South Africa- Capitec Bank has restored the accounts of Zimbabwean Exemption Permit (ZEP) holders, bringing relief to thousands affected by a recent freeze.

The accounts were suspended during the New Year following the expiry of the ZEP on November 28, 2024.

However, the South African Home Affairs Minister, Leon Schreiber, extended the permit’s validity by another 12 months, pushing the expiration date to November 28, 2025.

Bank accounts linked to permits, such as work or study permits, are often automated to close upon the permit’s expiry.

Despite the extension, this procedural automation may have led to the freezing of ZEP holders’ accounts.

ZEP holders are now advised to visit their banks to update their permit details and ensure continued access to their accounts.

Ngqabutho Mabhena, Chairperson of the Zimbabwe Community in South Africa, criticised Capitec’s initial decision, highlighting the significant disruption it caused for Zimbabweans who rely on these accounts for vital transactions, including supporting families in Zimbabwe.

The ZEP program, introduced in 2010, granted temporary legal status to over 180,000 Zimbabweans fleeing political and economic instability.

Initially valid for four years, it has been periodically renewed, though its future remains uncertain amidst mounting political and economic pressures in South Africa.

The extension offers ZEP holders more time to regularise their status or explore alternative solutions while financial institutions align with the updated policy.