Vol. 25 No. 16


Week Ending
21st April 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Average minimum and maximum deposits rates for savings deposits, deposits of 1-month tenor
and 3-months tenor declined during the week ending 21st April 2023, 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-Mar-23

31-Mar-23

6-Apr-23

14-Apr-23

21-Apr-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum and maximum lending rates for individual clients and maximum
lending rates for corporate clients decreased, during the week under review. However, average
minimum lending rates for corporate clients increased by 5.80 percentage points during the same
week, as shown in Table 2.

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

Individual Clients

Corporate Clients
24-Mar-23

31-Mar-23

6-Apr-23

14-Apr-23

21-Apr-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

During the week ending 21st April 2023, average deposits rates for deposits of all classes, quoted
by commercial banks, remained unchanged from 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-Mar-23

31-Mar-23

6-Apr-23

14-Apr-23

21-Apr-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

In the week ending 21st April 2023, marginal changes were recorded on minimum and maximum
commercial bank lending rates for individual clients as well as on minimum lending rates for
corporate clients. However, maximum lending rates for corporate clients remained at previous
week levels, as shown in Table 4.

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

Individual Clients

Corporate Clients
24-Mar-23

31-Mar-23

6-Apr-23

14-Apr-23

21-Apr-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

During the week ending 21st April 2023, the National Payment Systems (NPS) processed
transactions valued at ZW$802.92 billion, down from ZW$811.52 billion recorded in the
previous week. Real Time Gross Settlement (RTGS) transactions declined from ZW$673.82
billion in the previous week to ZW$655.72 billion, during the week under review. In proportions,
the NPS transaction values were distributed as follows: RTGS, 81.67%, POS, 9.80%; Mobile,
6.04%; and ATM, 2.49%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


NPS transaction volumes declined by 1.41% to 10.95 million, during the week ending 21st April
2023, from 11.10 million recorded in the preceding week. The distribution of NPS transaction
volumes was as follows: Mobile, 70.78%; POS, 26.52%; RTGS, 1.60%; and ATM, 1.11%, as
shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

RTGS
81.67%
POS
9.80%
ATM
2.49%
MOBILE
6.04%
RTGS
POS
ATM
MOBILE
RTGS, 1.60%
POS, 26.52%
ATM, 1.11%
MOBILE, 70.78%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
14th April 2023

WEEK ENDING

21st April 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 102.89 million kilograms of tobacco had been sold as at day 30 of the
tobacco selling season. This was a 23.61% increase from the 83.24 million kilograms sold during
the same period in 2022. In value terms, tobacco sales registered a 24.28% increase to US$307.95
million, from US$247.79 million realized during the corresponding period in 2022, as shown in
Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 30 (21st April 2023)

Variance (%)
Cumulative Quantity Sold (million kgs)
83,239,721
102,889,471
23.61
Average Price (US$/kg)
2.98

2.99
0.44
Cumulative value (US$ million)
307,945,562
247,789,777
24.28
Source: Tobacco Industry and Marketing Board (TIMB), 2022

The golden leaf was sold at an average price of US$2.99 per kilogram, a marginal increase from
US$2.98 per kilogram realised in the same period last year.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During the week ending 21st April 2023, average prices for platinum, palladium and nickel rose
while gold, copper and Brent crude oil prices retreated. Table 7 shows commodity prices
developments during the week under review.

Table 7: Metal and Crude Oil Prices for the week ending 21st April 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne
US$/tonne
US$/barrel
Weekly Average (11-14 Apr 23)

17-Apr-23

18-Apr-23

19-Apr-23

20-Apr-23

21-Apr-23

Weekly Average (17-21 Apr 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the week ending 21st April 2023, gold prices declined by 1.09% to US$1996.97 per
ounce, from US$2,019.00 per ounce recorded in the prior week. Prices of the yellow metal
slipped amid investor expectations that the Federal Reserve and other central banks would
moderate interest rate hikes in their upcoming monetary policy meetings.

Platinum
Platinum prices sustained a bullish run, gaining by 4.72%, from a weekly average of
US$1,021.25 per ounce in the prior week to US$1,069.50 per ounce, during the week under
review. Prices rose amid tight global supply, particularly in South Africa and rising demand in
China as its economic recovery gains traction.

Palladium
Palladium prices surged by 8.77%, from US$1,460.13 per ounce in the previous week to
US$1,588.25 per ounce, during the week under review. The increase was underpinned by signs
of growth in the technology industry, which relies heavily on palladium for the manufacturing
of electronics.

Copper
Copper prices retreated by 0.68%, from a weekly average of US$8,997.75 per tonne recorded in
the previous week to US$8,936.75 per tonne, during the week ending 21st April 2023. Prices
declined as global supplies increased mainly on account of the ramping up of production by
newly opened mines in Peru, one of the world’s largest copper producers.

Nickel
Nickel prices continued to increase due to tight supply, against the background of rising demand
in China, the world’s top base metal consumer. Accordingly, prices increased by 4.79%, from a
weekly average of US$22,946.25 per tonne in the previous week to US$25,093.75 per tonne,
during the reporting week.

Brent Crude Oil

Brent crude oil prices declined by 3.56%, from US$86.35 per barrel recorded in the previous
week to US$83.28 per barrel, during the week under review. Prices were weighed down by
prospects of further interest rate hikes by the Federal Reserve, that could hurt global economic
growth and future energy demand.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 3.3%, from an average of
ZW$960.4250 per US$1 in the previous week to ZW$992.1109 per US$1, during the week
ending 21st April 2023, as shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (11-14 Apr 23)

17-Apr-23


19-Apr-23


20-Apr-23

21-Apr-23

Weekly Average (17-21 Apr 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


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

6. EQUITY MARKETS


Zimbabwe Stock Exchange
The week ending 21st April 2023 saw positive trading on the Zimbabwe Stock Exchange (ZSE).
As a result, the ZSE All Share index gained 1.99% to close at 36 894.04 points. The Top 10, Top
15 and Small Cap indices gained 3.27%, 2.61% and 14.46% to close the week at 21 387.56
points, 25 315.56 points and 764 280.19 points, respectively. However, the Medium Cap index,
lost 1.63% to close the week at 79 094.87 points.

The increase in the mainstream index was a result of share price gains for British American
Tobacco Zimbabwe Limited (34.28%), Turnall Holdings Limited (31.67%), Econet Wireless
Zimbabwe Limited (27.81%), General Beltings Holdings Limited (22.26%), and First Mutual
Holdings (14.72%). Partially offsetting the gains were losses in share prices for SeedCo Limited
(13.95%), Masimba Holdings Limited (13.01%), Edgars Stores Limited (7.50%), TSL Limited
(7.44%) and Mashonaland Holdings Limited (5.85%). The resources index2, also shed 14.98%
to close at 31 763.82 points from 37 359.78 points recorded in the previous 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-Mar-23

24-Mar-23

31-Mar-23

06-Apr-23

14-Apr-23

21-Apr-23

% Change

1.99
3.27

2.61
-1.63

14.46
-14.98

3.43
59.82
95.37
Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 1st March 2022 to 21st April
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

Reflecting improved investor appetite during the week under review, the cumulative volume of
shares traded on the ZSE increased by 95.37% to 19.30 million, compared to 9.88 million
recorded in the prior week. The turnover value of shares amounted to ZW$5.29 billion,
representing an increase of 59.82%, from ZW$3.31 billion recorded in the previous week. Figure
4 shows the trend in daily market turnover for the period from 1st March 2022 to 21st April 2023.

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


1-Mar-22
14-Mar-22
27-Mar-22
9-Apr-22
22-Apr-22
5-May-22
18-May-22
31-May-22
13-Jun-22
26-Jun-22
9-Jul-22
22-Jul-22
4-Aug-22
17-Aug-22
30-Aug-22
12-Sep-22
25-Sep-22
8-Oct-22
21-Oct-22
3-Nov-22
16-Nov-22
29-Nov-22
12-Dec-22
25-Dec-22
7-Jan-23
20-Jan-23
2-Feb-23
15-Feb-23
28-Feb-23
13-Mar-23
26-Mar-23
8-Apr-23
21-Apr-23
All Share Index
Top 10 Index


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

Market Capitalization

The ZSE market capitalization increased by 3.43% or ZW$101.99 million to close at ZW$3.02
trillion, from ZW$2.97 trillion recorded in the preceding week. Figure 5 shows the evolution of
ZSE market capitalization for the period from 1st March 2022 to 21st April 2023.

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

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) was characterised by negative trading for the second
consecutive week. Resultantly, the VFEX All Share index lost 0.30% to close at 90.12 points,
compared to 90.40 points recorded in the previous week. The decline in the VFEX mainstream
index was a result of share price decreases for Bindura Nickel Corporation (20.10%), Seed Co
International (3.45%) and Innscor Africa Limited (2.41%).

The cumulative volume and value of shares traded on the VFEX decreased by 2.92% and 37.34%
to 0.95 million shares and US$0.18 million, respectively. VFEX market capitalization gained by
12.61% or US$123.33 million worth of capitalisation to US$1.10 billion, compared to US$0.98
billion recorded in the previous week. Figure 6 shows the trend in the VFEX All Share Index
(ASI) for the period from 1st March 2022 to 21st April 2023.


01-Mar-22
14-Mar-22
27-Mar-22
09-Apr-22
22-Apr-22
05-May-22
18-May-22
31-May-22
13-Jun-22
26-Jun-22
09-Jul-22
22-Jul-22
04-Aug-22
17-Aug-22
30-Aug-22
12-Sep-22
25-Sep-22
08-Oct-22
21-Oct-22
03-Nov-22
16-Nov-22
29-Nov-22
12-Dec-22
25-Dec-22
07-Jan-23
20-Jan-23
02-Feb-23
15-Feb-23
28-Feb-23
13-Mar-23
26-Mar-23
08-Apr-23
21-Apr-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 declined from 78,870.36 points in the
previous week to close at 77,910.96 points, during the week ending 21st April 2023. JSE market
capitalization also declined by 0.93% to ZAR22.35 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
17-Mar-23
72,527.92
21.07
24-Mar-23
74,695.04
21.70
31-Mar-23
76,100.17
22.20
06-Apr-23
77,113.70
22.38
14-Apr-23
78,870.36
22.56
21-Apr-23
77,910.96
22.35
% Change

-1.22

-0.93
Source: 2023


01-Mar-22
14-Mar-22
27-Mar-22
09-Apr-22
22-Apr-22
05-May-22
18-May-22
31-May-22
13-Jun-22
26-Jun-22
09-Jul-22
22-Jul-22
04-Aug-22
17-Aug-22
30-Aug-22
12-Sep-22
25-Sep-22
08-Oct-22
21-Oct-22
03-Nov-22
16-Nov-22
29-Nov-22
12-Dec-22
25-Dec-22
07-Jan-23
20-Jan-23
02-Feb-23
15-Feb-23
28-Feb-23
13-Mar-23
26-Mar-23
08-Apr-23
21-Apr-23

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


RESERVE BANK OF ZIMBABWE

1-Mar-22
14-Mar-22
27-Mar-22
9-Apr-22
22-Apr-22
5-May-22
18-May-22
31-May-22
13-Jun-22
26-Jun-22
9-Jul-22
22-Jul-22
4-Aug-22
17-Aug-22
30-Aug-22
12-Sep-22
25-Sep-22
8-Oct-22
21-Oct-22
3-Nov-22
16-Nov-22
29-Nov-22
12-Dec-22
25-Dec-22
7-Jan-23
20-Jan-23
2-Feb-23
15-Feb-23
28-Feb-23
13-Mar-23
26-Mar-23
8-Apr-23
21-Apr-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
31-Mar-23 06-Apr-23 14-Apr-23 21-Apr-23

SMEFX
31-Mar-23 06-Apr-23 14-Apr-23 21-Apr-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate
1,020
1,020
1,050


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
31-Mar-23 06-Apr-23 14-Apr-23 21-Apr-23
SMEFX
31-Mar-23 06-Apr-23 14-Apr-23 21-Apr-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

1,731,764.97