As part of the deal, Samuel Julies will head to the Urban Warriors. Mzwakali, who is already in Port Elizabeth, will be unveiled on Thursday.
Mzwakali grew up at Ajax, coming through the ranks before getting promoted to the first team in 2013 and has gone on to make over 100 appearances for the club. Despite being one of the most creative players in the Urban Warriors squad, the 24-year-old midfielder was unable to hold down a regular spot in the starting line-up.
He made 12 appearances in all competitions for Ajax in the first half of the season and scored one goal, in a 2-1 victory over Bloemfontein Celtic.
"I am delighted to announce the arrival of Bantu Mzwakali. He is a player that has shown a lot of potential over the years and will strengthen our arsenal," said Chippa chairman Chippa Mpengesi.
Chippa have been busy in the transfer window and they are likely to bring in more players. Coach Teboho Moloi has expressed his desire to have Mamelodi Sundowns youngster Keletso Makgalwa in his side.
Julies, meanwhile, showed glimpses of brilliance in the first half of the season. He made eight appearances, but was only included once in the starting line-up. He was effective whenever he came on, bagging three goals in his substitute appearances.
He could get a better chance to prove himself under coach Muhsin Ertugral at Ajax.