Story by Gay Matambo
PUBLIC consultations on the Deposit Protection Corporation Amendment Bill were held in Mutare on Thursday, giving residents an opportunity to contribute to proposed reforms aimed at strengthening Zimbabwe’s financial stability framework and enhancing protection for depositors.
The public hearing, jointly organised by the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion and the Deposit Protection Corporation (DPC), sought public input ahead of parliamentary debate on the Bill.
While participants welcomed efforts to strengthen the banking sector, many voiced concerns informed by previous bank failures.
“Most vendors here in Sakubva and Dangamvura use microfinance banks because traditional banks demand too much documentation. Expanding protection to microfinance institutions is good, but we need the DPC to run public notices in Shona and local dialects, so rural farmers and informal traders actually know how to claim their money,” one resident said.
Another participant called for compensation mechanisms that preserve the value of depositors’ savings.
“Flexible payout mechanisms tied to real-time value guarantee that depositors receive fair value for their savings.”
Young people also urged the DPC to increase public awareness on deposit protection.
“We acknowledge and applaud Parliament and the DPC for crafting a dedicated insolvency framework for banks. However, for youth to fully benefit from this law, the DPC must step up financial literacy campaigns. Many young people do not know what deposit protection caps are or how claims are processed. We want the DPC to engage us on digital platforms and in tertiary institutions so that the next generation of account holders understands their legal rights under this framework,” another resident said.
Chairperson of the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion, Honourable Lincoln Dhliwayo, welcomed the public’s contributions and assured participants that their submissions would inform Parliament’s deliberations.
“The Bill’s primary objective is to strengthen the Deposit Protection Corporation and, by extension, protect depositors. It seeks to introduce fundamental reforms that will transform the manner in which we deal with the insolvency of banking institutions in Zimbabwe,” he said.
The nationwide public consultation programme concludes in Harare on Friday.
