Tendai Muererwa
Mutare– Residents have called for higher compensation limits, greater protection for vulnerable depositors and increased public awareness as Parliament and the Deposit Protection Corporation (DPC) held public consultations on the proposed Deposit Protection Corporation (Amendment) Bill at Mutare Hall today.
The meeting, part of a nationwide outreach programme running from July 20 to 24, gave members of the public an opportunity to contribute to amendments aimed at strengthening Zimbabwe’s deposit protection framework and enhancing confidence in the country’s financial sector.
Chairperson of the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion and Chipinge East legislator Lincoln Dhliwayo said the Mutare consultations attracted meaningful participation, with residents making practical recommendations that would be considered when the Bill is taken back to Parliament.
“The Bill seeks to strengthen the protection of depositors’ funds in the event of a bank failure or insolvency. We have received encouraging attendance here in Mutare, and people have made valuable submissions that will enrich the legislative process,” said Dhliwayo.
He said one of the dominant issues raised was the current compensation limit of US$3 000, which many participants felt no longer reflected the realities of today’s economy.
“Members of the public proposed that instead of maintaining a fixed compensation amount, payouts should be determined using a percentage of a depositor’s balance so that compensation is more equitable,” he said. Dhliwayo said participants also raised legal concerns surrounding bank closures, which Parliament would consider during debate on the Bill.
Another proposal was that low-income earners should be prioritised when compensation is being processed following the collapse of a financial institution.
“There were also recommendations that persons with disabilities should receive priority during compensation because they are among the most vulnerable members of society,” he said.
Residents further questioned the exchange rate used when compensating depositors, arguing that relying on the prevailing rate on the day of payment could significantly erode the value of their savings.
“They proposed that compensation should instead be based on the exchange rate that was applicable when the bank closed, while taking into account any loss in value. I am pleased that the Bill already makes provisions to address value preservation,” Dhliwayo added.
Beyond compensation issues, participants also stressed the need for wider public education on deposit protection. Mutare resident Alex Chitsamba welcomed plans to broaden deposit protection but said awareness campaigns should be tailored to reach communities that rely heavily on microfinance institutions.
“Many vendors in Sakubva and Dangamvura use microfinance banks because commercial banks often require extensive documentation. It is encouraging that protection is being expanded to include microfinance institutions, but the DPC must ensure information reaches ordinary people through public awareness campaigns in Shona and other local languages so that rural communities and informal traders understand how to access compensation if the need arises,” he said.
Another participant, Khumukani Masunungure, urged authorities to adopt compensation mechanisms that preserve the real value of depositors’ savings.
“Compensation systems should be flexible enough to reflect the real value of people’s money. Depositors deserve payouts that protect the purchasing power of their savings rather than amounts that have already lost value,” he said. Young people attending the consultations also appealed for stronger financial literacy initiatives targeting the youth.
Chitsamba said while the proposed law was a positive step, many young Zimbabweans remained unaware of how deposit protection works.
“We commend Parliament and the DPC for developing a legal framework that strengthens the protection of bank deposits. However, many young people do not understand deposit protection limits or how claims are processed. The DPC should engage young people through digital platforms, universities and colleges so that the next generation of account holders understands its rights and responsibilities,” he said.
The consultations are expected to culminate in Harare tomorrow, where the final public hearing will be held before the proposed amendments are tabled in Parliament.
Once enacted, the amendments are expected to strengthen Zimbabwe’s deposit protection system, improve public confidence in financial institutions and enhance the resilience of the country’s banking sector.
