The high cost of EVs, coupled with South Africa’s coal-dependent grid, remains a significant barrier to EV adoption. File picture: Audi
As Finance Minister Enoch Godongwana prepares to deliver the Medium-Term Budget Policy Statement (MTBPS) today, electric vehicle (EV) infrastructure company Zero Carbon Charge (CHARGE) has urged him to prioritise measures promoting green-powered EVs to curb South Africa’s carbon emissions.
This call from CHARGE adds to recent industry demands for a comprehensive EV policy framework to support South Africa’s shift to low-emission transport. According to Naamsa, EV registrations surged 55.2% year-on-year in the second quarter of 2024, with 419 units registered, up from 270 in the same period last year.
Joubert Roux, CHARGE’s executive chairman, said on Tuesday that incentives could play a crucial role in boosting EV sales, following President Cyril Ramaphosa’s recent pledge to explore incentives for EVs.
“We hope that Minister Godongwana provides more detail on these incentives in his MTBPS, and that these include tax rebates or a tax holiday on EVs so that these vehicles become more affordable,” said Roux. “This is the only way we will be able to achieve exponential growth in EV sales in the country.”
The high cost of EVs, coupled with South Africa’s coal-dependent grid, remains a significant barrier to EV adoption.
CHARGE’s research revealed that an EV charged from Eskom’s grid emits an estimated 5.8 tons of CO₂ annually, exceeding emissions from petrol-powered cars, which emit around 4.4 tons per year. This discrepancy, according to CHARGE, underscores the need for renewable energy-powered charging stations to achieve meaningful emissions reductions.
It said, “Zero Carbon Charge is building a network of 120 ultra-fast electric vehicle charging stations that are powered entirely through PV solar energy and battery. It has also started the land use and environmental application process for the first off-grid electric truck charging stations that will be located on the N3 highway. The further rollout of renewably powered electric truck charging stations will happen on a route-by-route basis. This large-scale, national carbon emission reduction project aligns closely with national government’s goal of promoting renewable energy in order to reduce reliance on the coal-powered national grid for EV charging.”
This off-grid approach aligns with the national goal of achieving net-zero transport emissions by 2050, a target also supported by the Department of Trade, Industry, and Competition (dtic). In November, the dtic released an EV White Paper that recommended renewable-based charging stations as essential for ensuring the long-term viability of EVs in South Africa.
However, Roux said broader policy adjustments by the government are essential, adding that the 10% import duty on solar panels, implemented earlier this year, as a barrier to scaling renewable energy projects, including green EV infrastructure.
“This import duty is currently undermining the mass development of renewable power projects, including EV charging facilities, due to insufficient local capacity currently to manufacture these products,” Roux added.
In his February Budget, Godongwana introduced a 150% tax allowance on qualifying investments in EV manufacturing, which will take effect in March 2026. This move was well-received as an initial commitment to attracting EV production investments, but industry players like CHARGE say more is needed.
Roux said, “Minister Godongwana has an opportunity in his MTBPS tomorrow to show that national government is truly serious about speeding up South Africa’s transition to EVs by announcing concrete measures that will help government realise its goal of achieving net-zero transport by 2050.”
BUSINESS REPORT