Vol. 25 No. 14


Week Ending
6th April 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Minimum and maximum deposit rates for savings deposits and deposits of 1-month tenor
decreased, during the week ending 6th April 2023. In the same week, average minimum deposit
rates for deposits of 3-months tenor also declined, while maximum deposits rates increased
marginally, as shown in Table 1.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
10-Mar-23

17-Mar-23

24-Mar-23

31-Mar-23

6-Apr-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

The week ending 6th April 2023 saw commercial bank minimum and maximum lending rates for
individual clients decrease. However, average minimum lending rates for corporate clients
marginally increased, while maximum lending rates 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
10-Mar-23

17-Mar-23

24-Mar-23

31-Mar-23

6-Apr-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposit rates for savings deposits were unchanged at previous
week levels, during the reporting week. During the same week, minimum deposits rates for
deposits of 1-month and 3-months tenor remained unchanged, while maximum deposits rates for
deposits of the same tenors marginally declined, as shown in Table 3.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
10-Mar-23

17-Mar-23

24-Mar-23

31-Mar-23

6-Apr-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

During the week ending 6th April 2023, minimum lending rates for individual clients increased,
while maximum lending rates remained unchanged. Minimum lending rates for corporate clients
remained at previous week levels, while maximum lending rates marginally increased during the
same week, as shown in Table 4.

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

Individual Clients

Corporate Clients
10-Mar-23

17-Mar-23

24-Mar-23

31-Mar-23

6-Apr-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

During the week ending 6th April 2023, the National Payment Systems (NPS) processed
transactions worth ZW$785.18 billion, up from ZW$687.40 billion recorded in the previous
week. Real Time Gross Settlement (RTGS) transactions increased from $541.52 billion in the
previous week to $608.37 billion, during the week under review. The NPS transaction values
were distributed as follows: RTGS, 77.48%, POS, 11.25%; Mobile, 7.59%; and ATM, 3.68%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 5.54% to 12.77 million, during the week ending
6th April 2023, from 12.10 million recorded in the previous week. Mobile based transactions
accounted for the highest proportion of NPS transaction volumes at 71.48% of the total, followed
by POS, 25.55%; RTGS, 1.71%; and ATM, 1.26%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
77.48%
POS
11.25%
ATM
3.68%
MOBILE
7.59%
RTGS
POS
ATM
MOBILE
RTGS, 1.71%
POS, 25.55%
ATM, 1.26%
MOBILE, 71.48%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
31st March 2023

WEEK ENDING
6th April 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 56.36 million kilograms of tobacco had been sold as at day 22 of the tobacco
selling season. This was a 7.36% increase from the million 52.49 kilograms sold during the same
period in 2022. In value terms, tobacco sales registered a 9.17% increase to US$168.74 million,
from US$154.56 million realized during the corresponding period in 2022, as shown in Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 22 (6th April 2023)

Variance (%)
Cumulative quantity sold (million kgs)
52,490,417
56,355,528
7.36
Average price (US$/kg)
2.94

2.99
1.84
Cumulative value (US$ million)
154,564,338
168,741,097
9.17
Source: Tobacco Industry and Marketing Board (TIMB), 2022

The golden leaf was sold at an average price of US$2.99 per kilogram, up from US$2.94 per
kilogram realised in the same period last year.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

On the global commodity markets, weekly average prices for gold, platinum, palladium, and
crude oil increased, while those for copper and nickel retreated during the week ending 6th April
2023, as shown in Table 7.

Table 7: Metal and Crude Oil Prices for the week ending 6th April 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (27-31 Mar 23)

03-Apr-23

04-Apr-23

05-Apr-23

06-Apr-23

Weekly Average (03-06 Apr 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the week under review, gold prices increased by 1.89%, from an average of US$1,964.25
per ounce in the prior week to US$2,001.31 per ounce. The price of the yellow metal increased
as the US dollar and US Treasury yields retreated, thereby prompting investors to shift to it as
an alternative investment asset.

Platinum
Platinum prices increased amid prospects of strong investment demand due to the retreat in the
US dollar. Prices rose by 3.32%, from US$971.00 per ounce in the week ending 31st March 2023
to US$1,003.25 per ounce, during the week ending 6th April 2023.

Palladium
During the week ending 6th April 2023, palladium prices continued on an upward trajectory,
increasing by 1.35%, from a weekly average of US$1,439.60 per ounce in the preceding week
to US$1,459.00 per ounce. Prices continued to rise amid the sustained rise in industrial demand
for the precious metal as well as dwindling global inventories.


Copper
Copper prices retreated by 1.48%, from a weekly average of US$8,951.60 per tonne recorded in
the previous week to US$8,819.25 per tonne, during the reporting week. Prices were weighed
down by growing concerns about the global economic growth outlook, as weak U.S. economic
data fuelled fears of a recession.

Nickel
Nickel prices were bearish during the week under review as the global economic slowdown,
coupled with inflationary pressures, continued to pose downside risks to industrial metal prices.
Prices declined by 2.87%, from a weekly average of US$23,643.00 per tonne to US$22,965.00
per tonne, during the reporting week.

Brent Crude Oil

Brent crude oil prices rallied during the week under review, following a surprise announcement
by the Organisation of Petroleum Exporting Countries (OPEC), to cut oil production by 2 million
barrels a day. Consequently, weekly average prices rose by 7.12%, from US$79.35 per barrel in
the previous week to US$85.00 per barrel, during the week under review.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 1.7%, from an average of
ZW$924.24 per US$1 in the previous week to ZW$939.82 per US$1, during the week ending 6th
April 2023, as shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (27-31 Mar 23)

03-Apr-23

04-Apr-23

05-Apr-23

06-Apr-23

Weekly Average (03-06 Apr 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 (ZSE)
The local bourse exhibited mixed trading during the week ending 6th April 2023. As a result, the
ZSE All Share index lost 0.50% to close at 38 375.64 points. The Top 10, Top 15 and Small Cap
indices lost 2.14%, 1.16% and 4.32% to close the week at 22 587.87 points, 26 699.66 points
and 667 752.24 points, respectively. However, the Medium Cap index gained 4.81% to close at
78 928.41 points.


The decline in the mainstream index was a result of share price losses for Turnall Holdings
Limited (11.37%), Econet Wireless Zimbabwe Limited (11.95%), Zimre Holdings Limited
(10.79%), Willdale Limited (9.71%), and First Mutual Properties Limited (8.16%). Partially
offsetting the above-mentioned losses were gains in share prices for Truworths Limited (26%),
Rainbow Tourism Group Limited (25.93%), FBC Holdings Limited (21.87%), NMBZ Holdings
Limited (13.34%), and Starafrica Corporation Limited (12.18%). The resources index2 remained
unchanged at 37 359.78 points, during the week under review.

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)


03-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

31-Mar-23

06-Apr-23

% Change
-0.50


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 6th March 2022 to 6th April
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 and value of shares traded on the ZSE increased by 20.07% and 27.24%
to 13.54 million and ZW$2.83 billion, respectively, during the week ending 6th April 2023.
Figure 4 shows the trend in daily market turnover for the period from 6th March 2022 to 6th April
2023.

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


6-Mar-22
28-Mar-22
19-Apr-22
11-May-22
2-Jun-22
24-Jun-22
16-Jul-22
7-Aug-22
29-Aug-22
20-Sep-22
12-Oct-22
3-Nov-22
25-Nov-22
17-Dec-22
8-Jan-23
30-Jan-23
21-Feb-23
15-Mar-23
6-Apr-23
All Share Index
Top 10 Index


06-Mar-22
28-Mar-22
19-Apr-22
11-May-22
02-Jun-22
24-Jun-22
16-Jul-22
07-Aug-22
29-Aug-22
20-Sep-22
12-Oct-22
03-Nov-22
25-Nov-22
17-Dec-22
08-Jan-23
30-Jan-23
21-Feb-23
15-Mar-23
06-Apr-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Market Capitalization

Reflective of the mixed trading sentiments exhibited on the ZSE during the week under review,
market capitalisation declined by 6.81% or ZW$230.22 million worth of capitalization to close
at ZW$3.15 trillion, from ZW$3.38 trillion recorded in the preceding week. Figure 5 shows the
developments on ZSE market capitalization for the period from 6th March 2022 to 6th April 2023.

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

Victoria Falls Stock Exchange


The week ending 6th April 2023 saw the Victoria Falls Stock Exchange (VFEX) exhibit bearish
sentiments for the sixth consecutive week. Resultantly, the VFEX All Share index lost 0.85% to
close at 91.26 points, compared to 92.04 points recorded in the previous week. The VFEX
mainstream index declined due to share price decreases for Axia Corporation Limited (7.27%),
Simbisa Brands Limited (0.66%), Bindura Nickel Corporation (BNC) (0.51%), Nedbank Group
Limited Zimbabwe (0.43%) and Innscor Africa Limited (0.09%).

The cumulative volume and value of shares traded on the VFEX increased by 27.24% and
622.32% to 1.55 million shares and US$0.59 million, respectively. VFEX market capitalization
lost 0.55%, or US$5.5 million worth of capitalisation to US$0.987 billion, compared to
US$0.993 billion recorded in the previous week. Figure 6 shows the trend in the VFEX All Share
Index for the period from 6th March 2022 to 6th April 2023.


06-Mar-22
28-Mar-22
19-Apr-22
11-May-22
02-Jun-22
24-Jun-22
16-Jul-22
07-Aug-22
29-Aug-22
20-Sep-22
12-Oct-22
03-Nov-22
25-Nov-22
17-Dec-22
08-Jan-23
30-Jan-23
21-Feb-23
15-Mar-23
06-Apr-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 76,100.17 points in the
previous week to close at 77,113.70 points, during the week ending 6th April 2023. JSE market
capitalization also rose by 0.81% to ZAR22.38 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
03-Mar-23
78,293.01
22.25
10-Mar-23
76,454.36
21.98
17-Mar-23
72,527.92
21.07
24-Mar-23
74,695.04
21.70
31-Mar-23
76,100.17
22.20
06-Apr-23
77,113.70
22.38
% Change

1.33


0.81
Source: 2023


06-Mar-22
28-Mar-22
19-Apr-22
11-May-22
02-Jun-22
24-Jun-22
16-Jul-22
07-Aug-22
29-Aug-22
20-Sep-22
12-Oct-22
03-Nov-22
25-Nov-22
17-Dec-22
08-Jan-23
30-Jan-23
21-Feb-23
15-Mar-23
06-Apr-23

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


RESERVE BANK OF ZIMBABWE

6-Mar-22
28-Mar-22
19-Apr-22
11-May-22
2-Jun-22
24-Jun-22
16-Jul-22
7-Aug-22
29-Aug-22
20-Sep-22
12-Oct-22
3-Nov-22
25-Nov-22
17-Dec-22
8-Jan-23
30-Jan-23
21-Feb-23
15-Mar-23
6-Apr-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
17-Mar-23 24-Mar-23 31-Mar-23 06-Apr-23

SMEFX
17-Mar-23 24-Mar-23 31-Mar-23 06-Apr-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

1,000
1,020
1,020

1,010
1,015
1,050
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
17-Mar-23 24-Mar-23 31-Mar-23 06-Apr-23
SMEFX
17-Mar-23 24-Mar-23 31-Mar-23 06-Apr-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

2,379,980.25