Gwanda State University hosted a public lecture by the Deposit Protection Corporation (DPC) focused on deposit protection and its role in promoting financial inclusion and stability.
The lecture, which was open to students, staff and the wider public, provided a platform for increasing awareness and understanding of financial protection mechanisms within Zimbabwe’s banking sector, while reinforcing the importance of building public confidence in formal financial institutions.
During the lecture, DPC Bulawayo Regional Office Manager, Mr Charles Kusaya outlined Zimbabwe’s deposit protection framework, established under the Deposit Protection Act to safeguard depositors against the loss of insured funds in the event of a banking institution’s failure. The scheme, operational since 2003, automatically protects both individual and corporate depositors at no cost.
“Deposit protection is designed to ensure that depositors do not lose their money when a banking institution fails”, in so doing maintaining trust and stability within the financial system said Kusaya.
He explained that the Corporation operates under a “pay-box plus” mandate, enabling it not only to compensate depositors but also to monitor financial institutions and contribute to sound banking practices.
This broader mandate allows us to promote financial inclusion in the country by creating a level playing ground for all banks he said.
The lecture also covered the scope of protection, including savings, fixed and demand deposits, while noting that certain instruments such as securities and interbank deposits are not covered. Kusaya said coverage limits are designed to protect the majority of depositors, particularly smaller clients, while maintaining discipline in the financial sector.
“The scheme is structured to protect most depositors while ensuring accountability within financial institutions,” he said.
Kusaya emphasised that awareness is key to advancing financial inclusion, noting that informed depositors are more likely to trust banks and participate in formal financial systems.
“When people understand that their deposits are protected, they are more likely to save through formal banking channels,” he said.
Since its establishment, the DPC has compensated depositors from nine failed banking institutions, including Century Discount House, Allied Bank, Rapid Discount House, Sagit Finance House, Genesis Investment Bank, Interfin Banking Corporation, Royal Bank, Trust Bank Corporation and AfrAsia Bank, reinforcing its role in safeguarding public funds and maintaining confidence in the financial system. Ongoing reforms are expected to further strengthen depositor protection and improve compensation timelines in line with international best practice.
For Gwanda State University, the engagement reflects a continued commitment to providing platforms that connect academic learning with real-world financial systems and national development priorities.
The lecture is expected to enhance public understanding of financial security mechanisms and encourage greater participation in the formal economy, supporting broader efforts towards financial inclusion and economic stability.NOTICE TO NEW STUDENTS