Vol. 25 No. 12


Week Ending
24th March 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 24th March 2023, average minimum and maximum deposits rates for
savings deposits declined. However, minimum and maximum deposits rates for deposits of 1month and 3-months tenor increased during the same week, 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 (%)
24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum lending rates for individual clients increased marginally, while
maximum lending rates declined during the week under review. Minimum and maximum lending
rates for corporate clients marginally increased, as shown in Table 2.

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

Individual Clients

Corporate Clients
24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

The week ending 24th March 2023 saw average minimum and maximum deposit rates for
deposits of all classes remain unchanged at previous week levels, 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 (%)
24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

Commercial bank minimum lending rates for both individual and corporate clients remained
unchanged at previous week levels, while maximum lending rates softened marginally during
the week ending 24th March 2023, as shown in Table 4.

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

Individual Clients

Corporate Clients
24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The value of transactions processed through the National Payment Systems (NPS) stood at
ZW$743.70 billion, during the week under review. This represented a decrease of 5.62%, from
ZW$788.00 billion worth of transactions processed in the previous week. Real Time Gross
Settlement (RTGS) transactions decreased from $666.80 billion in the previous week to $597.75
billion, during the week ending 24th March 2023. In proportions, the NPS transaction values were
distributed as follows: RTGS, 80.51%, POS, 10.46%; Mobile, 5.77%; and ATM, 3.26%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 5.10% to 11.61 million, during the week under
review, from 11.05 million recorded in the previous week. Mobile based transactions dominated
NPS transaction volumes at 70.12% of the total, followed by POS, 26.44%; RTGS, 2.04%; and
ATM, 1.40%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
80.51%
POS
10.46%
ATM
3.26%
MOBILE
5.77%
RTGS
POS
ATM
MOBILE
RTGS, 2.04%
POS, 26.44%
ATM, 1.40%
MOBILE, 70.12%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
17th March 2023

WEEK ENDING
24th March 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 19.53 million kilograms of tobacco had been sold as at day 13 of the 2023
tobacco selling season. This was a 19.02% decrease from the 24.12 million kilograms sold during
the same period in 2022. In value terms, tobacco sales registered a 14.74% decrease to US$58.73
million, from US$68.88 million realized during the corresponding period in 2022, as shown in
Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 13 (24th March 2023)

Variance (%)
Cumulative quantity sold (million kgs)
24,117,036
19,530,117
(19.02)
Average price (US$/kg)
2.86
3.01
5.15
Cumulative value (US$ million)
68,883,479
58,732,821
(14.74)
Source: Tobacco Industry and Marketing Board (TIMB), 2022

The golden leaf was sold at an average price of US$3.01 per kilogram, up from US$2.86 per
kilogram realised in the same period last year.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

On the global commodity markets, prices for gold, platinum and copper firmed, while prices for
palladium, nickel and crude oil softened, during the week ending 24th March 2023. The
commodity price developments for the reporting week are shown in Table 7.

Table 7: Metal and Crude Oil Prices for the week ending 24th March 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (13-17 Mar 23)

20-Mar-23

21-Mar-23

22-Mar-23

23-Mar-23

24-Mar-23

Weekly Average (20-24 Mar 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices increased by 2.82%, from US$1,916.69 per ounce in the week ending 17th March
2023 to US$1,970.64 per ounce, during the week under review. Prices rose as investors predicted
the end of the US Federal Reserve’s cycle of interest rate rises. In addition, the turmoil in the US
banking sector increased the safe - haven demand for the yellow metal.

Platinum
Platinum prices rose by 0.61%, from US$976.8 per ounce in the prior week to US$982.80 per
ounce, during the reporting week. The increase was underpinned by strong demand for the
precious metal from the automotive industry.

Palladium
During the week ending 24th March 2023, palladium prices fell by 1.74%, from a weekly average
of US$1,442.20 per ounce in the preceding week to US$1,442.20 per ounce. Prices
declined amid on-going concerns about the instability in the US banking sector, coupled with a
strengthening US dollar.

Copper
Copper prices rebounded during the week under review, on account of improved demand in
China, the biggest consumer of the base metal. Prices increased by 2.46%, from US$8,668.10
per tonne recorded in the prior week to US$8,881.20 per tonne, during the week under analysis.

Nickel
Nickel prices were on a negative trajectory on account of a stronger US dollar and the continuous
rise in global inventories. Prices declined by 2.32%, from a weekly average of US$23,203.00
per tonne in the previous week to US$22,664.00 per tonne, during the week under review.

Brent Crude Oil

Oil prices fell by 1.24%, from a weekly average of US$75.96 per barrel in the previous week to
US$75.02 per barrel during the week ending 24th March 2023, ahead of a US Federal Reserve
update on interest rates and other monetary policy measures.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) appreciated by 0.3%, from an average of
ZW$912.4320 per US$1 in the previous week to ZW$915.31634 per US$1, during the week
ending 24th March 2023, as shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (10-17 Mar 23)

20-Mar-23

21-Mar-23

22-Mar-23

23-Mar-23

24-Mar-23

Weekly Average (20-24 Mar 23)

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

Source: Reserve Bank of Zimbabwe, 2023

6. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) maintained a positive momentum for the fifth consecutive
week, during the week under analysis. As a result, the ZSE All Share index added 13.06% to
close at 38 119.28 points. All the major ZSE indices registered gains, with the Top 10, Top 15,
Small and Medium Cap indices adding 11.76%, 11.02%, 1.05% and 7.99% to close the week at
22 334.80 points, 26 177.51 points, 678 365.52 points and 73 828.83 points, respectively.

The rise in the mainstream index emanated from share price gains for First Capital Bank Limited
(73.03%), Hippo Valley Estates Limited (20.00%), Proplastics Limited (18.75%), OK
Zimbabwe Limited (15.30%) and FBC Holdings Limited (15.12%). Partially offsetting the
increases were declines in share prices for ZB Financial Holdings Limited (15.25%), Starafrica

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

Corporation Limited (3.49%), Ariston Holdings Limited (3.28%), British American Tobacco
(BAT) Zimbabwe Limited (2.56%) and Nampak Zimbabwe Limited (2.52%). The resources
index2 remained unchanged at 33 482.91 points, during the reporting 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)


17-Feb-23

24-Feb-23

03-Mar-23

10-Mar-23

17-Mar-23

24-Mar-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 5th March 2022 to 24th
March 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 declined by 11.79% to 14.62 million, from
16.58 million recorded in the preceding week. The turnover value of shares traded also declined
by 17.85% to ZW$2.81 billion, from ZW$3.43 billion recorded in the previous week. Figure 4
shows the trend in daily market turnover for the period from 5th March 2022 to 24th March 2023.

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

The local bourse added 11.12%, or ZW$328.47 billion worth of capitalization to close at
ZW$3.28 trillion during the week ending 24th March 2023, from ZW$2.95 trillion recorded in
the preceding week. Figure 5 shows the developments on ZSE market capitalization for the
period from 5th March 2022 to 24th March 2023.


5-Mar-22
21-Mar-22
6-Apr-22
22-Apr-22
8-May-22
24-May-22
9-Jun-22
25-Jun-22
11-Jul-22
27-Jul-22
12-Aug-22
28-Aug-22
13-Sep-22
29-Sep-22
15-Oct-22
31-Oct-22
16-Nov-22
2-Dec-22
18-Dec-22
3-Jan-23
19-Jan-23
4-Feb-23
20-Feb-23
8-Mar-23
24-Mar-23
All Share Index
Top 10 Index


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

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

Victoria Falls Stock Exchange (VFEX)

The week ending 24th March 2023 saw the VFEX All Share index shed 5.22% to close at 93.09
points. Share price decreases were recorded for Padenga Holdings Limited (11.82%), Innscor
Africa Limited (7.13%), Axia Corporation Limited (3.77%), Simbisa Brands Limited (3.50%)
and SeedCo International (2.96%), against a 20% share price increase for Caledonia Mining
Corporation.

The cumulative volume of shares traded on the VFEX increased by 131.86% to 0.89 million,
while the value of shares traded declined by 72.22% to US$0.05 million, during the reporting
week. VFEX market capitalization lost 5.23%, or US$55.56 million worth of capitalisation to
US$1.01 billion in the week under review, compared to US$1.06 billion recorded in the previous
week. Figure 6 shows the trend in the VFEX All Share Index for the period from 5th March 2022
to 24th March 2023.


05-Mar-22
21-Mar-22
06-Apr-22
22-Apr-22
08-May-22
24-May-22
09-Jun-22
25-Jun-22
11-Jul-22
27-Jul-22
12-Aug-22
28-Aug-22
13-Sep-22
29-Sep-22
15-Oct-22
31-Oct-22
16-Nov-22
02-Dec-22
18-Dec-22
03-Jan-23
19-Jan-23
04-Feb-23
20-Feb-23
08-Mar-23
24-Mar-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 72,527.92 points in the
previous week to close at 74,695.04 points, during the week ending 24th March 2023. JSE market
capitalization also rose by 2.99% to ZAR21.07 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
17-Feb-23
79,271.78
22.93
24-Feb-23
76,937.77
22.23
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
% Change

2.99


2.99
Source: 2023


05-Mar-22
21-Mar-22
06-Apr-22
22-Apr-22
08-May-22
24-May-22
09-Jun-22
25-Jun-22
11-Jul-22
27-Jul-22
12-Aug-22
28-Aug-22
13-Sep-22
29-Sep-22
15-Oct-22
31-Oct-22
16-Nov-22
02-Dec-22
18-Dec-22
03-Jan-23
19-Jan-23
04-Feb-23
20-Feb-23
08-Mar-23
24-Mar-23

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


RESERVE BANK OF ZIMBABWE

5-Mar-22
21-Mar-22
6-Apr-22
22-Apr-22
8-May-22
24-May-22
9-Jun-22
25-Jun-22
11-Jul-22
27-Jul-22
12-Aug-22
28-Aug-22
13-Sep-22
29-Sep-22
15-Oct-22
31-Oct-22
16-Nov-22
2-Dec-22
18-Dec-22
3-Jan-23
19-Jan-23
4-Feb-23
20-Feb-23
8-Mar-23
24-Mar-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
03-Mar-23 10-Mar-23 17-Mar-23 24-Mar-23

SMEFX
03-Mar-23 10-Mar-23 17-Mar-23 24-Mar-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

1,000

1,010
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
03-Mar-23 10-Mar-23 17-Mar-23 24-Mar-23
SMEFX
03-Mar-23 10-Mar-23 17-Mar-23 24-Mar-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

1,950,094.82