Vol. 25 No. 10


Week Ending
10th March 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

During the week ending 10th March 2023, minimum and maximum deposit rates for savings
deposits remained at previous week levels. The same week saw both minimum and maximum
deposits rates for deposits of 1-month and 3-months tenor register declines, 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 (%)
10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

Minimum commercial bank lending rates for both individual and corporate clients increased,
during the week ending 10th March 2023. However, maximum lending rates for both individual
and corporate clients declined in the same week, as shown in Table 2.

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

Individual Clients

Corporate Clients
10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

During the week under review, average minimum deposit rates for savings deposits softened,
while those for deposits of 1-month and 3-month tenor increased. Maximum deposit rates for
savings deposits remained at previous week levels, while those for deposits of 1-month and 3month tenor declined during the same week, 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 (%)
10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

The week under review saw commercial bank minimum lending rates for both individual and
corporate clients register marginal increases. Maximum lending rates for individual clients
increased, while those for corporate clients declined during the same week, as shown in Table 4.

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

Individual Clients

Corporate Clients
10-Feb-23

17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The total value of transactions processed through the National Payment Systems (NPS)
amounted to ZW$555.24 billion, during the week ending 10th March 2023. This represented a
decrease of 20.07%, compared to ZW$694.61 billion worth of transactions processed in the
previous week. Real Time Gross Settlement (RTGS) transactions fell by 27.42% to ZW$405.94
billion in the reporting week, from ZW$559.30 billion recorded in the previous week. In
proportions, the NPS transaction values were distributed as follows: RTGS, 73,11%, POS,
13.04%; Mobile, 8,48%; and ATM, 5.36%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions decreased by 0,07% to 12.495 million, during the week under
review, from 12.503 million recorded in the previous week. In terms of volume, the NPS
transactions were distributed as follows: Mobile, 73.40%; POS, 23,77%; RTGS, 1,79%; and
ATM, 1.04%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023
RTGS
73.11%
POS
13.04%
ATM
5.36%
MOBILE
8.48%
RTGS
POS
ATM
MOBILE
RTGS, 1.79%
POS, 23.77%
ATM, 1.04%
MOBILE, 73.40%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
3rd March 2023

WEEK ENDING
10th March 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.
INTERNATIONAL COMMODITY PRICE DEVELOPMENTS

During the week ending 10th March 2023, international commodity prices for platinum,
palladium, copper, nickel, and crude oil declined. However, gold prices marginally increased.
The commodity price developments are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 10th March 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (27 Feb-3 Mar 23)

6-Mar-23

7-Mar-23

8-Mar-23

9-Mar-23

10-Mar-23

Weekly Average (6-10 Mar 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

Gold prices increased by 0.29%, from US$1,829.19 per ounce in the prior week to US$1,834.51
per ounce, during the week ending 10th March 2023. The marginal increase was, in large part,
underpinned by weak U.S. economic data as investors awaited U.S. jobs data.

Platinum
During the week under review, platinum prices declined by 0.20% to US$952.40 per ounce, from
US$954.30 per ounce recorded in the previous week. The marginal decline was reflective of a
stronger US dollar against major currencies, a development that dampened prospects for
investment demand for the metal.

Palladium
Palladium prices declined by 2.10%, from US$1,430.60 per ounce in the week ending 3rd March
2023 to US$1,400.50 per ounce, during the reporting week. The sustained decline in the price of
the metal continued to be underpinned by weak global industrial demand.

Copper
Copper prices declined by 0.97%, from US$8,959.00 per tonne in the previous week to
US$8,872.00 per tonne, during the week ending 10th March 2023. Prices eased as a stronger US
dollar dented buying appetite from holders of other currencies. The decline was, however,
partially offset by expectations of an improvement in demand in China, the world’s largest metal
consumer.

Nickel
During the week ending 10th March 2023, nickel prices declined by 4.11%, from US$24,851.00
per tonne in the preceding week to US$23,829.80 per tonne. In line with developments in the
other metal prices, nickel prices eased on account of a stronger US dollar which made dollar
denominated metals less appealing to holders of other currencies.

Brent Crude Oil

Brent crude oil prices fell from US$84.03 per barrel in the previous week to US$83.36 per barrel,
during the week under review. This was due to indications of ample supplies from the U.S.
Energy Information Administration’s reports of inventory build-ups during the period under
review.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
The Zimbabwe dollar (ZW$) appreciated by 1.6%, from an average of ZW$892.8117 per US$1
in the previous week to ZW$907.0376 per US$1, during the week ending 10th March 2023, as
shown in Table 7.

Table 7: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (27 Feb-3 Mar 23)

06-Mar-23

07-Mar-23

08-Mar-23

09-Mar-23

10-Mar-23

Weekly Average (3 Mar-10 Mar 23)

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
The Zimbabwe Stock Exchange (ZSE) continued trading on a positive trajectory for the third
consecutive week. As a result, the ZSE All Share index gained 2.92% to close at 30 049.98
points. All the major indices registered gains with the Top 10, Top 15, Medium and Small Cap
indices adding 1.98%, 2.50%, 2.73% and 5.84% to close the week at 17 359.67 points, 20 600.50
points, 65 938.99 points and 678 863.75 points, respectively.

The increase in the mainstream index was a result of share price gains for Ariston Holdings
Limited (34.79%), Mashonaland Holdings Limited (23.37%), Nampak Zimbabwe Limited
(23.01%), Tanganda Tea Company Limited (19.92%) and TSL Limited (17.45%). Partially
offsetting the gains were losses in share prices for CFI Holdings Limited (14.99%), Africa Sun
Limited (7.20%), CBZ Holdings Limited (6.63%), Ecocash Holdings Zimbabwe Limited
(5.72%) and First Capital Bank Limited (5.63%). The resources index2 remained unchanged at
33 482.91 points during the week under review.

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

Table 8: Zimbabwe Stock Exchange Statistics3

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)


3-Feb-23

10-Feb-23

17-Feb-23

24-Feb-23

03-Mar-23

10-Mar-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 6th May 2022 to 10th March
2023.

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


3 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.


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
10-Feb-23
24-Feb-23
10-Mar-23
All Share Index
Top 10 Index

Market Turnover and Volume

Trading activity on the ZSE was concentrated in some selected wealth preserving counters. As
such, the cumulative volumes of shares traded declined by 3.12% to 29.14 million, compared to
30.08 million recorded in the preceding week. The turnover value of shares traded also decreased
by 29.78% to ZW$2.66 billion, from ZW$3.79 billion recorded in the previous week. Figure 4
shows the trend in daily market turnover for the period from 11th March 2022 to 10th March 2023.

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

ZSE market capitalization stood at ZW$2.60 trillion during the reporting week, up by 3.16%
from ZW$2.52 trillion recorded in the preceding week. Figure 5 shows the evolution of ZSE
market capitalization for the period from 11th March 2022 to 10th March 2023.

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


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
10-Feb-23
24-Feb-23
10-Mar-23
ZW$ millions
Negotiated deal: 61.16 million Larfage
Cement
Zimbabwe
Limited
shares
exchanged hands at ZW$312.65


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
10-Feb-23
24-Feb-23
10-Mar-23
Billions

Victoria Falls Stock Exchange

The Victoria Falls Stock Exchange (VFEX) remained on a negative trajectory for the second
consecutive week. Resultantly, the VFEX All Share index lost 7.33% to close at 98.07 points.
Cumulatively, the volume of shares traded on the VFEX declined by 49.58% to 0.47 million,
during the week under analysis. In concomitance, the value of shares traded also declined by
37.29% to US$0.20 million, during the same week. VFEX market capitalization decreased by
7.32% to US$0.98 billion, from US$1.06 billion recorded in the previous week. Figure 6 shows
the trend in the VFEX All Share Index (ASI) for the period from 11th March 2022 to 10th March
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 declined from 78,293.01 points in the
previous week to close at 76,454.36 points, during the week ending 10th March 2023. JSE market
capitalization also declined by 1.21% to ZAR21.98 trillion, during the same week.


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
10-Feb-23
24-Feb-23
10-Mar-23

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
3-Feb-23
80,240.92
23.08
10-Feb-23
78,985.35
22.87
17-Feb-23
79,271.78
22.93
24-Feb-23
76,937.77
22.23
03-Mar-23
78,293.01
22.25
10-Mar-23
76,454.36
21.98
% Change
-2.34

-1.21
Source: 2023


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


RESERVE BANK OF ZIMBABWE

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
10-Feb-23
24-Feb-23
10-Mar-23

APPENDIX 1: FOREIGN EXCHANGE AUCTION RESULTS FOR MAINFX4 AND SMEFX5
Source: Reserve Bank of Zimbabwe, 2023


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

MAINFX
17-Feb-23 24-Feb-23 03-Mar-23 10-Mar-23

SMEFX
17-Feb-23 24-Feb-23 03-Mar-23 10-Mar-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
17-Feb-23 24-Feb-23 03-Mar-23 10-Mar-23
SMEFX
17-Feb-23 24-Feb-23 03-Mar-23 10-Mar-23
Raw Materials


Machinery and
Equipment

Consumables
(Incl. Spares,
Tyres,
Packaging)

Pharmaceuticals
and Chemicals

Services
(Loans,
Dividends and
Disinvestments)


197,421.92
208,993.30
Retail and
Distribution

Fuel, Electricity
and Gas

Paper and
Packaging

TOTAL

2,144,924.87