Vol. 25 No. 22


Week Ending
2nd June 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
OVERVIEW

This weekly report provides a comprehensive update on the key developments in the money and
capital markets, as well as the tobacco industry, for the week ending 2 June 2023. The report
highlights the stability of minimum and maximum deposit rates for deposits of all classes during
the week, as well as a modest increase in minimum lending rates for individual and corporate
clients.

In terms of commodity prices, the report states that while copper and nickel prices saw a slight
gain, the weekly average prices for gold, platinum, and palladium decreased as a result of weaker
demand. Additionally, the week saw a decline in the average price of Brent crude oil, which was
linked to both an increase in US oil stocks and a stronger US dollar.

A strong demand for transactions in local currency is indicated by the report's mention of a
favorable trend in the value of zwl transactions processed through the National Payment System
(NPS). This pattern might be a result of the expanding significance of domestic economic activity
as well as the local currency's relative stability to other currencies. Similar to the stock markets,
the equity markets continued to grow throughout the week, which may be a sign of strong
demand for value preservation strategies.
2.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Minimum and maximum rates for deposits of all classes remained at previous week’s levels,
during the week ending 2 Jun 2023, as shown in Table 1. Commercial Banks maintained savings
deposit rates marginally above the prescribed 30% per annum during the period of analysis.
Deposit rates for deposits of 1 month and 3-month tenors were, however, maintained at higher
levels compared to the prescribed minimum deposit rates of 50% per annum as part of measures
to attract long term deposits.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
5-May-23

12-May-23

19-May-23


26-May-23

2-Jun-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Commercial bank minimum lending rates for individual and corporate clients were marginally
higher during the week under review. This partly reflects incentives by banks to increase access
to credit for less risky individuals and corporates. Maximum lending rates for individual clients
registered increases during the same week while corporate clients remained the same. This was,
partly on account of a higher lending premiums for riskier clients. Lending rates are shown in
Table 2.
Table 2: Lending Rates (per annum)
Date
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)

Individual Clients

Corporate Clients
5-May-23

12-May-23

19-May-23

26-May-23

2-Jun-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 2nd June 2023, as shown in Table 3. Commercial
banks continued to offer higher deposit rates to attract long term foreign currency deposits.


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

3- Month deposit rates (%)

Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
Minimum (%)
Maximum (%)
5-May-23

12-May-23

19-May-23

26-May-23

2-Jun-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates

Minimum commercial bank lending rates for individual clients registered a marginal decrease,
while those for corporate clients were higher during the week under analysis. Maximum lending
rates for individual clients softened while those for corporates clients increased during the week
under review, as shown in Table 4. Lending for rates for corporates increased on the back of
higher demand for credit. Higher interest rates for foreign currency loans were underpinned by
elevated deposit rates and risk premiums particularly for long term deposits. The level of foreign
currency interest rates point to unfavourable foreign currency funding costs in the country when
compared to interest rates for other countries with access to lower cost of capital.

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

Individual Clients

Corporate Clients
5-May-23

12-May-23

19-May-23

26-May-23

2-Jun-23

Source: Reserve Bank of Zimbabwe, 2023
3.
CLEARING AND SETTLEMENT ACTIVITY

The week under review saw an increase in the value of transactions processed through the
National Payment System (NPS), from ZW$1.18 trillion in the previous week to ZW$1.7 trillion.
Real Time Gross Settlement (RTGS) increaesed by 52.83% to ZW$1.43 trillion, during the same
week. The increase in ATM transactions was, in part, on account of firm demand for local
currency bank notes for use in small transactions and change. In proportions, NPS transaction
values were distributed as follows: RTGS, 82.60%, POS, 7.82%; Mobile, 5.90%; and ATM,
3.68%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions increased by 0.67% to 12.57 million, during the week ending
2nd June 2023. Lower ATM transaction volumes registered during the week under analysis were
partly attributable ATM down times. In volume terms, the NPS transactions were distributed as
follows: Mobile, 73.13%; POS, 23.03%; RTGS, 2.4 9%; and ATM, 1.35%, as shown in Fig. 3.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
82.60%
POS
7.82%
ATM
3.68%
MOBILE
5.90%
RTGS
POS
ATM
MOBILE
RTGS, 2.49%
POS, 23.03%
ATM, 1.35%
MOBILE, 73.13%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
26th May 2023

WEEK ENDING

2nd 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

4.
TOBACCO SALES
As at 2nd June or day 58 of the 2023 tobacco selling season, a cumulative total of 245.73 million
kilograms of tobacco had been sold. This represented a 55.64% increase, compared to the 157.88
million kilograms sold during the comparable period in 2022. Turnover realized from the sales
amounted to US$740.99 million and was 55.82% higher than the US$475.55 million recorded
during the corresponding period in 2022, as shown in Table 6.

Table 6: Weekly Cumulative Tobacco Sales: Day 53 (2nd June 2023)

Variance (%)
Cumulative Quantity Sold (million kgs)
157,884,276
245,732,137
55.64
Average Price (US$/kg)
3.01

3.02
0.11
Cumulative value (US$ million)
475,552,777
740,985,243
55.82
Source: Tobacco Industry and Marketing Board (TIMB), 2023

The golden leaf was sold at an average price of US$3.02/kg, during the week under review, up
from US$3.01/kg realized during the same period in 2022.
5.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During week ending 2nd June 2023, weekly average prices for gold, platinum, palladium, copper
and nickel retreated on largely on account of lower demand while Brent crude oil weakly average
prices surged on the back of declining inventories and anticipated production cuts by OPEC.
Table 7 shows commodity prices developments during the week under analysis.

Table 7: Metal and Crude Oil Prices for the week ending 2nd June 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce
US$/ounce
US$/ounce
US$/tonne
US$/tonne
US$/barrel
Weekly Average (22 -26 May)

29-May

30-May

31-May

01-June

02-June

Weekly Average (29 -02 June)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg 2023

Gold

During the week ending 2nd June 2023, gold prices remained bearish and marginally eased by
0.15% to US$1,960.87 per ounce from US$1,963.88 per ounce in the previous week. Prices
retreated as the strengthening of the US dollar raised the opportunity cost of holding non-yielding
assets like gold. The US dollar appreciated against other currencies in the wake of better-thanexpected U.S. employment data for May 2023.

Platinum
Platinum prices continued on a negative trend on account of stronger U.S dollar and fears of
supply shortages, particularly in South Africa. Accordingly, platinum prices declined by 2.82%,
from an average of US$1,046.80 per ounce in the previous week to US$1,017.30 per ounce
during the week under review.

Palladium
In the same vein, palladium prices slumped by 2.88% to US1,410.10 per ounce, from US1,451.90
per ounce recorded in the prior week. Prices continued to decline owing to sluggish industrial
demand and a stronger U.S dollar.

Copper
Copper prices increased by 1.80%, from US$8,019.10 per tonne to US$8,163.20 per tonne during
the week ending 2nd June 2023. The red metal’s prices rose after a surprise boost in Chinese
factory activity which lifted hopes for improved demand.

Nickel
Nickel prices rebounded during the week under review, on account of improved demand from
China following the signed partnership between Chinese firm and Ford Motor to build a new
lithium battery plant. This development is expected to boost demand for nickel which is used in

the manufacture of electric vehicle batteries. Consequently, nickel prices increased by 0.01%
from US$21,017.00 per tonne to US$21,019.00 per tonne during the week under analysis.

Brent Crude Oil
During the week ending 2nd June 2023, crude oil average prices weakened by 3.34% to US$75.02
per barrel, from US$77.61 per barrel recorded in the previous week. The decline in oil prices
was occasioned by a stronger U.S dollar and a buildup in US oil inventories.

6. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) depreciated by 41%, from an average of
ZW$1,677.85 per US$1 in the previous week to ZW$2,362.54 per US$1, during the week under
review, as is shown in Table 2.

Table 2: Selected Exchange Rates (ZW$ per unit of foreign currency)

USD
ZAR
GBP
BWP
EURO
Weekly Average (22-26 May)

29-May

30-May

31-May

01-June

02-June

Weekly Average (29-02 June)

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

Source: Reserve Bank of Zimbabwe, 2023


7. EQUITY MARKETS


Zimbabwe Stock Exchange
During the week ended 2nd June 2023, the Zimbabwe Stock Exchange (ZSE) maintained positive
momentum for the seventh consecutive week. As a result, the ZSE All Share index gained
17.48% to close at 112 615.44 points. The Top 10, Top 15, Medium Cap and Small Cap indices
increased by 15.08%, 16.94%, 25.98% and 8.16% to close the week at 67 504.61 points,
79 518.53 points, 220 449.67 points and 1 061 229.76 points, respectively.

The rise in the mainstream index was a result of share price gains in SeedCo Limited (98.01%),
TSL Limited (77.94%), CBZ Holdings Limited (74.88%), ZB Financial Holdings Limited
(74.85%), and Zimre Holdings Limited (51.92%). Partially offsetting the aforementioned
increases were losses in share prices of Zimplow Holdings Limited (12.42%), NMBZ Holdings
Limited (8.08%), General Beltings Holdings Limited (2.08%), Getbucks Microfinance Bank
Limited (1.60%) and Proplastics Limited (0.78%). The increase in the resource index emanated
from a 10.67% increase in RioZim Limited share price during the week under review.

Table 8: Zimbabwe Stock Exchange Statistics1

All Share
Index
Points
Top 10
index3
(points)


Mining
Index
(points)
Grand
Market
Capitali
zation
(ZWL
billion)
Market
Turnover
(ZWL
million)
Volume
of
Shares
(million)
Top 15
Index3
points
Medium
Cap3
(points)
Small Cap3
(points)


26-May-23

29-May-23

30-May-23

31-May-23

1-Jun-23

2-June-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 20th April 2022 to 2nd June
2023.


1 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 and value of shares traded increased by 688.04% and 139.27% to 80.84
million shares and ZW$16.44 billion, respectively. The turnover value of shares amounted to
ZW$6.87 billion, representing a decrease of 40.04% from ZW$11.46 billion recorded in the
previous week. Figure 4 shows the trend in daily market turnover for the period from 14th May
2022 to 2nd June 2023.

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

Market Capitalization

In line with developments on the ZSE during the week under review, the local bourse gained
18.64%, or ZW$1,48 trillion worth of capitalization to close at ZW$9,42 trillion, compared to


20-Apr-22
14-May-22
7-Jun-22
1-Jul-22
25-Jul-22
18-Aug-22
11-Sep-22
5-Oct-22
29-Oct-22
22-Nov-22
16-Dec-22
9-Jan-23
2-Feb-23
26-Feb-23
22-Mar-23
15-Apr-23
9-May-23
2-Jun-23
All Share Index
Top 10 Index


14-May-

07-Jun-

01-Jul-22
25-Jul-22
18-Aug-

11-Sep-

05-Oct-

29-Oct-

22-Nov-

16-Dec-

09-Jan-

02-Feb-

26-Feb-

22-Mar-

15-Apr-

09-May-

02-Jun-

ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65
Block
Trades:
33.18
million
Mashonaland Holdings shares, 15.13
million Edgars Stores shares and 9.58
million
Zimplow
Holdings
shares
exchanged
hands
at
ZW$49.70,
ZW$57.50 and ZW$83.67, respectively.

the previous week’s position of ZW$7,95 trillion, recorded in the previous week. Figure 5 shows
ZSE market capitalization developments for the period from 20th April 2022 to 2nd June 2023.

Figure 5: Daily Market Capitalization in ZW$ billions
Source: Zimbabwe Stock Exchange, 202
Victoria Falls Stock Exchange


The Victoria Falls Stock Exchange (VFEX) was characterised by bearish trading during the week
ending 2nd June 2023. Resultantly, the VFEX All Share index lost 3.22% to close at 80.22 points,
compared to 82.89 points recorded in the previous week. The decline in the VFEX mainstream
index emanated from share price declines in Axia Corporation Limited (16.58%), First Capital
Bank Limited (15%), Innscor Africa Limited (9.11%), Africa Sun Limited (2.34%) and Simbisa
Brands Limited (0.27%)Partially offsetting the share price losses were gains registered in share
price of SeedCo International (3.70%) and Bindura Nickel Corporation Limited (BNC) (1.94%).

The VFEX cumulative volume and value of shares traded declined by 0.51% and 29.47% to 1.83
million shares and US$0.58 million respectively. Market capitalization, declined by 3.22%, or
US$44.99 million worth of capitalization to close at US$1.35 billion, compared to US$1.40
billion registered in the previous week. Figure 6 shows the trend in the VFEX All Share Index
(ASI) for the period from 20th April 2022 to 2nd June 2023.


20-Apr-22
14-May-22
07-Jun-22
01-Jul-22
25-Jul-22
18-Aug-22
11-Sep-22
05-Oct-22
29-Oct-22
22-Nov-22
16-Dec-22
09-Jan-23
02-Feb-23
26-Feb-23
22-Mar-23
15-Apr-23
09-May-23
02-Jun-23
Billions

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


Johannesburg Stock Exchange (JSE) Developments

The Johannesburg Stock Exchange (JSE) All share index was 0.70% higher to close at 77,126.06
points during the week under analysis. JSE market capitalization also increased by 2.98% to
close at ZAR21.82 trillion during the same period.

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
26-May-23
76,589.54
21.82
29-May-23
76,613.35
22.36
30-May-23
75,939.46
22.34
31-May-23
75067.47
22.35
1-June-23
75783.25
22.49
2-June-23
77,126.06
21.97
% Change

+0.70

+0.68
Source: 2023


20-Apr-22
14-May-22
07-Jun-22
01-Jul-22
25-Jul-22
18-Aug-22
11-Sep-22
05-Oct-22
29-Oct-22
22-Nov-22
16-Dec-22
09-Jan-23
02-Feb-23
26-Feb-23
22-Mar-23
15-Apr-23
09-May-23
02-Jun-23

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


8.
GOLD COINS

A total amount of ZW$31.8 billion had been purchased in respect of the gold coins by the 2nd of
June 2023. Similarly, a total amount of ZW$35.2 billion had been purchased in respect of the
gold backed digital coins by the same date.

Figure 3: Digital Gold Backed Coin Purchases (Volume and Value) As at 02 June 2023


RESERVE BANK OF ZIMBABWE

14-May-22
7-Jun-22
1-Jul-22
25-Jul-22
18-Aug-22
11-Sep-22
5-Oct-22
29-Oct-22
22-Nov-22
16-Dec-22
9-Jan-23
2-Feb-23
26-Feb-23
22-Mar-23
15-Apr-23
9-May-23
2-Jun-23

12-May-23
18-May-23
26-May-23
01-Jun-23
ZW$Billion
KGs
Cum. Coin Purchases (ZW$) (RHS)
Cum. Coin Purchases (KGs)

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX2 AND SMEFX 3
Source: Reserve Bank of Zimbabwe, 2023


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

MAINFX
12-May-23 19-May-23 26-May-23 2-June-23

SMEFX
12-May-23 19-May-23 26-May-23 2-June-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

1,212.5448
1,404.8039
1,888.0119

Number of Bids
Rejected

APPENDIX 2: SUMMARY OF FOREIGN CURRENCY AUCTION ALLOTMENTS BY PURPOSE
Source: Reserve Bank of Zimbabwe, 2023


Purpose
MAINFX
12-May-23 19-May-23 26-May-23 2-June-23
SMEFX
12-May-23 19-May-23 26-May-23 2-June-23
Raw Materials


Machinery and
Equipment


Consumables
(Incl. Spares,
Tyres,
Packaging)


Pharmaceuticals
and Chemicals


Services
(Loans,
Dividends and
Disinvestments)


Retail and
Distribution
1,390,864.07
1,514,194.61


Fuel, Electricity
and Gas


Paper and
Packaging


TOTAL
14,773,230.18 13,171,159.91 13,209,099.47

2,280,785.72
1,576,700.13
1,273,163.40
957,712.91