Vol. 25 No. 04


Week Ending
27th January 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

Average minimum and maximum deposits rates across all classes of deposits registered
increases, during the week ending 27th January 2023, 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 (%)
30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

The week ending 27th January 2023 saw a decrease in commercial bank minimum and maximum
lending rates for individual clients. Minimum lending rates for corporate clients increased, while
maximum lending rates declined, as shown in Table 2.

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

Individual Clients

Corporate Clients
30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

During the week ending 27th January 2023, average minimum and maximum interest rates on
savings deposits, deposits of 1-month and 3-months tenor were 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

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

Commercial bank minimum lending rates for individual and corporate clients stood at 11.35%
and 6.60%, respectively, during the reporting week. During the same week, maximum lending
rates for individual clients were 12.86%, while those for corporate clients were higher at 13.52%,
as shown in Table 4.

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

Individual Clients

Corporate Clients
27-Jan-23

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

The aggregate value of transactions processed through the National Payment Systems (NPS)
increased by 11.46% to ZW$705.88 billion, from ZW$633.30 billion recorded in the previous
week. Real Time Gross Settlement (RTGS) transactions increased by 15.98% to ZW$601.38
billion, from ZW$518.51 billion recorded in the preceding week. The NPS transactions values
were distributed as follows: RTGS, 85.20%, POS, 7.93%; Mobile, 4.30%; and ATM, 2.57%.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions decreased by 3.72% to 11.77 million, during the week under
review, from 12.23 million recorded in the preceding week. Mobile based transactions continued
to dominate NPS transactions volumes at 71.87% of the total, followed by POS, 24.65%; RTGS,
2.45%; and ATM, 1.02%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
20th January 2023

WEEK ENDING
27th January 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
RTGS
85.20%
POS
7.93%
ATM
2.57%
MOBILE
4.30%
RTGS
POS
ATM
MOBILE
RTGS, 2.45%
POS, 24.65%
ATM, 1.02%
MOBILE, 71.87%
RTGS
POS
ATM
MOBILE

3.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During the week ending 27th January 2023, commodity prices for gold, nickel, copper and crude
oil increased. However, platinum and palladium prices declined. The commodity prices
developments during the week under review are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 27th January 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (16-20 Jan 23)

23-Jan-23

24-Jan-23

25-Jan-23

26-Jan-23

27-Jan-23

Weekly Average (23-27 Jan 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

In the week under review, gold prices rose by 0.6% to US$1,927.62 per ounce, from
US$1,915.60 per ounce reported in the previous week. The increase was, however, moderated
as the US dollar firmed against other currencies.

Platinum
Platinum prices marginally declined by 0.1%, from US$1,045.80 per ounce in the prior week to
US$1,035.40 per ounce in the reporting week. The demand for the precious metal remained
suppressed, amid low production in the automotive industry.

Palladium
During the week ending 27th January 2023, prices of palladium were dampened by slackening
industrial demand, as disruptions to the global semi-conductor industry caused supply chain
shortages in the automotive industry. Prices declined by 1.7%, from US$1,729.60 per ounce in
the week ending 20th January 2023 to US$1,700.90 per ounce, during the week under review.

Copper
Copper prices remained firm as weak demand offset speculative bets that the end of China’s
Zero-Covid-19 policy would reignite growth. Prices slightly rose by 0.1%, from US$9,307.37
per tonne in the previous week to US$9,313.50 per tonne, during the week ending 27th January
2023.

Nickel
Nickel prices increased by 5.1% to US$28,972.00 per tonne during the week under review, from
US$27,565.60 per tonne in the previous week. The demand outlook for the base metal was
boosted by the relaxation of Covid-19 restrictions in China.

Brent Crude Oil

Brent Crude oil prices extended previous week gains by 2.4%, from US$84.90 per barrel
recorded in the previous week to US$86.89 per barrel, during the week ending 27th January 2023.
Prices rose amid expectations that global demand would strengthen, as top oil importer, China,
reopened its economy. Positive U.S. economic data also boosted Brent Crude oil prices.


4. EXCHANGE RATE DEVELOPMENTS


Foreign Exchange Auction
On the foreign exchange auction, the Zimbabwe dollar (ZW$) depreciated by 5.4% against the
US dollar, from an average of ZW$721.3687 per USD$1 in the previous week to ZW$760.3875
per US$1, during the week ending 27th January 2023. The developments in selected exchange
rates are as shown in Table 7.

Table 7: Foreign Exchange Auction Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (16-20 Jan 23)

23-Jan-23

24-Jan-23

25-Jan-23

26-Jan-23

27-Jan-23

Weekly Average (23-27 Jan 23)

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

Interbank Market
On the Interbank market, the Zimbabwe dollar (ZW$) depreciated by 5.7% against the US dollar,
from ZW$730.7558 per US$1 in the previous week to ZW$772.5784 per US$1, during the week
ending 27th January 2023, as shown in Table 8.

Table 8: Interbank Market Exchange Rates2

USD
ZAR
GBP
BWP
EURO

Weekly Average (16-20 Jan 23)

23-Jan-23

24-Jan-23

25-Jan-23

26-Jan-23

27-Jan-23

Weekly Average (23-27 Jan 23 )

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) was characterised by bullish sentiments. As a result, the
ZSE All Share index added 2.20% to close at 22 142.52 points. The Top 10, Top 15, Small and
Medium indices added 1.97%, 2.13%, 1.14% and 3.52% to close at 13 612.50 points, 15 166.91
points, 474 766.97 points and 45 157.58 points, respectively.

The increase in the mainstream index was a result of share price gains for Seed Co Limited
(39.33%), Proplastics Limited (28.57%), Tanganda Tea Company Limited (21.02%), Cafca
Limited (14.99%) and First Mutual Properties Limited (11.63%). Partially offsetting the share
price gains were decreases in share prices for Willdale Limited (16.22%), First Mutual Holdings
Limited (14.85%), Star Africa Corporation Limited, (10.68%), Nampak Zimbabwe Limited
(9.02%) and Getbucks Microfinance Limited (8.26%). The resources index3 remained
unchanged at 25 496.86 points, during the week under review.


2 Direct quote – the amount of domestic currency needed to exchange for 1 unit of foreign currency
3 Resource Index – Comprise RioZim Limited Share Price

Table 9: Zimbabwe Stock Exchange Statistics4

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)


23-Dec-22

30-Dec-22

6-Jan-23

13-Jan-23

20-Jan-23

27-Jan-23

% Change


Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 28th January 2022 to 27th
January 2023.

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


4 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.


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

Market Turnover and Volume

During the week under analysis, the cumulative value of shares traded on the ZSE increased by
7.12%, from ZW3.09 billion in the previous week to ZW3.31 billion. The cumulative volume of
shares traded also increased by 29.08% to 24.51 million during the week ending 27th January
2023, from 18.99 million reported in the preceding week. Figure 4 shows the trend in daily
market turnover for the period from 28th January 2022 to 27th January 2023.

Figure 4: Daily Market Turnover


Source: Zimbabwe Stock Exchange, 2023
Market Capitalization

The local bourse added ZW$50.30 billion, or 2.15% worth of capitalisation to close at ZW2,
392.19 billion. Figure 5 shows the evolution of ZSE market capitalization for the period from
28th January 2022 to 27th January 2023.

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


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


28-Jan-22
11-Feb-22
25-Feb-22
11-Mar-22
25-Mar-22
08-Apr-22
22-Apr-22
06-May-22
20-May-22
03-Jun-22
17-Jun-22
01-Jul-22
15-Jul-22
29-Jul-22
12-Aug-22
26-Aug-22
09-Sep-22
23-Sep-22
07-Oct-22
21-Oct-22
04-Nov-22
18-Nov-22
02-Dec-22
16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23
Billions

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) was characterised by negative trading during the
week ending 27th January 2023. Consequently, the VFEX All Share index shed 0.41% to close
at 116.05 points. The cumulative volume of shares traded on the VFEX declined by 92.25% to
0.02 million, during the week under review. In concomitance, the value of shares traded declined
by 92.34% to US$0.01 million, during the same week. VFEX market capitalization stood at
US$0.66 billion, a decline of 0.41% or US$0.04 billion, from US$0.66 billion recorded in the
previous week. Figure 6 shows the trend of the VFEX All Share Index (ASI) for the period from
28th January 2022 to 27th January 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 rose from 79,269.77 points in the
previous week to close at 80,791.36 points, during the week ending 27th January 2023. JSE
market capitalization also increased by 1.13% to ZAR23.28 trillion, during the same week.

Table 10: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
23-Dec-22
73,493.47
21.45
30-Dec-22
73,048.57
21.34
6-Jan-23
76,858.94
22.30
13-Jan-23
79,333.72
22.88
20-Jan-23
79,269.77
23.02
27-Jan-23
80,791.36
23.28
% Change
1.92
1.13
Source: 2023

28-Jan-22
11-Feb-22
25-Feb-22
11-Mar-22
25-Mar-22
08-Apr-22
22-Apr-22
06-May-22
20-May-22
03-Jun-22
17-Jun-22
01-Jul-22
15-Jul-22
29-Jul-22
12-Aug-22
26-Aug-22
09-Sep-22
23-Sep-22
07-Oct-22
21-Oct-22
04-Nov-22
18-Nov-22
02-Dec-22
16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23

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


RESERVE BANK OF ZIMBABWE


28-Jan-22
11-Feb-22
25-Feb-22
11-Mar-22
25-Mar-22
8-Apr-22
22-Apr-22
6-May-22
20-May-22
3-Jun-22
17-Jun-22
1-Jul-22
15-Jul-22
29-Jul-22
12-Aug-22
26-Aug-22
9-Sep-22
23-Sep-22
7-Oct-22
21-Oct-22
4-Nov-22
18-Nov-22
2-Dec-22
16-Dec-22
30-Dec-22
13-Jan-23
27-Jan-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX5 AND SMEFX6
Source: Reserve Bank of Zimbabwe, 2023
*The first foreign currency auction for 2023 commenced on the 10th of January 2023. The last foreign currency auction for 2022 was on the 13th of December
2022.

5 Main Foreign Currency Auction
6 Small and Medium Enterprises Foreign Currency Auction

MAINFX
16-Dec-22 13-Jan-23 20-Jan-23 27-Jan-23

SMEFX
16-Dec-22 13-Jan-23 20-Jan-23 27-Jan23
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
* The first foreign currency auction for 2023 commenced on the 10th of January 2023. The last foreign currency auction for 2022 was on the 13th
of December 2022.
Purpose
MAINFX
16-Dec-22 13-Jan-23 20-Jan-23 27-Jan-23
SMEFX
16-Dec-22 13-Jan-23 20-Jan-23 27-Jan-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

1,515,043.86