Vol. 25 No. 19


Week Ending
12th May 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

The week ending 12th May 2023 saw average minimum deposits rates for savings deposits and
deposits of 1-month tenor decreasing while those for 3-months tenor registered an increase.
Average maximum deposits rates for deposits of all classes quoted by commercial banks were
lower during the same week, 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 (%)
14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-May-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

During the week under review, commercial bank minimum lending rates for both individual and
corporate clients increased while commercial bank maximum lending rates for both individual
and corporate clients registered declines, as shown in Table 2.

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

Individual Clients

Corporate Clients
14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-May-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposits rates for deposits of all classes quoted by commercial
banks were unchanged during the week ending 12th May 2023, 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 (%)
14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-May-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

The week ending 12th May 2023, saw a decrease in commercial bank minimum lending rates for
both individual and corporate clients, while maximum lending rates firmed 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
14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-May-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The value of transactions processed through the National Payment Systems (NPS) amounted to
ZW$1.69 trillion, during the week under review, from ZW$1.18 trillion reported during the
previous week. Real Time Gross Settlement (RTGS) transactions rose from $0.95 trillion in the
previous week to $1.47 billion, during the week under review. In proportions, the NPS
transaction values were distributed as follows: RTGS, 87.11%, POS, 7.17%; Mobile, 4.80%; and
ATM, 0.91%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions declined by 2.71%, from 13,408,643 million recorded in the
preceding week to 13,045,614 million, during the week under review. Mobile based transactions
dominated NPS transaction volumes at 71.12% of the total; followed by POS, 26.15%; RTGS,
1.83%; and ATM, 0.90%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
87.11%
POS
7.17%
ATM
0.91%
MOBILE
4.80%
RTGS
POS
ATM
MOBILE
RTGS, 1.83%
POS, 26.15%
ATM, 0.90%
MOBILE, 75.12%
RTGS
POS
ATM
MOBILE

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

WEEK ENDING

12th 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 186.83 million kilograms of tobacco had been sold as at day 44 of the
tobacco selling season. This was a 46.39% higher than the 127.63 million kilograms sold during
the same period in 2022, in part, on account of higher production anticipated during the 2022/23
season. In value terms, tobacco sales registered a 46.71% increase to US$560.47 million, from
US$382.04 million realized during the corresponding period in 2022, as shown in Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 44 (12th May 2023)

Variance (%)
Cumulative Quantity Sold (million kgs)
127,627,997
186,830,365
46.39
Average Price (US$/kg)
2.99

3.00
0.33
Cumulative value (US$ million)
382,036,510
560,472,380
46.71
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 in 2022.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During week ending 12th May 2023, weekly average prices for gold, platinum and crude oil
surged from the previous week values on the back of tight market conditions. Copper and nickel,
however, declined during the same week. The developments in prices for selected commodities
during the week under analysis are as shown in Table 7.

Table 7: Metal and Crude Oil Prices for the week ending 12th May 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne
US$/tonne
US$/barrel
Weekly Average (2-5 May 23)

8-May-23

9-May-23

10-May-23

11-May-23

12-May-23

Weekly Average (8-12 May 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices increased by 0.45%, from US$2,015.90 per ounce in the previous week to
US$2,025.02 per ounce, during the week ending 12th May 2023. Gold prices registered a
marginal increase as investors waited for U.S. inflation data, which could have a bearing on the
Federal Reserve's interest rate policy.

Platinum
Platinum prices recovered by 3.65%, from US$1,052.38 per ounce in the prior week to
US$1,090.00 per ounce during the reporting week. Price was buoyed by fears of supply shortages
owing to sustained power related supply disruptions in South Africa, the world’s largest producer
of the metals.

Palladium
Palladium prices increased by 7.32% from US$1,444.25 per ounce in the prior week to
US$1,550.00 per ounce during the reporting week. The price was also buoyed fears of supply
shortages owing to sustained power related supply disruptions in South Africa, the world’s
largest producer of the metals.

Copper
Copper prices sustained a negative trajectory, shrinking by 1.51%, from a weekly average of
US$8,546.88 per tonne recorded in the previous week, to US$8,417.60 per tonne. The decrease
in the red metal prices was underpinned by slowing demand in China coupled with signs of rising
stockpiles. This followed reports which showed that China’s industrial output and retail sales
were growing at a slower pace than initially projected.

Nickel
In the same vein, nickel prices receded by 7.50% from a weekly average of US$24,637.50 per
tonne to US$22,789.00 per tonne during the week under analysis. The pullback in prices was
attributable to slackening demand in China, the largest consumer of base metals.

Brent Crude Oil

During the week ending 12th May 2023, crude oil weekly average prices increased by 2.05%
from US$74.24 per barrel to US$75.76 per barrel during the week under analysis. Oil prices
increased as investors expect an increasingly tighter market following implementation of
production cuts by the OPEC. The gains were, however, limited by continued concerns over the
health of the U.S. economy and the slower recovery in China.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 9.5%, from an average of
ZW$1,078.9975 per US$1 in the previous week to ZW$1,181.7121 per US$1, during the week
ending 12th May 2023, as is shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (2-5 May 23)


8-May-23


9-May-23

10-May-23

11-May-23

12-May-23

Weekly Average (8-12 May 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


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

6. EQUITY MARKETS


Zimbabwe Stock Exchange
During the week ending 12th May 2023, the Zimbabwe Stock Exchange (ZSE) was bullish for
the fourth consecutive week. As a result, the ZSE All Share index gained 27.05% to close at 63
129.96 points. The Top 10, Top 15, Medium Cap and Small Cap indices increased by 29.56%,
29.38%, 19.49% and 9.19% to close the week at 38 273.52 points, 44 713.63 points, 118 695.93
points and 814 159.49 points, respectively.

The increase in the mainstream index was a result of share price gains in First Capital Bank
Limited (58.40%), Zimplow Holdings Limited (55.32%), First Mutual Properties Limited
(54.86%), Ecocash Holdings Zimbabwe Limited (49.84%) and OK Zimbabwe Limited
(45.19%). Partially offsetting the above-mentioned increases were declines in share prices of
Starafrica Corporation Limited (11.06%), British American Tobacco (BAT) Zimbabwe Limited
(7.50%) and Willdale Limited (2.69%). The resources index2 also added 15% to close the week
at 41 850.98 points, compared to 36 393.55 points recorded in the prior week.

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)


06-Apr-23

14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-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 12th 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

The cumulative volume of shares traded on the ZSE rose by 260.75% to 69.79 million during
the week ending 12th May 2023, from 19.35 million recorded in the prior week. The value of
shares traded amounted to ZW$5.85 billion, representing an increase of 105.06% from ZW$2.85
billion recorded in the previous week. Figure 4 shows the trend in daily market turnover for the
period from 6th March 2022 to 12th May 2023.

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


Market Capitalization


6-Mar-22
30-Mar-22
23-Apr-22
17-May-22
10-Jun-22
4-Jul-22
28-Jul-22
21-Aug-22
14-Sep-22
8-Oct-22
1-Nov-22
25-Nov-22
19-Dec-22
12-Jan-23
5-Feb-23
1-Mar-23
25-Mar-23
18-Apr-23
12-May-23
All Share Index
Top 10 Index


06-Mar-22
30-Mar-22
23-Apr-22
17-May-22
10-Jun-22
04-Jul-22
28-Jul-22
21-Aug-22
14-Sep-22
08-Oct-22
01-Nov-22
25-Nov-22
19-Dec-22
12-Jan-23
05-Feb-23
01-Mar-23
25-Mar-23
18-Apr-23
12-May-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Reflecting heightened trading activity on the ZSE, market capitalization increased by 26.12% or
ZW$1.11 trillion to close at ZW$5.35 trillion, from ZW$4.24 trillion, recorded in the preceding
week. Figure 5 shows ZSE market capitalization development for the period from 6th March
2022 to 12th 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 bullish trading during the week
ending 12th May 2023. Resultantly, the VFEX All Share index gained 4.02% to close at 89.18
points, compared to 85.74 points recorded in the previous week. The rise in the VFEX
mainstream index emanated from share price gains for National Foods Holdings Limited
(19.38%), Innscor Africa Limited (5.93%), Padenga Holdings Limited (5.10%) and Bindura
Nickel Corporation (BNC) (0.98%). Partially offsetting the share price gains were losses in share
price of SeedCo International (6.67%), Axia Corporations Limited (4.86%), African Sun Limited
(2.73%) and Simbisa Brands Limited (0.97%).

The VFEX cumulative volume and value of shares traded both declined by 68.15% and 67.78%
to close at 0.46 million shares and US$0.12 million, respectively. However, the listing of West
Properties Limited on VFEX contributed to the increase of market capitalization by 38.04%, or
US$0.39 billion worth of capitalisation to US$1.41 billion, compared to US$1.02 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 12th May 2023.


06-Mar-22
30-Mar-22
23-Apr-22
17-May-22
10-Jun-22
04-Jul-22
28-Jul-22
21-Aug-22
14-Sep-22
08-Oct-22
01-Nov-22
25-Nov-22
19-Dec-22
12-Jan-23
05-Feb-23
01-Mar-23
25-Mar-23
18-Apr-23
12-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 78,132.77 points in the
previous week to close at 78,330.20 points, during the week ending 12th May 2023. JSE market
capitalization also increased by 0.04% to ZAR22.35 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
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
12-May-23
78,330.20
22.35
% Change

0.25


0.04
Source: 2023


06-Mar-22
30-Mar-22
23-Apr-22
17-May-22
10-Jun-22
04-Jul-22
28-Jul-22
21-Aug-22
14-Sep-22
08-Oct-22
01-Nov-22
25-Nov-22
19-Dec-22
12-Jan-23
05-Feb-23
01-Mar-23
25-Mar-23
18-Apr-23
12-May-23

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


RESERVE BANK OF ZIMBABWE

6-Mar-22
30-Mar-22
23-Apr-22
17-May-22
10-Jun-22
4-Jul-22
28-Jul-22
21-Aug-22
14-Sep-22
8-Oct-22
1-Nov-22
25-Nov-22
19-Dec-22
12-Jan-23
5-Feb-23
1-Mar-23
25-Mar-23
18-Apr-23
12-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
21-Apr-23 28-Apr-23 5-May-23 12-May-23

SMEFX
21-Apr-23 28-Apr-23 5-May-23 12-May-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

Lowest Bid
Rate

1,000
1,055
1,151

1,000
1,055
1,155
Lowest Bid Rate
Allotted

1,000
1,055
1,151

1,000
1,055
1,155
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
21-Apr-23 28-Apr-23 5-May-23 12-May-23
SMEFX
21-Apr-23 28-Apr-23 5-May-23 12-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

1,576,700.13