The Irony: Zimbabwean Authorities Discourage Mikando
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.
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.
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“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.
The Irony: Zimbabwean Authorities Discourage Mikando
He explained that the DPCZ offers compensation for deposits lost in failed banks. He said: “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.”
However, he did not elucidate on how the DPCZ intends to cushion depositors against unsustainable high bank charges and transaction fees.
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.”
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.
