Zero Carbon Charge (CHARGE) welcomes the signing of the 150% tax incentive for electric and hydrogen-powered vehicle manufacturers into law by President Cyril Ramaphosa.
This follows a year of advocacy by CHARGE for government incentives to fast-track South Africa’s electric vehicle (EV) transition.
The tax incentive comes into effect in 2026 and will enable manufacturers to deduct 150% of the cost of buildings and equipment used primarily for producing electric and hydrogen-powered vehicles. While this measure is expected to boost local manufacturing, CHARGE emphasises that the South African government must address the barriers that hinder EV adoption and promote the development of charging infrastructure.
This incentive to boost local manufacturing is a positive step forward, but we also need to reduce the current high import duties for EVs — 25% compared to 18% for combustion engine vehicles. These taxes inflate EV prices, slow demand and limit market growth. CHARGE continues to call for a six-year tax holiday on EV imports to address this imbalance.
Unfortunately, while steps are being taken to support an EV economy, not enough is being done to support the need for a sustainable, reliable, and green charging network. More support is needed to minimise the significant regulatory barriers hindering the expansion of critical charging networks.
In some provinces, such as the Western Cape, rural development guidelines contradict the development of solar-powered charging for EVs, despite the call for carbon reduction and environmental protection. This presents challenges to renewable energy and sustainable transport projects. In addition, SANRAL’s administrative hurdles continue to delay the rollout of essential EV infrastructure.
Tackling these issues is key to ensuring initiatives like CHARGE’s off-grid charging network can drive meaningful progress in South Africa’s EV transition. Without a reliable network of charging stations that operate independently of the coal-based grid, EVs cannot deliver the environmental benefits they promise.
Current data reveals that an EV charged from South Africa’s predominantly coal-powered grid indirectly emits 5.8 tonnes of CO2 annually, compared to 4.4 tonnes for petrol cars and 8.6 tonnes for diesel vehicles. This means that, currently, it is actually less environmentally friendly to drive an electric vehicle charged from the grid than it is to drive a petrol vehicle.
CHARGE’s solution—a network of 120 off-grid, solar-powered charging stations for electric vehicles and an additional 120 stations for electric trucks —is vital for reducing transport emissions. These stations will ensure every EV charged is powered entirely by renewable energy, supporting the Department of Transport’s net-zero transport target by 2050.
CHARGE’s research shows that transitioning the vehicles tracked on the ENATIS system to zero-emission EVs powered by renewables could save 97 million tonnes of CO2 emissions by 2050. Our charging network will also contribute significantly to the Department of Forestry, Fisheries, and the Environment’s goal of reducing 76.5 million tonnes of CO2 by 2030. Without off-grid charging infrastructure, these targets are unattainable.
CHARGE is leading South Africa’s transition to a cleaner transport future. Our company is developing an off-grid charging network, starting with the first operational station in Wolmaransstad, North West Province, as a national carbon emission reduction initiative designed to reduce South Africa’s reliance on fossil fuels while supporting economic development and job creation.
CHARGE has been at the forefront of advocating for meaningful policies to support EV adoption for over a year. Our efforts have focused on reducing prohibitive import duties on EVs, creating a welcoming environment for EV manufacturers, and establishing a renewable, off-grid charging network. The progress made so far reflects the impact of consistent advocacy and a shared vision for a sustainable future.
We express our gratitude for the President’s belief in EVs, and we hope to present more on the need for a green, off-grid charging network. CHARGE remains committed to driving forward the policies and infrastructure needed to support a successful EV transition in South Africa.
For more information on CHARGE, visit www.charge.co.za.