Vol. 25 No. 20


Week Ending
19th May 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Minimum and maximum deposit rates for deposits of all classes remained at previous week’s
levels, during the week ending 19th May 2023, as shown in Table 1.


Table 1: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
21-Apr-23

28-Apr-23

5-May-23

12-May-23

19-May-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

The week under review saw commercial bank minimum and maximum lending rates for both
individual and corporate clients remain unchanged, as shown in Table 2.

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

Individual Clients

Corporate Clients
21-Apr-23

28-Apr-23

5-May-23

12-May-23

19-May-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposits rates for all classes of deposits quoted by commercial
banks were unchanged during the week ending 19th May 2023, as shown in Table 3.

Table 3: Average Deposit Rates (per annum)
Date
Savings deposits (%)
1- Month deposit rates (%)

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
21-Apr-23

28-Apr-23

5-May-23

12-May-23

19-May-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

Minimum lending rates for individual clients registered a marginal increase, while those for
corporate clients were lower during the week under analysis. Maximum commercial bank
lending rates for both individual and corporate clients increased during the week under review,
as shown in Table 4.

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

Individual Clients

Corporate Clients
21-Apr-23

28-Apr-23

5-May-23

12-May-23

19-May-23

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

Transactions processed through the National Payment Systems (NPS) amounted to ZW$1.56
trillion, reflecting a 7.24% decrease from ZW$1.69 trillion reported during the previous week.
Real Time Gross Settlement (RTGS) transactions were 6.42% lower to close at ZW$1.37 trillion,
during the week under review. In proportions, NPS transaction values were distributed as
follows: RTGS, 87.89%, POS, 6.67%; Mobile, 4.55%; and ATM, 0.89%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The NPS registered a 13.59% decline in volume of transactions to close at 11.27 million, during
the week under analysis. NPS transaction volumes were constituted as follows Mobile, 71.66%;
POS, 25.60%; ATM, 0.89%; and RTGS, 1.84%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
87.89%
POS
6.67%
ATM
0.89%
MOBILE
4.55%
RTGS
POS
ATM
MOBILE
RTGS, 1.84%
POS, 25.60%
ATM, 0.89%
MOBILE, 71.66%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
12th May 2023

WEEK ENDING

19th May 2023
% CHANGE FROM
LAST WEEK
PROPORTION
%

Values in ZW$ Millions


RTGS

POS

ATM

MOBILE

TOTAL

Volumes


RTGS

POS

ATM

MOBILE

TOTAL

Source: Reserve Bank of Zimbabwe, 2023

3.
TOBACCO SALES
As at 19th May or day 49 of the 2023 tobacco selling season, a cumulative total of 209.33 million
kilograms of tobacco had been sold. This reflected a 50.47% increase, compared to the 139.11
million kilograms sold during the same period in 2022. Cumulative tobacco sales amounted to
US$628.19 million, up from US$416.74 million realized during the corresponding period in 2022,
as shown in Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 49 (19th May 2023)

Variance (%)
Cumulative Quantity Sold (million kgs)
139,114,643
209,329,005
50.47
Average Price (US$/kg)
3.00000

3.00097
0.03
Cumulative value (US$ million)
416,741,373
628,191,022
50.74
Source: Tobacco Industry and Marketing Board (TIMB), 2022

The average price of the golden leaf increased by 0.03% from US$0.03 dollars per kilogram,
compared price level registered during the the same period in 2022.
4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During week ending 19th May 2023, weekly average prices for all commodities retreated amid
stronger U.S dollar. Table 7 shows commodity prices developments, as shown in Table 7.

Table 7: Metal and Crude Oil Prices for the week ending 19th May 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce
US$/ounce
US$/ounce
US$/tonne
US$/tonne
US$/barrel
Weekly Average (8 - 12 May)

15-May

16-May

17-May

18-May

19-May

Weekly Average (15 - 19May)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the reporting week, gold average prices declined by 1.87% to US$1,987.22 per ounce
from a weekly average of US$2,025.02 per ounce. The yellow metal price declined after the
downbeat of Chinese economic data which increased fear of moderating consumer and industrial
demand for precious metals from China. In addition, the debt ceiling uncertainty in the U.S also
weighed down the prices for gold.

Platinum
In the week under review, platinum prices dropped by 2.2% from an average of US$1,090.80
per ounce in the previous week to USD$1,066.80 during the week ending 19th May 2023. The
global platinum market was in deficit largely driven by the rising demand from automotive and
jewellery sectors as well as well as supply disruptions in South Africa.

Palladium
Palladium prices decreased by 3.13% from US$1,550.00 per ounce in the previous week to
US$1,501.50 per ounce in the reporting week. The decrease in prices was on account of low
demand for palladium from automotive industry amid slowdown in economic growth and a shift
towards alternative technologies that do not rely on palladium such as cars.

Copper
Copper prices declined by 2.59%, from a weekly average of US$8,417.60 per tonne recorded in
the previous week, to US$8,119.30 per tonne. Copper prices subdued as production of copper

from China continues to improve, consumption remains low, resulting in building inventories
for end-users of copper.
Nickel
Likewise, nickel prices weakened by 6.77% from a weekly average of US$22,789.00 per tonne
to US$ 21,247.00 per tonne during the week under review. Nickel prices receded as production
growth outpaced demand in Indonesia, the top nickel producers.
Brent Crude Oil

During the week ending 19th May 2023, crude oil weekly average prices declined by 0.18% from
US$75.76 per barrel to US$75.62 per barrel during the week under analysis. Oil prices edged
lower as the let-down of weaker-than-expected Chinese demand outweighed stronger U.S
consumer data and a more bullish outlook from the International Energy Agency (IEA). To add
more, crude oil prices retreated over fears of a U.S. recession and risks of a historic default on
government debt in early June.

5. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 14.5% from an average of
ZW$1,181.71 per US$1 in the previous week to ZW$1,352.88 per US$1, during the week ending
19th May 2023, as shown in Table 8.

Table 8: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO
Weekly Average (12 – 15 May)

15-May

16-May

17-May

18-May

19-May

Weekly Average (15 – 19 May)

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

Source: Reserve Bank of Zimbabwe, 2023


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

6. EQUITY MARKETS


Zimbabwe Stock Exchange
During the week ended 19th May 2023, the Zimbabwe Stock Exchange (ZSE) maintained
positive momentum for the fifth consecutive week. As a result, the ZSE All Share index gained
31.82% to close at 83 219.72 points. The Top 10, Top 15, Medium Cap and Small Cap indices
increased by 33.53%, 32.90%, 26.25% and 17.53% to close the week at 51 106.33 points, 59
422.95 points, 149 855.48 points and 956 865.31 points, respectively.

The increase in the mainstream index was a result of share price gains in SeedCo Limited
(100.05%), Meikles Limited (69.47%), Tanganda Tea Company Limited (60.18%), OK
Zimbabwe Limited (55.86%) and Truworths Limited (45.00%). Partially offsetting the abovementioned increases was a decline in the share price of British American Tobacco (BAT)
Zimbabwe Limited (13.87%). The resource index also added 10% to close the week at 46 035.02
points, compared to 41 850.98 points recorded in the prior week.

Table 9: Zimbabwe Stock Exchange Statistics2

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)


14-Apr-23

21-Apr-23

28-Apr-23

5-May-23

12-May-23

19-May-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 14th April 2022 to 19th May
2023.


2 The Zimbabwe Stock Exchange (ZSE) adopted the Global Industry Classification Standards, effective from 1 January 2020.The ZSE indices
constitute the following categories; Top 10 Index; Top 15; Top 25; Medium cap and Small cap Indices.

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


Market Turnover and Volume

The cumulative volume of shares traded decreased by 37.40% to 43.69 million during the week
ending 19th May 2023, from 69.79 million recorded in the prior week. The turnover value of
shares amounted to ZW$11.46 billion, representing an increase of 95.97% from ZW$5.85 billion
recorded in the previous week. Figure 4 shows the trend in daily market turnover for the period
from 6th April 2022 to 19th May 2023.

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


6-Apr-22
30-Apr-22
24-May-22
17-Jun-22
11-Jul-22
4-Aug-22
28-Aug-22
21-Sep-22
15-Oct-22
8-Nov-22
2-Dec-22
26-Dec-22
19-Jan-23
12-Feb-23
8-Mar-23
1-Apr-23
25-Apr-23
19-May-23
All Share Index
Top 10 Index


06-Apr-22
30-Apr-22
24-May-22
17-Jun-22
11-Jul-22
04-Aug-22
28-Aug-22
21-Sep-22
15-Oct-22
08-Nov-22
02-Dec-22
26-Dec-22
19-Jan-23
12-Feb-23
08-Mar-23
01-Apr-23
25-Apr-23
19-May-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65

Market Capitalization

In line with developments on the ZSE during the week under review, the local bourse gained
ZW$1.57 trillion, or 29.32% worth of capitalization to close at ZW$6.92 trillion, compared to
ZW$5.35 trillion, recorded in the previous week. Figure 5 shows ZSE market capitalization
developments for the period from 6th April 2022 to 19th May 2023.

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

Victoria Falls Stock Exchange


The Victoria Falls Stock Exchange (VFEX) was characterised by bearish trading during the week
ending 19th May 2023. Resultantly, the VFEX All Share index lost 5.16% to close at 84.18 points,
compared to 89.18 points recorded in the previous week. The decline in the VFEX mainstream
index emanated from share price declines in Innscor Africa Limited (14.45%), SeedCo
International (3.71%), African Sun Limited (2.55%) and National Foods Holdings Limited
(0.17%). Partially offsetting the share price losses were gains registered in share price of Padenga
Holdings Limited (9.85%), Axia Corporations Limited (8.89%), Simbisa Brands Limited
(6.48%) and Nedbank Group Zimbabwe (0.37%).

The VFEX cumulative volume and value of shares traded increased by 87.61% and 226.37% to
0.86 million shares and US$0.39 million, respectively. Market capitalization, however, lost
5.62%, or US$0.08 billion worth of capitalization to close at US$1.33 billion, compared to
US$1.41 billion recorded in the previous week. Figure 6 shows the trend in the VFEX All Share
Index (ASI) for the period from 6th April 2022 to 19th May 2023.


06-Apr-22
30-Apr-22
24-May-22
17-Jun-22
11-Jul-22
04-Aug-22
28-Aug-22
21-Sep-22
15-Oct-22
08-Nov-22
02-Dec-22
26-Dec-22
19-Jan-23
12-Feb-23
08-Mar-23
01-Apr-23
25-Apr-23
19-May-23
Billions

Figure 6: Victoria Falls Stock Exchange All Share Index
Source: Victoria Falls Stock Exchange, 2023


Johannesburg Stock Exchange (JSE) Developments

During the week under ending 19th May 2023, the Johannesburg Stock Exchange (JSE) All Share
Index decreased by 0.20% to close at 78,175.82 points, from 78,330.20 points in the previous
week. JSE market capitalization, however, increased by 0.63% to close at ZAR22.49 trillion
during the same period.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
14-Apr-23
78,870.36
22.56
21-Apr-23
77,910.96
22.35
28-Apr-23
78,021.87
22.36
5-May-23
78,132.77
22.34
12-May-23
78,330.20
22.35
19-May-23
78,175.82
22.49
% Change

-0.20


0.63
Source: 2023


06-Apr-22
30-Apr-22
24-May-22
17-Jun-22
11-Jul-22
04-Aug-22
28-Aug-22
21-Sep-22
15-Oct-22
08-Nov-22
02-Dec-22
26-Dec-22
19-Jan-23
12-Feb-23
08-Mar-23
01-Apr-23
25-Apr-23
19-May-23

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


RESERVE BANK OF ZIMBABWE

6-Apr-22
30-Apr-22
24-May-22
17-Jun-22
11-Jul-22
4-Aug-22
28-Aug-22
21-Sep-22
15-Oct-22
8-Nov-22
2-Dec-22
26-Dec-22
19-Jan-23
12-Feb-23
8-Mar-23
1-Apr-23
25-Apr-23
19-May-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX3 AND SMEFX4
Source: Reserve Bank of Zimbabwe, 2023


3 Main Foreign Currency Auction
4 Small and Medium Enterprises Foreign Currency Auction

MAINFX
28-Apr-23 5-May-23 12-May-23 19-May-23

SMEFX
28-Apr-23 5-May-23 12-May-23 19-May-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
28-Apr-23 5-May-23 12-May-23 19-May-23
SMEFX
28-Apr-23 5-May-23 12-May-23 19-May-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

1,273,163.40