IN a strategic move to future-proof its financial performance, the Deposit Protection Corporation of Zimbabwe (DPC) is implementing a multi-asset class investment approach.
The corporation is diversifying its portfolio to include property, equities, money market placements and alternative investments.
Established under the Deposit Protection Corporation Act, DPC serves as a safety net for depositors, compensating them in the event of a financial institution’s insolvency.
Currently, depositors are covered up to US$1 000 per deposit class per banking institution and US$500 per deposit class per deposit-taking microfinance institution.
However, these coverage limits have become increasingly unsustainable due to exchange rate volatility, particularly with the introduction of the Zimbabwe Gold (ZiG) currency.
“We look forward to reviewing the cover limit upwards per deposit class per contributory banking institution before the end of the first quarter of 2025,” DPC chief executive officer Hopewell Zinyau told businessdigest in an interview.
“The DPC Fund size is currently at US$15,2 million. DPC has a balanced investment strategy that allows the fund to ride out the short-term downturns and upswings in capital and investment markets.
“For the long-term sustainability of the fund, DPC seeks to fully diversify across high-yielding multiple asset classes, which include property, equities, money market placements, Real Estate Investment Trusts, and alternative investments. This is in line with the fund’s financial goals and risk appetite.”
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DPC facilitates payments to depositors through two key channels: the Deposit Protection Fund, which covers deposits up to the prevailing coverage limit, and liquidation dividends, which are distributed on a pro-rata basis, depending on debt recoveries and asset realisation.
To enhance its effectiveness, the corporation is also advocating for amendments to the DPC Act, which will further support its operations and strengthen deposit protection measures.
Beyond financial safeguards, DPC actively engages in public awareness initiatives to educate depositors about deposit protection.
“DPC conducts nationwide awareness campaigns through radio, television, newspapers and social media platforms to inform depositors about their rights and the benefits of deposit protection,” Zinyau said.
“The corporation regularly conducts educational workshops and seminars for different stakeholder groups, including banks, deposit-taking microfinance institutions and the public, to explain the Deposit Protection Scheme.”
He also said the DPC complied with the requirements of the Data Protection Act and followed stringent security protocols to ensure the safety of customer data.
“This entails data encryption, access controls, regular audits and data updates.”
