Vol. 25 No. 05


Week Ending
3rd February 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 3rd February 2023, minimum and maximum deposits rates for savings
deposits and deposits of 1-month and 3-months tenor were unchanged at previous week levels,
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 (%)
6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum and maximum lending rates for individual and corporate clients
remained unchanged during the week under review, as shown in Table 2.

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

Individual Clients

Corporate Clients
6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum interest rates across all classes of deposits were unchanged at
previous week levels, during the reporting week 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 (%)
27-Jan-23

3-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

Commercial bank minimum and maximum lending rates for both individual and corporate clients
also remained unchanged during the week ending 3rd February 2023, as shown in Table 4.

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

Individual Clients

Corporate Clients
27-Jan-23

3-Feb-23

Source: Reserve Bank of Zimbabwe, 2023
2.
CLEARING AND SETTLEMENT ACTIVITY

The National Payment System (NPS) processed transactions valued at ZW$611.45 billion,
during the week ending 3rd February 2023. This represented a decrease of 13.38%, compared to
ZW$705.88 billion reported in the previous week. Real Time Gross Settlement (RTGS)
transactions decreased by 18.79% to ZW$488.40 billion, from ZW$601.38 billion recorded in
the preceding week. In proportions, the NPS transaction values were distributed as follows:
RTGS, 79.88%, POS, 10.82%; Mobile, 4.96%; and ATM, 4.35%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 3.39%, from 11.77 million recorded in the
preceding week to 12.17 million, during the week under review. Mobile based transactions
dominated NPS transaction volumes at 70.54% of the total, while POS, RTGS, and ATM
platforms accounted for 26.34%; 2.06%; and 1.05%, respectively, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
79.88%
POS
10.82%
ATM
4.35%
MOBILE
4.96%
RTGS
POS
ATM
MOBILE
RTGS, 2.06%
POS, 26.34%
ATM, 1.05%
MOBILE, 70.54%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
27th January 2023

WEEK ENDING
3rd February 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.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During the week ending 3rd February 2023, global commodity prices were largely depressed due
to a stronger US dollar. Prices for gold, platinum, palladium, copper, and crude oil retreated,
while those for nickel increased. The commodity price developments during the week under
review are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 3rd February 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (16-20 Jan 23)

30-Jan-23

31-Jan-23

1-Feb-23

2-Feb-23

3-Feb-23

Weekly Average (30 Jan – 3 Feb 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices fell by 0.3% to US$1,921.13 per ounce during the week ending 3rd February 2023,
from US$1,927.62 per ounce reported in the previous week. The price of the yellow metal
retreated, as the U.S. dollar firmed after robust employment statistics reduced concerns about the
continuous hiking of interest rates by the Federal Reserve.

Platinum
During the week ending 3rd February 2023, platinum prices declined by 2.6% to US$1,008.40
per ounce, from US$1,035.40 per ounce recorded in the preceding week. Prices slowed down on
account of weak industrial demand, coupled with gloomy investment prospects as investors
rekindled appetite for riskier assets.

Palladium
Palladium prices declined by 2.5%, from US$1,700.90 per ounce in the week ending 27th January
2023 to US$1,658.60 per ounce, during the week under review. Weak demand from the auto
industries and a stronger US dollar exerted downward pressure on prices, during the reporting
week.

Copper
Copper prices fell by 2.0%, from US$9,313.50 per tonne in the previous week to US$9,128.90
per tonne, during the week ending 3rd February 2023. This was, in large part, due to uncertainty
over China’s pace of recovery after the country removed its strict Covid-19 restrictions. China
is the world’s top consumer of industrial metals.

Nickel
Nickel prices increased by 1.3% to US$29,357.00 per tonne during the week ending 3rd February
2023, from US$28,972.00 per tonne recorded in the previous week. Prices benefited from
dwindling global stockpiles owing to reduced supplies from Indonesia. This followed a ban on
unprocessed or by the Indonesian government, aimed at supporting the country’s mineral
refining and processing industry.

Brent Crude Oil

Brent Crude oil prices fell by 4.4%, from US$86.89 per barrel recorded in the previous week to
US$83.06 per barrel during the week under review. The decline was underpinned by a stronger
U.S. dollar as well as fears of subdued demand in China, the world’s largest oil importer.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 3.4% against the US dollar,
from ZW$772.5784 per US$1 in the previous week to ZW$798.7011 per US$1 during the week
under review, as shown in Table 7.

Table 7: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (23-27 Jan 23)

30-Jan-23

31-Jan-23

1-Feb-23

2-Feb-23

3-Feb-23

Weekly Average (30 Jan-3 Feb 23)

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) traded on a positive trajectory for the second consecutive
week. As a result, the ZSE All Share index added 11.92% to close at 24 782.89 points. The Top
10, Top 15, Small and Medium indices gained 11.83%, 12.17%, 6.36% and 12.29% to close at
15 222.34 points, 17 012.45 points, 504 953.31 points and 50 707.50 points, respectively.

The gain in the mainstream index was a result of share price increases for Dairibord Holdings
Limited (51.97%), Proplastics Limited (39.11%), Hippo Valley Estates Limited (38.50%),
SeedCo Limited (32.09%) and Africa Sun Limited (19.64%). Partially offsetting the gains were
losses in share prices for General Beltings Holdings Limited (5.34%), Ariston Holdings Limited
(4.88%), Star Africa Corporation Limited, (1.79%), Willdale Limited (1.61%) and CBZ
Holdings Limited (1.46%). The resources index2 added 0.04% to close at 25 505.96 points,
during the week under review.


1 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency
2 Resource Index – Comprise RioZim Limited Share Price

Table 8: 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)


30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

3-Feb-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 4th February 2022 to 3rd
February 2023.

Figure 3: Zimbabwe Stock Exchange All Share and Top 10 Indices
Source: Zimbabwe Stock Exchange, 2023


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.


4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
3-Feb-23
All Share Index
Top 10 Index

Market Turnover and Volume

During the week under review, the volume of shares traded on the ZSE increased by 182.70% to
69.29 million, from 24.51 million reported in the preceding week. In concomitance, the
cumulative value of shares traded increased by 56.16%, from ZW3.31 billion in the previous
week to ZW5.16 billion, during the week ending 3rd February 2023. Figure 4 shows the trend in
daily market turnover for the period from 4th February 2022 to 3rd February 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023


Market Capitalization

The local bourse added ZW$280.96 billion, or 11.74% worth of capitalization to close at
ZW$2,673.14 billion, during the week under review. Figure 5 shows the evolution of ZSE market
capitalization for the period from 4th February 2022 to 3rd February 2023.


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

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

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) was bearish during the week ending 3rd February
2023. Resultantly, the VFEX All Share index shed 5.01% to close at 110.24 points. However,
the cumulative volume of shares traded on the VFEX increased by 562.27% to 0.16 million,
during the week under review, while the value of shares traded rose by 319.92% to USD0.05
million. The week under review saw significant trades in shares for Padenga Holdings Limited
and SeedCo International.

VFEX market capitalization stood at US$0.63 billion, during the reporting week, a decline of
5.01% or US$0.03 billion from US$0.66 billion recorded in the previous week. Figure 6 shows
the trend in the VFEX All Share Index (ASI) for the period from 4th February 2022 to 3rd
February 2023.


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-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 rose from 80,791.36 points in the
previous week to close at 80,240.92 points, during the week ending 3rd February 2023. JSE
market capitalization also decreased by 0.86% to ZAR23.28 trillion, during the same week.

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
30-Dec-22
73,048.57
21.34
6-Jan-23
76,858.94
22.30
13-Jan-23
79,333.72
22.88
20-Jan-23
79,269.77
23.02
27-Jan-23
80,791.36
23.28
3-Feb-23
80,240.92
23.08
% Change
-0.68
-0.86
Source: 2023


04-Feb-22
18-Feb-22
04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23

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


RESERVE BANK OF ZIMBABWE


4-Feb-22
18-Feb-22
4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
3-Feb-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
13-Jan-23 20-Jan-23 27-Jan-23 3-Feb-23

SMEFX
13-Jan-23 20-Jan-23 27-Jan-23 3-Feb-23
Total
Bids (US$ dollars)

Amount Allotted
(US$ dollars)

Highest Rate

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
13-Jan-23 20-Jan-23 27-Jan-23 3-Feb-23
SMEFX
13-Jan-23 20-Jan-23 27-Jan-23 3-Feb-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

1,837,006.31