“We hope that the government will also support the development of our off-grid, solar-powered EV-charging stations, which will foster the need for new-energy vehicle sales,” Joubert tells Dealerfloor.

The National Treasury says the country is the largest automotive manufacturing hub in sub-Saharan Africa, hosting brands such as Toyota, Ford, Isuzu, Volkswagen, Mercedes and BMW, among others.

Reuters reports that government incentives and policy interventions will encourage original equipment manufacturers to invest more in the production of electric vehicles in the country.

South Africa released its Electric Vehicles White Paper in 2023, outlining the country's strategy to transition the automotive industry from primarily producing internal combustion engine vehicles to a mix that includes electric vehicles by 2035.

In its annual budget review, the Treasury says the department of trade and industry, in partnership with the department of mineral resources, plans to approve and implement a regional critical minerals strategy, without giving a timeline.

Critical minerals such as copper, cobalt and lithium are needed for the production of products like electric vehicle batteries and solar panels and are key to the world's energy transition.

The Treasury says R1 billion was being set aside over the medium term for the industrial development support programme, an incentive scheme that aims to increase participation and investment in infrastructure by firms in selected manufacturing sectors such as automotive.

The purpose of the incentive is to enhance the local production and assembly of new-energy vehicles, batteries and projects focused on operational efficiency and competitiveness in new manufacturing projects. The incentive is expected to attract 30 billion rand in investment from the private sector, the Treasury adds.