Vol. 25 No. 49


Week Ending
8th 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 8th December 2023. The
report also covers developments in mineral commodity prices and stock markets during the
reporting week.

Minimum and maximum savings deposit rates for local currency deposits for all maturity classes
remained unchanged while deposit rates for other classes registered declines during the week
under review. Commercial bank minimum and maximum deposit rates for savings deposits and
deposits for all tenors remained unchanged during the same week.

International prices for gold, platinum, palladium, copper, crude oil and lithium decelerated,
while prices for nickel marginally rose during the week ending 8th December 2023. The price
developments were mainly influenced by subdued demand.

In value terms, aggregate transactions processed through the National Payment Systems
platforms amounted to ZW$5.84 trillion, representing a decline of 8.97% from the previous
week’s levels. The Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange
were both bullish during the week under review. This reflected the increase in trading activity.
2. INTEREST RATES

Local Currency (ZW$) Deposit Rates

During the week ending 8th December 2023, commercial bank minimum and maximum deposit
rates for savings deposits remained unchanged. While minimum and maximum deposits of
1-month, 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
(%)
10-Nov-23

17-Nov-23


24-Nov-23

1-Dec-23

8-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Local Currency (ZW$) Lending Rates
During the week under analysis, minimum lending rates for individual clients declined while
those for corporate clients registered increases. Maximum lending rates for both individuals and
corporates, however, registered declines, partly on account of tight liquidity conditions and
subdued demand for domestic currency loans. The commercial banks lending rates were as
shown in Table 2.
Table 2: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

8-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates
During the week under review, minimum and maximum foreign currency deposit rates for all
deposit classes remained unchanged at previous week’s levels, 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
(%)
10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

8-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates
During the week ending 8th December 2023, minimum and maximum foreign currency lending
rates for individual clients increased by 0.04 and 0.06 percentage points, respectively. Minimum
foreign currency lending rates for corporate clients increased by 0.03 while maximum foreign
currency lending rates for corporate clients registered a marginal decline during the same period.

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

Individual Clients
Corporate Clients

10-Nov-23

17-Nov-23

24-Nov-23

1-Dec-23

8-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 amounted to ZW$5.84 trillion, representing a decrease of 8.97% from the previous
week’s level of ZW$6.42 trillion.

In value terms, the distribution of NPS transactions were as follows: Real Time Gross Settlement
(RTGS), 78.83%, Mobile, 7.54%, Point of Sale (POS), 7.36% and Automated Teller Machines
(ATM), 6.27%, as shown in Figure 1 and Table 5.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023

The volume of transactions processed through the NPS increased by 5.68% to close at 14.08
million. The NPS transaction volumes were distributed as follows: Mobile, 80.89%; POS,
16.25%; RTGS, 1.40% and ATM, 1.46%, as shown in Figure 2.


RTGS
78.83%
POS
7.36%
ATM
6.27%
MOBILE
7.54%
RTGS
POS
ATM
MOBILE

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
01 DECEMBER

WEEK ENDING
08 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, palladium, copper, crude oil, and lithium decelerated during the week
ending 8th December 2023, while prices for nickel increased marginally as indicated in Table 6.


RTGS, 1.40%
POS, 16.25%
ATM, 1.46%
MOBILE, 80.89%
RTGS
POS
ATM
MOBILE

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
(27 Nov- 1 Dec)

4-Dec

5-Dec

6-Dec

7-Dec

8-Dec


Weekly Average
(4 Dec- 8 Dec)

Weekly Change

Source: BBC, KITCO and Bloomberg 2023

Precious Metals
During the week ending 8th December 2023, the weekly average prices for precious metals,
namely gold, platinum, palladium, and lithium decreased by 0.09%, 2.06%, 7.60% and 7.07%,
respectively, as shown in Table 6. Gold and platinum prices fell as investors grew wary of
expected monetary policy announcements from major central banks such as the Federal Reserve,
the European Central Bank, and the Bank of England during the week under review. Palladium
prices dropped due to weak demand, amidst the continued preference for platinum by
automakers, for use in catalytic converters. Similarly, lithium prices declined amid slow demand
in the automotive industry. The price trends for these precious metals for the week under analysis
are shown in Figure 3.

Figure 3: Weekly Precious Metals Price Developments (04 - 08 December 2023)

Source: Kitco,2023

Source: Kitco,2023

4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/ounce
Gold
Gold
Linear (Gold)

4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/ounce
Platinum
Platinum
Linear (Platinum)

Source: Kitco,2023

Source: London Metal Exchange,2023

Base Metals and Brent Crude Oil
During the week under analysis, crude oil prices declined on account of weaker demand. Prices
declined, primarily pointing to over supply concerns despite OPEC’s output cuts. Traders are
therefore eagerly waiting for monthly reports and forecasts from the U.S Energy Information
Administration, the International Energy Agency and from OPEC. In the same manner, copper
prices fell due to stronger U.S dollar and an increase in stocks within the London Metal Exchange
(LME) warehouses. On the other hand, nickel prices slightly increased by 0.01%, as the usage
of the metal in electrical vehicles grew. According to latest forecasts by the International Nickel
Study Group, the supply of the metal is set to surpass demand by 223,000 metric tons in 2023
after a 104,000-metric tonne surplus in 2022.


4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/ ounce
Palladium
Palladium
Linear (Palladium)

4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/tonne
Lithium Hydroxide
Lithium Hydroxide
Linear (Lithium Hydroxide)

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil
(2 – 8 December 2023)

Source: London Metal Exchange, 2023

Source: London Metal Exchange, 2023

Source: BBC, 2023

2-Dec
3-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/ ounce
1-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
Copper

Copper
Copper
Linear (Copper)
16,000
16,400
16,800
2-Dec
3-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/tonne
1-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
Nickel

Nickel
Nickel
Linear (Nickel)

2-Dec
3-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
US$/barrel
1-Dec
4-Dec
5-Dec
6-Dec
7-Dec
8-Dec
Brent crude oil

Brent crude oil
Brent crude oil
Linear (Brent crude oil)

Exchange Rate Developments

Interbank Market

During the week under analysis, the Zimbabwe dollar (ZW$) depreciated by 0.56% against the
U.S dollar, from ZW$5,785.95 per US$1 in the previous week to ZW$5,818.57 per US$1.

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

USD
ZAR
GBP
BWP
EURO
Weekly Average
(27 Nov – 1 Dec)

4-Dec

5-Dec

6-Dec

7-Dec

8-Dec

Weekly Average
(4 Dec – 8 Dec)

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

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS

During the week ending 8th December 2023, both the Zimbabwe Stock Exchange (ZSE) and the
Victoria Falls Stock Exchange (VFEX) exhibited bullish sentiments. As a result, the ZSE and
VFEX All Share indices gained 2.83% and 0.81% to close at 197 660.65 points and 71.12 points,
respectively.

Table 8: Zimbabwe Stock Exchange Statistics1

All Share
Index
Points


Top 10
index
(points)
Top 15
Index
points
Medium
Cap
(points)
Small Cap
(points)
Mining
Index
(points)
Grand
Market
Capitalizatio
n (ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
17-Nov-23

24-Nov-23

01-Dec-23

08-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023


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.

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

24-Nov-23

1-Dec-23

8-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023

Zimbabwe Stock Exchange (ZSE) Developments
The Top 10, Top 15, Small Cap and Medium Cap counters gained 2.10%, 2.22%, 0.52% and
4.32% to close at 84 065.54 points, 114 225.56 points, 5 344 423.84 points and 870 872.87 points
respectively.

The increase in the mainstream index resulted from share price gains in CAFCA Limited
(32.25%), First Mutual Properties Limited (31.43%), CBZ Holdings Limited (27.20%), NMBZ
Holdings Limited (16.51%) and Zimre Holdings Limited (13.83%). Losses were, however,
recorded in the share prices of SeedCo Limited (11.32%), Edgars Stores Limited (8.00%), FBC
Holdings Limited (5.45%), Tanganda Tea Company Limited (4.20%) and Econet Wireless
Zimbabwe Limited (1.05%).

The mining index remained unchanged at 145 542.27 points during the same week.

Figure 5 shows developments on the ZSE’s All Share, Top 10 and Mining indices from 9th
December 2022 to 8th December 2023.

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

Source: Zimbabwe Stock Exchange, 2023

Market Turnover
During the week under review, the cumulative volume and value of shares traded declined by
47.89% and 13.18% to 8.80 million shares and ZW$9.56 billion, respectively.

Figure 6 shows the trend in daily market turnover for the period 9th December 2022 to 8th
December 2023.

Figure 6: Market Turnover

Source: Zimbabwe Stock Exchange, 2023

Market Capitalization
Reflecting improved trading activity on the ZSE during the week under analysis, the market
gained 0.38%, or ZW$58.47 billion worth of capitalization to close at ZW$15,370.10 billion.


09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23
31-Mar-23
14-Apr-23
28-Apr-23
12-May-23
26-May-23
09-Jun-23
23-Jun-23
07-Jul-23
21-Jul-23
04-Aug-23
18-Aug-23
01-Sep-23
15-Sep-23
29-Sep-23
13-Oct-23
27-Oct-23
10-Nov-23
24-Nov-23
08-Dec-23
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index


09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23
31-Mar-23
14-Apr-23
28-Apr-23
12-May-23
26-May-23
09-Jun-23
23-Jun-23
07-Jul-23
21-Jul-23
04-Aug-23
18-Aug-23
01-Sep-23
15-Sep-23
29-Sep-23
13-Oct-23
27-Oct-23
10-Nov-23
24-Nov-23
08-Dec-23
ZW$ (Million)
Negotiated Deal: 241
million First Mutual
Holdings Limited shares

Figure 7 shows the evolution of market capitalization for the period 9th December 2022 to 8th
December 2023.

Figure 7: Market Capitalization

Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments
The increase in the VFEX mainstream index emanated from share price gains in SeedCo
International VX (10.34%), Axia Corporation Limited (3.75%), Padenga Holdings Limited
(2.92%), National Foods Holdings (2.86%) and Innscor Africa Limited (0.07%).

Declines were registered in the share prices of Simbisa Brands Limited (2.33%), First Capital
Bank (1.96%), and African Sun Limited (0.40%).

VFEX Market Turnover
The VFEX volume and value of shares rose by 203.16% and 69.98% to 4.47 million shares and
US$1.03 million, respectively. This compared to 1.47 million shares and US$0.61 million
recorded in the preceding week. The surge in turnover volume was largely on account of a
notable trade deal where over 1.02 million Axia Corporation Limited shares exchanged hands at
US$0.083/share.


09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23
31-Mar-23
14-Apr-23
28-Apr-23
12-May-23
26-May-23
09-Jun-23
23-Jun-23
07-Jul-23
21-Jul-23
04-Aug-23
18-Aug-23
01-Sep-23
15-Sep-23
29-Sep-23
13-Oct-23
27-Oct-23
10-Nov-23
24-Nov-23
08-Dec-23
ZW$ (Billions)

VFEX Market Capitalization
Owing to positive trading activity, on the VFEX market capitalisation rose by 0.81% to close at
US$1.22 billion compared to US$1.21 billion, recorded in the prior week. Figure 8 shows the
trend in the VFEX All Share Index (ASI) for the period 9th December 2022 to 8th December
2023.

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23
31-Mar-23
14-Apr-23
28-Apr-23
12-May-...
26-May-...
09-Jun-23
23-Jun-23
07-Jul-23
21-Jul-23
04-Aug-23
18-Aug-23
01-Sep-23
15-Sep-23
29-Sep-23
13-Oct-23
27-Oct-23
10-Nov-23
24-Nov-23
08-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.


WHOLESALE FX


14-Nov-23
21-Nov-23
28-Nov-23
05-Dec-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


14-Nov-23

21-Nov-23

28-Nov-23

05-Dec-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
1,999,717.91
2,114,258.76
2,177,119.32
2,340,696.09