QUARTERLY
ECONOMIC
REVIEW


DECEMBER 2016

RESERVE BANK OF ZIMBABWE

CONTENTS

5. MONETARY DEVELOPMENTS, INTEREST RATES AND FINANCIAL

List of Figures

List of Tables

1. OVERVIEW
Growth in the global economy is estimated to
have declined to 3.1% in 2016, from 3.2% in
2015, the weakest performance since the 2008/9
global financial crisis. Global economic activity
is, however, projected, to pick up in 2017 and
2018, to 3.4% and 3.6% respectively. The policy
paradigm
shift
in
the
US,
favouring
protectionism has brought uncertainty to global
financial markets.

The country’s real GDP growth rate is estimated
at 0.6% for 2016. On a sectoral basis, growths
are estimated for mining (6.9%); construction
(3.5%); distribution, hotels and restaurants
(1.7%); and manufacturing (0.3). Declines are,
however, estimated for electricity and water
(19%) and agriculture (3.7%), reflecting the
impact of the drought.

Manufacturing sector activity showed some
signs of recovery in the last quarter of 2016.
According to the 2016 Confederation of
Zimbabwe Industries Manufacturing Sector
Survey,
the
weighted
average
capacity
utilisation
for
the
manufacturing
sector
increased from 34.3% in 2015 to 47.4% in 2016.

Similarly, most of the key minerals performed
better in the last quarter of 2016, than the
comparable period in 2015. In particular, gold
output rose to 6 608 kg in the fourth quarter of
2016, compared to the 5 798 kg produced during
fourth quarter of 2015.

On the external sector front, the country’s
exports earnings increased by 23.9% to

1 Under the multiple currency system, broad money is
defined as total bank deposits less interbank deposits and
also includes Bond notes and coins issued.
US$1,071.1 million, largely on account of
increases in tobacco exports (378.5%), ferrochrome (100%) and semi-manufactured gold
(6.3%). Imports declined by 1% to US$1,432.8
million. Resultantly, the trade balance improved
from a deficit of US$646.4 million registered
during the third quarter of 2016, to a deficit of
US$361.7 million in the fourth quarter.

Broad money supply1 recorded an increase of
6.76%, in the fourth quarter of 2016, a stronger
growth compared to 3.51% recorded in the third
quarter. On a year-on-year basis, money supply
grew by 19.20% to US$5 680.5 million, from
US$4 765.4 million in December 2015.

The Zimbabwe Stock Exchange (ZSE) was
bullish during the fourth quarter of 2016.
Concomitantly, the industrial index increased by
45.57 points, from 98.96 points as at end
September 2016 to 144.53 points as at end
December 2016. Similarly, the mining index,
rose by 31.90 points, from 26.61 points as at end
September 2016, to 58.51 points as at end
December 2016. Market capitalisation gained
US$1.3 billion, from US$2.73 billion as at the
end September 2016 to US$4.01 billion as at the
end December 2016.

The value of transactions processed through the
National Payment Systems (NPS) increased by
11% to US$17.49 billion in the fourth quarter of
2016, from US$15.69 billion recorded in the
third quarter. NPS transaction volumes also
increased by 31% to 124.62 million in the fourth
quarter of 2016, from 94.84 million in the third
quarter.

2. INTERNATIONAL
ECONOMIC
DEVELOPMENTS
The global economy was characterized by
stagnant
trade,
subdued
investment,
and
intensified policy uncertainty in 2016. Global
growth is estimated to have fallen to 3.1 percent
in 2016from 3.2 percent in 2015, the weakest
performance since the global financial crisis.
Economic activity is, however, projected to pick
up to 3.4 percent in 2017 and 3.6 percent in 2018.
Recovery in global growth stems from
improvements in some large emerging market
and low income economies. In the United States,
Europe, China and Japan better prospects are
expected to lift up growth. Notwithstanding the
global recovery, vulnerabilities include rising
antipathy toward trade and immigration,
widespread high levels of public and private
debt, the ongoing climate change which
especially affects low-income countries; and
continuing slow growth and deflationary
pressures. In addition, non-economic factors in
the form of geopolitical and political uncertainty
in some regions are expected to adversely affect
global recovery.
Growth in major advanced economies is
estimated to have decelerated to 1.6 percent in
2016, from 2.1 percent in 2015, mainly on the
backdrop of renewed policy uncertainties, weak
external demand, and subdued productivity
growth.
The
uncertainty
associated
with
protectionist
policies
of
the
Trump
administration in the United States and the
United Kingdom’s decision to leave the
European Union (Brexit) could significantly
influence the growth trajectory of advanced
economies. Table 1 shows economic growth
developments and the revised projections for
selected regions and countries for 2016 and
2017.
Table 1: Global Economic Growth & Outlook (%)

Actuals
Estimate
Projections

2015 2016

World
Output

Advanced
Economies

US

Euro Area

Japan

Emerging
Market
&
Developing
Economies

China

India

SubSaharan
Africa

Latin
America &
the
Caribbean

Source: IMF World Economic Outlook Update
(January 2017).

United States
The United States experienced a marked
contraction in real GDP growth from 2.6 percent
in 2015, to an estimated 1.6 percent in 2016.
Growth was mainly held back by soft exports, a
continued drawdown in
inventories,
and

deceleration in private investment. Activity
picked up in the run-up to the November 2016
elections, with a further tightening of labour
markets leading to rising wage growth.
The
raft
of
measures
from
the
new
administration, such as proposals for corporate
and personal income tax cuts; infrastructure
spending; and shifts in trade (renegotiations of
trade agreements), immigration, and regulation
policies have brought uncertainty on the U.S.
economic outlook which may have spill-overs to
the rest of the world.
The unemployment rate remained slightly below
5 percent during the second half of 2016. While
labour force participation could recover from
current low levels, as workers return to the
labour market.
Eurozone
Growth in the Euro Area slowed from 2 percent
in 2015 to 1.7 percent in 2016, as both domestic
demand and exports lost momentum. The region
has been characterized by low confidence,
following the United Kingdom’s vote to exit the
European Union (EU) in June 2016. The
Eurozone’s labour market and credit conditions
continued to improve in 2016, with employment
recovering from the pre-crisis levels. The region
also experienced an improvement in lending
flows, mainly due to the prevailing negative
policy interest rates and large-scale asset
purchase programs by the European Central
Bank, which significantly led to a noticeable
easing of borrowing costs.
The Eurozone had a slightly expansionary fiscal
policy in 2016, mainly due to refugee related
expenditures. Most countries are riddled with
fiscal sustainability concerns. This, coupled with
uncertainty about the Brexit process, is expected
to exert downward pressure on growth in 201718, on the United Kingdom in particular, and the
Euro Area to a lesser extent. Growth in the Euro
Area in 2017 is projected to slow marginally to
1.6 percent, from 1.7 percent in 2016, as the
unwinding of the income boost associated with
lower oil prices, increased policy uncertainties,
and lingering banking sector concerns offset the
benefits of more favourable financial conditions.
Japan
The Japanese economy is estimated to have
grown by 0.9 percent in 2016 from 1.2 percent
in 2015. This was on the backdrop of low
investment. The Japanese economy experienced
some improvements in private consumption,
after two years of contraction. While labour
shortages triggered a modest increase in wage
growth, low inflation expectations and a rising
share of part-time employment dampened the
gains. The change of policy by the Bank of Japan
from a quantitative target for government bond
purchases to a more flexible approach aimed at
stabilizing long term interest rates around zero,
resulted in an appreciation of the yen during the
first half on 2016.
Investments and profits were dampened in 2016,
mainly due to the fact that Japanese exports are
often denominated in destination currencies. The
yen depreciated rapidly towards the end of the
year, trimming most of its earlier gains. To
support growth, the Japanese government
postponed a planned consumption tax hike and a
fiscal stimulus package, with new public
spending amounting to 1.2 percent of GDP. This
was expected to add around 0.3 percentage
points to growth in 2017. Growth projections for
2017 and 2018 have been revised up to 0.8
percent and 0.5 percent, respectively.

The Japanese economy, however, remains
constrained by heightened policy uncertainty in
major trading partners and the shrinking and
aging labour force.

Emerging Market and Developing Economies
Growth in emerging market and developing
economies reached an estimated 4.1 percent in
2016. The weak global trade in 2016 was offset
by some pick-up in domestic demand and
generally mild financing conditions. Marked
divergence between commodity exporters and
importers continued, although with notable
variations within each group. Reflecting these
divergences, growth in commodity imports in
2016, accounted for almost the totality of the
growth in emerging market and developing
economies.
In Sub-Saharan Africa (SSA), growth prospects
are expected to improve on account of
normalization of conditions in large economies
that
experienced
macroeconomic
strains,
primarily Nigeria, where higher oil production is
projected due to security improvements. Growth
in the region is projected to rise from 1.6% in
2016 to 2.8% and 3.6% in 2017 and 2018,
respectively. Economic growth prospects for
Zimbabwe are spurred by the good 2016/2017
agricultural season, with the national economy
projected to grow by 3.7% in 2017.
The risks to global growth in the outlook period
call for accelerated implementation of monetary,
fiscal and structural policies tailored to country
circumstances, in order to spur productivity and
output.

International
Commodity
Price
Developments
Prices of most international commodities
continued to rise in the fourth quarter,
rebounding from their lows in early 2016 and are
expected to gradually recover in 2017. Precious
metals, however, were subdued on the back of
weak investment demand in response to a
stronger dollar and high interest rates.
Crude oil prices which recorded strong quarterly
gains, recovered from a low of US$30 per barrel
at the beginning of 2016, to about US$50 by
December 2016. The oil market continued to
rebalance, as consumption rose, while nonOPEC supplies declined notably, in the United
States.
The evolution of international commodity prices
during the period under review is shown in
Table 2.
Table 2: International Commodity Prices

September

December

%
Change
Gold
(US$/oz)
1,334.85
1,219.39
-8.60
Platinum
(US$/oz)
1,085.10
941.24
-13.30
Copper
(US$/ton)
4,771.18
5,268.22
10.40
Nickel
(US$/ton)
10,259.12
10,793.93 5.20
Crude Oil
(US$/
barrel)
47.01
51.74
10.10
Source: Bloomberg, BBC, Kitco 2016

Brent Crude Oil
Brent crude oil prices registered strong gains
during the fourth quarter of 2016, picking by
10.1% to average
US$51.74/barrel. This
followed agreements between Organization of
Petroleum Exporting Countries (OPEC) and
non-OPEC members to curb output in the first
half of 2017, as part of a collaborative strategy
to revive the global oil industry.
Figure 1 shows the monthly evolution of crude
oil prices for the period January to December
2016.
Figure 1: Brent Crude Oil Prices US$/Barrel)

Source: Bloomberg, 2016

The oil market continued to rebalance amid
steady demand growth, while sharply lower
investment in non-OPEC countries led to lower
production, notably in the U.S. shale oil sector.
Base Metals
Base metals prices continued on a positive
trajectory for the third successive quarter due to
tightening supply and strong demand in China,
the world’s largest base metal consumer.
Notably, copper prices registered significant
growth, on falling inventories and expectations
of higher demand. Furthermore, expectations
that
global
demand
would
accelerate,
particularly in the US, following announcements
of stimulus plans by the U.S, supported base
metal prices during the period under review.
Resultantly, quarterly average copper and nickel
prices edged up by 10.4% and 5.2% to
US$5,268.22/tonne and US$10,793.93/tonne,
respectively. Figure 2 shows the international
monthly price developments for base metals.
Figure 2: Base Metal Prices (US$/tonne) January
to December 2016

Source: Bloomberg, 2016

The World Bank projects base metals prices to
increase by 11 percent in 2017, due to stronger
global
demand,
tighter
environmental
constraints and policy action that limits supply.

January
February
March
April
May
June
July
August
September
October
November
December

January
February
March
April
May
June
July
August
September
October
November
December
Copper
Nickel (RHS)

Gold and Platinum
Precious metal prices were subdued in the fourth
quarter of 2016, on account of falling investment
demand, in response to a strengthening US dollar
and high real interest rates. As widely expected,
the U.S. Federal Reserve raised interest rates in
December 2016, with further rate increases
expected in 2017. Rising interest rates normally
have negative implications for precious metal
prices, as investors seek yield-bearing assets. In
addition, physical gold and platinum demand
was very weak in 2016, particularly in the two
largest consuming countries, India and China,
where shifting consumer tastes have reduced the
demand for jewellery.

The price of gold fell by 8.6%, from its third
quarter average to US$1,219.39/oz in the fourth
quarter of 2016. On the other hand, platinum
prices dropped by 13.3%, to an average of
US$941.24/oz in quarter four, on the back of
falling investment demand and weak physical
demand. Figure 3 shows trends in precious metal
prices.

Figure 3: Precious Minerals Prices
Source: Bloomberg, 2016
Merchandise Trade Developments
Total
merchandise
trade
amounted
to
US$2,503.8 million, during the fourth quarter of
2016,
representing
an
8.3%
rise
from
US$2,312.5 million recorded during the fourth
quarter of 2015 (see Figure 4). On a quarterly
basis, total merchandise trade rose by 30.4%,
from US$1,919.9 million in the third quarter of
2016 to US$2,503.8 million in the fourth quarter.
Figure 4: Total Merchandise Trade –Q1 to Q4
2015 and 2016 (US$ million)

Source: Zimstat, 2016

Merchandise Export Developments
Over the period October to December 2016,
merchandise exports stood at US$1,071.1
million, a 23.9% increase from the US$864.5
million realized over the same period in 2015, as
shown in Figure 5.

1,100
1,400
1,700
2016M1
2016M2
2016M3
2016M4
2016M5
2016M6
2016M7
2016M8
2016M9
2016M10
2016M11
2016M12
Gold
Platinum

Q1
Q2
Q3
Q4

Figure 5: Merchandise Exports – Q1 to Q4 2015
and 2016 (US$ millions)

Source: Zimstat, 2016

Compared to the third quarter of 2016,
merchandise exports increased by 68.2% in the
fourth quarter of 2016, largely on account of
increases in exports of tobacco, ferro-chrome
and semi-manufactured gold exports.
Flue-cured tobacco, gold, nickel, ferrochrome
and diamonds dominated the country’s export
basket, contributing about 86% of total export
earnings between October and December 2016,
as shown in Table 3.


Table 3: Exports Classified by lHS Code
Product
3rd
Quarter

(US$m)
4th
Quarter

(US$m)
4th Quarter

Share
of
Total (%)
Flue-cured
tobacco
106.8
511.1
47.7
Gold
237.6
252.6
23.6
Nickel ores
and
concentrates
80.5
84.6
7.9
Ferrochrome
26.1
52.3
4.9
Industrial
diamonds
20.6
19.6
1.8
Cane sugar
30.3
12.6
1.2
Platinum
unwrought
14.0
14.9
1.4
Granite
9.0
5.9
0.5
Other
111.8
117.6
11.0
Total:
636.8
1,071.1
100.0
Source: Zimstat, 2016 & RBZ computations, 2016
Major Merchandise Export Destinations
In terms of destination, 99% of the country’s
merchandise exports went to South Africa,
Mozambique, the United Arab Emirates, France,
Zambia, Belgium and Kenya during the fourth
quarter of 2016. Notably, 82% of the
merchandise exports were destined for South
Africa; followed by Mozambique; 8% and the
United Arab Emirates, 4% (See Figure 6). A
total of 92% of the country’s exports were
absorbed in the SADC region.


Q1
Q2
Q3
Q4

Figure 6: Major Merchandise Export Destinations
(% Share)

Source: Zimstat, 2016 & RBZ calculations, 2016

Exports to the other destinations of the world
constituted about 1% of the total exports in the
fourth quarter of 2016.
Merchandise Import Developments
Total merchandise imports for the fourth quarter
of 2016 amounted to US$1,432.8 million, 1.0%
lower than in the comparative quarter in 2015, as
shown in Figure 7.
Figure 7: Merchandise Imports (US$ million)


Source: Zimstat, 2016
The country’s import bill declined in the last
quarter of 2016, compared to a similar period in
2015. On a quarter-on-quarter basis, however,
merchandise imports, went up by 11.7%, from
US$1,283.1 million in the third quarter of 2016
to US$1,432.8 million in the fourth quarter.
The country’s major imports during the period
October to December 2016, mainly comprised of
fuels (diesel and petrol), cereals (maize, rice, and
wheat), electricity, soya bean oil and medicines.
Major Import Sources
During the fourth quarter of 2016, the country
sourced its imports mainly from South Africa,
43.7%; Singapore, 19.8%; China, 7.2%; Zambia,
3.2%; Mozambique, 3.0% and India, 2.3% as
shown in Figure 8.
Figure 8: Major Merchandise Import Sources (%
Share)

Source: Zimstat, 2016 & RBZ Calculations, 2016
South
Africa
82%
Mozambique
8%
UAE
4%
Zambia
1%
Belgium
1%
Kenya
1%
France
1%
Botswana
1%
Other


Q1
Q2
Q3
Q4


South Africa
Singapore
China
Zambia
India
Mozambique
Japan
United Kingdom
Mauritius
United States
United Arab Emirates

The country’s merchandise imports from South
Africa mainly constituted capital, intermediate
and consumer goods, while imports from
Singapore were dominated by diesel and petrol.
Trade Balance
The 2016 fourth quarter merchandise trade
developments resulted in the improvement of the
trade balance from a deficit of US$646.4 million
in the third quarter of 2016, to a deficit of
US$361.7 million in the fourth quarter, as shown
in Figure 9. The narrowing of the current
account deficit, was largely attributed to a
combination of factors, inter alia, import
substitution,
coupled
with
the
import
compression
measures
introduced
by
Government in 2016.
Figure 9: Trade Balance (US$ million)

Source: Zimstat, 2016 & RBZ Computations, 2016
3. DOMESTIC
ECONOMIC
DEVELOPMENTS

REAL SECTOR DEVELOPMENTS
The economy is estimated to have registered a
real GDP growth rate of 0.6% in 2016. However,
the projected growth for 2017 is bullish at 3.7%,
following a good agricultural season.
Agriculture
The agriculture sector is estimated to have
declined by -3.7% in 2016, compared to initial
projections of -9.9%. This was on account of a
better than expected 2015/16 agricultural season,
following the devastating drought during the
2014/2015 season.
Wheat
The area under wheat declined from 14 789
hectares in 2015 to 14 220 hectares in 2016. This
was, in large part, due to concerns on the cost
and availability of electricity during the planting
period for the wholly irrigated crop.
Tobacco
Statistics from the Tobacco Industry and
Marketing Board (TIMB), showed that the area
under tobacco for the 2016/17 season increased
by 12.5% to 107 035 hectares, compared to
95 160 hectares planted in the 2015/16 season.

The highly successful 2015/16 season spurred
the increase in tobacco planting, as farmers
anticipated a good rainfall season as well as good
prices on the market. Further, the 5% export
incentive scheme led to an increase in hectarage
put under tobacco in 2017. The number of
registered tobacco farmers for the 2016/17
season also increased by 15%.

2016 Q3
2016 Q4
Exports
Imports
Trade Balance

Cumulative Tobacco sales in 2016 significantly
surpassed the projected performance, despite the
lower hectarage. Table 4 shows a comparison of
the performance of the 2015 and 2016 marketing
seasons.

Table 4: Cumulative Tobacco Sales: 2015 and
2016 Tobacco Selling Season.

Variance
(%)
Total
Quantity Sold
(million Kgs)
198.9
202.3
1.7
Total
Value
(US$ million)
586.4
595.9
1.6
Average Price
(US$)/Kg
2.95
2.95

Source: TIMB, 2017
Cotton
Cotton output declined significantly from
104 935 tonnes in 2015, to less than 30 000
tonnes in 2016. The decline was due to the
severe drought conditions that affected the
establishment of the crop at the onset of the
season. General apathy by farmers, following
years of poor prices, resulted in the breaking
down of the hitherto successful contract
arrangements with cotton merchants and
ginners.
For the 2016/17 season, five contractors were
licensed and they intend to finance about
550 000 hectares of the crop, to the tune of
US$53 million. In addition, Government
financing through a three year free input
programme is expected to boost production, and
set the crop on a recovery path. The parastatal,
Cottco, one of the licenced contractors, is
implementing the Government input schemes in
this endeavour.
Maize
A total of 100 425 hectares had been planted
under the Command Agriculture programme by
end December 2016. Table 5 shows the status of
implementation of the Command Agriculture
programme as at 31st December 2016.
Table 5: Command Agriculture Performance as at
end December 2016.
Dryland Irrigated Total
Contracted 175 191
71811.3
247 002
Tilled
108 161
63 299
171 460
Planted
52 587
47 837
100 425
Source: Ministry of Agriculture and Irrigation
Development, 2017
Cattle
Due to the improvement in pastures, cattle
slaughtered in the formal sector declined by
9.6%, from 76 650 head in the third quarter to 69
306 in the fourth quarter of 2016, as shown in
Figure 10. The decline could also be attributed
to farmers withholding their cattle for draft
power, as the cropping season approached.

The forced destocking in 2016 partly resulted in
a 11.3% annual increase in the number of cattle
slaughtered to 284 805 in 2016, from 255 918
beasts in 2015.

Figure 10: Formal Sector Quarterly Cattle
Slaughters

Source: Ministry of Agriculture, Mechanization and
Irrigation Development

The Cold Storage Company contributed 7% of
the cattle slaughters, as a result of operational
challenges at the State Owned Enterprise and
competition from private abattoirs.
Sheep and Goats
A total of 5 094 sheep and goats were
slaughtered at formal abattoirs in the fourth
quarter of 2016, bringing the cumulative
slaughters to 24 946 in 2016. The 2016 output
was lower than the 25 832 animals slaughtered
in 2015.
On a quarterly basis, sheep and goat slaughters
declined by 22%, from the 6 935 slaughtered in
the third quarter of 2016 to 5 094 slaughters in
the fourth quarter (see Figure 11). The stock
retentions could also be indicative of farmers’
optimism on the quality of grazing pasture and
water availability for livestock.


Figure 11: Formal Sector Quarterly Sheep and
Goats Slaughters

Source: Ministry of Agriculture, Mechanization and
Irrigation Development

Pigs
The pig industry, which has been facing viability
challenges owing to high costs of stockfeeds,
recorded an increase in output, as farmers
destocked and reduced the parent stock. Against
this background, annual slaughters in the formal
sector increased by 20%, from 139 183 pigs in
2015 to 167 166 pigs in 2016. Colcom accounted
for over 54% of the slaughters.
On a quarterly basis, however, pig slaughters
declined by 5% from 43 191 in the third quarter
of 2016, to 40 964 in the fourth quarter.
Figure 12 shows the monthly performance of
Colcom relative to other abattoirs in 2016.


2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4
Slaughters


CATTLE SLAUGHTERED (000)

Q4

Q1

Q2

Q3

Q4
Slaughters

SHEEP & GOATS SLAUGTERED

Figure 12: Monthly performance of Colcom
relative to other abattoirs in 2016.

Source: Ministry of Agriculture, 2016
Dairy
Milk output decreased marginally to 16.72
million litres during the fourth quarter of 2016,
from 16.78 million litres in the previous quarter.
Year-on-year milk output increased by about
13.6%, from 57.5 million litres in 2015 to 65.4
million litres in 2016, as shown in Table 6.
Table 6: Quarterly Milk Output in 2015 and 2016

Variance %
Q1
13.41
15.93
18.81
Q2
14.20
15.91
12.08
Q3
15.00
16.79
11.94
Q4
14.94
16.73
11.99
Total
57.54
65.36
13.59
Source: Ministry of Agriculture, 2016
The increase in milk output was in line with the
sector’s targeted annual growth of 12 percent,
under the ongoing dairy herd rebuilding
programme being spearheaded by the Zimbabwe
Association of Dairy Farmers (ZADF). Apart
from acquisition of heifers and cows, the Dairy
Revitalization Strategy includes the training and
capacitation of farmers, as well as the sharing
and fusion of knowledge and expertise among
them.
Mining
During the last quarter of 2016, most of the key
minerals performed better than the comparable
period in 2015, with the exception of diamonds
and coal. Table 7 shows quarterly production
statistics for selected minerals in 2015 and 2016.

Table 7: Quarterly Production Statistics
Q4 2015
Q2 2016
Q3 2016
Q4 2016
Gold\ kg

Coal \1000 t

Nickel \t

Platinum\kg

Palladium\kg

Diamonds
(1000
Carats)

Source: MOFED, RBZ, Ministry of Mines, Chamber of
Mines, 2017
Gold
Gold output rose to 6 608 kg, in the fourth
quarter of 2016, compared to 5 798 kg produced
in the fourth quarter of 2015. On quarterly basis,
gold output increased by 14.3%, from 5 779kg in

Thousands
Colcom
Other

the third quarter of 2016. The increase was
mainly attributed to increased throughput from
primary producers, small scale producers and
PGM activities. The increased deliveries of gold
to Fidelity Printers and Refiners (FPR) largely
benefited from the increased frequency of
monitoring and auditing of producers by the gold
mobilization taskforce that managed to plug
leakages. In addition, limited power outages
during the fourth quarter of 2016 also enhanced
gold production.

In terms of sectoral contributions, small scale
producers surpassed large scale producers for the
first time in the history of gold production. Small
scale producers delivered a total of 3 163 kg
during the fourth quarter of 2016, compared to
2 230 kg produced during the same period in
2015. Large scale miners produced 2 959 kg,
compared to 2 935 kg during the same period, as
shown in Figure 13.
Figure 13: Gold Production.

Source: Fidelity Printers and Refineries, Chamber of
Mines 2016
Cumulative gold output stood at 22 747kg in
2016, 13.6% more than the 20 023kg produced
in 2015.
Platinum
Platinum output stood at 4 279 kg in the fourth
quarter of 2016, up from 3 524 kg produced in
the same quarter of 2015. On a quarterly basis,
platinum output registered a 49.5% increase,
from the 2 863kg produced in the third quarter
of 2016. The production of the Platinum Group
Metals
(PGMs)
largely
benefitted
from
increased mining and milling activities at
Zimplats, following the re-opening of the
furnace that was shut down in July 2016. In
addition, there was also a ramp up in production
by the other primary producers.
Cumulative output increased to 15 110 kg in
2016, from the 12 564 kg registered during the
same period in 2015. Figure 14 shows the
quarterly
platinum
output
and
average
international prices for 2015 and 2016.
Figure 14: Quarterly Platinum Output (Kg) and
Average International Prices (US$/ounce)

Source: Chamber of Mines, 2016

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Large Scale (kg)
Small Scale(kg)
Total Gold (kg)
Avg Price (US$/oz)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Platinum (Kg)
Average Price (US$/Ounce)

Diamonds
Diamond output, which has been declining since
the first quarter of 2016, stood at 299 908 carats
in the fourth quarter of 2016, compared to
1 041 279 carats produced during the same
period in 2015, as shown in Figure 15. On a
quarterly, basis diamond output declined by
20.4%, from 361 084 carats in the third quarter
of 2016.
Figure 15: Quarterly Diamond Production
(Carats)

Source: Ministry of Mines and Mining Development

The
decline
in
diamond
production
is
attributable to the transitional challenges
involving the consolidation of former diamond
companies into one State company, the
Zimbabwe Consolidated Diamond Company
(ZCDC). Diamond production has thus not yet
been restored to its historical potential. Figure 16
shows the quarterly diamond production during
2016.

Figure 16: Quarterly Diamond Output by
Producer for 2016 (Carats)

Source: Ministry of Mines and Mining Development
Nickel
Total nickel output was 4 543 tonnes in the last
quarter of 2016, with 43% coming from primary
production and the remainder from PGMs. This
compares favourably to the 4 135 tonnes
produced during the same period in 2015 and the
4 099 tonnes produced in the third quarter of
2016.
The increase in nickel output was largely driven
by increased activities by both the primary and
secondary producers. Further, the improvement
in international prices of the metal, to an average
of US$10 787 per tonne during the fourth quarter
of 2016, from US$10 262 per tonne in the third
quarter, also contributed to the increased output.
Figure 17 show trends in nickel output and prices
in 2015 and 2016.


Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4


Q1 2016
Q2 2016
Q3 2016
Q4 2016
Murowa
ZCDC
Quarter Output

Figure 17: Quarterly Nickel Output (tonnes)

Source: Chamber of Mines, 2017

Cumulative nickel output rose to 17 743 tonnes
in 2016, a 10% increase from the 16 633 tonnes
produced in 2015.
Coal
Coal output stood at 673 793 tonnes during the
period
under
review,
44%
down
from
the 1 201 630 tonnes produced in the comparable
period of 2015 (see Figure 18).
On a quarterly basis coal output declined by
10.4%, from 743 798 tonnes produced during the
third quarter of 2016 to 673 793 tonnes produced
in the fourth quarter.


Figure 18: Quarterly Coal Output and Average
Coal Prices (US$/t)

Source: Ministry of Mines and Mining Development,

Coal production was adversely affected by weak
demand in the domestic economy, coupled with
the unresolved challenges relating to the debt
overhang,
undercapitalisation
and
nonavailability of consumables. The challenges
relating to plant and equipment maintenance at
Hwange
Colliery
and
non-payment
for
deliveries by key consumers also weighed down
production.
Cumulatively,
coal
output
amounted
to
2,701,719
tonnes
in
2016,
down
from
4,336,193 tonnes produced in 2015, with
Makomo, the major producer contributing about
60% to total production (see Figure 19).


Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Nickel (tonnes)
Avg Price (US$/t)


Coal (t)
Average Price (US$/t)

Figure 19: Major Coal Producers in 2016

Source: Ministry of Mines and Mining Development,

Manufacturing
The manufacturing sector showed some signs of
recovery in 2016, as demonstrated by the
increase in capacity utilisation in some subsectors.
Government’s continued efforts in assisting the
sector through implementation of policy
measures
and
strategies
which
facilitate
industrial development, as well as reorienting
the productive sectors of the economy towards
export production, has helped ease some of the
challenges. The measures have begun to yield
positive results in some sub-sectors, with some
companies having been resuscitated.
Capacity Utilisation
According to the Confederation of Zimbabwe
Industries (CZI) Manufacturing Sector Survey
report, the weighted average capacity utilisation
in the manufacturing sector increased from
34.3% in 2015 to 47.4% in 2016, reflecting
nascent recovery in the sector.
Figure 20: Manufacturing Sector Capacity
Utilization

Source: CZI, 2016

Success stories were recorded in some subsectors such as the oil expressers, in which
capacity utilisation improved from as low as
10% capacity in 2015 to 90% in 2016. The
pharmaceutical sub-sector also witnessed a
growth in capacity utilisation, from 30% in 2015
to 60% in 2016.
Government intervention, in respect of import
containment measures, as well as measures to
improve the ease of doing business, has yielded
some positive results in some sub-sectors of the
manufacturing sector.
Table 8 shows capacity utilization in selected
sectors.


Garlpex,
1%
HCCL, 36%
Makomo,
60%
Zambezi
Gas, 4%


Table 8: Average Capacity Utilisation in 2016
Sector
Capacity
Utilisation
Food-stuffs
56.1%
Drink and Tobacco
52.4%
Clothing
and
Footwear
46%
Chemical
and
Petroleum
43.6%
Non Metalic Mineral
Products
57.5%
Paper, printing and
packaging
52.9%
Transport Equipment
45%
Wood and Furniture
54.8%
Source: CZI, 2016
Electricity
Electricity generated and sent out by major
power stations declined from 1 758.25 GWh in
the third quarter, to 1 544.79 GWh in the fourth
quarter of 2016. The cumulative power output
from the major power stations stood at
6 779.18 GWh, 6.5% below the targeted output
of 7 250.79 GWh in 2016 and 26.4% lower than
the output generated in 2015.


Figure 21: Quarterly Electricity Generation
(GWh)

Source: Zimbabwe Power Company, 2017
The decline in power generation in 2016 was, in
large part, a result of water rationing at Lake
Kariba, by the Zambezi River Authority (ZRA),
and low coal stock levels at Munyati and
Bulawayo Thermal Power Stations.
The Zimbabwe Power Company is, however,
working on a number of projects to increase the
country’s electricity generation capacity, which
include the following, among others;
i. Kariba South Extension project, has moved
to 66 percent completion level in the fourth
quarter, from 58 percent in the previous
quarter;
ii. Hwange Power Station Expansion project,
with a loan agreement between the
Government of Zimbabwe and Exim Bank of
China and a limestone supply agreement
between
Hwange
Electricity
Supply
Company (HESCO) and PPC, which were
both signed during the fourth quarter;
Q1
Q2
Q3
Q4
2015 2155.595 2422.1061 2545.6802 2092.086


0.5

1.5

2.5

Thousands

iii. The Deka Pump Station and pipeline, which
is undergoing assessment of the costs of
engineering, procurement and construction;
and
iv. Batoka Gorge Hydro Electric Scheme,
whose environmental impact assessment
studies and engineering feasibility studies
are being finalized.
The current good rains are also expected to
increase electricity generation at Kariba and
other small hydro stations.

4. INFLATION DEVELOPMENTS
Inflation
remained
in
negative
territory
throughout 2016, although it has been on a
sustained increase during the last quarter of
2016.
Annual headline inflation rate accelerated from
-1.33% in September 2016 to -0.93% in
December 2016. The increase in inflation during
the fourth quarter was largely driven by food
items. Annual inflation averaged -1.1% during
the last quarter of 2016, compared to -1.4% in
the third quarter.
Figure 22: Quarterly Inflation Profile (%)
Source: ZIMSTAT, 2017
Annual Food Inflation
The year-on-year food inflation also accelerated
from an average of -2.9% in the third quarter of
2016, to an average of -1.0% in the fourth
quarter, largely driven by bread and cereals,
meat, vegetables and milk; cheese and eggs,
among others. The increase in the prices of
cereals could be attributed to shortages of grain
in some areas during the last quarter of 2016.
Likewise, the increase in meat prices during the
last quarter of 2016, is reflective of dwindling
supply as farmers rebuild their herd, following
forced destocking due to drought in the previous
agriculture season.
Annual Non-Food Inflation
In the fourth quarter of 2016, annual non-food
inflation decelerated to an average of -0.8%,
from an average of -0.6% in the third quarter.
The decline was mainly driven by education;
restaurants
and
hotels;
housing,
water,
electricity, gas and other fuels; and health,
among others.
Regional Inflation Developments
Zimbabwe was the only country with negative
inflation in the region, during the fourth quarter
of 2016, as shown in Table 9.


Q1
Q2
Q3
Q4
End Period
Quarterly Average

Table 9: Annual Inflation rates for selected SADC
Member Countries and USA (%)

Zim
SA
Bot
Moz
Tan
Zam
Mal
USA
Jun


Sept


Dec


Source: Country Central Bank Websites, 2017
Inflation Outlook
Quarterly annualized inflation, which has
remained in negative territory since the first
quarter of 2016, accelerated from -2.2% in
September 2016, into positive territory, at 0.7%
in December 2016. The rising trend in quarterly
annualised inflation, points to a move out of
deflation which is positive for economic growth.
Figure 23: Quarterly Annualized Inflation Profile

Source: RBZ January 2017
In the outlook period, inflation is expected to
range between 2% and 3% for 2017.
Developments in the domestic economy will
continue to be influenced by movements in
international oil prices, the US$/rand exchange
rate, domestic and regional food output, as well
as the level of aggregate demand in the
economy.

5. MONETARY
DEVELOPMENTS,
INTEREST RATES AND FINANCIAL
MARKETS

Monetary Developments
In the fourth quarter of 2016, broad money
supply recorded an increase of 6.76%, a stronger
growth compared to 3.51% recorded in the third
quarter. On a year-on-year basis, money supply
grew by 19.20%, to US$5 680.5 million from
US$4 765.4 million in December 2015.
The growth in money supply was reflective of
the quarterly expansion in demand deposits,
10.84%; savings deposits, 6.59%; and under
30-days deposits, 2.36%. Partially offsetting
these increases was an 8.49% decline in over 30days deposits. Deposits mainly emanated from
financial
organizations,
the
services
and
distribution sectors and individuals.
Figure 24 shows annual broad money supply in
nominal terms as well as growth rates.


Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16

Figure 24: Annual Broad Money Supply Growth
Rates and Levels

Source: RBZ, 2016

Domestic Credit
Net domestic credit increased by 9.49%, from
US$5 829.1 million in the third quarter to
US$6 382.3 million in the fourth quarter of 2016.
Credit extended to the private sector increased
by 3.63% to US$3 648.2 million in the fourth
quarter of 2016, from US$3 520.3 million in the
third quarter.
Outstanding private sector credit was channelled
to households, 22.40%; agriculture, 15.95%;
services, 15.19%; manufacturing, 13.81%;
distribution, 11.38%; financial organisations and
investments, 11.97%; mining, 4.92%; transport
and communications, 2.06%; and construction,
1.51%.


STOCK MARKET DEVELOPMENTS
Reflecting renewed investor appetite during the
last quarter of 2016, the Zimbabwe Stock
Exchange (ZSE) recovered from the previous
quarter losses. Resultantly, the local bourse
gained US$1.3 billion in market capitalization.
This reflected a 47.07% increase, from US$2.73
billion at the end of September 2016 to US$4.01
billion as at 31st December 2016.
Figure 25: Market Capitalisation

Source: Zimbabwe Stock Exchange, 2016

Industrial Index
During the quarter under review, the industrial
index increased by 45.57 points, from 98.96
points as at end September 2016 to 144.53
points at the end of the last quarter of 2016. On
a year-on-year basis, the industrial index
increased by 29.68 points, from 114.85 points in
2015 as show in Figure 26.


Money Supply Growth
US$ Billion
Demand Deposits
Savings
Short Term Deposits
Long Term Deposits
Bond Notes & Coins
Annual Growth

31-Dec-15
31-Jan-16
29-Feb-16
31-Mar-16
30-Apr-16
31-May-16
30-Jun-16
31-Jul-16
31-Aug-16
30-Sep-16
31-Oct-16
30-Nov-16
31-Dec-16
US$ Millions

Figure 26: Zimbabwe Stock Exchange Indices

Source: Zimbabwe Stock Exchange, 2016

Mining Index
The mining index maintained an upward
trajectory, largely backed by significant investor
demand in RioZim and Bindura Nickel
Corporation (BNC) shares. This followed plans
by the two mining houses to ramp up production,
after significant capital expenditure in the past
two years.
The resources index increased by 31.90 points,
from 26.61 points as at end September 2016, to
close the last quarter of 2016 at 58.51 points. On
a year-on-year basis, the mining index increased
by 34.79 points.
Market Turnover
During the fourth quarter of 2016, market
turnover volume and value increased by
321.82% and 125.59% to 703.7 million shares
and US$72.1 million, respectively. This was due
to improved trading activity in mid-cap and
heavyweight counters.
Foreign investor bearish sentiments persisted as
reflected by the notable capital outflows of
US$16.2 million in the quarter ended 30th
September 2016 and US$39.8 million in the last
quarter of 2016.
In the short to medium term the market is
anticipated to maintain the steady positive trend.
As a result, activity is expected to be
concentrated in the wealth preserving blue chip
counters, which are deemed safe havens by
investors.
Figure 27: Market Turnover Value

Source: Zimbabwe Stock Exchange, 2016


6. PAYMENT,
CLEARING
AND
SETTLEMENT ACTIVITIES
The value of transactions processed through the
National Payment Systems increased by 11% to
US$17.49 billion in the fourth quarter of 2016,
from US$15.69 billion recorded in the third
quarter of 2016. Similarly, transaction volumes
also increased by 31%, to 124.62 million in the

Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Mining
Industrial
Industrial Index
Mining Index

31-Dec-15
31-Jan-16
29-Feb-16
31-...
30-Apr-16
31-...
30-Jun-16
31-Jul-16
31-...
30-Sep-16
31-Oct-16
30-...
31-Dec-16
US$ Millions

fourth quarter of 2016 from 94.84 million in the
third quarter.

Cheque and ATMs payment streams recorded
decreases in values during the fourth quarter of
2016, whilst RTGS, POS, Internet and mobile
registered increases. The corresponding volumes
for all payment streams recorded increases, with
the exception of the cheque payment stream
which registered a decrease in the fourth quarter
of 2016, compared to the third quarter.

Table 10 provides the statistical information on
various payment streams for the fourth quarter
2016.


Table 10: Consolidated Transactional Activities
TRANSACTIONAL ACTIVITIES
Payment
Stream
Third
quarter
ending 30
Sep 2016
Fourth quarter
ending 31 Dec

Change
from last
quarter
Proporti
on


VALUES IN US$ Million


RTGS

CHEQUE

POS

ATMS

MOBILE

INTERNET

TOTAL


VOLUMES


RTGS

CHEQUE

POS

ATMs

MOBILE

INTERNET

TOTAL

Source: RBZ, 2017

Large Value Payments
Zimbabwe
Electronic
Transfer
and
Settlement System
The value of transactions processed through the
RTGS system increased by 12% to US$13.63
billion during the fourth of 2016, from
US$12.22 billion recorded in the third quarter.
Transaction volumes registered an increase of
34% to 1 054 516 in the fourth quarter of 2016,
from 784 834 in the third quarter as shown in
Figure 28.

Figure 28 : RTGS Values and Volumes

Source: RBZ, 2017

SWIFT Foreign Currency Transactions
SWIFT foreign currency payments decreased by
8% to US$1.00 billion for the fourth of 2016,
from US$1.09 billion in the third quarter.
During the same period, SWIFT foreign
currency receipts also decreased by 19% to
US$0.94 billion from US$1.16 billion.
Net foreign currency outflows amounted to
US$61.49 million during the quarter under
review. Figure 29 shows trends in SWIFT
foreign currency transactions.
Figure 29: SWIFT Cross Border Transactions

Source: RBZ, 2016

Over the Counter Cash Withdrawals
The value of cash withdrawals decreased by
18%, from US$1.54 billion during the third
quarter of 2016 to US$1.26 billion recorded in
the fourth quarter. The corresponding volumes,
however, increased by 17% from 4.25 million in
the third quarter to 4.96 million in the fourth
quarter, as shown in Figure 30.


Q3

Q4

Q1

Q2

Q3

Q4
RTGS Values in Billions
RTGS Volumes in Thousands
Values
Volumes


Quarter
ending
Mar 2016
Quarter
ending
June 2016
Quarter
ending
Sept 2016
Quarter
ending
Dec 2016
Volumes in Thousands
Value in US$B
Value of Receipts
Value of Payments
Volumes of Payments
Volumes of Receipts

Figure 30: Over the Counter Cash Withdrawals.

Source: RBZ, 2016

Retail Payments
The trends in the values and volumes of retail
transactions, from the third quarter of 2016 to the
fourth quarter, indicated that POS have now
overtaken ATM transactions, as shown in
Figures 31 and 32.


Figure 31: Values of Retail Transactions

Source: RBZ, 2016

Figure 32 : Volumes of Retail Transactions

Source: RBZ, 2016


US$ BILLIONS
Volumes
Values


Q2

Q3

Q4

Q1

Q2

Q3

Q4
US$ Millions
CHEQUE
POS
ATMS
MOBILE
INTERNET


Q3

Q4

Q1

Q2

Q3

Q4
Mobile Volumes in Millions
Other Retai Volumes in Millions
RTGS
CHEQUE
POS
ATMs
INTERNET
MOBILE

Collateral2
The
value
of
collateral
increased
to
US$29.40 million in the fourth quarter of 2016,
from US$17.26 million recorded in the third
quarter, as shown in Figure 33.
Figure 33: Total Collateral

Source: RBZ, 2016

Access Points and Devices
There was a general increase in access points and
access devices between the third and fourth
quarters.
Mobile banking agents increased to 40 590 in
fourth quarter of 2016 from 37 131 reported in
the third quarter of 2016.
The POS population increased to 32 629 during
the fourth quarter of 2016, from 24 110 in the
third quarter.
Table 11 shows statistics for access points and
devices for the third quarter of 2015, as well as
for the third and fourth quarters of 2016.

2The collateral figure comprises of cheque and Zimswitch
card payment stream amounts.
Table 11: Payment Systems Access Points and
Devices
PAYMENT SYSTEMS ACCESS POINTS


Q4 2015
Q3 2016
Q4 2016
Mobile
Banking
Agents
38,745
37,131
40,590
ATMs

POS
16,363
24,110
32,629
PAYMENT SYSTEMS ACCESS DEVICES


Debit Cards
2,365,160
2,890,731
3,127,153
Credit Cards
10,854
14,813
16,030
Prepaid
Cards
30,125
38,660
43,288
Active
Mobile
Banking
Subscribers
4,683,959
3,289,271
3,279,049
Internet
Banking
Subscribers
108,662
128,297
168,339
Source: RBZ, 2016
RESERVE BANK OF ZIMBABWE
MARCH 2017

2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4
US$ MILLIONS
STATISTICAL TABLES

1. Liabilities and Assets of the Central Bank
1.1. Reserve Bank: Liabilities


S3
1.2. Reserve Bank: Assets


S4

2. Liabilities and Assets of Other Depository Corporations
2.1. Commercial Banks: Assets


S5
2.2. Commercial Banks: Liabilities


S6
2.3. Accepting Houses: Assets


S7
2.4. Accepting Houses: Liabilities


S8
2.5. Building Societies: Assets


S9
2.6. Building Societies: Liabilities


S10

3. Money Supply and Bank Liquidity
3.1. Monetary Aggregates


S11
3.2. Broad Money Survey


S12
3.3. Analysis of Monthly Changes in Money Supply


S13
3.4. Analysis of Yearly Changes in Money Supply


S14
3.5. Sectoral Analysis of Commercial Banks’ Loans and Advances


S15
3.6. Sectoral Analysis of Commercial Bank’s Deposits


S16

4. National Payment Systems


4.1. Values of Transactions


S17
4.2. Volumes of Transactions


S17

5. Interest Rates, Security Yields and Prices
5.1. Lending Rates


S18
5.2. Deposit Rates


S18
5.3. Stock Exchange Indices


S19
5.4. Monthly Inflation


S20
5.5. Quarterly Inflation


S21
5.6. Annual Inflation


S22

6. Balance of Payments
6.1. Cross Border Payments


S23
6.2. Cross Border Receipts


S24
6.3. External Debt Outstanding By Debtor


S25
6.4. External Debt Outstanding by Source


S26
6.5. External Debt Service and Debt Service Ratios


S27

7. National Accounts
7.1. Real Gross Domestic and National Product per Capita at Market Prices

S28
7.2. Gross Domestic Product at Factor Cost by Industry


S29
7.3. Expenditure on Gross Domestic Product


S20
7.4. Mineral Production


S21
7.5. Electricity Produced and Distributed
S32
7.6. Volume of Manufacturing Index


S33


TABLE 1.1: RESERVE BANK - LIABILITIES
Capital
and
Foreign
general
End of
Notes and
Bankers Deposits
Other Deposits
Govt. Deposits
Total Deposits
Liabilities
reserve
Other Liabilities
TOTAL
coins* in
circulation


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

*Bond coins first issued in December 2014
*Bond Notes first issued in November 2016
Source: Reserve Bank of Zimbabwe, 2016
Deposits
US$ Thousands


S2


US$ Thousands
End of
Gold
Other
Total
Treasury Bills
Central
Banks
Other
Govt.
Other
Other Assets
TOTAL
Government
Stock


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Reserve Bank of Zimbabwe, 2016
Loans and advances
Investments
Foreign Assets
TABLE 1.2: RESERVE BANK - ASSETS


S3


Loans &
Contingent
Other
Non
Financial
Total
End of
Bond
Notes
Foreign
Notes
Total
Other
Balances
Advances
Assets
Assets
Assets
Assets
& Coins
&
Balances
Balances
Balances
Liquid
with RBZ
Coins
with
with Other
at
Trade
Treasury
Agric PEs
Assets
RBZ
Banks
Foreign
Bills
Bills


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Reserve Bank of Zimbabwe, 2016
TABLE 2.1: COMMERCIAL BANKS - ASSETS
US$ Millions
Liquid Assets
Securities


S4


Deposits
Amounts
Owing to
Capital
Contingent
Other
Total
Of which
and
Liabilities
Liabilities
Liabilities
Liabilities to
the
End of
Demand
Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other Banks
Reserves
Public
Deposits


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Reserve Bank of Zimbabwe, 2016
TABLE 2.2: COMMERCIAL BANKS - LIABILITIES
US$ Millions


S5


Liquid Assets
Loans &
Contingent
Other
Non Financial
Total
End of
Notes
Total
Other
Balances
Advances
Assets
Assets
Assets
Assets
Bond
Coins
&
Balances
Balances
Balances
Liquid
with RBZ
Coin
with
with Other
at
Trade
Treasury
Assets
at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
Note: The last operting Accepting House in Zimbabwe, Tetrad Investment Bank was placed under judiciary Management on 1 July 2015.
TABLE 2.3 : ACCEPTING HOUSES - ASSETS
US$ Millions


S6


Of which
Deposits
Amounts
Owing to
Capital
Contingent
Other
Total
Liabilities to
the
and
Liabilities
Liabilities
Liabilities
Public
End of
Demand
Savings and
Short-term
Long-term
Total
Foreign
Liabilities
RBZ
Other
Banks
Reserves
Deposits


36.9
31.2

68.1


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.4: ACCEPTING HOUSES - LIABILITIES
US$ Millions

S7


Liquid
Assets
Notes
Balances
Trade
Treasury
Total
Mortgage
Other
Other
Non Financial
Total
End of
Bond
Coins
&
with
Other
Bills
Bills
Liquid
Advances
Advances
Assets
Assets
Assets
Coin
Banks
Assets
at Banks


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.5: BUILDING SOCIETIES- ASSETS
US$ Millions
Of which
Deposits
Capital
Other
Total
Liabilities to
the
and
Liabilities
Liabilities
Public
End of
Savings and
Short-term
Long-term
Total
Reserves
Deposits


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
TABLE 2.6 : BUILDING SOCIETIES - LIABILITIES
US$ Millions


S9


End of
Bond
Coins
RBZ
Demand
Deposits
Comm.
Banks Dem.
Deposits
Merchant
Banks
Dem.
Deposits
M1
Comm.
Banks
Savings
Deposits
Building
Soc.
Savings
Deposits
P O S B
Savings
Deposits
Comm.
Banks U-30
Day
Deposits
Merchant
Banks U-30
Day Deposits
Building
Soc. U- 30
Day
Deposits
M2
Comm.
Banks O-30
Day
Deposits
Merchant
Banks O30 Day
Deposits
Building
Soc. O- 30
Day
Deposits
Building
Soc. Class
C
Deposits
Building
Soc.
Other
Share
Deposits
P O S B
Time
Deposits
M3


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Societies)
TABLE 3.1: MONETARY AGGREGATES
US$ Thousands


S10


US$ Thousands
End of
NET FOREIGN
ASSETS
Total Foreign
Assets
Liabilities
NET
DOMESTIC
ASSETS
DOMESTIC
CREDIT
Claims on
Government
(net)
RBZ
DMBs
OBIs
Claims on
Public
Enterprises
Claims on
Private
Sector
RBZ
DMBs
OBIs
OTHER
ITEMS
(NET)
BROAD
MONEY
(M3)

-278,784.49
1,072,911.46


-140,293.98
1,174,644.56


-296,486.94
1,055,987.41


-435,528.84
1,089,808.49


-810,172.35
1,042,165.96


-1,750,112.68
(132,686.92)


-683,664.57
796,212.39


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Societies)
TABLE 3.2: BROAD MONEY SURVEY


S11


End of
NET
FOREIGN
ASSETS
Total
Foreign
Assets
Liabilities
NET
DOMESTIC
ASSETS
DOMESTIC
CREDIT
Claims on
Government
(net)
RBZ
DMBs

OBIs
Claims on
Public
Enterprises
Claims on
Private
Sector
RBZ
DMBs
OBIs
OTHER
ITEMS
(NET)
BROAD
MONEY
(M3)

Broad
Money
(M3)

Domestic
Credit

Claims
on
Private
Sector


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe, 2016
Note:
RBZ - Reserve Bank of Zimbabwe
DMBs - Deposit Money Banks (Commercial Banks and Merchant Banks)
OBIs - Other Banking institutions (Building Societies)
TABLE 3.3: ANALYSIS OF MONTHLY CHANGES IN MONEY SUPPLY
US$ Thousands


S12


AGRICULTURE
CONS TRUCTION
COM M UNICATION
DIS TRIB UTION
FINANCIAL
FINANCIAL
M ANUFACTURING
M INING
S ERVICES
TRANS PORT
INDIVIDUALS
CONGLOM ERATES
TOTAL
End of

INVES TM ENT
ORGANIS ATIONS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe,2016
TABLE 3.5: Sectoral Analysis of Commerical Banks' Loans and Advances
US$ Thousands


S13


AGRICULTURE CONSTRUCTION COMMUNICATION DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES
TRANSPORT INDIVIDUALS CONGLOMERATES
TOTAL
End of

INVESTMENT
ORGANISATIONS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source:Reserve Bank of Zimbabwe,2016
TABLE 3.6: Sectoral Analysis of Commercial Banks' Deposits
US$ Thousands


S14


End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET
End of
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Jan

Feb

Feb

Mar

Mar

Apr

Apr

May

May

Jun

Jun

Jul

Jul

Aug

Aug

Sep

Sep

Oct

Oct

Nov

Nov

Dec

Dec

Annual
Total

Annual
Total

Source:Reserve Bank of Zimbabwe,2016
TABLE 4.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (US$ in millions)
TABLE 4.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)

S15


End of
Nominal Lending
Rates2
Individuals
Corporate
Savings
3 Months2

Jan
6.00-22.00
12.08
7.38
Jan
0.50-8.00
0.75-17.00
Feb
4.00-22.00
11.48
7.29
Feb
0.50-8.00
0.75-17.00
Mar
4.00-22.00
11.44
7.16
Mar
0.50-8.00
0.75-17.00
Apr
4.00-22.00
11.5
7.2
Apr
0.50-8.00
0.75-17.00
May
4.00-18.00
11.43
7.35
May
0.50-8.00
0.75-17.00
Jun
4.00-18.00
11.4
7.48
Jun
0.50-6.00
0.75-17.00
Jul
4.00-18.00
10.69
6.79
Jul
0.50-6.00
0.75-17.00
Aug
4.00-18.00
10.67
6.84
Aug
0.50-6.00
1.00-17.00
Sep
4.00-18.00
10.66
6.95
Sep
0.50-6.00
1.00-17.00
Oct
4.00-18.00
10.7
6.93
Oct
0.50-6.00
1.00-17.00
Nov
4.00-18.00
10.69
6.99
Nov
0.50-6.00
1.00-17.00
Dec
4.00-18.00
10.59
6.87
Dec
0.50-6.00
1.00-17.00
Source:Reserve Bank of Zimbabwe,2016
Notes
TABLE 5.2 : BANKS DEPOSIT RATES (percent per annum)1
1. The range of rates qouted by banks during the
period.
2. Three (3) months deposit rates revised to exclude
rates on inactive or dormant accounts.
TABLE 5.1: LENDING RATES (percent per annum)1
3. Lending rates exclude rates on staff loans.
1. Table revised, to separate weighted lending rates for
individuals and corporate bodies.
2. Nominal Lending Rates depict the range of rates quoted by
banks.
Weighted Average Lending Rates3
Commercial Banks
Commercial Banks
End of

S16


End of
Industrial
Mining
Volume of Shares
Market Turnover
Market Capitalisation

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Zimbabwe Stock Exchange (ZSE),2016
Indices
US$ Millions
TABLE: 5.3: ZIMBABWE STOCK MARKET STATISTICS


S17


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATION
RECREATION &
EDUCATION
RESTAURANTS
&
MISC.
TOTAL
NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON
ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source :ZIMSTATS, 2016
NON-FOOD INFLATION
TABLE 5.4 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)


S18


FOOD
INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNICATION
RECREATION &
EDUCATION
RESTAURANT
S &
MISC.
TOTAL NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY, GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON
ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source :ZIMSTATS, 2016
TABLE 5.5 : QUARTERLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S19


FOOD INFLATION
ALL
ALCOHOLIC
BEVERAGES
CLOTHING
HSING, WATER,
FURNITURE
HEALTH
TRANSPORT
COMMUNIC
ATION
RECREATION &
EDUCATION
RESTAURAN
TS &
MISC.
TOTAL
NON
FOOD &
ITEMS
& TOBACCO
FOOTWEAR
ELECTRICTY,
GAS
AND
CULTURE
HOTELS
GOODS &
FOOD
NON ALCOHOLIC
BEVERAGES
& OTHER
EQUIPMENT
SERVICES
FUELS
WEIGHTS


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source :ZIMSTATS,2016
TABLE 5.6 : ANNUAL INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX
( DECEMBER 2012 = 100)
NON-FOOD INFLATION


S20


End of
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Merchandise Imports (excl. energy)
239.7

223.5

210.6

230.3

169.2

242.4

189.1

225.5

226.9

218.8

236.7

180.5

- Consumption Goods
128.1

118.2

113.0

108.1

85.3

112.8

86.9

112.9

121.5

110.9

125.4

92.7

- Capital Goods
67.7

66.7

64.7

62.3

44.6

65.9

50.5

53.4

48.6

46.6

57.6

33.9

- Intermediate Goods
44.0

38.6

32.9

60.0

39.4

63.8

51.7

59.2

56.8

61.3

53.8

53.8

Energy (Fuel & Electricity)
62.4

62.7

56.2

59.1

42.6

73.9

63.8

58.6

56.7

64.3

90.9

65.1

Service Payments
111.9

88.9

91.1

99.1

98.2

84.5

101.1

87.7

76.5

74.9

81.2

99.8

- Technical, Professional & consult
46.7

38.1

42.1

56.7

59.4

39.2

54.2

39.8

37.8

33.1

36.7

40.8

- Software
7.2

6.8

5.4

4.8

4.5

10.0

15.4

6.3

3.0

3.4

3.4

2.6

- Other (tourism, edu, freight etc)
58.1

44.0

43.6

37.7

34.2

35.4

31.5

41.6

35.6

38.4

41.1

56.4

Income Payments (Profits, Dividends
22.1

17.6

12.4

18.3

6.3

7.9

11.0

8.3

7.9

15.5

10.6

8.2

Capital Remittances (outward)
71.4

61.6

65.9

52.9

45.0

37.2

28.6

23.9

50.1

58.8

26.4

23.9

- External Loan Repayments
48.1

43.0

55.0

42.6

35.4

21.0

23.0

15.4

43.1

52.2

20.8

23.3

- Disinvestments
21.6

18.0

10.7

10.2

9.6

15.9

5.6

7.6

6.2

6.6

5.2

0.6

- Cross Border Investment
1.7

0.6

0.2

0.1

0.0

0.3

0.0

0.9

0.7

0.1

0.5

0.1

Other Payments
0.5

1.0

0.8

1.0

0.2

0.5

0.7

0.2

2.2

0.3

0.2

0.1

TOTAL
508.0

455.4

437.0

460.9

361.6

446.4

394.3

404.3

420.3

432.7

446.1

377.6

Source: Reserve Bank of Zimbabwe, 2016
Table 6.1: Monthly Cross Border Payments (US$ Millions)


S21


Agriculture
Horticulture Manufacturing
Mining
Tobacco
Tourism
Transport &
Other Services
Total
End of
Telecom
Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

Source: Reserve Bank of Zimbabwe, 2016
Table 6.2: Monthly Cross Border Receipts (US$Millions)


S22


End of

Long-Term External Debt

Government

Bilateral Creditors

Multilateral Creditors

Private Creditors

Public Enterprises


Bilateral Creditors

1,155

Multilateral Creditors

Private Creditors

Monetary Authorities

Multilateral Creditors - IMF

Private

1,002
2,261
1,913
Short-Term External Debt

1,198
1,382
1,286

1,564
2,394
2,258
Supplier's Credits

Reserve Bank

Private

1,807
1,671
Total External Debt

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016
TABLE 6.3: ZIMBABWE: EXTERNAL DEBT OUTSTANDING BY DEBTOR
(US$ millions)


S23


End of

(US$ millions)
Total Medium to Long-Term External Debt

Public and Publicly Guaranteed Debt

Bilateral Creditors

Multilateral Creditors

Private Creditors

Private Non-Guaranteed Long term

1,002
2,261
1,913
Short-Term External Debt

1,286

1,564
2,394
2,258
Public and Publicly Guaranteed Debt

Reserve Bank


Private

1,807
1,671
Total External Debt

Gross Domestic Product


External Debt / GDP

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016
TABLE 6.4: External Debt Outstanding by Source
(US$ millions)

S24


TABLE 6.5 EXTERNAL DEBT SERVICE AND DEBT SERVICE RATIOS
(US$ MILLIONS)
End of

Government

173.3
Capital

130.4
Interest

Parastatals

Capital

Interest

Private

418.1
Capital

Interest

163.1
Total

591.4
Capital

385.4
Interest

Exports of Goods
and Services

3841.9
Debt Service ratio

Capital Service Ratio

Interest Service ratio

Note: Figures reflect scheduled debt service.

Source: Ministry of Finance & Economic Development, 2016 ; Reserve Bank of Zimbabwe, 2016


S25


US$ Millions
Gross
Net Investment
Gross
Gross
Gross
Domestic
Income Paid
National
Domestic National
Gross Domestic
Gross National
End of
Product
to Other
Product
Product
Product
Product
Product
Period
Countries


Source : ZIMSTATS, 2016
Current Prices
Constant Prices
Constant Prices
Per Capita
TABLE 7.1: REAL GROSS DOMESTIC AND NATIONAL PRODUCT PER CAPITA AT MARKET PRICES


S26


Agriculture
Mining
Electricity
Finance
Distribution
Transport
Public
Hunting and
and
Manufacturing and
Construction
and
Real
Hotels and
and
Administration
Other
End of
Fishing
Quarrying
Water
Insurance Estate Restaurants Communication
Education
Health
Services
Total


Source : ZIMSTATS, 2016
2 . Includes domestic services and allowance for imputed banking service charges .
TABLE 7.2 : GROSS DOMESTIC PRODUCT AT FACTOR COST BY INDUSTRY
US$ Millions
(at current prices )


S27


Net
Private
Gross
Net
Expenditure
Private
Gvt
non-profit
fixed
Increase
Total
export of
on gross
consumption current
making
captital
in
Statistical
domestic
goods and
domestic
End of
expenditure bodies
formation
stocks
discrepancy
expenditure
services
product


Source : ZIMSTATS, 2016
(at current prices)
US$ Millions
TABLE 7.3: EXPENDITURE ON GROSS DOMESTIC PRODUCT/1

S28


End of
Gold
Platinum
Palladium
Nickel
Copper
Coal
Chrome
Rhodium Other/1
Total


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Source: ZIMSTATS, 2016
1. Other minerals include Ferrosilicon, Iron ore, Iron pyrites and magnesite
Table 7.4: MINERAL PRODUCTION
US$ Millions

S29

End of
By Hwange
Power station
By Kariba
Power
Station
By Other
Power Station
IPPs
Total from
Zimbabwe


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Source: ZIMSTATS, 2016
Table 7.5: Electricity Energy Produced and Distributed
Interconnected System
Generation Sent Out


S30


(2009=100)
Food-stuffs
(including
stockfeeds)
Drink and
Tobacco
Textiles
including
ginning
Clothing
and
Footwear
Wood and
Furniture
Paper,
Printing and
Publishing
Chemical and
Petroleum
Products
Non-metalic
Mineral Products
Metals and
Metal Products
Transport and
Transport
Equipment
Other
Manufacturing
Groups
All
Manufacturing
Groups
Weight


2014:Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2015:Jan

Feb

Mar

Apr

May

Jun

Source:ZIMSTATS ,2016
TABLE 7.6: VOLUME OF MANUFACTURING INDEX (VMI)


S31