While the signing of the 150% tax incentive for electric vehicle (EV) manufacturers from 2026 is a step forward, South Africa needs a comprehensive strategy to build a thriving EV ecosystem that includes meaningful financial incentives, reduced import barriers and significant investment in green charging infrastructure, said green energy powered EV charging network company Zero Carbon Charge (CHARGE).

“CHARGE calls on President Cyril Ramaphosa to use his State of the Nation Address (SoNA) on [February 6] to announce concrete incentives and plans for accelerating South Africa’s EV transition, emphasising the crucial role of charging infrastructure, and especially off-grid stations,” CHARGE executive chairperson Joubert Roux stated in a February 3 media release.

At South Africa Auto Week in October, Ramaphosa shared his experiences driving EVs in China and New York, and highlighted their potential to grow South Africa’s automotive industry rather than threaten it. He also emphasised the need to embrace EVs and alternative fuels such as charging and hydrogen, the company said.

Ramaphosa also 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, CHARGE said.

For example, the current import duties for EVs stand at 25%, as an ad valorem tax on luxury vehicles, compared with 18% for internal combustion engine (ICE) vehicles. These duties on EVs inflate prices, suppress demand and hinder market growth, CHARGE argued.

“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,” it said.

The continued dominance of coal in South Africa’s energy mix means that EVs charged from South Africa’s predominantly coal-fired grid produce more emissions than petrol vehicles.

“It is, therefore, essential that President Rampahosa 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.”

CHARGE launched South Africa’s first off-grid, solar-powered EV charging station for green transport solutions in Wolmaransstad, in the North West, in November.

The company is 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.

However, despite the strong momentum, slow approval processes and a lack of prioritisation at all government levels continue to hinder EV charging infrastructure development, CHARGE reports.

CHARGE calls for urgent policy reforms to streamline approvals, reduce red tape and establish a clear national framework for renewable-powered charging stations, the charging infrastructure company says.

Investors face challenges in developing off-grid charging stations along South Africa’s national roads. Progress has been hindered by red tape, including the South African National Roads Agency delays and conflicting regulations, like the Western Cape’s rural development guidelines, making the process costly and time-consuming.

CHARGE urges 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, it noted.

“The development of an off-grid, renewable-energy-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,” said Roux.

CHARGE's 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.

“We look forward to engaging further with the President on the need for a green, off-grid charging network, and on his view on EVs and the growth opportunities they provide.

“CHARGE remains committed to driving forward the policies and infrastructure needed to support a successful EV transition in South Africa,” Roux said.