Zero Carbon Charge has called on Finance Minister Enoch Godongwana to reform import duties on electric vehicles and allocate funds for renewable, off-grid charging infrastructure ahead of his 2026 budget speech.
The organization argues that South Africa cannot keep clean mobility as a policy priority while maintaining higher import duties on EVs compared to internal combustion engine vehicles and imposing ad valorem taxes. It said the current tax structure risks limiting local demand, as the government seeks to attract EV manufacturing investment.
The call comes despite the government confirming that a 150% manufacturing tax incentive for electric and hydrogen-powered vehicles will come into effect from March 1, 2026. Charge says production incentives will have limited impact if adoption falls due to pricing barriers and inadequate charging infrastructure.
According to Namsa, hybrid and electric passenger vehicle sales rose 8.1% to 13,358 units in the first 10 months of 2025, following triple-digit growth in 2024. Market share reached 3.8%, excluding one major EV maker that does not report sales data.
Charge says visible and reliable charging infrastructure along major highways and freight corridors is key to sustaining growth. It has urged National Treasury to accelerate the implementation of the 2023 EV white paper by formally recognizing off-grid charging stations as both energy and transport infrastructure.
The group is advocating for clearer tax treatment for EV charging infrastructure, accelerated depreciation for charging equipment and battery storage, access to concessional long-term finance through development finance institutions and targeted co-financing mechanisms to improve project feasibility. It also wants dedicated funding for renewable microgrids connected to charging sites to avoid increasing pressure on the national grid.
Charge's off-grid, solar-powered charging site in Wolmaransstad is already operational, and its planned N3 corridor expansion has been supported by R100m from the Development Bank of Southern Africa. The project aims to enable electric mobility on one of the busiest freight routes in the country.
The organization says fiscal reform and infrastructure must move forward together if South Africa is to compete in an increasingly electrified global economy.
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