By James Gwati-South African banks continue freezing Zimbabwe Exemption Permit (ZEP) holders’ accounts, disrupting access to essential funds despite the extension of the ZEP system until November 2025 by the Department of Home Affairs.

The ZEP program, introduced in 2010, allows over 180,000 Zimbabweans to live and work in South Africa. 

While the recent extension offers some reprieve, ZEP holders remain vulnerable to systemic banking errors.

Human rights lawyer Simba Chitando, representing the ZEP Holders Association, attributes the account freezes to outdated banking systems rather than discrimination.

“We urge the banks to address this issue urgently and unblock these accounts to avoid taking legal action,” Chitando said.

Earlier in 2024, First National Bank (FNB) caused confusion by advising ZEP holders to renew permits, even after Home Affairs Minister Leon Schreiber announced the extension. 

Similarly, Capitec Bank froze accounts on January 1, 2025, but quickly restored them, citing a system error.

Affected ZEP holders are advised to visit their banks with updated permit documents and a copy of the government gazette.

“The ball is in the ZEP holders’ court. If banks refuse to cooperate, we’ll consider legal action,” Chitando emphasized.

The freezes disrupted essential payments for food, school fees, and remittances to Zimbabwe, sparking panic within the ZEP community.

Banking institutions are now under pressure to update their systems. 

FNB and Nedbank confirmed they are reviewing the impact of the extension but have yet to offer concrete resolutions.

The ZEP system’s future beyond 2025 remains uncertain, leaving holders scrambling for alternative visa solutions to maintain banking access and stability in South Africa.

Source: Moneyweb/ZimEye