ZEP holders face uncertainty as some bank accounts are frozen

Numerous Zimbabwe Exemption Permit (ZEP) holders report that their bank accounts were frozen in early January, preventing them from making transactions.

Some banks are reportedly still imposing a freeze on ZEP holders’ bank accounts, but this seems to be a system error as the Department of Home Affairs extended the validity of the ZEP system until November 2025. These permits allow Zimbabweans to live and work in SA.

The ‘hold’ on ZEP accounts appears to be a system error rather than the result of any malice on the part of the banks, says Simba Chitando, a human rights lawyer representing the ZEP Holders Association.

“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,” he says.

Many ZEP holders say their accounts at Capitec were frozen, but the bank responded quickly, saying the system issue had been resolved and account holders could transact as usual.

ALSO READ: Home Affairs extends ZEP deadline by another year

Uncertainty

Most of those reporting their accounts being frozen received no prior notification.

Last year, FNB sent text messages to its ZEP clients asking them to renew their permits. ZEP holders took this to mean they needed to apply for a permit waiver or a work visa. Soon after, Minister of Home Affairs Leon Schreiber issued a one-year ZEP extension.

This still leaves ZEP holders facing the uncertainty of having their banking facilities terminated at the end of 2025 should they fail to receive an alternative visa allowing them to continue working in SA.

Chitando says the banks that had frozen the accounts of ZEP holders had not updated their systems to reflect the ZEP extension.

Affected ZEP holders should take a copy of their ID or passport along with a printout of the Government Gazette notice extending the validity of the ZEPs to their banks.

“The ball is in the court of the ZEP holders. If the banks refuse, only then can we consider legal action,” says Chitando.

ALSO READ: Zimbabweans at risk of deportation prepare to take on banks, big corporates

Not the first time

This is not the first time ZEP holders have had their bank accounts frozen, though on prior occasions the hold was lifted – often under threat of legal action.

The latest freeze caused panic among many in the ZEP community, numbering some 178 000 people. Debit orders were not processed, and they were unable to buy food, pay school fees, or make other essential transactions.

“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,” says Chitando.

ALSO READ: Home Affairs processes over 60 000 ZEP applications, outcomes to be sent digitally

Banks respond

Moneyweb asked FNB for comment and received this response from Stanton Govender, FNB head for Foreign Nationals and Non-Resident Banking: “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.”

Nedbank also said it was looking into the matter but had not responded to Moneyweb at the time of prior publication. The article will be updated once a response is received.

This article was republished from Moneyweb. Read the original here.