As the country works toward its net-zero goals, it is crucial to introduce the long-promised financial incentives that will accelerate the adoption of electric vehicles (EVs) and the development of off-grid charging infrastructure.

Despite a shared vision between industry and government on the sector’s immense potential and its essential role in meeting climate targets, there has been little progress since the EV White Paper was published by the Department of Trade and Industry in December 2023.

While the recently legislated 150% tax incentive for EV manufacturers is a welcome move, bolder action is needed to establish a thriving EV ecosystem. A six-year import tax holiday is crucial to allow EVs to gain traction while giving Original Equipment Manufacturers (OEMs) the time to transition without jeopardising the auto industry.

“If a tax holiday is not feasible, then the import tax on EVs should at least be equal to - or lower than - that of internal combustion engine (ICE) vehicles. Currently, an EV is taxed at 25%, while an ICE vehicle is taxed at 18%. It makes no sense to advocate for decarbonisation while carbon-heavy vehicles remain cheaper than zero-emission EVs,” says Joubert Roux, Executive Chairman and Director of CHARGE.

Equally important is direct support for renewably powered, 100% off-grid EV-charging infrastructure development. There is currently an environmental conflict with charging an EV on South Africa’s predominantly coal-fired grid. This is because EVs charged from Eskom’s grid indirectly emit 5.8 tonnes of CO₂ a year. By comparison, an average petrol-powered car emits only 4.4 tonnes of CO₂ a year.

Furthermore, the DTIC’s EV White Paper also recognises the threat EV-charging poses to the unstable national grid, noting:

“The transition to EVs will only truly be low-carbon once charging infrastructure has shifted materially to renewable energy sources…The implication is that the use of renewable energy-based systems to power charging stations is important for allaying prospective consumers’ concerns related to grid power supply and availing a truly low carbon transition.”

The solution to this challenge lies in support for the foundation of a strong EV economy, namely green charging infrastructure. In November last year, CHARGE opened its first 100% off-grid, renewably powered EV-charging station in Wolmaransstad in North West Province - a first in South Africa.

CHARGE will soon begin rolling out the next phase of stations, following MOUs signed with the provincial governments of Limpopo, KwaZulu-Natal, Free State, Northern Cape and Eastern Cape.

These stations will form part of a national network of 120 solar-powered charging facilities due for completion mid-2026. This means that within the next 18 months, a person driving an EV will be able to charge anywhere in South Africa and will truly be contributing to our country’s just energy transition.

Following the release of the 2023 EV White Paper, the government pledged to announce the necessary fiscal details in the 2024 Budget speech, which did not happen. CHARGE remains hopeful that the upcoming 2025 Budget will reflect the steps we need to achieve our net-zero transport goals by 2050.