South Africa- Capitec Bank has frozen the accounts of Zimbabwean Exemption Permit (ZEP) holders, leaving thousands grappling with disrupted financial transactions and remittances.
This action comes despite the South African government’s recent extension of the ZEP validity.
On November 28, 2024, South African Home Affairs Minister Leon Schreiber announced a 12-month extension for ZEPs, pushing the expiration date to November 28, 2025.
The extension was intended to provide relief and allow ZEP holders more time to regularise their status or explore alternative solutions.
However, the closure of accounts by Capitec has raised serious concerns about inconsistencies in the interpretation of the extension and its implications for financial institutions.
Ngqabutho Mabhena, Chairperson of the Zimbabwe Community in South Africa, criticised the bank’s decision, highlighting the distress it has caused for Zimbabweans who depend on these accounts for essential financial activities, including supporting families back home.
The ZEP, introduced in 2010, offered temporary legal status to Zimbabweans fleeing economic and political turmoil.
Initially valid for four years, it has since been periodically renewed, with over 180,000 beneficiaries using the permit to build livelihoods in South Africa.
However, its future has remained uncertain amid growing political and economic pressures within South Africa.
The freezing of accounts highlights broader challenges faced by migrants in South Africa, underscoring a complex intersection of policy, economic integration, and social inclusion.
Advocacy groups and ZEP holders have called for clearer communication and a unified approach to ensure compliance with the government’s directives without further marginalising permit holders.
Procedurally, bank accounts linked to permits, such as study or work permits, are often automated to close upon the expiry of the associated permit.
This may have occurred with ZEP accounts, initially set to expire on November 28, 2024.
However, since the ZEP validity has been extended to November 28, 2025, holders are advised not to panic.
Instead, they should visit their respective banks to update their permit information and ensure their accounts remain active.
-Online