by BERNARD CHIKETO
IN THE UNLIKELY event that a Zimbabwean bank goes bust, its depositors have an increasingly firm shield. The Deposit Protection Corporation (DPC), the statutory body that insures eligible deposits, has just concluded its strongest year on record.
Its protection fund surged by 89% to US$28.8m in 2025, comfortably surpassing its own full-year forecast of US$24.9m.
“The DPC Fund recorded its strongest annual growth, rising sharply by 89% from USD15.2 million in December 2024 to USD28.8 million by December 2025,” the Corporation’s Chief Executive Officer, Hopewell Zinyau, reports in the 2025 Annual Report.
For a country whose financial system has endured currency collapses and banking crises, that is no small feat.
The DPC’s bumper performance was driven by two engines: premiums and investments.
“Premium income increased from ZWG269m in 2024 to ZWG291m during the year under review,” notes Board Chairperson Canan Dube.
Investment income catapulted from ZWG14m to ZWG137m, “mainly due to fair value adjustments on equities and real estate investment trusts (REITs)”.
The result was an inflation-adjusted surplus of ZWG288m—more than double the ZWG142m recorded the previous year. The Corporation also tightened its belt: “The cost to income ratio improved from 32% in prior year to 25% in 2025. The staff costs to income ratio improved from 19% in 2024 to 14% in 2025,” Dube confirms.
Total assets grew by 50% in inflation-adjusted terms.
Safety in numbers
For ordinary depositors, the real question is not the DPC’s balance-sheet strength but what it means for their money.
At current coverage levels, the picture is reassuring.
For commercial banks, the protection limit remains at the ZWG equivalent of US$1,000 per depositor per deposit class; for deposit-taking microfinance institutions, the limit is US$500.
At these thresholds, “99.4% of ZWG denominated and 96.3% of USD denominated accounts within Commercial Banking Institutions (CBIs)” are fully insured, according to the CEO’s statement.
Among microfinance institutions, the figures are even higher: “99.93% of ZWG denominated and 99.95% of USD denominated accounts in Deposit-Taking Microfinance Institutions”. In plain terms, the vast majority of depositors would lose nothing if their bank failed.
The DPC is not resting on its laurels. “The Corporation engaged actuarial consultants to review the cover level, and work has commenced to determine the impact of an upward review of the cover level. The review process is expected to be completed in preparation for an upward revision of the coverage levels in the 2026 financial year,” Zinyau discloses.
The Corporation is also implementing a Single Customer View (SCV) system across all contributory institutions, which will enable faster, more accurate payouts.
“The SCV is critical to DPC’s mandate, as it significantly shortens the reimbursement timeline, enhances payout accuracy, and strengthens depositor confidence,” the Annual Report explains.
The Corporation has set an ambitious target: “a reduction in the compensation processing period from 30 days to 14 days by 31 December 2026”.
A changing landscape
The banking sector itself is shrinking, but not in a way that suggests distress.
“The number of Contributory Institutions decreased from 27 to 24 during the year under review, due to the cancellation of three licenses by the Reserve Bank, i.e. Lion Microfinance, FBC Building Society and ZB Building Society,” the CEO reports.
FBC Building Society was resolved “through a merger with FBC Bank Limited,” while ZB Building Society was “placed under voluntary liquidation”.
Crucially, “no depositor compensation payouts and no financial impact on the Deposit Protection Fund” resulted from these actions—a testament to orderly market-led resolutions rather than systemic failures.
Meanwhile, the deposits eligible for premium assessment grew robustly: “Total deposits eligible for premium assessment increased by 58% from ZWG12.9 billion in 2024 to ZWG20.5 billion, while foreign currency deposits increased by 34% from USD2.6 billion to USD3.5 billion”.
The bulk of these remain in demand deposits—”84% and 80% total ZWG and USD deposits respectively”—suggesting a banking public that values liquidity over locked-in savings.
A stabilising force
The DPC’s strong year comes against a backdrop of economic recovery.
“Zimbabwe’s economy rebounded strongly during the year, recording a GDP growth of 6.6% (World Bank). This recovery was underpinned by robust performance in agriculture, services, mining, and steel investments,” Dube observes.
“The Zimbabwe Gold (ZWG) currency remained stable, supported by a tight monetary policy since 2024 which eased the inflationary pressures. The financial sector demonstrated resilience, with banking institutions maintaining adequate capitalization and liquidity buffers”.
Yet challenges remain. Inflation, though moderating, is not vanquished. The DPC’s own financial statements are prepared under IAS 29, “reflecting the persistent hyperinflationary environment,” the accounting policies note.
And while the fund has grown impressively, it remains modest relative to the total deposits it insures—US$28.8m against US$3.5bn in foreign-currency deposits alone.
“At the prevailing coverage thresholds, deposit insurance fully covers 99.4% of ZWG denominated and 96.3% of USD denominated accounts,” the report notes, meaning that while most accounts are fully protected, the value of deposits in partially insured accounts remains substantial.
Still, the trajectory is encouraging. The DPC has concluded its 2021–2025 strategic plan on a high note and is now crafting its next five-year framework.
“The Corporation is on track to achieve a single digit staff cost to revenue ratio in the medium term,” Dube states.
With a beefier fund, improving operational efficiency, and a clear pipeline of reforms—including “full implementation of the SCV system across all contributory institutions and ERP (Enterprise Resource Planning) system to enhance automation of processes, robust investment drive to boost Fund size and expanding ESG (Environmental, Social, and Governance) reporting”—Zimbabwe’s depositors have more reason for confidence than they have had in years. The shield, it seems, is getting stronger.
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