Zimbabwe Exemption Permit Holders Encounter Bank Account Freezes in South Africa

In South Africa, numerous holders of Zimbabwe Exemption Permits (ZEP) have faced sudden freezes on their bank accounts, disrupting their financial activities.

The unexpected freezes have left many unable to conduct essential transactions as they entered the new year.

Reports indicate that some banks have not updated their systems to acknowledge the recent extension of the ZEP by the Department of Home Affairs, which now extends to November 2025.

Human rights lawyer Simba Chitando, representing the ZEP Holders Association, has described these freezes as system errors rather than deliberate acts by banks.

He has called for swift action from banks to rectify these issues, emphasizing the need to avoid legal confrontations.

Capitec Bank, in particular, has been mentioned, with assurances that the problem was addressed promptly once identified.

However, many ZEP holders reported no prior warning before their accounts were frozen, leading to significant inconvenience.

Last year, banks like FNB sent alerts to ZEP clients about permit renewals, causing confusion amidst the subsequent one-year extension announced by Minister Leon Schreiber.

Despite the extension, there remains a looming uncertainty for ZEP holders regarding their banking access post-2025 without alternative visas.

Chitando advises affected ZEP holders to present their ID or passport and a copy of the government notice to banks for account reactivation.

He notes that legal recourse should only be considered if banks fail to comply after seeing these documents.

This isn’t the first instance of such banking issues for ZEP holders, with previous freezes also resolved under legal threats.

The latest incident has instilled panic among the approximately 178,000 members of the ZEP community, affecting their ability to manage daily expenses.

Chitando warns of potential court action if banks do not lift the holds, highlighting the scale of the issue across banking institutions.

FNB’s Stanton Govender has acknowledged the situation, stating the bank is evaluating how this impacts their customers and will update them accordingly.

FNB is committed to ensuring compliance with legal requirements and assisting customers with any banking issues related to the ZEP extension.

Customers are encouraged to reach out directly for assistance or clarification regarding their accounts.

Nedbank, while also addressing the issue, had not provided a response to Moneyweb at the time of initial publication, with updates to follow.