Vol. 25 No. 48


Week Ending
1st December 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1. OVERVIEW

This report provides an analysis of the developments on money market interest rates and
transactions on the National Payment Systems during the week ending 1st December 2023. The
report also covers developments in mineral commodity prices and stock markets during the week.

Minimum and maximum savings deposit rates for local currency deposits were lower during the
week under review amid a marginal increase in bank loans. Foreign currency deposit rates for
deposits of all maturity classes decreased, during the week.

The prices for gold, platinum, crude oil and copper on the international commodity markets
increased during the week under review, while the prices of nickel, palladium and lithium fell,
during the same week, with the price developments mainly influenced by a softer US dollar.

The National Payment Systems (NPS) processed transactions valued at ZW$6.42 trillion during
the week, which is a marginal increase of 0.49% from the previous week’s levels as expenditure
improves into the festive season. Both the Zimbabwe Stock Exchange (ZSE) and the Victoria
Falls Stock Exchange were bullish during the week reflecting the increase in activity.
2. INTEREST RATES

Local Currency (ZW$) Deposit Rates

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

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
(%)
3-Nov-23

10-Nov-23

17-Nov-23


24-Nov-23

1-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Local Currency (ZW$) Lending Rates

During the week ending 1st December 2023, minimum and maximum lending rates for individual
clients increased. Minimum deposit rates for corporates clients decreased, while maximum
lending rates for corporate clients increased during the same week. The increase in lending rates,
in part, reflects tight liquidity conditions in the market. The local currency lending rates are
shown in Table 2.

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

Individual Clients

Corporate Clients

3-Nov-23

10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates
During the week under review, minimum foreign currency deposit rates for savings deposits,
deposits of 3-month and 6-month tenor declined while those for 1-month and 12-month tenors
registered increases. Maximum deposit rates for all classes of deposits softened during the same
week. The softening of deposit rates is indicative of supply and demand factors of foreign
currency liquidity as the holiday season approaches. Foreign currency deposit rates are 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
(%)
3-Nov-23

10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates
During the week ending 1st December 2023, minimum and maximum foreign currency lending
rates for individual clients decreased by 0.51 and 0.28 percentage points, respectively. Minimum
and maximum foreign currency lending rates for corporate clients were higher however, during
the same period.

Table 4: Lending Rates (per annum)

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

Individual Clients
Corporate Clients

27-Oct-23

3-Nov-23

10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-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 stood at ZW$6.42 trillion, representing an increase of 0.49% from ZW$6.39 trillion
registered in the previous week amid tight liquidity conditions in the economy.

In value terms, the distribution of NPS transactions was as follows: Real Time Gross Settlement
(RTGS) 82.47%, Mobile, 5.52%, Point of Sale (POS), 6.40% and Automated Teller Machines
(ATM), 5.61%, as shown in Figure 1.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023

The volume of transactions processed through the NPS decreased by 1.75% to close at 13.33
million. The NPS transaction volumes were distributed as follows: Mobile,79.47%; POS,
16.99%; RTGS, 2.04% and ATM, 1.51%.as shown in Figure 2.

Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
82.47%
POS
6.40%
ATM
5.61%
MOBILE
5.52%
RTGS
POS
ATM
MOBILE
RTGS, 2.04%
POS, 16.99%
ATM, 1.51%
MOBILE, 79.47%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMEN
T
STREAM
WEEK ENDING
24 NOVEMBER

WEEK ENDING
O1 DECEMBER

% 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

4. INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

Prices for gold, platinum, crude oil and copper rose during the week ending 1st December 2023,
while nickel, palladium and lithium prices fell, as indicated in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 1st December 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
(20Nov- 24Dec)

27-Nov

28-Nov

29-Nov

30-Nov

01-Dec

Weekly Average
(27Nov- 1Dec)

Weekly Change

Source: BBC, KITCO and Bloomberg 2023

Precious Metals
During the week under review, the average prices of precious metals, namely gold and platinum,
rose by 2.06%, 1.14%, respectively, while those for palladium and lithium decreased by 2.13%
and 5.53%, respectively, as shown in Table 6. Gold prices rose as the US dollar continued to
weaken on expectations that the Federal Reserve was not going to raise interest rates in the
outlook period. Palladium prices continued to plummet due to expectations of an excess supply

resulting from the widespread adoption of electric vehicles and automakers opting for platinum
in their catalytic converters. Lithium prices declined, as the market is typically weak in the
summer when many battery manufacturers shut down for maintenance. The price trends for the
precious metals for the week ending 1st December 2023, are illustrated in Figure 3.

Figure 3: Weekly Precious Metals Price Developments (27 Nov - 01 December. 2023)

Source: Kitco,2023

Source: Kitco,2023

Source: Kitco,2023

Source: London Metal Exchange,2023


US$/ounce
Gold
Gold
Linear (Gold)

US$/ounce
Platinum
Platinum
Linear (Platinum)

US$/ounce
Palladium
Palladium
Linear (Palladium)

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

Base Metals and Brent Crude Oil
Crude oil prices increased by 0.27%, following Saudi Arabia’s statement on the continuation of
output cuts, after considering market conditions arising from the Hamas-Israel conflict. Copper
prices rose during the week under review following the better-than-expected data from the
metal’s top consumer, China, tighter commodity supply and a weaker dollar. On the other hand,
nickel prices contracted by 0.17%, on the back of subdued demand as a result of the global
economic slowdown.

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil
(25 Nov. 2023 - 1 Dec. 2023)

Source: London Metal Exchange,2023

Source: London Metal Exchange,2023

25-Nov
26-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
24-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
Copper

Copper
Copper
Linear (Copper)

25-Nov
26-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
US$/tonne
24-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
Nickel

Nickel
Linear (Nickel)

Source: BBC,2023

Exchange Rate Developments

Interbank Market

During the week under analysis, the Zimbabwe dollar (ZW$) depreciated marginally by 0.28%
against the US dollar on the interbank market. The average exchange rate moved from ZW$
5,769.65 per US$1 in the previous week to ZW$ 5,785.95 per US$1, during the reporting week.

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

USD
ZAR
GBP
BWP
EURO
Weekly Average
(20 – 24 November)

27-Nov

28-Nov

29-Nov

30-Nov

1-Dec

Weekly Average
(27Nov – 01Dec)

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

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS

During the week ending 1st December 2023, both the Zimbabwe Stock Exchange (ZSE) and the
Victoria Falls Stock Exchange (VFEX) exhibited bullish sentiments. As such, the ZSE and
VFEX All Share indices increased by 6.04% and 1.27% to close at 192 223.42 points and 70.55
points, respectively.


25-Nov
26-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
US$/barrel
24-Nov
27-Nov
28-Nov
29-Nov
30-Nov
1-Dec
Brent crude oil

Brent crude oil
Linear (Brent crude oil)

Table 8: Zimbabwe Stock Exchange Statistics1

All Share
Index
Points
Top 10
index
(points)


Mining
Index
(points)
Grand
Market
Capitaliz
ation
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
Top 15
Index
points
Medium
Cap
(points)
Small Cap
(points)


10-Nov-23

17-Nov-23

24-Nov-23

01-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023

Table 9: Victoria Falls Stock Exchange
Date
All Share Index Points
Grand Market
Capitalization (US$
billion)
Market Turnover (US$
million)
Volume of Shares
(million)
10-Nov-23

17-Nov--23

24-Nov-23

1-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023

Zimbabwe Stock Exchange (ZSE) Developments
The top 15, top 10, medium cap and small cap rose by 2.48%, 7.90%, 6.84% and 0.06% to close
at 834 813.78 points, 82 335.38 points, 111 745.50 points and 5 316 567.85 points, respectively.
The resource index, however, lost 2.24% to close at 145 542.27 points compared to 148 883.44
points recorded in the prior week.

The rise in the mainstream index emanated from share price gains in Edgars Stores Limited
(17.65%), Meikles Limited (15.37%), SeedCo Limited (15.18%), Dairibord Holdings Limited
(14.31%) and Delta Corporation Limited (12.87%).

1 The Zimbabwe Stock Exchange (ZSE) adopted the Global Industry Classification Standards, effective from 1 January 2020. ZSE major indices comprise of the following
categories: All Share Index Top 10 Index; Top 15; Top 25; Medium cap and Small cap Indices.

Losses were, however, recorded in the share prices of CAFCA Limited (9.74%), Ecocash
Holdings Zimbabwe Limited (8.48%), TSL Limited (8.10%), Willdale Limited (3.56%) and
General Beltings Holdings Limited (1.47%).

The ZSE mining index declined from 148 883.44 points in the previous week to close at 145
542.27 points in the week under analysis. This was on account of a 2.24% decline in Riozim
limited counter, during the week.

Figure 5 shows developments on the ZSE’s All Share, Top 10 and Mining indices from 2nd
December 2022 to 1st December 2023.

Figure 5: ZSE All Share, Top 10 and Mining Indices
Source: Zimbabwe Stock Exchange, 2023

Market Turnover
During the week under review, trading activity was concentrated on some selected wealth
preserving counters, al-beit on low volumes. As such, the cumulative value of shares traded
increased by 79.26% to ZW$11.01 billion while turnover volumes lost 19.50% to 16.89 million
shares. This compares to 20.98 million shares and ZW$6.14 billion, recorded in the previous
week.
Figure 6 shows the trend in daily market turnover for the period 2nd December 2022 to 1st of
December 2023.


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
01-Dec-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 market capitalisation added 5.9%, or ZW$853.03 billion worth of capitalization to
close at ZW$15,311.63 billion during the week under review.

Figure 7 shows the evolution of market capitalization for the period 2nd December 2022 to 1st
December 2023.


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
01-Dec-23
ZW$ (Million)
Negotiated Deal: 241 million
First Mutual Holdings
Limited shares exchanged

Figure 7: Market Capitalization

Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments
The VFEX mainstream index added 1.27% during the week under review, owing to share price
increases in SeedCo International VX (38.36%), Innscor Africa Limited (6.19%), First Capital
Bank (2.00%), Axia Corporation Limited (0.63%) and African Sun Limited (0.40%).

Losses were registered in the share prices of National Foods Holdings (6.67%), Simbisa Brands
Limited (0.22%) and Padenga Holdings Limited (0.11%)

VFEX Market Turnover
The VFEX volume and values of shares declined by 75.76% and 22.92% to 1.47 million shares
and US$0.61million, respectively. This is in comparison to 6.08 million shares and US$0.79
million recorded in the preceding week.

VFEX Market Capitalization
Reflecting positive trading activity on the USD denominated market, the VFEX added 1.28%
worth of capitalization to close at US$1.21 billion compared to US$1.19 billion, recorded in
the prior week. Figure 8 shows the trend in the VFEX All Share Index (ASI) for the period 2nd
December 2022 to 1st December 2023.


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
01-Dec-23
$ Billions

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

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
01-Dec-23


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR WHOLESALEFX2


Source: Reserve Bank of Zimbabwe, 2023


2 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.


07-Nov-23
WHOLESALE FX


14-Nov-23


21-Nov-23


28-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


07-Nov-23

14-Nov-23

21-Nov-23

28-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
1,899,339.62
1,999,717.91
2,114,258.76
2,177,119.32