23

SMEFX
10-Feb-23 17-Feb-23 24-Feb-23 03-Mar-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

Lowest Bid
Rate

Lowest Bid Rate
Allotted

Weighted Average
Rate

Number of Bids
Received

Number of Bids
Rejected

APPENDIX 2: SUMMARY OF FOREIGN CURRENCY AUCTION ALLOTMENTS BY PURPOSE
Source: Reserve Bank of Zimbabwe, 2023
Purpose
MAINFX
10-Feb-23 17-Feb-23 24-Feb-23 03-Mar-23
SMEFX
10-Feb-23 17-Feb-23 24-Feb-23 03-Mar-23
Raw Materials


Machinery and
Equipment

Consumables
(Incl. Spares,
Tyres,
Packaging)

Pharmaceuticals
and Chemicals

Services
(Loans,
Dividends and
Disinvestments)


197,421.92
Retail and
Distribution

Fuel, Electricity
and Gas

Paper and
Packaging

TOTAL

2,165,675.36