Feb 03, 2025 Zero Carbon Charge (CHARGE), Joubert Roux, President Cyril Ramaphosa, State of the Nation Address (SONA), electric vehicle (EV) transition,
SONA - President must announce plan to accelerate EV transition
Zero Carbon Charge (CHARGE) calls on President Cyril Ramaphosa to use his State of the Nation Address (SONA) on Thursday to announce concrete incentives and plans for accelerating South Africa’s electric vehicle (EV) transition, emphasising the crucial role of charging infrastructure—especially off-grid stations.
At SA Auto Week last October, President Ramaphosa shared his experiences driving EVs in China and New York, highlighting their potential to grow South Africa’s automotive industry rather than threaten it. He emphasised embracing EVs and alternative fuels such as charging and hydrogen. He noted that the government was considering new incentives, including tax rebates for consumers, to accelerate EV adoption. However, apart from the 150% tax deduction for manufacturers, progress has been too slow. Without urgent and sustained action, South Africa risks falling behind in the global EV transition and missing its climate mitigation targets.
“The President’s signing of the 150% tax incentive for EV manufacturers from 2026 is a step forward, but it is not enough. We need a comprehensive strategy to build a thriving EV ecosystem—one that includes meaningful financial incentives, reduced import barriers, and significant investment in green charging infrastructure,” said Joubert Roux, Executive Chairman of CHARGE.
The current import duties for EVs stand at 25% (ad valorem tax on luxury vehicles), compared to 18% for internal combustion engine or ICE vehicles. These duties on EVs inflate prices, suppress demand and hinder market growth. CHARGE therefore calls for EV import taxes to be lowered to match those of ICE vehicles or a temporary tax holiday on EV imports. This would make EVs more affordable for South Africans and boost consumer adoption.
Besides fiscal incentives to encourage EV adoption, we urge the President to consider how EVs are charged. As the Electric Vehicle (EV) White Paper released by the Department of Trade, Industry and Competition in December 2023 stated: “The continued dominance of coal in South Africa’s energy mix, means that replacing an ICE vehicle with an EV has a modest reduction of emissions. For example, a full battery electric vehicle will eliminate tailpipe emissions but the reliance on charging the vehicle with high emissions electricity still means that driving the car is associated with emissions.”
Most people are unaware that EVs charged from South Africa’s predominantly coal-fired grid produce more emissions than petrol vehicles. In fact, an EV charged from Eskom’s grid emits 5.8 tonnes of CO2 annually, compared to 4.4 tonnes for a petrol car. It is therefore essential that President Ramaphosa outlines a clear plan to support the development of a renewable energy-powered charging network to ensure that EV adoption really delivers on its environmental benefits.
In November 2024, CHARGE launched South Africa’s first off-grid, solar-powered EV charging station in Wolmaransstad, North West—a groundbreaking milestone for green transport solutions. Now, we are set to roll out the next phase of stations across the country, following agreements with provincial governments in Limpopo, KwaZulu-Natal, Free State, Northern Cape, and Eastern Cape. Despite this strong momentum, slow approval processes and a lack of prioritisation at all government levels continue to hinder EV charging infrastructure development.
CHARGE calls for urgent policy reforms to streamline approvals, reduce red tape, and establish a clear national framework for renewable-powered charging stations. It is crucial to highlight to the President and government the challenges investors face in developing off-grid charging stations along South Africa’s national roads. Progress has been hindered by red tape, including SANRAL delays and conflicting regulations like the Western Cape’s rural development guidelines, making the process costly and time-consuming. We urge the President to consider less restrictive land use and environmental application processes, along with incentives such as rebates for drivers using renewable energy charging facilities.
"The development of an off-grid, renewably powered EV charging network is an essential green solution for South Africa to meet its carbon reduction goals while staying competitive with international market trends. Our research shows that transitioning vehicles tracked on the ENATIS system to zero-emission EVs powered by renewables could save 97 million tonnes of CO2 emissions by 2050," said Roux.
We acknowledge the President’s belief in EVs and the growth opportunities they provide, and look forward to engaging further 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.
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