Vol. 25 No. 11


Week Ending
17th March 2023
Weekly Economic
Highlights
TABLE OF CONTENTS


1.
INTEREST RATES

Local Currency (ZWL) Deposit Rates

The week ending 17th March 2023 saw average minimum and maximum deposits rates for
savings deposits remain unchanged. Minimum deposits rates for deposits of 1-month tenor
remained at previous week levels, while maximum deposit rates declined. During the same week,
minimum deposits rates for deposits of 3-months tenor increased, while maximum deposit rates
for the same class of deposits declined, 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 (%)
17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Local Currency (ZWL) Lending Rates

During the week under review, marginal changes were recorded in minimum and maximum
commercial bank lending rates for both individual and corporate clients, as shown in Table 2.

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

Individual Clients

Corporate Clients
17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

Foreign Currency (USD) Deposit Rates

Average minimum and maximum deposit rates for all deposit classes remained unchanged at
previous week levels, during the week ending 17th March 2023, 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 (%)
17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

Source: Reserve Bank of Zimbabwe, 2023


Foreign Currency (USD) Lending Rates

The week under analysis also saw marginal changes in commercial bank minimum and
maximum lending rates for both individual and corporate clients, as shown in Table 4.

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

Individual Clients

Corporate Clients
17-Feb-23

24-Feb-23

3-Mar-23

10-Mar-23

17-Mar-23

Source: Reserve Bank of Zimbabwe, 2023

2.
CLEARING AND SETTLEMENT ACTIVITY

The National Payment Systems (NPS) processed transactions valued at ZW$788.00 billion,
during the week ending 17th March 2023. This represented an increase of 41.92%, from
ZW$555.24 billion worth of transactions processed in the previous week. Real Time Gross
Settlement (RTGS) transactions increased by 64.26% to ZW$666.80 billion during the week
under review, from ZW$405.94 billion recorded in the previous week. In proportions, the NPS
transaction values were distributed as follows: RTGS, 84.62%, POS, 7.72%; Mobile, 5.24%; and
ATM, 2.42%.


Figure 1: Composition of NPS Transactions in Value Terms

Source: Reserve Bank of Zimbabwe, 2023


The volume of NPS transactions decreased by 11.59% to 11.05 million, during the week ending
17th March 2023, from 12.50 million recorded in the previous week. Mobile based transactions
accounted for 74.36% of the total NPS transaction volumes, followed by POS, 23,13%; RTGS,
1,61%; and ATM, 0.90%, as shown in Figure 2.


Figure 2: Composition of NPS Transactions in Volume Terms

Source: Reserve Bank of Zimbabwe, 2023
RTGS
84.62%
POS
7.72%
ATM
2.42%
MOBILE
5.24%
RTGS
POS
ATM
MOBILE
RTGS, 1.61%
POS, 23.13%
ATM, 0.90%
MOBILE, 74.36%
RTGS
POS
ATM
MOBILE

Table 5: National Payment Systems Activity
PAYMENT
STREAM
WEEK ENDING
10th March 2023

WEEK ENDING
17th 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

International commodity prices for gold, platinum, and palladium increased, during the week
ending 17th March 2023. However, copper, nickel and crude oil prices retreated during the same
week. The commodity price developments for the reporting week are shown in Table 6.

Table 6: Metal and Crude Oil Prices for the week ending 17th March 2023

Gold
Platinum
Palladium
Copper
Nickel
Crude Oil

US$/ounce US$/ounce US$/ounce US$/tonne US$/tonne US$/barrel
Weekly Average (6-10 Mar 23)

13-Mar-23

14-Mar-23

15-Mar-23

16-Mar-23

17-Mar-23

Weekly Average (13-17 Mar 23)

Weekly Change (%)

Source: BBC, KITCO and Bloomberg, 2023
Gold

During the week under review, yellow metal prices rallied as investors turned to the safe-haven
asset, amid the global banking crisis and economic uncertainty caused by the recent collapse of
two banks in the US. Prices increased by 4.48%, from US$1,834.51 per ounce in the previous
week to US$1,916.69 per ounce, during the week ending 17th March 2023.

Platinum
Platinum prices rose by 2.56% to US$976.80 per ounce during the week under review, from
US$952.40 per ounce recorded in the previous week. Prices rose amid expectations of an
improvement in demand emanating from the global automotive industry.

Palladium
During the week ending 17th March 2023, palladium prices increased by 2.98% to US$1,442.20
per ounce, from US$1,400.50 per ounce recorded in the previous week. Prices went up on
account of the increase in demand from the electronics and car industries, where the precious
metal is widely used.

Copper
Copper prices declined by 2.30%, from US$8,872.00 per tonne recorded in the prior week to
US$8,668.10 per tonne, during the week ending 17th March 2023. This was underpinned by
concerns regarding China's modest economic growth forecasts and the recent collapse of two
American banks, which impacted negatively on the global demand outlook for the metal.

Nickel
In the week under review, nickel prices declined by 2.63%, from US$23,829.80 per tonne
recorded in the previous week to US$23,203.00 per tonne. Prices softened following China’s
downward revision of its economic growth projections.

Brent Crude Oil

Brent crude oil prices declined by 8.88% to US$75.96 per barrel during the reporting week, from
US$83.36 per barrel recorded in the previous week. The decline was, in large, exacerbated by
concerns about a possible decline in demand for the commodity, as the current banking
uncertainty in the US escalated fears of another financial crisis.

4. EXCHANGE RATE DEVELOPMENTS


Interbank Market
On the interbank market, the Zimbabwe dollar (ZW$) appreciated by 0.6%, from an average of
ZW$907.0376 per US$1 in the previous week to ZW$912.432 per US$1, during the week ending
17th March 2023, as shown in Table 7.

Table 7: Interbank Market Exchange Rates1

USD
ZAR
GBP
BWP
EURO

Weekly Average (3-10 Mar 23)

13-Mar-23

14-Mar-23

15-Mar-23

16-Mar-23

17-Mar-23

Weekly Average (10-17 Mar 23)

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

Source: Reserve Bank of Zimbabwe, 2023


5. EQUITY MARKETS


Zimbabwe Stock Exchange
The week ending 17th March 2023 saw the Zimbabwe Stock Exchange (ZSE) exhibit bullish
sentiments for the fourth consecutive week. As a result, the ZSE All Share index added 12.20%
to close at 33 715.26 points. All the major indices registered gains, with the Top 10, Top 15 and
Medium Cap indices adding 15.12%, 14.45% and 3.68% to close the week at 19 984.56 points,
23 578.08 points and 68 364.97 points, respectively.

The increase in the mainstream index was a result of share price gains for Meikles Limited
(36.19%), Amalgamated Regional Trading (ART) Holdings (30.07%), Econet Wireless
Zimbabwe Limited (28.63%), CBZ Holdings Limited (24.95%) and Nampak Zimbabwe Limited
(23.77%). Partially offsetting the gains were losses in share prices for Truworths Limited
(14.29%), Rainbow Tourism Group Limited (13.93%), Mashonaland Holdings Limited (9.09%),
Ariston Holdings Limited (8.93%) and Turnall Holdings Limited (7.28%). 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)


10-Feb-23

17-Feb-23

24-Feb-23

03-Mar-23

10-Mar-23

17-Mar-23

% Change

Source: Zimbabwe Stock Exchange (ZSE), 2023

Figure 3 shows the trend in daily market turnover for the period from 4th March 2022 to 17th
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.


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

Market Turnover and Volume

Trading activity on the ZSE was skewed towards some selected heavy weight counters, during
the reporting week. As such, the cumulative volumes of shares traded declined by 43.11% to
16.58 million, compared to 29.14 million recorded in the preceding week. The turnover value of
shares traded increased by 28.78% to ZW$3.43 billion, from ZW$2.66 billion recorded in the
previous week. Figure 4 shows the trend in daily market turnover for the period from 4th March
2022 to 17th March 2023.

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

ZSE market capitalization increased by 13.49% to ZW$2.95 trillion, from ZW$2.60 trillion
recorded in the preceding week. Figure 5 shows the evolution of ZSE market capitalization for
the period from 4th March 2022 to 17th March 2023.

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


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


04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23
Billions

Victoria Falls Stock Exchange

During the week under review, the volume and value of shares traded on the VEFX declined by
18.78% and 6.68% to 0.38 million shares and US$0.18 million, respectively. The VFEX
mainstream index increased, in large part, due share price increases for Innscor Africa Limited
(0.11%) and Padenga Holdings Limited (12.90%). VFEX market capitalisation rose by 0.15%,
or US$1.57 million worth of capitalization to close at US$1.06 billion. Figure 6 shows the trend
in the VFEX All Share Index for the period from 4th March 2022 to 17th 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 76,454.36 points in the
previous week to close at 72,527.92 points, during the week ending 17th March 2023. JSE market
capitalization also declined by 4.14% to ZAR21.07 trillion, during the same week.


04-Mar-22
18-Mar-22
01-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
08-Jul-22
22-Jul-22
05-Aug-22
19-Aug-22
02-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
09-Dec-22
23-Dec-22
06-Jan-23
20-Jan-23
03-Feb-23
17-Feb-23
03-Mar-23
17-Mar-23

Table 9: Johannesburg Stock Exchange (JSE) Statistics
Period
All Share Index
Market Capitalization
(points)
(ZAR trillions)
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
17-Mar-23
72,527.92
21.07
% Change
-5.14

-4.14
Source: 2023


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


RESERVE BANK OF ZIMBABWE

4-Mar-22
18-Mar-22
1-Apr-22
15-Apr-22
29-Apr-22
13-May-22
27-May-22
10-Jun-22
24-Jun-22
8-Jul-22
22-Jul-22
5-Aug-22
19-Aug-22
2-Sep-22
16-Sep-22
30-Sep-22
14-Oct-22
28-Oct-22
11-Nov-22
25-Nov-22
9-Dec-22
23-Dec-22
6-Jan-23
20-Jan-23
3-Feb-23
17-Feb-23
3-Mar-23
17-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
24-Feb-23 03-Mar-23 10-Mar-23 17-Mar-23

SMEFX
24-Feb-23 03-Mar-23 10-Mar-23 17-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
24-Feb-23 03-Mar-23 10-Mar-23 17-Mar-23
SMEFX
24-Feb-23 03-Mar-23 10-Mar-23 17-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
206,857.61
Retail and
Distribution

Fuel, Electricity
and Gas

Paper and
Packaging

TOTAL

2,530,187.62