Despite the South African Department of Home Affairs extending the Zimbabwe Exemption Permit (ZEP) system until November 2025, some South African banks are reportedly continuing to freeze the accounts of ZEP holders, preventing them from accessing their funds, <a href="https://www.moneyweb.co.za/news/south-africa/zep-holders-face-uncertainty-as-some-bank-accounts-are-frozen/">reported Moneyweb</a>.
ZEP permits allow Zimbabweans to live and work in South Africa.
Human rights lawyer Simba Chitando, representing the ZEP Holders Association, attributes these account freezes to a systemic error within the banks rather than deliberate discrimination. Said Chitando:
<blockquote>
We urge the banks to address this issue urgently and unblock these accounts so that we can avoid having to go to court to force them to do it.
</blockquote>
While many Capitec bank accounts belonging to ZEP holders were recently frozen, the bank swiftly responded, saying the issue was a system error now resolved. Most affected people received no prior notification.
This incident follows confusion earlier in 2024, when the First National Bank (FNB) sent text messages urging ZEP holders to renew their permits, leading many to believe they needed to apply for waivers or work visas.
Soon after, Minister of Home Affairs Leon Schreiber issued a one-year ZEP extension.
Despite the extension, ZEP holders remain uncertain about their banking access beyond 2025 unless they secure alternative visas.
Chitando said the bank freezes stemmed from banks not updating their systems to reflect the ZEP extension.
Affected ZEP holders are advised to visit their banks with copies of their IDs/passports and a printout of the government gazette extending ZEP validity. Said Chitando:
<blockquote>
The ball is in the court of the ZEP holders. If the banks refuse, only then can we consider legal action.
</blockquote>
The account freezes sparked widespread panic within the ZEP community. Essential transactions, including payments for food, school fees, and other necessities, were disrupted, leaving many struggling to meet their basic needs. Said Chitando:
<blockquote>
If the banks do not remove the hold, we will approach the courts. We can’t go [to] the courts without exhausting other remedies. It’s an issue that affects all the banks.
Obviously, it would be preferable for the banks to fix this situation themselves without forcing ZEP holders to approach the banks, which could involve thousands of customers.
</blockquote>
Moneyweb contacted FNB for comment, receiving the following statement from Stanton Govender, Head of Foreign Nationals and Non-Resident Banking:
<blockquote>
FNB has noted the announcement from the Department of Home Affairs to extend the Zimbabwean Exemption Permit (ZEP) deadline to 28 November 2025. The bank is in the process of assessing any impact to customers and any updates will be communicated to them.
We are committed to helping our customers to ensure that their bank accounts are used and managed in accordance with the relevant laws and complying with the latest announcement.
Our customers can also contact us directly if they have any questions or need assistance with their bank accounts.
</blockquote>
Nedbank confirmed it was investigating the issue but had not provided a response to Moneyweb by the time of publication.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Despite extending the ZEP system, some South African banks are still freezing the accounts of Zimbabwe Exemption Permit holders, stopping them from getting their money. A lawyer says it's a mistake, not on purpose. Capitec bank quickly fixed the issue for its customers. FNB earlier confused people about renewing permits, causing more problems. ZEP holders are worried about their bank access after 2025. People are struggling without their money for important things like food and school fees. The lawyer says they might have to go to court if the banks don't fix it. One bank is looking into the issue.

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