It is crucial that Finance Minister Enoch Godongwana introduce the long-promised financial incentives in his Budget speech that will accelerate the adoption of electric vehicles (EVs), as well as the development of off-grid charging infrastructure, says Zero Carbon Charge (Charge).

The EV charging infrastructure construction company says there has been little progress since the EV White Paper was published by the Department of Trade, Industry and Competition in December, 2023.

While Charge describes a recently legislated 150% tax incentive for EV manufacturers as “a welcome move”, it believes that bolder action is needed to “establish a thriving EV ecosystem”.

The company calls for a six-year import tax holiday to allow EVs to gain traction in the domestic market, while providing vehicle manufacturers the time to transition their plants to EV production.

“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,” says Charge executive chairperson Joubert Roux.

“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.”

Equally important is direct support for renewably powered, 100% off-grid EV charging infrastructure development, such as the charging stations Charge is developing, says the company.

Charge says there is currently an environmental conflict with charging an EV on South Africa’s predominantly coal-fired grid.

The company says it is also calling for the establishment of a well-regulated carbon credit trading framework that enables companies to take decarbonisation seriously.

“Recognising renewable-energy-powered EV charging infrastructure under the Carbon Tax Act would ensure these facilities contribute meaningfully to national net-zero targets, while unlocking economic value through carbon credits.

“By fostering a legitimate and transparent carbon credit system, South Africa can drive investment in clean energy and accelerate the transition to a sustainable, low-carbon economy.”

Charge opened its first off-grid, renewably powered EV charging station in the North West in November last year.

The company says it will soon begin rolling out the next phase of stations, following the signing of agreements with the Limpopo, KwaZulu-Natal, Free State, Northern Cape and Eastern Cape provincial governments.