DPC Bill to bolster depositor protection 

Source: DPC Bill to bolster depositor protection – herald

Ivan Zhakata

Herald Correspondent

PARLIAMENT has begun considering the Deposit Protection Corporation (DPC) Amendment Bill, which seeks to strengthen depositor protection, establish a dedicated insolvency framework for banking institutions and enhance financial stability.

Addressing a DPC Amendment Bill workshop in Harare on Tuesday, Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion chairperson Cde Lincoln Dhliwayo said the proposed legislation will close long-standing legal gaps in Zimbabwe’s financial sector.

“The Bill’s primary objective is to strengthen the Deposit Protection Corporation and, by extension, protect depositors,” he said.

“It introduces fundamental reforms that will transform the manner in which we deal with the insolvency of banking institutions in Zimbabwe.”

Cde Dhliwayo said the Bill establishes, for the first time, a specialised insolvency regime for banking institutions, recognising that the collapse of a bank carries systemic risks that cannot be adequately addressed through ordinary insolvency laws.

He said Parliament will conduct nationwide public hearings on the Bill from July 20 to 24 and urged legislators to familiarise themselves with its provisions ahead of the consultations.

“We cannot explain to the public what we do not understand. This workshop is therefore essential to ensure that when we go out to the people, we do so with confidence,” he said.

DPC board member and shareholders’ representative Ms Meluleki Sibanda said the Corporation has, with effect from July 1, increased the deposit protection cover for commercial bank depositors from US$1 000 to US$3 000, while the cover for deposit-taking microfinance institutions had been raised to US$2 000.

“All those with deposits of up to US$3 000 in commercial banks can be assured that their money is protected and insured,” she said.

Ms Sibanda said the amendment process followed years of technical reviews, international benchmarking and stakeholder consultations aimed at strengthening Zimbabwe’s financial safety net.

She said the proposed law will create a distinct insolvency regime for banking institutions while improving financial stability and protecting depositors.

DPC chief executive Mr Hopewell Zinyau said the corporation protects depositors through a fund financed by premiums collected from participating banking institutions and deposit-taking microfinance institutions.

He said eligible depositors are compensated within 14 days after the closure of a financial institution, up to the insured limits.

“Our role is to collect premiums, grow the fund and compensate depositors when a bank fails,” said Mr Zinyau.

He said the DPC Fund had grown from US$15,2 million in December 2024 to US$29 million in December 2025 and currently stands at US$42 million, with a target of about US$48 million by the end of the year.

Mr Zinyau said Zimbabwe currently lacks a dedicated bank insolvency framework, making the proposed amendments critical to improving crisis management in the financial sector.

He said the amendments seek to strengthen depositor protection, enhance financial stability, improve crisis preparedness and align Zimbabwe’s deposit protection framework with international best practice.