DPC targets US$113m reserve fund
CLOUDINE MATOLA
The Deposit Protection Corporation (DPC) is targeting growth of its reserve fund to at least US$113m by December 2030, as the institution strengthens its capacity to safeguard depositors and enhance financial sector stability, Business Times can report.
Speaking at the corporation’s annual general meeting last week, DPC chief executive officer Hopewell Zinyau said the fund had grown to US$38.16m as at March 31, 2026, from US$28.79m recorded on December 31, 2025, driven largely by gains from Real Estate Investment Trusts (REITs) and equity investments.
“The DPC fund increased from US$28.79m as of 31 December 2025 to US$38.16m as of 31 March 2026 due to gains on REITs and equities. This represents a 33% growth during the quarter under review. The full-year target for FY2026 is US$39.3m, while the full-year forecast is US$48.1m.
“The DPC fund is expected to grow from US$38.2m as of 31 March 2026 to US$113m by 31 December 2030,” Zinyau said.
Meanwhile, the corporation has increased deposit insurance cover for banking institutions to US$3,000 and for deposit-taking microfinance institutions to US$2,000, following a comprehensive risk assessment undertaken by the board.
Previously, cover limits stood at US$1,000 for banks and US$500 for deposit-taking microfinance institutions.
“The current fund cover limit is US$1,000 as of now because we are in June. However, effective 1 July 2026, we have reviewed that to US$3,000 for contributing banking institutions, while the limit for deposit-taking microfinance institutions has been increased from US$500 to US$2,000.
“The board arrived at this decision after conducting a thorough affordability assessment and actuarial evaluation, which tested numerous models and scenarios. The outcome informed the board’s resolution to review the cover limits to the levels indicated.
“Having assessed all potential risks, I can confidently say that the approved cover limits are sustainable and will enable us to achieve our long-term objectives,” he said.
Zinyau also said the board’s long-term strategy is to expand investment income until it eventually overtakes premium income as the corporation’s main source of revenue.
According to the DPC, investment income contributed 33% of total revenue during the period under review, up sharply from just 4% in 2023, while premium income accounted for 65% and rental income contributed the remaining 2%.
“Our investment contribution from a revenue point of view was just 4% in 2023. Investment income for the year under review is now contributing 33%, with premiums contributing 65% and rentals 2%.
“The strategy of the board is to continue growing and deepening investment income so that it eventually equals premium income and ultimately surpasses it. That is the strategic direction the board is taking,” he said.
