Vol. 25 No. 18


Week Ending
5th May 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Commercial bank average minimum and maximum deposits rates for deposits of all classes were
unchanged during the week ending 5th May 2023, as shown in Table 1.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
6-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

During the week ending 5th May 2023, commercial bank minimum lending rates for individual
clients decreased, while maximum lending rates increased. Average minimum and maximum
lending rates for corporate clients increased during the same week, as shown in Table 2.

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

Individual Clients

Corporate Clients
6-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

The week ending 5th May 2023 saw average minimum and maximum deposits rates for savings
deposits remain unchanged. Minimum deposits rates for deposits of 1-month and 3-months tenor
also remained at previous week levels, while maximum deposits rates for both classes of deposits
increased during week under review, as shown in Table 3.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
6-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

Commercial bank minimum lending rates for both individual and corporate clients were higher
than in the previous week, while maximum lending rates marginally softened during the week
under review, as shown in Table 4.

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

Individual Clients

Corporate Clients
6-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The National Payment Systems (NPS) processed transactions valued at ZW$857.32 billion,
during the week ending 5th May 2023. This represented a 6.55% decrease from ZW$917.40
billion recorded in the previous week. Real Time Gross Settlement (RTGS) transactions declined
from $734.22 billion in the previous week to $622.07 billion, during the week under review. In
proportions, the NPS transaction values were distributed as follows: RTGS, 72.56%, POS,
14.23%; Mobile, 8.94%; and ATM, 4.27%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions declined by 7.44%, from 12.48 million recorded in the
preceding week to 13.41 million, during the week under review. Mobile based transactions
dominated NPS transaction volumes at 67.86% of the total; followed by POS, 28.93%; RTGS,
1.72%; and ATM, 1.49%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
72.56%
POS
14.23%
ATM
4.27%
MOBILE
8.94%
RTGS
POS
ATM
MOBILE
RTGS, 1.72%
POS, 28.93%
ATM, 1.49%
MOBILE, 67.86%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
28th April 2023

WEEK ENDING

5th May 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.
TOBACCO SALES
A cumulative total of 160.46 million kilograms of tobacco had been sold as at day 39 of the
tobacco selling season. This was a 41.26% increase from the 113.59 million kilograms sold during
the same period in 2022. In value terms, tobacco sales registered a 41.69% increase to US$480.69
million, from US$339.25 million realized during the corresponding period in 2022, as shown in
Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 39 (5th May 2023)

Variance (%)
Cumulative Quantity Sold (million kgs)
113,589,984
160,458,310
41.26
Average Price (US$/kg)
2.99

3.00
0.19
Cumulative value (US$ million)
339,248,627
480,692,757
41.69
Source: Tobacco Industry and Marketing Board (TIMB), 2022

The golden leaf was sold at an average price of US$3.00 per kilogram, up from US$2.99 per
kilogram realised in the same period last year.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

Weekly average prices for platinum, palladium, copper and crude oil declined, while those for
gold and nickel increased. Table 7 shows commodity prices developments, during the week
ending 5th May 2023.

Table 7: Metal and Crude Oil Prices for the week ending 5th May 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne
US$/tonne
US$/barrel
Weekly Average (24-28 Apr 23)

2-May-23

3-May-23

4-May-23

5-May-23

Weekly Average (2-5 May 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices increased by 1.34%, from US$1,989.26 per ounce in the previous week to
US$2,015.90 per ounce, during the week ending 5th May 2023. The price of the yellow metal
rose as robust U.S. jobs data dampened expectations of further interest rate hikes by the Federal
Reserve.

Platinum
Platinum prices eased by 3.23%, from US$1,087.50 per ounce in the prior week to US$1,052.38
per ounce, during the week under analysis. Prices were weighed down by sustained power related
supply disruptions in South Africa, the world’s largest producer of the precious metal.

Palladium
During the week ending 5th May 2023, prices for palladium declined by 4.71%, from
US$1,515.60 per ounce in the previous week to US$1,444.25 per ounce, during the reporting
week. Prices continued to decline owing to sluggish industrial demand as well as a stronger US
dollar.

Copper
Copper prices declined by 0.83%, from US$8,618.20 per tonne recorded in the previous week,
to US$8,546.88 per tonne during the week under analysis. The slight decline in prices was
attributable to weak demand in China, the world’s top metal consumer of the base metal.
Nickel
The week ending 5th May 2023 saw the price of nickel increase by 3.22% to US$24,637.50 per
tonne, from US$23,870.00 per tonne recorded in the previous week. The increase was largely on

account of picking demand in the stainless-steel industry which accounts for more than half of
primary nickel demand.

Brent Crude Oil

During the week ending 5th May 2023, crude oil weekly average prices declined by 7.27%, from
US$80.06 per barrel in the week ending 28th April 2023 to US$74.20 per barrel. Prices retreated
as fears over a weakening US economy and declining Chinese demand continued to weigh on
demand prospects for the commodity.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 6.1%, from an average of
ZW$1,016.6109 per US$1 in the previous week to ZW$1,078.9975 per US$1, during the week
ending 5th May 2023, as is shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (24-28 Apr 23)


2-May-23


3-May-23

4-May-23

5-May-23

Weekly Average (2-5 May 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


6. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) was characterised by bullish sentiments for the third
consecutive week. As a result, the ZSE All Share index gained 20.05% to close at 49 689.11
points. The Top 10, Top 15, Medium Cap and Small Cap indices added 24.31%, 22.11%, 8.74%
and 0.89% to close the week at 29 541.33 points, 34 558.62 points, 99 331.49 points and 745
613.66 points, respectively.


1 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency

The gain in the mainstream index emanated from share price increases for CBZ Holdings Limited
(47.96%), Econet Wireless Zimbabwe Limited (41.42%), Masimba Holdings Limited (32.46%),
TSL Limited (31.90%) and Zimplow Holdings Limited (28.77%). Partially offsetting the gains
were declines in share prices for Mashonaland Holdings Limited (7.68%), Amalgamated
Regional Trading (ART) Holdings Limited (2.83%), and Zimre Holdings Limited (0.39%). The
resources index2 remained unchanged at 36 393.55 points, during the week under analysis.

Table 9: 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)


31-Mar-23

06-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 4th March 2022 to 5th May
2023.


2 Resource Index – Comprise RioZim Limited Share Price
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.

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


Market Turnover and Volume

During the week under analysis, the cumulative volume of shares traded on the ZSE declined by
42.34% to 19.35 million, from 33.55 million recorded in the prior week. The turnover value of
shares amounted to ZW$2.85 billion, representing a decrease of 53.17% from ZW$6.09 billion
recorded in the previous week. Figure 4 shows the trend in daily market turnover for the period
from 6th March 2022 to 5th May 2023.

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


6-Mar-22
31-Mar-22
25-Apr-22
20-May-22
14-Jun-22
9-Jul-22
3-Aug-22
28-Aug-22
22-Sep-22
17-Oct-22
11-Nov-22
6-Dec-22
31-Dec-22
25-Jan-23
19-Feb-23
16-Mar-23
10-Apr-23
5-May-23
All Share Index
Top 10 Index


06-Mar-22
31-Mar-22
25-Apr-22
20-May-22
14-Jun-22
09-Jul-22
03-Aug-22
28-Aug-22
22-Sep-22
17-Oct-22
11-Nov-22
06-Dec-22
31-Dec-22
25-Jan-23
19-Feb-23
16-Mar-23
10-Apr-23
05-May-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Market Capitalization

ZSE market capitalization increased by 21.86% or ZW$761.37 billion to close at ZW$4.24
trillion, from ZW$3.48 trillion recorded in the preceding week. Figure 5 shows ZSE market
capitalization developments for the period from 6th March 2022 to 5th May 2023.

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

Victoria Falls Stock Exchange


The Victoria Falls Stock Exchange (VFEX) was characterised by bearish sentiment, during the
week under analysis. Resultantly, the VFEX All Share index lost 1.02% to close at 85.74 points,
compared to 86.62 points recorded in the previous week. The decrease in the VFEX mainstream
index emanated from share price declines for Bindura Nickel Corporation (BNC) (19.69%),
Padenga Holdings Limited (13.38%), Simbisa Brands Limited (5.73%) Africa Sun Limited
(5.18%) and Axia Corporation Limited (3.47%). Partially offsetting the share price losses were
gains in share prices of SeedCo International (3.45%), Innscor Africa Limited (1.78%) and
Nedbank Group Limited Zimbabwe (0.09%).

The cumulative volume and value of shares traded on the VFEX declined by 15.94% and 34.96%
to 1.45 million shares and US$0.36 million, respectively. Reflecting the negative sentiments
exhibited on the VFEX, market capitalization declined by 3.21%, or US$34.03 million worth of
capitalisation to US$1.02 billion, compared to US$1.06 billion recorded in the previous week.
Figure 6 shows the trend in the VFEX All Share Index (ASI) for the period from 6th March 2022
to 5th May 2023.


06-Mar-22
31-Mar-22
25-Apr-22
20-May-22
14-Jun-22
09-Jul-22
03-Aug-22
28-Aug-22
22-Sep-22
17-Oct-22
11-Nov-22
06-Dec-22
31-Dec-22
25-Jan-23
19-Feb-23
16-Mar-23
10-Apr-23
05-May-23
Billions

Figure 6: Victoria Falls Stock Exchange All Share Index
Source: Victoria Falls Stock Exchange, 2023


Johannesburg Stock Exchange (JSE) Developments

The Johannesburg Stock Exchange (JSE) All Share Index increased from 78,021.87 points in the
previous week to close at 78,132.77 points, during the week ending 5th May 2023. JSE market
capitalization also declined by 0.09% to ZAR22.34 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
31-Mar-23
76,100.17
22.20
06-Apr-23
77,113.70
22.38
14-Apr-23
78,870.36
22.56
21-Apr-23
77,910.96
22.35
28-Apr-23
78,021.87
22.36
5-May-23
78,132.77
22.34
% Change

0.14

-0.09
Source: 2023


06-Mar-22
31-Mar-22
25-Apr-22
20-May-22
14-Jun-22
09-Jul-22
03-Aug-22
28-Aug-22
22-Sep-22
17-Oct-22
11-Nov-22
06-Dec-22
31-Dec-22
25-Jan-23
19-Feb-23
16-Mar-23
10-Apr-23
05-May-23

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


RESERVE BANK OF ZIMBABWE

6-Mar-22
31-Mar-22
25-Apr-22
20-May-22
14-Jun-22
9-Jul-22
3-Aug-22
28-Aug-22
22-Sep-22
17-Oct-22
11-Nov-22
6-Dec-22
31-Dec-22
25-Jan-23
19-Feb-23
16-Mar-23
10-Apr-23
5-May-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
14-Apr-23 21-Apr-23 28-Apr-23 5-May-23

SMEFX
14-Apr-23 21-Apr-23 28-Apr-23 5-May-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate
1,050


Lowest Bid
Rate

1,000
1,055

1,000
1,055
Lowest Bid Rate
Allotted

1,000
1,055

1,000
1,055
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
14-Apr-23 21-Apr-23 28-Apr-23 5-May-23
SMEFX
14-Apr-23 21-Apr-23 28-Apr-23 5-May-23
Raw Materials


Machinery and
Equipment

Consumables
(Incl. Spares,
Tyres,
Packaging)

Pharmaceuticals
and Chemicals

Services
(Loans,
Dividends and
Disinvestments)

Retail and
Distribution

Fuel, Electricity
and Gas

Paper and
Packaging

TOTAL

2,280,785.72