DPC targets US$113m Fund by 2030

THE Deposit Protection Corporation (DPC) is targeting growth of its Fund to US$113 million by December 2030, as part of a broader strategic plan to strengthen depositor protection, improve operational efficiency and accelerate digitalisation.

The target was presented during the fifth Zimbabwe Economic Development Conference (ZEDCON) in Bulawayo last week, where the DPC outlined strong growth in its financial resources and a diversified revenue base supporting the Fund.

The DPC Fund stood at US$42 million as at June 30, 2026, up from US$28.8 million at December 31, 2025, representing a 46 percent increase in six months.

The corporation is targeting further growth to at least US$53 million by December 31, 2026, before more than doubling the Fund to US$113 million by December 2030.

The growth trajectory is being supported by a diversified funding basket, with premium income accounting for 65 percent of revenue, investment income 33 percent and rental income 2 percent.

The presentation attributed the Fund’s growth to stronger United States dollar premium collections, exceptional investment income and cost-containment measures.

“The DPC Fund grew from USD28.8m as at 31 December 2025 to USD42.0m as at 30 June 2026,” the presentation said.

The Fund had also surpassed the full-year 2025 forecast of US$24.9 million.

The stronger financial position has improved the corporation’s capacity to absorb losses and meet its depositor protection obligations.

“This performance significantly strengthened DPC’s loss-absorption capacity and reinforces our readiness to protect depositors under any contingency scenario,” the presentation said.

The DPC’s strategic outlook goes beyond simply increasing the size of the Fund, with the corporation targeting a more resilient and efficient deposit protection system.

A key immediate objective is to grow the DPC Fund to a minimum of US$53 million by December 31, 2026, creating a stronger financial buffer for potential depositor compensation requirements.

The corporation also intends to pursue cost optimisation, with a target of keeping its staff cost-to-income ratio below 10 percent.

Building a resilient Fund is another central strategic objective, supported by the diversified revenue structure that combines premium collections with investment and rental income.

The DPC is also targeting increased public awareness of its role, with a goal of raising brand awareness to 88 percent by 2030.

Another major focus is improving the speed at which depositors can receive compensation when required.

The corporation plans to reduce the compensation period to seven days by 2028, signalling an emphasis on faster response and improved service delivery under the deposit protection framework.

Digital transformation is also expected to become increasingly important, with the DPC planning to embrace artificial intelligence and digitalisation of its systems.

The technology drive could support improvements in operational efficiency, data management, communication and the processing of depositor-related information.

The DPC’s revenue mix provides an important foundation for its Fund growth strategy.

Premium income remains the largest source at 65 percent, while investment income contributes 33 percent, highlighting the importance of investment returns to the corporation’s financial sustainability.

Rental income contributes the remaining 2 percent.

“A diversified funding basket strengthens the sustainability of the Deposit Protection Fund while preserving prudent risk management,” the presentation said.

Premium contribution rates for both Zimbabwe Gold (ZWG) and foreign currency deposits remained pegged at 0.3 percent of annual average deposits eligible for premium assessment.

At US$42 million by June, the Fund had reached nearly 79 percent of the US$53 million target for December 2026.

The longer-term US$113 million target will require continued growth in the Fund, supported by premium collections, investment income and disciplined cost management.

The DPC’s strategy, as outlined at ZEDCON, combines financial strengthening with operational efficiency, greater public awareness, faster compensation and technological transformation as it seeks to build a more resilient deposit protection institution by 2030.