Vol. 25 No. 36


Week Ending
8th September 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
OVERVIEW

This report provides an analysis of the developments in the money and capital markets for the
week ending 8th September 2023. The report also covers developments in tobacco sales, mineral
commodities, and stock markets during the week.


The Zimbabwe Stock Exchange (ZSE) exhibited bullish sentiments for the fourth consecutive
week, while negative trading characterized the Victoria Falls Stock Exchange (VFEX).
Consecutively, the value of transactions processed through the National Payment System (NPS)
were lower during the week under review compared to the previous week.

The maximum deposit rates for the domestic currency deposits remained largely unchanged
during the week under analysis.


2.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 8th September 2023, minimum deposit rates for deposits of 3-month, 6month and 12-month tenors also remained unchanged during the same week. Maximum deposit
rates for savings deposits and deposits of 1-month tenor were unchanged during the week under
analysis. Maximum deposit rates for deposits of 3-month, 6-month, and 12-month tenors,
however, registered declines during the same week as shown in Table 1.


Table 1: Average Deposit Rates (per annum)
Date
Savings deposits (%)

1- Month deposit
rates (%)

3- Month deposit
rates (%)

6- Month deposit
rates (%)

12- Month deposit
rates (%)

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
11-Aug-23


18-Aug-23

25-Aug-23


01-Sep-23

08-Sep-23

Source: Reserve Bank of Zimbabwe, 2023

Local Currency Lending Rates

The minimum and maximum ZWL lending rates for individual and corporate clients were lower
during the week under review. The ZWL lending rates are shown in Table 2.


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

Individual Clients

Corporate Clients
11-Aug-23

18-Aug-23

25-Aug-23

01-Sep-23

08-Sep-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

During the week under review, minimum and maximum FCA deposit rates for all classes of
deposits remained at the previous week’s levels. Banks continue to actively take measures to
attract long-term foreign currency deposits amid firm demand for foreign currency loans by
individual and corporate clients. Average foreign currency deposit rates are shown in Table 3.

Table 3: Average Foreign Currency Deposit Rates (per annum)

Date
Savings deposits (%)
1- Month deposit
rates (%)

3- Month deposit
rates (%)

6-Month deposit
rates (%)

12- Month deposit
rates (%)

Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
Minimum
(%)
Maximum
(%)
11-Aug-23

18-Aug-23

25-Aug-23

01-Sep-23

08-Sep-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Lending Rates


Minimum foreign currency lending rates for both individuals and corporations increased by 0.07
and 1.13 percentage points respectively. Maximum lending rates for individuals and corporates
softened during the week ending 8th September 2023.

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

Individual Clients
Corporate Clients

11-Aug-23

18-Aug-23

25-Aug-23

01-Sep-23

08-Sep-23

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

During the week under analysis, aggregate transactions processed in value terms through the
National Payment System (NPS) platforms were ZW$5.11 trillion, representing a decrease of
2.55% from ZW$5.24 trillion in the previous week. The Real Time Gross Settlement (RTGS)
system constituted 83.02% of the total value of transactions processed through the NPS. In value
terms, NPS transactions were distributed as shown in Figure 1.

Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


RTGS
83.02%
POS
6.34%
ATM
5.47%
MOBILE
5.16%
RTGS
POS
ATM
MOBILE

The volume of transactions processed through the NPS increased by 7.44% to close at 11.10
million driven by increases in Mobile, POS, and ATM transaction volumes. NPS transaction
volumes were distributed as follows: Mobile, 76.09%; POS, 19.21%; ATM, 2.79%; and RTGS,
1.90%, 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
01 September 2023
WEEK ENDING
08 September 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, 1.90%
POS, 19.21%
ATM, 2.79%
MOBILE, 76.09%
RTGS
POS
ATM
MOBILE

4.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS


During the week ending 8th September 2023, international prices for gold, platinum, palladium,
copper, and nickel fell, while crude oil prices increased. Table 6 shows commodity price
developments during the week under review.

Table 6: Metal and Crude Oil Prices for the week ending 8th September 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (29 Aug-1
Sep)

4-Sep

5-Sep

6-Sep

7-Sep

8-Sep

Weekly Average (4 - 8 Sep)

Weekly Change (%)


Source: BBC, KITCO and Bloomberg 2023

Gold

Gold prices fell by 0.59% to US$1,927.42 in the week under review, from US$1,938.84 per
ounce reported in the previous week. The price decrease was mainly due to the strengthening of
the U.S. dollar amid rising expectations that the Federal Reserve will keep interest rates higher
for longer.

Platinum
Platinum prices declined by 5.40% to a weekly average of US$926.00 per ounce, during the
week under review, from a weekly average of US$978.88 per ounce reported in the previous
week. A stronger U.S. dollar and weak industrial demand underpinned the decline in the price of
the metal.

Palladium
During the week ending 8th September 2023, palladium prices retreated by 1.51% to
US$1,213.50 per ounce, from US$1,232.13 per ounce recorded in the previous week. Prices
slipped as the U.S. dollar strengthened, dampening the metal's appeal to holders of other
currencies.

Copper
Copper prices fell by 1.36% to US$8,362.20 per tonne during the week ending 8th September
2023, from US$8,477.33 per tonne recorded in the previous week, mainly due to a rally in the
U.S. dollar.

Nickel
Nickel prices decreased by 0.58% to close at US$20,576.60 per tonne during the week under
review, from US$20,695.75 per tonne reported in the week ending 1st September 2023. A
stronger U.S. dollar and weak economic data from major economies, including China, the top
metals consumer, largely drove the price decline.

Brent Crude Oil
Crude oil prices increased by 4.07% to US$90.03 per barrel during the week ending 8th
September 2023, from US$86.51 per barrel reported in the previous week. This was underpinned
by supply-tightening behaviour, with Saudi Arabia extending its production cut to the end of the
year. Furthermore, the United States reported a significant drop in its inventories, pushing the
demand for the commodity in the face of a supply decline.

Exchange Rate Developments
Interbank Market
The Zimbabwe dollar (ZW$) depreciated by 0.9% on the interbank market, from an average of
ZW$4,593.69 per US$1 in the prior week to ZW$4,633.01 per US$1, during the reporting week,
as shown in Table 7.

Table 8: Selected Exchange Rates (ZW$ per unit of foreign currency)

USD
ZAR
GBP
BWP
EURO
Weekly Average (28 Aug – 1 Sep)

04-Sep

05-Sep

06-Sep

07-Sep

08-Sep

Weekly Average (4 - 8 Sep)

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

Source: Reserve Bank of Zimbabwe, 2023

5. EQUITY MARKETS
During the week of analysis, the Zimbabwe Stock Exchange (ZSE) exhibited bullish sentiments
for the fourth consecutive week, while negative trading characterized the Victoria Falls Stock
Exchange (VFEX). As a result, the ZSE All Share index rose by 7.05% while the VFEX All
Share index lost 3.50% to close at 130 812.47 points and 68.06 points, respectively.

Zimbabwe Stock Exchange (ZSE) Developments

The Top 10, Top 15 and Medium Cap indices added 9.94%, 8.12%, and 2.01% to close at 62
062.50 points, 84 773.55 points, and 459 558.89 points, respectively. This is compared to the
previous week’s positions of 56 448.75 points, 78 409.88 points, and 450 491.88 points,
respectively.

The resource index remained unchanged at 109 159.36 points during the same week. Figure 3
shows developments on the ZSE’s All Share, Top 10, and Mining indices from 9th September
2022 to 8th September 2023.

Figure 3: ZSE All Share, Top 10 and Mining Indices

Source: Zimbabwe Stock Exchange, 2023


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
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
Mining Index
All Share and Top 10 Indices
All Share Index (ZSE)
Top 10 Index
Mining Index

The rise in the mainstream index emanated from share price gains in Willdale Limited (63.96%),
Masimba Holdings Limited (32.24%), CBZ Holdings Limited (27.22%), Ariston Holdings
Limited (20.51%) and Delta Corporation Limited (16.69%).

Partially offsetting the gains were declines in the share prices of Amalgamated Regional Trading
(ART) Limited (13.96%), SeedCo Limited (11.36%), Hippo Valley Estates Limited (10%),
StarAfrica Corporation Limited (6.31%) and Edgars Stores Limited (4.35%).

Market Turnover

During the week under analysis, cumulative volume and value of shares traded increased by
1 008.31% and 297.69% to 248.02 million shares and ZW$53 131.23 million. This compares to
22.38 million shares and ZW$13 359.98 million recorded in the prior week, respectively. The
surge in turnover volume and value was largely informed by a block trade in which 241 million
First Mutual Holdings Limited shares exchanged hands at ZW$196 per share.

Figure 4 shows the trend in daily market turnover for the period 9th September 2022 to 8th
September 2023.

Figure 4: Market Turnover

Source: Zimbabwe Stock Exchange, 2023


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
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
ZW$ (Million)
Negotiated Deal: 241 million
First Mutual Holdings
Limited shares exchanged
hands at ZW$196/share

Market Capitalization
As a consequence of bullish sentiments exhibited on the ZSE during the week under review, the
market added 7.37%, or ZW$716.70 billion worth of capitalization to close at ZW$10 435.10
billion, compared to ZW$9 718.39 billion registered in the previous week.

Figure 5 shows the evolution of market capitalization for the period 9th September 2022 to 8th
September 2023.

Figure 5: Market Capitalization
Source: Zimbabwe Stock Exchange, 2023

Victoria Falls Stock Exchange (VFEX) Developments

The decrease in the VFEX mainstream index was a result of share price declines in First Capital
Bank Limited (25%), National Foods Holdings Limited (19.90%), Padenga Holdings Limited
(1.91%), Simbisa Brands Limited (1.29%) and Innscor Africa Limited (0.31%)

Partially offsetting the abovementioned declines were increases in the share price of Axia
Corporation Limited (3.22%).


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
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23
$ Billions

VFEX Market Turnover
The VFEX cumulative volume and value of shares traded declined by 66.97% and 35.59% to
1.48 million shares and US$0.45 million, compared to 4.47 million shares and US$ 0.70 million,
recorded in the previous week, respectively.

VFEX Market Capitalization

Owing to subdued trading activity on the VFEX during the week under review, the market lost
3.50% worth of capitalization to close at US$1.16 billion.

Figure 6 shows the trend in the VFEX All Share Index (ASI) for the period 9th September 2022
to 8th September 2023.

Figure 6: VFEX All Share Index

Source: Victoria Falls Stock Exchange (VFEX), 2023


RESERVE BANK OF ZIMBABWE

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
10-Feb-23
24-Feb-23
10-Mar-23
24-Mar-23
07-Apr-23
21-Apr-23
05-May-23
19-May-23
02-Jun-23
16-Jun-23
30-Jun-23
14-Jul-23
28-Jul-23
11-Aug-23
25-Aug-23
08-Sep-23


APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX1 AND WHOLESALEFX 2
Source: Reserve Bank of Zimbabwe, 2023

1 Main Foreign Currency Auction. The Auction is normally conducted every Tuesday every week.
2 Wholesale Foreign Currency Auction (Wholesale FX). The RBZ MPC resolutions dated 6 June 2023 resolved that with effect from 7 June 2023, the Bank shall sell foreign currency at the market-determined exchange
rate through banks to support and strengthen the foreign exchange interbank market, and banks shall in turn sell the foreign currency to their customers.


WHOLESALEFX
03-August-23 08- Aug-23 16-Aug-23 29-Aug-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
01-August-23 08-Aug-23 16-Aug-23
29-Aug-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
497,893.08
884,829.72
569,439.28
545,877.82