Business Correspondent
Harare – The Deposit Protection Corporation of Zimbabwe (DPC) reported a significant 74% increase in US dollar premium income, rising to US$6.6 million in 2024 from US$3.8 million the previous year, bolstered by diversified funding streams including levies, rentals, and investments.
In its 2024 annual report, the DPC revealed that total assessed premium income stood at ZiG25.7 million and US$6.6 million, with contribution rates for both ZiG and foreign currency (FCA) deposits maintained at 0.3%—aligned with international best practices.
“The DPC FCA premium rate was pegged at 0.30%, consistent with the Zimbabwean dollar rate, in line with global standards set by the International Association of Deposit Insurers,” the corporation stated.
Strategic Investments Amid Economic Challenges
Despite tight liquidity and macroeconomic interventions by the Ministry of Finance and the Reserve Bank of Zimbabwe, the DPC maintained a diversified investment portfolio spanning real estate, equities, and money market instruments.
“Real estate investments provided a strong hedge against inflation and currency volatility, ensuring sustainable returns and long-term fund stability,” the report noted.
“We continue exploring alternative asset classes to enhance resilience and generate real returns.”
However, the corporation recorded an inflation-adjusted surplus of ZiG123.3 million, down from ZiG187.04 million in 2023, largely due to a net monetary loss of ZiG125.49 million.
Rising Costs but Strong Depositor Protection
Total income grew from ZiG254.97 million to ZiG264.12 million, driven by increased premium income, which jumped from ZiG157 million to ZiG234 million. However, operating expenses rose to ZiG84.2 million, up from ZiG71.6 million, attributed to business expansion.
The DPC assured depositors of its financial stability, maintaining protection cover levels at US$1,000 for FCA deposits and the ZiG equivalent for local deposits.
“As of 2024, 96.7% of FCA and 99.6% of ZiG depositor accounts were fully covered,” the report highlighted.
Commitment to Financial Stability & Sustainability
The corporation reaffirmed its dedication to sustainable deposit insurance, pledging to adopt risk-based premium models and promote financial inclusion.
“We will strengthen the deposit insurance system through innovation, transparency, and collaboration with regulators and stakeholders,” the DPC stated.
“Our goal is to build a resilient financial safety net that safeguards depositors while supporting long-term economic stability.”
The DPC’s fund size expanded significantly, reaching US$15.2 million by the end of 2024, up from US$7.8 million the previous year, reinforcing its capacity to protect depositors in an evolving financial landscape.
Zim GBC News©2025