Capitec shuts accounts of Zimbabwean exemption permit holders, raising concerns

Oluwatosin Racheal Alabi -

Key Points

  • Capitec Bank closes accounts of Zimbabwean Exemption Permit holders, affecting thousands.
  • ZEP validity extended to November 28, 2025, but legal and financial uncertainties persist.
  • Zimbabwean community leaders urge affected individuals to seek assistance with Directive 15.

Capitec Bank, one of South Africa’s leading financial institutions, has recently closed the accounts of Zimbabwean Exemption Permit (ZEP) holders, causing significant concern within the Zimbabwean community in South Africa. This move comes shortly after the South African government extended the validity of ZEPs by an additional year, pushing their expiration to November 28, 2025.

The closures have had a substantial impact on many Zimbabweans, as they rely on Capitec for everyday banking transactions and for sending money to their families back home. Ngqabutho Mabhena, Chairperson of the Zimbabwe Community in South Africa, expressed deep concern about the situation, highlighting the significant hardship this sudden move has caused for those affected.

The ZEP was introduced as a temporary measure to provide legal stay for Zimbabweans fleeing economic and political crises in their home country. However, with the program nearing its conclusion, thousands of permit holders are now in a state of uncertainty, facing legal and practical challenges. On November 28, 2024, South African Minister Leon Schreiber announced the extension of ZEPs, giving holders until 2025 to make alternative arrangements.

Legal battles and unclear directives complicate the situation

Despite the government’s directive to extend the validity of the ZEPs, Capitec’s decision to shut down accounts has raised concerns over the implementation of the policy and the implications for financial services. Many ZEP holders were caught off guard by the bank’s actions, with little to no explanation provided by Capitec.

Mabhena has urged affected individuals to present Directive 15 of 2024—a government order affirming the extended validity of the ZEP—at Capitec branches to seek assistance. He also cited a Constitutional Court decision that supports the directive, urging ZEP holders to pursue legal avenues to address the closures.

Capitec has faced scrutiny in recent months for internal issues, including fraud investigations that led to the dismissal of employees involved in manipulations. This situation has intensified the challenges faced by ZEP holders, who are already navigating the legal complexities of their temporary status in South Africa.

As the legal and practical challenges continue to mount, Zimbabweans in South Africa are facing increased social and economic struggles, with many concerned about their ability to access basic banking services. The Zimbabwean community is calling for better communication from Capitec and the South African government, as well as more effective implementation of policies to resolve the current crisis.

As 2025 approaches, ZEP holders are left in a precarious position, balancing their temporary legal status with the practical realities of maintaining financial stability, securing employment, and supporting their families. The demand for clearer communication and improved policy enforcement has never been more urgent.