Vol. 25 No. 43


Week Ending
27th October 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1. OVERVIEW

This report provides an analysis of the developments in the money and capital markets for the
week ending 27th October 2023. The report also covers developments in mineral commodity
prices during the week.

During the week under analysis, the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls
Stock Exchange (VFEX) exhibited bullish sentiments. The country’s National Payment Systems
(NPS) processed transactions valued at ZW$5.51 trillion in the reporting week, reflecting an
increase of 1.84%, compared to the value of transactions processed during the week ending 20th
October 2023.

Minimum and maximum deposit rates for foreign currency deposits remained unchanged, during
the week ending 27th October 2023. In the same week, international commodity prices for gold,
platinum, and copper increased, while those for palladium, crude oil, nickel, and lithium
softened.
2. INTEREST RATES

Local Currency (ZW$) Deposit Rates

During the week ending 27th October 2023, minimum and maximum deposit rates for all deposit
classes remained largely unchanged. The average deposit rates were 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
(%)
29-Sep-23

6-Oct-23
34.29
35.60
59.00


13-Oct-23

20-Oct-23

27-Oct-23

Source: Reserve Bank of Zimbabwe, 2023

Local Currency (ZW$) Lending Rates
During the week under analysis, minimum and maximum lending rates for individual clients
increased by 0.06 and 0.49 percentage points, respectively. Minimum lending rates for corporate
clients registered a decrease of 0.94 percentage points, while maximum lending rates increased
by 2.24 percentage points, during the week under review. The lending rates were as shown in
Table 2.


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

Individual Clients

Corporate Clients

29-Sep-23

6-Oct-23

13-Oct-23

20-Oct-23

27-Oct-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. The average foreign currency deposit rates were 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
(%)
29-Sep-23

6-Oct-23

13-Oct-23

20-Oct-23

27-Oct-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates
Minimum foreign currency lending rates for individual clients softened marginally, while
maximum lending rates increased, during the week ending 27th October 2023. In the same week,
both minimum and maximum foreign currency lending rates for corporate clients increased. The
average foreign currency lending rates were as shown in Table 4.

Table 4: Lending Rates (per annum)

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

Individual Clients
Corporate Clients

29-Sep-23

6-Oct-23

13-Oct-23

20-Oct-23

27-Oct-23

Source: Reserve Bank of Zimbabwe, 2023
3. CLEARING AND SETTLEMENT ACTIVITY

The aggregate value of transactions processed through the National Payment Systems (NPS)
stood at ZW$5.51 trillion, during the week under review, up from ZW$5.41 trillion in the
preceding week. The distribution of NPS transactions, in value terms, was as follows: Real Time
Gross Settlement (RTGS), 84.48%; Mobile, 4.91%, Point of Sale (POS), 5.49% and Automated
Teller Machines (ATM), 5.12%, as shown in Figure 1.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
84.48%
POS
5.49%
ATM
5.12%
MOBILE
4.91%
RTGS
POS
ATM
MOBILE

The volume of transactions processed through the NPS increased by 2.60% to close the reporting
week at 11.83 million, on the back of increases in RTGS and ATM transaction volumes. The
NPS transaction volumes were distributed as follows: Mobile, 79.28%; POS, 16.97%; ATM,
1.47%; and RTGS, 2.28%, as shown in Figure 2.

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
20 OCTOBER 2023
WEEK ENDING
27 OCTOBER 2023
% 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


RTGS, 2.28%
POS, 16.97%
ATM, 1.47%
MOBILE, 79.28%
RTGS
POS
ATM
MOBILE

4. INTERNATIONAL COMMODITY PRICE DEVELOPMENTS


During the week under review, international average prices for gold, platinum, and copper
increased, while prices for palladium, crude oil, nickel, and lithium declined, as is shown in Table
6.

Table 6: Metal and Crude Oil Prices for the week ending 27th October 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
(16 – 20 Oct)

23-Oct

24-Oct

25-Oct

26-Oct

27-Oct

Weekly Average
(23 - 27 Oct)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg 2023

Precious Metals.
The week under review saw prices of gold and platinum increase by 1.63% and 0.60%,
respectively. The modest gains in gold and platinum prices were largely attributable to mixed
economic data released in the previous week by the US Federal Reserve Bank. Consequently,
investors took a cautious approach to investing in the precious metals.

During the same week, lithium and palladium prices marginally declined by 1.81% and 0.27%,
respectively. The decline in palladium prices, in large part, followed slowing demand concerns
from major consumers. Lithium prices fell, partly due to weaker demand for electric cars in
China. Figure 3 shows the trend in commodity prices for gold, platinum, palladium, and lithium
for the period from 21st October 2023 to 27th October 2023.

Figure 3: Weekly Precious Metals Price Developments (21 Oct. 2023 - 27 Oct. 2023)

Source: Kitco,2023

Source: Kitco,2023

Source: Kitco,2023

Source: London Metal Exchange,2023

Base Metals and Brent Crude Oil
Copper prices were higher by 1.06% during the week ending 27th October 2023, compared to the
previous week, supported by China’s macroeconomic policy measures, which have shown broad
recovery and positive sentiments. Nickel and crude oil prices, however, fell by 1.18% and 2.57%,
respectively. A surplus in the global market largely explained the decline in nickel prices. Oil
prices decelerated as lower than anticipated economic data from Germany, the Eurozone, and
Britain, negatively impacted on the demand outlook for energy, during the reporting week.

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)

Figure 4 shows commodity daily price developments for copper, nickel, and crude oil from 21st
October 2023 to 27th October 2023.

Figure 4: Daily Commodity Price Developments for Copper, Nickel and Brent Crude Oil

Source: London Metal Exchange,2023

Source: London Metal Exchange,2023

21-Oct
22-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
US$/tonne
20-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
Copper

Copper
Copper
Linear (Copper)

21-Oct
22-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
US$/tonne
20-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
Nickel

Nickel
Nickel
Linear (Nickel)

Source: BBC,2023

Exchange Rate Developments
Interbank Market
The Zimbabwe dollar (ZW$) marginally depreciated by 0.66% on the interbank market, from an
average of ZW$5,650.45 per US$1 in the previous week to ZW$5,687.88 per US$1, during the
week under analysis, as shown in Table 7.

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

USD
ZAR
GBP
BWP
EURO
Weekly Average (16 - 20 Oct)

23-Oct

24-Oct

25-Oct

26-Oct

27-Oct

Weekly Average (23 - 27 Oct)

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS

During the week ending 27th October 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 gained 2.80% and 3.51% to close at 149 335.93 points and 70.60 points,
respectively.


21-Oct
22-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
US$/barrel
20-Oct
23-Oct
24-Oct
25-Oct
26-Oct
27-Oct
Brent crude oil

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

Zimbabwe Stock Exchange (ZSE) Developments
The Top 10, Top 15 and Small Cap indices gained 2.18%, 2.02% and 4.16% to close at 65 634.77
points, 88 520.93 points and 615 239.63 points, respectively. Figure 5 shows developments on
the ZSE’s All Share, Top 10 and Mining indices for the period from 28th October 2022 to 27th
October 2023.

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

Source: Zimbabwe Stock Exchange, 2023

The increase in the mainstream index emanated from share price gains for Willdale Limited
(43.75%), SeedCo Limited (30.59%), ZB Financial Holdings Limited (23.55%), Meikles
Limited (19.37%) and First Mutual Holdings Limited (12.67%). Decreases were, however,
registered in share prices of CBZ Holdings Limited (9.63%), Ariston Holdings Limited (3.49%),
Nampak Zimbabwe Limited (2.73%), Rainbow Tourism Group Limited (1.46%) and Starafrica
Corporation Limited (0.26%). The mining index remained unchanged at 125 531.67 points,
during the week under review.

Market Turnover
The cumulative volume and value of shares traded on the ZSE added 237.50% and 241.91% to
24.05 million shares and ZW$11 366.78 million, respectively. This compares to 7.13 million
shares and ZW$3 324.52 million recorded in the prior week, respectively. The increase in
turnover volumes and values was largely informed by notable trade deals, where 2.57 million
Ecocash Holdings Zimbabwe Limited and 2.24 million Econet Wireless Zimbabwe Limited


28-Oct-22
11-Nov-22
25-Nov-22
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
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index

shares exchanged hands at ZW$138.45 per share and ZW$500 per share, respectively. Figure 6
shows the trend in daily market turnover for the period from 28th October 2022 to 27th October
2023.


Figure 6: Market Turnover

Source: Zimbabwe Stock Exchange, 2023

Market Capitalization
Owing to the positive momentum on the ZSE during the week under review, market
capitalization closed at ZW$11 970.17 billion, up from ZW$11 454.92 billion recorded in the
prior week. Figure 7 shows the evolution of ZSE market capitalization for the period from 28th
October 2022 to 27th October 2023.


28-Oct-22
11-Nov-22
25-Nov-22
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
ZW$ (Million)
Negotiated Deal: 241
million First Mutual
Holdings Limited shares

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 Padenga
Holdings Limited (19.93%), African Sun Limited (19.24%), SeedCo International VX (17.07%),
Bindura Nickel Corporation (BNC) (10.53%), Innscor Africa Limited (9.36%), and Zimplow
Limited (0.28%). Partially offsetting the above-mentioned losses were declines in the share
prices of Axia Corporation Limited (27.21%), First Capital Bank Limited (7.66%) and Simbisa
Brands Limited (2.62%).

VFEX Market Turnover
The volume of shares traded on the VFEX rose by 83.87% to US$5.37 million, while the
cumulative value of shares traded amounted to US$0.45 million, a decline of 62.63%.

VFEX Market Capitalization
During the week under analysis, the VFEX capitalization rose by 3.51% to US$1.21 billion,
compared to US$1.17 billion recorded in the previous week. Figure 8 shows the trend in the
VFEX All Share Index (ASI) for the period from 28th September 2022 to 27th October 2023.


28-Oct-22
11-Nov-22
25-Nov-22
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
$ Billions

Figure 8: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023
.
6. GREENFLATION

The goal to mitigate climate change has seen global leaders taking bold steps to move away
from fossil fuels to clean energy sources. Notwithstanding the long-term future benefits of
migrating to greener technologies, the process will come at a high inflation cost in the short
to medium term. The increase in inflation emanating from migration to green technologies is
popularly referred to as greenflation. Precisely, greenflation can be defined broadly as the
upward pressures on inflation that might arise from a green transition to a state with
sustainable energy production.

As countries move to fulfil their environmental obligations, there has been a significant surge
in investment, particularly in the development of green technologies. This trend has resulted
in substantial price hikes for crucial commodities that play a vital role in the production of
clean technologies. As a result, prices for strategic commodities like cobalt, aluminium,
nickel, manganese, and lithium, among others, have experienced remarkable escalation and
are expected to remain elevated in the near to mid-term future.
The Bank is cognisant of the inflationary impact on the economy emanating from the current
race for carbon free technology initiatives which is giving rise to greenflation. As such the
Bank stands ready to implement supportive measures that are aimed at complementing
Government and the private sector efforts for greening the economy.


06-Jan-...
20-Jan-...

09-Jun-...
23-Jun-...
07-Jul-...
21-Jul-...


Government has shown commitment to green energy initiatives through the amendments
to the petroleum and electricity legislations as part of measures to support investments in
green energy projects. The Bank is working with banking institutions in integrating
sustainability into the financial sector, through the implementation of the sustainability
standards under the Sustainability Standards & Certification Initiative (SSCI) being
driven by the European Organization for Sustainable Development (EOSD). It is
envisaged that sustainability certified institutions will play a catalytic role in the growth
and sustainable development of the economy and lower the likelihood of greenflation.


RESERVE BANK OF ZIMBABWE


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR WHOLESALEFX1


Source: Reserve Bank of Zimbabwe, 2023


1 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.


03-Oct-23
WHOLESALE FX


10-Oct-23


18-Oct-23


24-Oct-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


03-Oct-23

10-Oct-23

18-Oct-23

24-Oct-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
1,202,872.38
1,868,427.23
1,937,178.64
1,958,167.67