MONTHLY ECONOMIC REVIEW
APRIL 2014
Selected Economic Indicators

Stock Market Developments

Inflation

National Payments System

Statistical Tables

Monetary Developments

INSIDE THIS ISSUE

PAGE
SELECTED ECONOMIC INDICATORS

March

April
Z.S.E. Mining Index1
29.51
29.64
Z.S.E. Industrial Index1
176.32
172.91
Money Supply (Total Bank Deposits) (US$)2
4.09 billion
4.23 billion
Money Supply (M3) Annual Growth2
7.78%
6.65%
Yearly Inflation3
-0.91%
-0.26%
Sources:
1 Zimbabwe Stock Exchange
2 Reserve Bank of Zimbabwe
3 ZIMSTAT


Month on
Month
Change


STOCK MARKET DEVELOPMENTS

The geopolitical concerns over the situation
in Ukraine and the Federal Reserve’s
slowdown
of
its
quantitative
easing
programme, weighed down global stock
markets. The favourable first quarter
earnings,
coupled
with
some
merger
activities in the pharmaceutical companies,
however, partly reversed the losses.

Amid subdued performance across the board,
some African stock markets, however,
registered reasonable gains, partly due to the
World Bank’s recently released 2014 GDP
growth forecast of 5.4% for Sub-Saharan
Africa, as compared to 4.7% in 2013.

The Zimbabwe Stock Exchange (ZSE),
however, was among the African stock
markets that registered a loss during the
month under review.

The industrial index further declined during
the month under review, by 1.93%, to close
at 172.91 points, compared to 176.32 points
in March. On a year to date basis, the
industrial index lost 14.40%.

The mining index, however, recovered
marginally, gaining 0.44%, to close at 29.64
points in April 2014, from 29.51 points in
March. On a year on year basis, the mining
index lost 35.27%.

The volume of shares traded, however, rose
by 10.57%, from 382.80 million shares in
March 2014 to 423.25 million shares in

2 3

2 4
April 2014. Total turnover, declined by
34.92%, weighed down by trading on small
cap counters, to close the month under
review at US$51.35 million.

Market capitalization declined by 1.90% to
US$4.47 billion, at the end of April 2014,
from US$4.56 billion at the close of March
2014.

MONETARY DEVELOPMENTS

Annual broad money growth slowed down
by 1.13 percentage points from 7.78% in
March 2014 to 6.65% in April. The growth
represents a marginal recovery from an
average of 1.44% recorded in the last quarter
of 2013.
On a month - on -month basis, broad money
increased by US$136.5 million (3.33%) in
April, compared to US$72.2 million (1.8%)
in March. Largely contributing to the
growth in money supply, were expansions
of US$171.0 million in over 30-day
deposits; US$107.2 million in under 30-day
deposits; US$100.9 million in demand
deposits; and US$92.7 million in savings
deposits. Partially offsetting these increases
was a decline of US$115.4 million in under
30-day deposits.

The growth in money supply continued to be
partly driven by tobacco sales. As at end of
April
2014,
cumulative
tobacco
sales
amounted to over US$330 million, which
represents
significant
inflows
into
the
economy.

3 5
Claims on the private sector, increased marginally, from US$3 569.4 million in April
2013 to US$3 594.0 million in April 2014.
On a month-on-month basis, credit to the
private sector, however, declined by 0.43%
in April 2014, from US$3 610.3 million recorded in March 2014.
The slowdown reflects constrained lending
by banks on the back of liquidity challenges,
as well as risk aversion in the wake of increasing non performing loans.
Outstanding loans and advances were largely in respect of agriculture (19.3%), distribution (18.5%), Households (18.2%), services (16.0%), manufacturing (14.7%), mining (6.6%) and construction (1.6%).
Credit by private sector continues to be short
term in nature and mainly utilized for recurrent expenditures, 44.9%; inventory and
stocks build up, 34.5%; consumer durables,
13.1%; and capital expenditures, 7.5%.


INFLATION DEVELOPMENTS

Annual Inflation

The annual headline inflation, which had been
on a downward trend since February 2014,
increased to -0.26% in April from -0.91% in
March 2014. This followed the increase in
non –food inflation.
Annual food inflation remains subdued, declining from -3.71% in March to -3.73% in
April 2014, reflecting weak domestic demand.
Food prices are expected to remain depressed
in the outlook period, as a result of a good
harvest in 2014.
The decrease in annual food inflation was
largely driven by bread and cereal; vegetables; meat, sugar, jam, honey, chocolate and
confectionery; and the fish and sea food subcategories.
Annual non-food inflation rose from 0.51% in
March to 1.50% in April 2014, driven mainly
by education; housing, water, electricity, gas
and other fuels; alcoholic beverages and
tobacco; and health services sub-categories.

The increase in education costs was attributed
to increases in pre-primary and primary education, 21.6%; as well as secondary education by 17.1% in April 2014.


Month-on-Month Inflation
Month-on-month inflation gained 0.86 percentage points to 0.58% in April, from
-0.22% in March 2014, owing to an increase
in monthly non-food inflation.
Monthly non-food inflation stood at 1.09% in
April 2014, up from -0.26% in March 2014.
The non-food monthly inflation was driven
by increases in education; transport; alcoholic beverages and tobacco; and recreation and
culture.
Monthly food inflation, however, shed 0.32
percentage points from -0.14% in March
2014, to -0.46% in April 2014, driven by
decreases in the prices of bread and cereals;
meat; sugar, jam, honey, chocolate and
confectionery; and fish and sea food.
Increases in vegetables; fruits; and milk,
cheese and eggs sub-categories partially
offset the decreases in monthly food
inflation.


Inflation Outlook
Inflation is expected to remain subdued in
the short term, on account of the anticipated
decline in food prices during the harvesting
period.

NATIONAL
PAYMENTS
SYSTEM
DEVELOPMENTS

Zimbabwe Electronic Transfer Settlement
System (ZETSS)
The value of transactions processed through
the RTGS system in April 2014 increased by
3% to US$3.4 billion from US$3.3 billion in
March 2014 while the volume of transactions
registered a decrease of 4%, from 192 020 to
183 626 over the same period.

Card Systems
The total value of card based transactions
increased by 12.75% to US$379.42 million
in April 2014, from US$336.52 million in
March 2014.

Mobile and Internet Based Transactions
The value of mobile and internet based
transactions also increased by 5.07%, from
US$343.26 million in March 2014 to
US$360.67 million in April 2014.


Cheques
The value of cheque transactions, however,
decreased to US$9.65 million in April 2014,
from US$10.40 million in March 2014.

Reserve Bank of Zimbabwe
April 2014

STATISTICAL TABLES
CONTENTS

Table


. Monetary Statistics


1.1 Monetary Aggregates

1.2 Broad Money Survey

1.3 Analysis of Monthly Changes in Money Supply

1.4 Analysis of Yearly Changes in Money Supply

2. Sectoral Analysis of Bank Loans and Advances and Deposits


2.1 Sectoral Analysis of Commercial Banks Loans and Advances 15

2.2 Sectoral Analysis of Merchant Banks Loans and Advances

2.3 Sectoral Analysis of Merchant Acceptances

2.4 Sectoral Analysis of Commercial Banks Deposits

2.5 Sectoral Analysis of Merchant Banks Deposits

3. External Statistics


3.1 Total External Debt Outstanding by Debtor

4. Interest Rates


4.1 Lending Rates

4.2 Banks Deposit Rates

5. Inflation


5.1 Monthly Inflation

5.2 Yearly Inflation

6. Exchange Rates

STATISTICAL TABLES
CONTENTS

Table


. Commercial Banks


7.1 Assets

7.2 Liabilities

8. Accepting Houses


8.1 Assets

8.2 Liabilities

9. Building Societies


9.1 Assets

9.2 Liabilities

10. Zimbabwe Stock Exchange Statistics

11. Savings with Financial Institutions

12. Analysis of Liquid Assets of Monetary Banks

13. ZETSS, Cheques and Cards Activity


13.1 Values of Transactions

13.2 Volumes of Transactions

TABLE 2.1 : SECTORAL ANALYSIS OF COMMERCIAL BANKS LOANS AND ADVANCES


US$ Thousands


AGRICULTURE
CONSTRUCTION
COMMUNICATION
DISTRIBUTION
FINANCIAL
&
FINANCIAL
MANUFACTURING
MINING
SERVICES TRANSPORT
INDIVIDUALS
CONGLOMERATES/1
TOTAL
END OF


INVESTMENTS
ORGANISATIONS

JANUARY

FREBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY


FEBRUARY

MARCH

APRIL

1. These are large corporation with business operations covering across a number of sectors.
TABLE 2.2 :SECTORAL ANALYSIS OF MERCHANT BANKS LOANS AND ADVANCES


US$ Thousands


AGRICULTURE
CONSTRUCTION DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES TRANSPORT INDIVIDUALS CONGLOMERATES
TOTAL
END OF


INVESTMENT ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY


FEBRUARY

MARCH

APRIL


TABLE 2.3 :SECTORAL ANALYSIS OF MERCHANT BANKS ACCEPTANCES


US$ Thousands


AGRICULTURE
DISTRIBUTION
FINANCIAL
FINANCIAL
MANUFACTURING
MINING
SERVICES
TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL
END OF


INVESTMENT ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


TABLE 2.4 : SECTORAL ANALYSIS OF COMMERCIAL BANKS DEPOSITS


US$ Thousands


END OF
AGRICULTURE
CONSTRUCTION
COMMUNICATIONS
DISTRIBUTION
FINANCIAL
&
FINANCIAL MANUFACTURING
MINING
SERVICES TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL


INVESTMENTS
ORGANISATIONS

JANUARY

FEBRUARY

MARCH

263’552.7

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL


TABLE 2.5 : SECTORAL ANALYSIS OF MERCHANT BANKS DEPOSITS


US$ Thousands


AGRICULTURE
COMMUNICATIONS
CONSTRUCTION
DISTRIBUTION
FINANCIAL
&
FINANCIAL MANUFACTURING
MINING
SERVICES
TRANSPORT
INDIVIDUALS
CONGLOMERATES
TOTAL
END OF


INVESTMENTS
ORGANISATIONS

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY


FEBRUARY

MARCH

APRIL


TABLE 3.1: ZIMBABWE: EXTERNAL DEBT OUTSTANDING BY DEBTOR (INCLUDING ALL
ARREARS) (WITH RBZ)


End Period

(US$ millions)


Long-Term External Debt


Government

Bilateral Creditors


Multilateral Creditors

Private Creditors

Public Enterprises

1,092
1,198
1,356
Bilateral Creditors

Multilateral Creditors

Private Creditors

Monetary Authorities

Multilateral Creditors - IMF

Private

1,002
Short-Term External Debt

1,198
1,382
1,289

1,564
Supplier's Credits

Reserve Bank

Private

Total External Debt


Gross Domestic Product

External Debt / GDP


SOURCE: Ministry of
Finance and Reserve Bank
of Zimbabwe

TABLE 4.1 LENDING RATES (percent per annum)1

Commercial Banks
Merchant Banks


Weighted Average Lending
Rates3

Weighted Average Lending
Rates3
End Period
Nominal
Lending
Rates2
Individuals
Corporate
Nominal
Lending
Rates2
Individuals
Corporate

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar


Notes


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.
3. Lending rates exclude rates on staff loans.


Apr


TABLE 4.2 : BANKS DEPOSIT RATES (percent per annum)1


COMMERCIAL BANKS
ACCEPTING HOUSES


END OF
SAVINGS
3 MONTHS
3 MONTHS

JANUARY
0.15-8.00
4.00-20.00
6.00-17.00
FEBRUARY
0.15-8.00
4.00-20.00
6.00-17.00
MARCH
0.15-8.00
4.00-20.00
8.00-12.00
APRIL
0.15-8.00
4.00-20.00
8.00-12.00
MAY
0.15-8.00
4.00-20.00
6.00-17.00
JUNE
0.15-8.00
4.00-20.00
6.00-17.00
JULY
0.15-8.00
3.00-20.00
6.00-17.00
AUGUST
0.15-8.00
3.00-20.00
6.00-17.00
SEPTEMBER
0.15-8.00
3.00-20.00
11.00-12.00
OCTOBER
0.15--8.00
3.00-20.00
11.00-12.00
NOVEMBER
0.15--8.00
3.00-20.00
11.00-12.00
DECEMBER
0.15--8.00
3.00-20.00
11.00-12.00

JANUARY
0.15--8.00
3.00-20.00
11.00-12.00
FEBRUARY
0.15--8.00
3.00-20.00
11.00-12.00
MARCH
0.15--8.00
3.00-20.00
11.00-12.00
APRIL
0.15--8.00
3.00-20.00
11.00-12.00


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 : MONTHLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
1. Source: ZIMSTATS. To reflect changing expenditure
patterns, ZIMSTAT introduced a revised CPI basket and
rebased CPI figures to December 2012=100.

NON-FOOD INFLATION
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


AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


APRIL


TABLE 5.2 : YEARLY INFLATION -- PERCENTAGE CHANGE IN CONSUMER PRICE INDEX \1
(DECEMBER 2012 = 100)
1. Source: ZIMSTATS. To reflect changing expenditure
patterns, ZIMSTAT introduced a revised CPI basket and
rebased CPI figures to December 2012=100.

NON-FOOD INFLATION
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


JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


APRIL


TABLE 6 : SELECTED INTERNATIONAL EXCHANGE RATES


SA
BW
JAPANESE
EUROPEAN
POUND
END OF
RAND/1
PULA/1
YEN/1
CURRENCY/2
STERLING/2

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER


JANUARY

FEBRUARY

MARCH


1. Foreign currency per US Dollar.


2. US Dollar per unit of foreign currency.


APRIL


TABLE 7.1: COMMERCIAL BANKS - ASSETS


US$ Millions


Liquid Assets


Securities


Loans & Contingent
Other
Non Financial
Total
End of
Notes


Total
Other Balances Advances
Assets
Assets
Assets
Assets

&
Balances
Balances
Balances


Liquid
with RBZ


Coin
with
with Other
at
Trade
Treasury Agric PEs
Assets


at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug.

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr


TABLE 7.2: COMMERCIAL BANKS - LIABILITIES
US$ Millions


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


Jan

Feb

Mar

Apr


TABLE 8.1 : ACCEPTING HOUSES - ASSETS
US$ Millions


Liquid Assets


Loans & Contingent
Other
Non Financial
Total
End of
Notes


Total
Other
Balances Advances
Assets
Assets
Assets
Assets

&
Balances Balances Balances


Liquid
with RBZ


Coin
with
with Other
at
Trade
Treasury
Assets


at Banks
RBZ
Banks
Foreign
Banks
Bills
Bills

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr


TABLE 8.2 : ACCEPTING HOUSES - LIABILITIES
US$ Millions


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

Jan

Feb

Mar

Apr

May

‐99.4

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr


TABLE 9.1 : BUILDING SOCIETIES - ASSETS
US$ Millions


Liquid Assets


Notes
Balances
Trade
Treasury
Total
Mortgage
Other
Other
Non Financial
Total
End of
&
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


Jan

Feb

Mar

Apr


TABLE 9.2 : BUILDING SOCIETIES - LIABILITIES
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


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr


Table 10: ZIMBABWE STOCK MARKET STATISTICS


Indices
US$ Millions

Industrial
Mining
Market Capitalisation

Aug
132.27
89.04
3,434.00
Sep
146.00
96.00
3,822.80
Oct
154.47
93.66
4,033,76
Nov
150.16
68.74
3,890.9
Dec
152.40
65.12
3,963.50

Jan
179.34
84.07
4,700.33
Feb
182.3
72.01
4,748.24
Mar
183.88
66.21
4,726.34
Apr
189.66
71.98
4,894.68
May
212.72
73.99
5,471.22
Jun
211.19
73.29
5,436.57
Jul
232.87
66.77
5,9136.78
Aug
181.67
48.73
4,682.27
Sep
200.05
49.90
5,157.20
Oct
209.74
52.68
5,407.42
Nov
213.04
47.02
5,482.03
Dec
202.12
45.79
5,203.13

Jan
189.25
35.40
4,882.11
Feb
189.45
39.24
4,906.94
Mar
176.32
29.51
4,560.29


Source: Zimbabwe Stock Exchange (ZSE)

Apr
172.91
29.64
4,473.51

TABLE 11 : SAVINGS /1 WITH FINANCIAL INSTITUTIONS


US$ Millions


Commercial
Merchant

Building

End of
Banks
Banks
Other/2
Societies
TOTAL

January

February

March

April

May

June

July

August

September

October

November

December


1/ Comprises all deposits other than demand deposits.
2/ Includes People’s Own Savings Bank (POSB).

January

February

March

April


TABLE 12 : ANALYSIS OF LIQUID ASSETS OF MONETARY BANKS


US$ Millions


Commercial Banks
Accepting Houses


Liquid
Prescribed
Excess
Liquid
Prescribed
Excess

assets
liquid
liquid
assets
liquid
Liquid
End of
held
assets/1
assets
held
assets/1
assets

January

February

March

April

May

June

July

August

September

October

November

December


1/ With effect from May 2012, the prescribed liquid asset ratio was reviewed to 30% of liabilities to the public.

January

February

March

April


TABLE 13.1 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Values of Transactions (US$ in millions)
MONTH
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Annual Total


Jan


Feb

Mar

Apr


TABLE 13.2 : ZETSS AND RETAIL PAYMENTS TRANSACTIONAL ACTIVITY
Volumes of Transactions (in thousands)
MONTH
ZETSS
CHEQUE
POS
ATM
MOBILE
INTERNET

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Annual Total


Jan

Feb

Mar

Apr

29.23