Vol. 25 No. 46


Week Ending
17th November 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1. OVERVIEW

This report provides an analysis of the developments in the money and capital markets for the
week ending 17th November 2023. The report also covers developments in mineral commodity
prices and stock markets during the week under review.

The Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) were both
on a bullish trend during the week under analysis. National Payment Systems (NPS) processed
transactions valued at ZW$7.11 trillion, representing an increase of 26.38% from the previous
week’s levels.

Minimum savings deposit rates for both local currency and foreign currency deposits were
higher, during the week ending 17th November 2023. In addition, international commodity prices
for gold, platinum, palladium, crude oil, nickel, and lithium decreased while copper prices
increased during the week under review.

2. INTEREST RATES


Local Currency (ZW$) Deposit Rates

Commercial bank minimum and maximum savings deposit rates increased during the week under
review. Minimum and maximum deposits for deposits of 1 month, 3 month, 6 month and 12
month tenors, however, decreased during the same week.

Table 1: Average Deposit Rates (per annum)
Date
Savings deposits

1- Month deposit
rates

3- Month deposit
rates

6- Month deposit
rates

12- Month deposit
rates

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
20-Oct-23

27-Oct-23

3-Nov-23

10-Nov-23

17-Nov-23


Source: Reserve Bank of Zimbabwe, 2023

Local Currency (ZW$) Lending Rates
During the week ending 17th November 2023, minimum lending rates for individuals and
corporate clients registered declines. Maximum deposit rates for individuals were lower, while
those for corporates registered an increase during the period of analysis. Local currency lending
rates are shown in Table 2.


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

Individual Clients

Corporate Clients

20-Oct-23

27-Oct-23

3-Nov-23

10-Nov-23

17-Nov-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum deposit rates for savings deposits, deposits of 3-month, 6-month and 12month tenors increased during the week under analysis. Minimum deposit rates for deposits of
1-month tenor, were, however, lower during the same week. Maximum deposits rates for savings
deposits and deposits of all tenors increased as shown in Table 3.

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

3- Month deposit rates

6-Month deposit rates

12- Month deposit
rates

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
20-Oct-23

27-Oct-23

3-Nov-23

10-Nov-23

17-Nov-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates

Minimum foreign currency lending rates for individual clients decreased by 0.03 percentage
points while maximum lending rates for individual clients increased by 0.05 percentage points
during the week under analysis. Minimum lending rates for corporate clients registered a
marginal increase, while maximum lending rates for corporate clients decreased by 0.01
percentage points during the same period.

Table 4: Lending Rates (per annum)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients
Corporate Clients

13-Oct-23

20-Oct-23

27-Oct-23

3-Nov-23

10-Nov-23

17-Nov-23

Source: Reserve Bank of Zimbabwe, 2023
3. CLEARING AND SETTLEMENT ACTIVITY

The aggregate transactions processed in value terms through the National Payment Systems
platforms amounted to ZW$7.11 trillion, representing an increase of 26.38% from the previous
week’s levels. In value terms, the distribution of NPS transactions was as follows: Real Time
Gross Settlement (RTGS) 89.71%, Mobile, 4.37%, Point of Sale (POS), 3.70% and Automated
Teller Machines (ATM), 2.22%, as shown in Figure 1.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
89.71%
POS
3.70%
ATM
2.22%
MOBILE
4.37%
RTGS
POS
ATM
MOBILE

The volume of transactions processed through the NPS decreased by 3.68% to close at 12.97
million, largely due to the decline in ATM and RTGS volumes. NPS transaction volumes were
distributed as follows: Mobile, 82.05%; POS, 16.01%; ATM, 0.72%; and RTGS, 1.21%, as
shown in Figure 2.

Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
10 NOVEMBER

WEEK ENDING
17 NOVEMBER

% 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


RTGS, 1.21%
POS, 16.01%
ATM, 0.72%
MOBILE, 82.05%
RTGS
POS
ATM
MOBILE

4. INTERNATIONAL COMMODITY PRICE DEVELOPMENTS


During the week under review, prices for gold, platinum, palladium, crude oil, nickel, and lithium
decelerated while prices of copper rose as shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 17th November 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil
Lithium

US$/ounce
US$/ounce
US$/ounce
US$/tonne
US$/tonne
US$/barrel
US$/tonne

Weekly Average (06
- 10 November)

13-Nov

14-Nov

15-Nov

16-Nov

17-Nov

Weekly Average (13
- 17 Nov)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg 2023

Precious Metals
During the week under review, prices of precious metals, namely gold, platinum, palladium, and
lithium, declined by 0.03%, 0.51%, 5.03%, and 2.55%, respectively. Gold prices decreased
slightly in response to the release of U.S. economic data, which suggested a reduction in
inflationary pressures. The decline in platinum prices was attributed to concerns regarding
diminished demand prospects for the precious metal after China, a major metal consumer,
published mixed economic data.

The decrease in lithium prices was, in large part, due to the cooling-off of electric vehicle sales
in China, coupled with an increase in overall supply on the market. The price trends for the
precious metals for the period from 13 November to November 2023, are shown in Figure 3.

Figure 3: Weekly Precious Metals Price Developments (13 - 17 November. 2023)

Source: Kitco,2023

Source: Kitco,2023

Source: Kitco,2023

Source: London Metal Exchange,2023


Base Metals and Brent Crude Oil

Crude oil and nickel prices fell by 0.51% and 3.45%, respectively, while copper prices increased
by 1.41%. The rise in copper prices was attributed to solid demand, coupled with a decrease in
inventories. Nickel prices declined due to a surplus in supply against the mooted demand for the
base metal. Oil prices fell as supply continued to grow, amidst demand concerns.


US$/ ounce
Gold
Gold
Linear (Gold)

US$/ounce
Platinum
Platinum
Linear (Platinum)

1,100
1,300
US$/ounce
Palladium
Palladium
Linear (Palladium)

US$/tonne
Lithium Hydroxide
Lithium Hydroxide
Linear (Lithium Hydroxide)

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil
(11 Nov. 2023 - 17 Nov. 2023)

Source: London Metal Exchange,2023

Source: London Metal Exchange,2023

Source: BBC,2023

11-Nov
12-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
US$/tonne
Copper
Linear (Copper)

11-Nov
12-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
US$/tonne
10-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
Nickel

Nickel
Linear (Nickel)

11-Nov
12-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
US$/barrel
10-Nov
13-Nov
14-Nov
15-Nov
16-Nov
17-Nov
Brent crude oil

Brent crude oil
Linear (Brent crude oil)

Exchange Rate Developments

Interbank Market
During the week ending 17th November 2023, the Zimbabwe dollar (ZW$) marginally
depreciated by 0.33% against the US dollar on the interbank market. The average exchange rate
moved from ZW$ 5,731.52 per US$1 in the previous week to ZW$ 5,750.48 per US$1, during
the week under analysis.

Table 7: Selected Exchange Rates (ZW$ per unit of foreign currency)

USD
ZAR
GBP
BWP
EURO
Weekly Average
(06 - 10 November)

13-Nov

14-Nov

15-Nov

16-Nov

17-Nov

Weekly Average (13-17 Nov)

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

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS

The Zimbabwe Stock Exchange (ZSE) continued a bullish trend during the week ending 17th
November 2023 with the ZSE and VFEX All Share indices increasing by 2.02% and 1.05% to
close the week at 177 395.02 points and 68.78 points, respectively.

Zimbabwe Stock Exchange (ZSE) Developments

ZSE Top 10, Top 15 and medium cap indices increased by 0.64%, 0.75% and 4.97% to close at
77 093.46 points, 105 130.31 points and 748 580.34 points, respectively.


Figure 5 shows developments on the ZSE’s All Share, Top 10 and Mining indices from 18th
November 2022 to 17th November 2023.

Figure 5: ZSE All Share, Top 10 and Mining Indices

Source: Zimbabwe Stock Exchange, 2023


The increase in the mainstream index resulted from share price gains in First Mutual Holdings
Limited (24.52%), Econet Wireless Zimbabwe Limited (18.64%), General Beltings Holdings
Limited (16.70%), Meikles Limited (15.06%) and Fidelity Life Assurance Limited (15.00%).

SeedCo Limited (14.63%), Mashonaland Holdings Limited (8.50%), Hippo Valley Estates
Limited (7.50%), Turnall Holdings Limited (4.40%) and Unifreight Africa Limited (3.08%),
however, recorded share price losses which weighted down the mainstream index.

The resource index added 8.11% to close at 145 542.27 points compared to 134 627.40 points
recorded in the prior week.

Market Turnover
During the week under review, the cumulative volume and value of shares traded increased by
50.71% and 43.99% to close at 69.57 million shares and ZW$20.33 billion, respectively. This
compares to 46.16 million shares and ZW$14.12 billion, recorded in the previous week
respectively.

Figure 6 shows the trend in daily market turnover for the period 18th November 2022 to 17th
November 2023.


18-Nov-22
02-Dec-22
16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index

Figure 6: Market Turnover

Source: Zimbabwe Stock Exchange, 2023

Market Capitalization
The ZSE added 2.70%, or ZW$375.32 billion worth of capitalization to close at ZW$14 301.48
billion during the week under review, from ZW$13 926.15 billion registered in the prior week.

Figure 7 shows the evolution of market capitalization for the period 18th November 2022 to 17th
November 2023.


18-Nov-22
02-Dec-22
16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
22-Sep-23
06-Oct-23
20-Oct-23
03-Nov-23
17-Nov-23
ZW$ (Million)
Negotiated Deal: 241 million
First Mutual Holdings
Limited shares exchanged
hands at ZW$196/share

Figure 7: Market Capitalization

Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments

The VFEX mainstream index increased, in part, on account of share price gains in Axia
Corporation Limited (24.07%), Bindura Nickel Corporation (BNC) (15.79%), Innscor Africa
Limited (6.66%), Simbisa Brands Limited (2.87%) and African Sun Limited (2.40%).

Losses were, however, registered in the share prices of Padenga Holdings Limited (14.29%) and
First Capital Bank (14.16%).

VFEX Market Turnover

The VFEX volume of shares traded increased by 87.63% to close at 4.58 million shares while
turnover value of shares declined by 47.49% amounting to US$0.40 million during the week
under review.

VFEX Market Capitalization


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

VFEX market capitalisation added 1.05% worth of capitalization to close at US$1.18 billion
compared to US$1.16 billion, recorded in the preceding week. Figure 8 shows the trend in the
VFEX All Share Index (ASI) for the period 18th November 2022 to 17th November 2023.

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

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


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR WHOLESALEFX1


Source: Reserve Bank of Zimbabwe, 2023


1 Wholesale Foreign Currency Auction (Wholesale FX) is normally conducted on Tuesday every week. The RBZ MPC resolutions dated 6 June 2023 resolved that with effect
from 7 June 2023, the Bank shall sell foreign currency at the market-determined exchange rate through banks to support and strengthen the foreign exchange interbank market,
and banks shall in turn sell the foreign currency to their customers.


24-Oct-23
WHOLESALE FX


30-Oct-23


07-Nov-23


14-Nov-23
Total
Bids (US$ dollars)

Amount Allotted (US$
dollars)

Highest 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


24-Oct-23

30-Oct-23

07-Nov-23

14-Nov-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
1,958,167.67
1,582,724.27
1,899,339.62
1,999,717.91