Online Reporter
Ivan Zhakata-Herald Correspondent
THE Deposit Protection Corporation recorded an inflation-adjusted surplus of ZWG$288 million last year, up from ZWG$144 million the previous year, driven by increased premium collections and investment income.
This comes as the institution strengthened depositor protection and financial sector stability.
Speaking at the corporation’s 8th annual general meeting in Harare yesterday, DPC board chairman Mr Canaan Dube said the institution had concluded its 2021–2025 Strategic Plan, which was aligned with Vision 2030 and the National Development Strategies.
He added that despite a challenging global economic environment characterised by geopolitical tensions, inflationary pressures and monetary tightening, Zimbabwe’s economy remained resilient.
“On the domestic front, Zimbabwe’s economy rebounded strongly, recording GDP growth of 6,6 percent as estimated by the World Bank,” he said. “This recovery was underpinned by robust performance in agriculture and the services sector.”
Mr Dube said the ZiG has remained stable owing to tight monetary policy measures implemented since 2024, helping to ease inflationary pressures and support financial sector stability. The DPC continued to strengthen its mandate through proactive risk monitoring, enhanced payout readiness, and collaboration with local, regional and international financial safety-net institutions.
In respect of financial performance, premium income increased from ZWG$269 million in 2024 to ZWG$291 million last year, while investment income surged from ZWG$14 million in 2024 to ZWG$137 million last year.
Said Mr Dube: “This excellent performance was driven by the increase in premium income as well as investment income.”
Total assets, including real estate investments, grew by 50 percent in inflation-adjusted terms, while the cost-to-income ratio improved from 32 percent to 25 percent.
Mr Dube said the board had approved an upward review of deposit protection coverage levels with effect from next month, while maintaining premium contribution rates at 0,30 percent for both banking institutions and deposit-taking microfinance institutions.
“The decision reflects our commitment to strengthening deposit protection, boosting public confidence and enhancing financial stability in the sector,” said Mr Dube.
DPC chief executive officer Mr Hopewell Zinyau said the corporation would mark 23 years of operation on July 1.
“At the point of establishment by the Reserve Bank of Zimbabwe, the mandate was a pay-box-plus, meaning that it only existed to compensate depositors in the event of bank failures,” he said.
Mr Zinyau said the institution’s mandate had expanded over the years to include off-site monitoring, participation in bank resolutions, and broader financial stability functions.
“Today, the Deposit Protection Corporation exists to compensate depositors in the event of bank failures, with other auxiliary functions such as off-site monitoring and participation in bank resolutions through liquidation,” he said.
The DPC’s mission is to protect depositors, enhance public confidence, contribute towards financial stability and promote sound business practices across banking institutions and deposit-taking microfinance institutions.
Mr Zinyau said their operations are anchored on five strategic pillars — deposit protection, bank resolution, financial stability, investment management and human capital development — which support the country’s broader economic development agenda.
The DPC was finalising a new strategic plan following the expiry of its 2021–2025 framework, with the next phase expected to deepen depositor protection and strengthen the corporation’s contribution to financial sector stability.
