Vol. 25 No. 07


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


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 17th February 2023, average minimum and maximum deposits rates for
savings deposits increased. However, minimum deposits rates for deposits of 1-month tenor and
3-months declined, while maximum deposits rates increased, 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 (%)
20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Minimum and maximum lending rates at commercial banks for both individual and corporate
clients registered decreases during the week under analysis, as shown in Table 2.

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

Individual Clients

Corporate Clients
20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposits rates across all classes of deposits, registered
increases during the week ending 17th February 2023, 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 (%)
27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-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 firmed, as shown in Table 4.

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

Individual Clients

Corporate Clients
27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

Source: Reserve Bank of Zimbabwe, 2023
2.
CLEARING AND SETTLEMENT ACTIVITY

The National Payment System (NPS) processed transactions valued at ZW$730.78 billion,
during the week ending 17th February 2023. This represented an increase of 12.70%, compared
to ZW$648.41 billion reported in the previous week. Real Time Gross Settlement (RTGS)
transactions increased by 19.28% to ZW$621.18 billion, from ZW$520.78 billion recorded in
the preceding week. In proportions, the NPS transaction values were distributed as follows:
RTGS, 85.00%, POS, 7.82%; Mobile, 5.32%; and ATM, 1.86%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions declined by 11.79% to 10.93 million, during the week under
review, from 12.39 million recorded in the preceding week. Mobile based transactions accounted
for the largest proportion of NPS transaction volumes at 74.25% of the total, followed by POS,
23.56%; RTGS, 1.55%; and ATM, 0.63%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
85.00%
POS
7.82%
ATM
1.86%
MOBILE
5.32%
RTGS
POS
ATM
MOBILE
RTGS, 1.55%
POS, 23.56%
ATM, 0.63%
MOBILE, 74.25%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
10th February 2023

WEEK ENDING
17th February 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

International commodity prices for gold, platinum, palladium, and nickel declined during the
week ending 17th February 2023. The commodity prices declined as the dollar strengthened
against other major international currencies. However, crude oil and copper prices increased
during the same week. The US dollar firmed, boosted by a recent series of strong US data, which
bolstered the case for more multiple rate hikes by the Fed in the months to come. The commodity
prices developments during the week under review are shown in Table 6.

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

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (6 – 10 Feb 23)

13-Feb-23

14-Feb-23

15-Feb-23

16-Feb-23

17-Feb-23

Weekly Average (13-17 Feb 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

The price of the yellow metal retreated during the week under review, as the greenback
appreciated against major currencies following fresh hawkish rhetoric from the U.S. Federal
Reserve officials. In addition, investor concerns over possible interest rate hikes by the U.S.
Federal Reserve also negatively impacted prices of the precious metal. Prices declined by 1.69%

to US$1,843.86 per ounce during the week under analysis, from US$1,875.62 per ounce in the
prior week.

Platinum
Platinum prices decreased by 4.29%, from US$972.80 per ounce in the preceding week to
US$931.10 per ounce during the week under analysis. Rising supply against a background of
stagnant demand erode the prices of the precious metal.

Palladium
Palladium prices continued on a negative trajectory as the US dollar strengthened against most
major international currencies, falling below US$1,600 per ounce. Prices of the metal fell by
6.85% to close the week under review at US$1,507.00 per ounce.

Copper
Copper prices marginally increased by 0.08%, from US$8,914.20 per tonne in the previous week
to US$8,921.00 per tonne, during the week ending 17th February 2023. Prices of the red metal
were largely influenced by hopes for higher demand in China, the world's largest consumer of
metals.

Nickel
During the week under review, nickel prices fell by 3.4% to US$26,167.60 per tonne from
US$27,184.00 per tonne recorded in the previous week. Prices declined as the global market
expected surpluses on rising supply, led by mines in Indonesia.

Brent Crude Oil

Brent crude oil prices increased during the week ending 17th February 2023, following
expectations of a spike in demand in Asia, the world's largest fuel consuming continent. Prices
rose by 0.8%, from US$84.31 per barrel in the previous week to US$84.98 per barrel, during the
week under review.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 3.5% against the US dollar,
from ZW$826.9948 per US$1 in the previous week to ZW$855.5745 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 (6-10 Feb 23)

13-Feb-23

14-Feb-23

15-Feb-23

16-Feb-23

17-Feb-23

Weekly Average (13-17 Feb 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
During the week under review, mixed sentiments characterised trading on the Zimbabwe Stock
Exchange (ZSE). As a result, the ZSE All Share index lost 8.83% to close at 27 301.03 points.
The Top 10 and Top 15 indices lost 12.79% and 10.48% to close the week at 16 645.38 points
and 18 920.78 points. The Small and Medium Cap indices, however, gained 9.26% and 2.31%
to close at 566 763.43 points and 56 883.05 points, respectively.

The decline in the mainstream index was a result of share price losses for Delta Corporation
Limited (22.98%), Econet Wireless Zimbabwe Limited (19.94%), CBZ Holdings Limited
(15.15%), SeedCo Limited (13.35%) and Star Africa Corporation Limited (10.29%). Partially
offsetting the losses were gains in share prices for Africa Sun Limited (24.81%), Ariston
Holdings Limited (21.25%), Edgars Stores Limited (19.82%), Mashonaland Holdings Limited
(17.13%) and CFI Holdings Limited (14.99%). The resources index2 remained unchanged at
29 116.96 points, during the reporting 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)


13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-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 17th
February 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
All Share Index
Top 10 Index

Market Turnover and Volume

During the week under analysis, trading activity on the ZSE was concentrated in selected
medium to small-tier counters. The cumulative volumes of shares traded declined by 49.0% to
28.70 million, from 56.27 million recorded in the prior week. In terms of turnover value, a
17.25% decrease was recorded, from ZW$9.87 billion in the previous week to ZW$8.16 billion
in the reporting week. Figure 4 shows the trend in daily market turnover for the period from 4th
February 2022 to 17th February 2023.

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

Market Capitalization

During the week ending 17th February 2023, ZSE market capitalization stood at ZW$2.92
trillion, compared to ZW$3.23 trillion, reported during the preceding week. Figure 5 shows the
developments on ZSE market capitalization for the period from 4th February 2022 to 17th
February 2023.
Figure 5: Daily Market Capitalization in ZW$ billions
Source: Zimbabwe 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
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65


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
Billions

Victoria Falls Stock Exchange

During the week ending 17th February 2023, the Victoria Falls Stock Exchange (VFEX) All
Share index lost 3.09% to close at 106.18 points. However, the cumulative volume and value of
shares traded on the VFEX increased by 242.39% to 0.27 million and 189.35% to USD0.11
million, respectively, during the week under review. The increase in turnover volumes and values
of shares traded largely emanated from trading in SeedCo International, Simbisa Brands Limited
and Padenga Holdings Limited counters. The SeedCo international counter saw 57 683 shares
worth US$14 986.06 exchange hands at US$0.26/share. On the 14th, 15th and 16th of February
2023, a total of 74 900; 11 737; and 21 555 Simbisa Brands Limited shares worth US$32,643.70;
US$3,050.90; and US$9,278.30 exchanged hands at US$0.44/share; US$0.26/share; and
US$0.26/share, respectively. On the 17th February 2023, a total of 53,494 shares for Padenga
Holdings Limited worth US$13 897.50 exchanged hands at US$0.26/share. VFEX market
capitalization stood at US$0.60 billion, reflecting a decline of 3.09% or US$0.02 billion, from
US$0.62 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 17th February 2023.


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 78,985.35 points in the
previous week to close at 79,271.78 points, during the week ending 17th February 2023. JSE
market capitalization also increased by 0.26% to ZAR22.93 trillion, during the same week.


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

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
13-Jan-23
79,333.72
22.88
20-Jan-23
79,269.77
23.02
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
% Change
0.36
0.26
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

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
27-Jan-23 03-Feb-23 10-Feb-23 17-Feb-23

SMEFX
27-Jan-23 03-Feb-23 10-Feb-23 17-Feb-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
27-Jan-23 3-Feb-23 10-Feb-23 17-Feb-23
SMEFX
27-Jan-23 3-Feb-23 10-Feb-23 17-Feb-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

1,811,479.70