Vol. 25 No. 52


Week Ending
29th December 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


INTERNATIONAL COMMODITY PRICE
5.

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 29th December 2023. The
report also covers developments in international commodity prices and stock markets during the
same week.


Minimum and maximum deposit rates for local currency deposits of all tenors remained at the
previous week’s levels. Maximum foreign currency deposit rates for deposits of all classes
increased during the week under review.


International commodity prices for gold, platinum, palladium, and copper firmed during the
week ending 29th December 2023. Prices for nickel, crude oil and lithium, however, declined
during the same week.

The total value of transactions processed through the National Payment Systems platforms
declined by 1.85% to close at ZW$8.14 trillion during the week under review, from ZW$8.29
trillion registered in the previous period. The Real Time Gross Settlement (RTGS) system
constituted 79.59% of the NPS values during the week under review.

The Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) were
bullish for the third consecutive week in December 2023.

INTEREST RATES

Local Currency (ZW$) Deposit Rates.

During the week ending 29th December 2023, minimum and maximum deposits rates for savings
deposits and deposits of 1-month, 3-month, 6-month and 12-month tenors remained at previous
week’s levels, as shown in Table 1.

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
(%)
1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZW$) Lending Rates
During the week under analysis, commercial bank minimum lending rates for individuals were
lower while maximum lending rates registered an increase. On the contrary, minimum lending
rates for corporate clients increased, while maximum lending rates for corporate clients declined,
as shown in Table 2.

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

Individual Clients

Corporate Clients
1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Deposit Rates
During the week ending 29th December 2023, average minimum and maximum deposits rates
for savings deposits remained at previous week’s levels. Minimum deposit rates for deposits of
3-month, 6-month and 12-month tenors declined, while deposits of 1-month tenor were higher.
Maximum deposit rates for deposits of all tenors increased 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
(%)
1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates
Commercial bank minimum lending rates for individual clients were lower while maximum
lending rates registered an increase during the week ending 29th December 2023. Minimum
lending rates for corporate clients rose marginally, while maximum lending rates for corporate
clients softened during the week under analysis.

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

Individual Clients
Corporate Clients

1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23

Source: Reserve Bank of Zimbabwe, 2023

2. CLEARING AND SETTLEMENT ACTIVITY

The total value of transactions processed through the National Payment Systems platforms stood
at ZW$8.14 trillion during the week under review, reflecting a decrease of 1.85% from the
previous week’s level of ZW$8.29 trillion.

In value terms, the distribution of NPS transactions were as follows: Real Time Gross Settlement
(RTGS) system constituted 79.59%, Mobile, 6.87%, Point of Sale (POS), 6.29% and Automated
Teller Machines (ATM), 7.25%.

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 12.63% to close at 15.42
million. This was, underpinned by increases in POS, ATM and Mobile transaction volumes. NPS
transaction volumes were distributed as follows: Mobile,80.28%; POS, 16.82%; RTGS, 0.90%
and ATM, 2.00%, as shown in Figure 2.

Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
79.59%
POS
6.29%
ATM
7.25%
MOBILE
6.87%
RTGS
POS
ATM
MOBILE
RTGS, 0.90%
POS, 16.82%
ATM, 2.00%
MOBILE, 80.28%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
21 DECEMBER

WEEK ENDING
29 DECEMBER

% CHANGE
FROM LAST
WEEK
PROPORTION

VALUES IN ZW$

RTGS

POS

ATM

MOBILE

TOTAL

VOLUMES
RTGS

POS

ATM

MOBILE

TOTAL

Source: Reserve Bank of Zimbabwe, 2023

3. INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

The international prices for gold, platinum, palladium, and copper firmed during the week ending
29th December 2023 while the prices for nickel, crude oil and lithium declined. The developments
in prices for selected commodities are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 29th 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
(18-21 Dec)

27-Dec

28-Dec

29-Dec

Weekly Average
(27 - 29 Dec)

Weekly Change

Source: BBC, KITCO and Bloomberg 2023

Precious Metals
The average prices for precious metals, particularly gold, platinum and palladium increased by
2.00%, 3.79% and 17.03%, respectively, during the week under analysis. Lithium prices,
however, fell by 3.37%, as shown in Table 6. The firming of gold, platinum and palladium prices
was largely supported by investor expectations of interest rate cuts by most major central banks

beginning early 2024. Figure 3 shows the trend in precious metal prices for the period from 27th
December 2023 to 29th December 2023.


Figure 3: Weekly Precious Metals Price Developments (27th – 29th December 2023)

Source: Kitco,2023

Source: Kitco,2023

Source: Kitco,2023

Source: London Metal Exchange,2023


Base Metals and Brent Crude Oil
Copper prices marginally increased by 0.65%, during the week under review on concerns over
tight supply of the red metal. During the same week, nickel prices, however, declined by 0.79%,
amid robust supply from China, the world's leading producer. Crude oil prices fell by 0.47%,
amid concerns about increasing global crude supplies and acute economic slowdown in large

26-Dec
27-Dec
28-Dec
29-Dec
US$/ ounce
Gold
Gold

1,000
1,015
27-Dec
28-Dec
29-Dec
US$/ounce
Platinum
Platinum

27-Dec
28-Dec
29-Dec
US$/ ounce
Palladium
Palladium

27-Dec
28-Dec
29-Dec
US$/tonne
Lithium Hydroxide
Lithium Hydroxide

economies. The price trends for base metals and brent crude oil for the period from 27th
December 2023 to 29th December 2023, are shown in Figure 4.

Figure 4: Daily commodity price developments for copper, nickel, and Brent crude oil
(27th – 29th December 2023)


Source: London Metal Exchange,2023

Source: London Metal Exchange,2023

27-Dec
28-Dec
29-Dec
US$/tonne
27-Dec
28-Dec
29-Dec
Copper
8620.00
8637.50
8589.50
Copper

27-Dec
28-Dec
29-Dec
US$/tonne
27-Dec
28-Dec
29-Dec
Nickel
16660.00
16610.00
16620.00
Nickel

Source: BBC,2023


Exchange Rate Developments

Interbank Market

During the week under analysis, the Zimbabwe dollar (ZW$) depreciated by 1.5% against the
US dollar, from an average of ZW$5,924.96 per US$1 in the previous week to ZW$6,012.33 per
US$1, as shown in Table 7.

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

USD
ZAR
GBP
BWP
EURO
Weekly Average
(18– 21 Dec)

27-Dec

28-Dec

29-Dec

Weekly Average
(27 – 29 Dec)

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

Source: Reserve Bank of Zimbabwe, 2023


27-Dec
28-Dec
29-Dec
US$/barrel
11-Dec 12-Dec 13-Dec 14-Dec 15-Dec 18-Dec 19-Dec 20-Dec 21-Dec 27-Dec 28-Dec 29-Dec
Brent crude oil

Brent crude oil

4. EQUITY MARKETS

During the week ending 29th December 2023, the Zimbabwe Stock Exchange (ZSE) and the
Victoria Falls Stock Exchange (VFEX) were bullish for the third consecutive week.
Subsequently, the ZSE and VFEX All Share indices added 6.06% and 0.41% to close at 210
833.92 points and 70.64 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
Capitalization
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of Shares
(million)
08-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23
210,833.92
90,085.91


% 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)
1-Dec-23

8-Dec-23

15-Dec-23

21-Dec-23

29-Dec-23

% Change

Source, Zimbabwe Stock Exchange, 2023


Zimbabwe Stock Exchange (ZSE) Developments
The Top 10, Top 15, Medium Cap and Small Cap gained 7.60%, 6.93%, 3.09% and 2.61% to
close at 90 085.91, 121 916.39, 920 516.25 and 5 483 703.77 points respectively. The mining
index recorded no movement at 145 542.27 points during the week under review.

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.

Figure 5 shows developments on the ZSE’s All Share, Top 10 and Mining indices from 30th
December 2022 to 29th December 2023.

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

Source Zimbabwe Stock Exchange, 2023:

The gains in the mainstream index resulted from share price gains in National Tyre Services
Limited (100%), Starafrica Corporation Limited (49.91%), Econet Wireless Zimbabwe Limited
(19.42%), First Mutual Properties Limited (15.02%) and Ok Zimbabwe Limited (12.54%).

Partially offsetting the abovementioned gains were losses in share prices of Willdale Limited
(2.84%), and NMBZ Holdings Limited (0.01%).

Market Turnover
The cumulative volume and value of shares traded increased by 2014.31% and 476.78% to
219.33 million shares and ZW$73.69 billion, respectively. This compares to 10.37 million shares
and ZW$12.78 billion registered in the prior week, respectively. The jump in turnover volumes
and values was largely informed by a negotiated trade deal on First Mutual Properties of 168 557
713 shares at $322.05 per share.


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
15-Dec-23
29-Dec-23
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index

Figure 6 shows the trend in daily market turnover for the period 30th December 2022 to 29th
December 2023.

Figure 6: Market Turnover

Source: Zimbabwe Stock Exchange, 2023


Market Capitalization

Owing to the positive trajectory on the ZSE during the week under analysis, the market gained
6.65%, or ZW$1 048.01 billion worth of capitalization to close at ZW$16 812.91 billion.

Figure 7 shows the evolution of market capitalization for the period 30th December 2022 to 29th
December 2023.


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
15-Dec-23
29-Dec-23
ZW$ (Million)
Negotiated Deal: 241
million First Mutual
Holdings Limited shares
exchanged hands at
ZW$196/share
Negotiated Deal: 168.6
million shares
exchanged hands at
ZW$322.05 per share.

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 National Foods
Holdings Limited (19.92%), Axia Corporation Limited (14.12%) and First Capital Bank Limited
(6.84%).

Losses were registered in the share prices of Simbisa Brands Limited (7.14%), Padenga Holdings
Limited (5.28%), African Sun Limited (0.79%) and Zimplow Holdings Limited (0.25%).

VFEX Market Turnover
The VFEX volume and value of shares increased by 6.57% and 31.34% to 3.26 million shares
and US$1.51 million, respectively. This compares to 3.06 million shares and US$1.15 million
registered in the previous week.


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
15-Dec-23
29-Dec-23
$ Billions

VFEX Market Capitalization
The VFEX capitalisation increased from US$1.20 billion, in the previous week to close at
US$1.21 billion, during the week under review.

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

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


21-Nov-23
28-Nov-23
05-Dec-23
12-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


21-Nov-23

28-Nov-23

05-Dec-23

12-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
2,114,258.76
2,177,119.32
2,340,696.09
1,568,498.61