Vol. 25 No. 08


Week Ending
24th February 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 24th February 2023, minimum deposits rates for savings deposits and
deposits of 3-month tenor increased, while those for deposits of 1 month tenor decreased. The
week under review also saw maximum deposit rates for savings deposits decline, while those for
deposits of 1 month and 3 month tenors increased, 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 (%)
27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum and maximum lending rates for both individual and corporate clients
declined, during the week ending 24th February 2023, as shown in Table 2.

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

Individual Clients

Corporate Clients
27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposit rates for savings deposits remained unchanged, during
the week under review. However, marginal changes were recorded for the other classes of
deposits in the same 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

10-Feb-23

17-Feb-23

24-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
declined during the week ending 24th 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

10-Feb-23

17-Feb-23

24-Feb-23

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

The aggregate value of transactions processed through the National Payment Systems (NPS)
stood at ZW$575.29 billion, during the week ending 24th February 2023. This represented a
decrease of 21.28%, compared to ZW$730.78 billion reported in the previous week. Real Time
Gross Settlement (RTGS) transactions declined by 26.63% to ZW$455.75 billion, from

ZW$621.18 billion recorded in the preceding week. In proportions, the NPS transaction values
were distributed as follows: RTGS, 79.22%, POS, 10.09%; Mobile, 6.98%; and ATM, 3.71%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 11.79% to 5.26 million during the reporting week,
from 10.93 million recorded in the preceding week. In terms of volume, the NPS transactions
were distributed as follows; Mobile, 72.70%; POS, 24.32%; RTGS, 1.89%; and ATM, 1.09%,
as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
79.22%
POS
10.09%
ATM
3.71%
MOBILE
6.98%
RTGS
POS
ATM
MOBILE
RTGS, 1.89%
POS, 24.32%
ATM, 1.09%
MOBILE, 72.70%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
17th February 2023

WEEK ENDING
24th 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 24th February 2023, commodity prices for gold, palladium, nickel and
crude oil retreated. However, platinum and copper prices, increased during the same week as
shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 24th February 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (13-17 Feb 23)

20-Feb-23

21-Feb-23

22-Feb-23

23-Feb-23

24-Feb-23

Weekly Average (20-24 Feb 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Prices of the yellow metal retreated by 0.66%, from a weekly average of US$1,843.86 per ounce
in the previous week to US$1,831.64 per ounce, during the week ending 24th February 2023. The
decline was underpinned by a strong US dollar and the Federal Reserve’s hawkish stance on
interest rates.

Platinum
During the week ending 24th February 2023, platinum prices increased by 1.0%, from US$931.10
per ounce in the week ending 17th February 2023 to US$940.40 per ounce. The increase was, in
large part, due to investor predictions of strong demand from automakers in China, as Beijing
tightened its diesel and gasoline engine emission standards.

Palladium
Palladium prices fell by 1.84% to US$1,479.20 per ounce during the week ending 24th February
2023, from US$1,507.00 per ounce recorded in the previous week. This followed expectations
of a decline in demand, against an increase in the supply of the precious mineral.

Copper
Copper prices increased by 0.23%, from US$8,921.00 per tonne recorded in the previous week
to US$8,941.60 per tonne, during the week ending 24th February 2023. The increase was
accounted for by an improvement in demand from China, the top consumer of the metal and
concerns about global supply constraints. However, the increase in the price of the red metal was
moderated by a stronger U.S. dollar.

Nickel
The nickel prices retreated by 1.04%, from US$26,167.60 per tonne recorded in the previous
week to US$25,895.00 per tonne, during the week under review. The decrease was a result of
weak demand from China’s downstream electric vehicle industry, which continued to exert
downward pressure on domestic battery raw material prices.

Brent Crude Oil

During the week ending 24th February 2023, crude oil prices fell by 2.97% to US$82.46 per
barrel, from US$84.98 per barrel recorded in the prior week. This was on account of weak global
demand for the commodity, including in the U.S, as the Federal Reserve continued to tighten
monetary policy.


4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 2.6% against the US dollar,
from ZW$855.5745 per US$1 in the previous week to ZW$878.1825 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 (13-17 Feb 23)

20-Feb-23

22-Feb-23

23-Feb-23

24-Feb-23

Weekly Average (20-24 Feb 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
On the Zimbabwe Stock Exchange (ZSE), the All-Share index gained 2.68% to close at
28 033.96 points, during the week ending 24th February 2023. The Top 10, Top 15, Medium and
Small Cap indices added 0.67%, 2.27%, 7.11% and 10.49% to close the week at 16 757.59 points,
19 350.07 points, 60 929.82 points and 626 212.55 points, respectively.

The increase in the mainstream index was largely attributed to share price increases for African
Sun Limited (43.12%), Ariston Holdings Limited (37.67%), Turnall Holdings Limited (31.90%),
Zimre Holdings Limited (22.86%) and Tanganda Tea Company Limited (21.69%). Partially
offsetting the gains, were losses in share prices for First Mutual Properties Limited (11.76%),
NMBZ Holdings Limited (6.84%), Zimplow Holdings Limited (6.22%), Meikles Limited (5%)
and Econet Wireless Zimbabwe Limited (1.69%). The resources index2, also gained 0.31% to
close the week under analysis at 29 207.92 points, compared to 29 116.96 recorded in the prior
week.


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)


20-Jan-23

27-Jan-23

3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 5th February 2022 to 24th
February 2023.

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


Market Turnover and Volume

Trading activity on the ZSE was concentrated on selected medium to small-tier counters. In this
regard, the cumulative volumes of shares traded declined by 48.05% to 14.91 million, compared
to 28.70 million recorded in the prior week. The turnover value of shares traded also decreased

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.


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

by 82.78% to ZW$1.41 billion, from ZW$8.16 billion recorded in the previous week. Figure 4
shows the trend in daily market turnover for the period from 5th February 2022 to 24th February
2023.

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

Market Capitalization

ZSE market capitalization stood at ZW$2.52 trillion during the week ending 24th February 2023,
up from ZW$2.92 trillion reported in the preceding week, reflecting a decrease of 13.63%. Figure
5 shows the evolution of ZSE market capitalization for the period from 5th February 2022 to 24th
February 2023.

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


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


05-Feb-22
21-Feb-22
09-Mar-22
25-Mar-22
10-Apr-22
26-Apr-22
12-May-22
28-May-22
13-Jun-22
29-Jun-22
15-Jul-22
31-Jul-22
16-Aug-22
01-Sep-22
17-Sep-22
03-Oct-22
19-Oct-22
04-Nov-22
20-Nov-22
06-Dec-22
22-Dec-22
07-Jan-23
23-Jan-23
08-Feb-23
24-Feb-23
Billions

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) was characterised by positive trading, during the
week under analysis. Resultantly, the VFEX All Share index gained 0.03% to close at 106.21
points. Share price gains were recorded for SeedCo International (9.85%) and Simbisa Brands
Limited (1.77%). Decreases in the share prices of Bindura Nickel Corporation (BNC) (20%) and
Padenga Holdings Limited (3.77%), partially offset the aforementioned gains.

The cumulative volume and value of shares traded on the VFEX increased by 1,037.93% to 3.07
million and 17.63% to US$0.13 million, respectively, during the reporting week. The increase in
the volume of shares traded was largely driven by increased trading activity in Bindura Nickel
Corporation shares, where 2.9 million shares exchanged hands at US$0.0168 each on 22nd
February 2023.

VFEX market capitalization stood at US$0.60 billion, reflecting an increase of 0.02% or
US$0.001 billion, from US$0.60 billion recorded in the previous week. Figure 6 shows the trend
in the VFEX All Share Index (ASI) for the period from 5th February 2022 to 24th February 2023.

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 fell from 79,271.78 points in the
previous week to close at 76,937.77 points, during the week ending 24th February 2023. JSE
market capitalization registered a decline of 3.05% to ZAR22.23 trillion, during the same week.


05-Feb-22
21-Feb-22
09-Mar-22
25-Mar-22
10-Apr-22
26-Apr-22
12-May-22
28-May-22
13-Jun-22
29-Jun-22
15-Jul-22
31-Jul-22
16-Aug-22
01-Sep-22
17-Sep-22
03-Oct-22
19-Oct-22
04-Nov-22
20-Nov-22
06-Dec-22
22-Dec-22
07-Jan-23
23-Jan-23
08-Feb-23
24-Feb-23

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
20-Jan-23
79,269.77
23.02
27-Jan-23
80,791.36
23.28
3-Feb-23
80,240.92
23.08
10-Feb-23
78,985.35
22.87
17-Feb-23
79,271.78
22.93
24-Feb-23
76,937.77
22.23
% Change
-2.94
-3.05
Source: 2023


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


RESERVE BANK OF ZIMBABWE

5-Feb-22
21-Feb-22
9-Mar-22
25-Mar-22
10-Apr-22
26-Apr-22
12-May-22
28-May-22
13-Jun-22
29-Jun-22
15-Jul-22
31-Jul-22
16-Aug-22
1-Sep-22
17-Sep-22
3-Oct-22
19-Oct-22
4-Nov-22
20-Nov-22
6-Dec-22
22-Dec-22
7-Jan-23
23-Jan-23
8-Feb-23
24-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
03-Feb-23 10-Feb-23 17-Feb-23 24-Feb-23

SMEFX
03-Feb-23 10-Feb-23 17-Feb-23 24-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
3-Feb-23 10-Feb-23 17-Feb-23 24-Feb-23
SMEFX
3-Feb-23 10-Feb-23 17-Feb-23 24-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

1,814,191.43