“Mikando at Your Own Risk!” – DPCZ Warns Zimbabweans
The Deposit Protection Corporation of Zimbabwe (DPCZ) has warned citizens to avoid unregistered savings groups, popularly known as “mikando,” and pyramid schemes. Instead, they urge the public to use formal banking channels to safeguard their money and promote financial stability.
Formal Banking Ensures Safety
The Manica Post reports that Mr Hopewell Zinyau, Chief Executive Officer of the DPCZ, highlighted the risks associated with informal savings methods like mikando during a recent breakfast meeting in Mutare. He stressed the need for citizens to embrace regulated banking systems for their financial security.
“As the Deposit Protection Corporation of Zimbabwe, we are in the business of protecting depositors’ money through a fund we manage. Depositors’ funds are safeguarded in the event of a bank failure,” he said.
He explained that the DPCZ offers compensation for deposits lost in failed banks. “We are on standby to compensate depositors up to a cover level of US$1,000 for banks and up to US$500 or its equivalent for deposit-taking microfinance institutions.”
Mr Zinyau cautioned against using unregistered financial systems. “We encourage people not to use other channels like unregistered microfinance institutions such as mikando and pyramid schemes. If such schemes collapse, there is no one to provide cover.”
Inclusion for All
The meeting, which included bankers, special interest groups, and members of the media, also focused on financial inclusion for vulnerable communities. Mr Godfrey Dzveta of Tariro Foundation Zimbabwe applauded the DPCZ for its efforts to educate citizens about safe financial practices.
“This is a welcome awareness campaign highlighting the advantages of banking with registered institutions, where deposits are guaranteed safe and compensation is assured in case of bank failure,” said Mr Dzveta.
He emphasised that financial education should be inclusive. “The deliberations were insightful, especially on social inclusion. Vulnerable groups, including persons with disabilities, can meaningfully contribute to the country’s economic growth if given the right financial awareness and support.”
Mr Dzveta also noted the need for capacity-building initiatives. “We shared our submissions for consideration, requesting training in income-generating projects and financial awareness. These efforts can empower our members to become equal contributors to economic development.”
Promoting Financial Stability
The DPCZ’s nationwide campaign aims to encourage formal banking, enhance financial literacy, and reduce reliance on informal savings systems. Pyramid schemes and mikando have caused significant financial losses for many Zimbabweans, highlighting the urgent need for regulated banking practices.
As Mr Zinyau reiterated, “Depositing money through formal channels is not just about convenience—it’s about protection and ensuring a secure future for depositors.”
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