CHARGE Calls On South African Finance Minister To Tackle EV Duties & Fund Renewable Charging Infrastructure In 2026 Price range

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Forward of the South Africa 2026 Price range Speech on Wednesday, Zero Carbon Cost (CHARGE) has known as on the South African Finance Minister Enoch Godongwana to align import duties on electrical automobiles (EVs) with these utilized to inner combustion engine (ICE) automobiles, scrap the advert valorem tax on EVs, and allocate devoted funding to roll out off-grid, solar-powered EV charging infrastructure nationwide. South Africans have been starved of inexpensive electrical automobiles attributable to plenty of causes, akin to excessive import duties and taxes — petrol and diesel automobiles imported from the EU into South Africa have a customs obligation of 18%, whereas for electrical automobiles it’s 25%. There are additionally the Advert Valorem Customs Excise Duties and VAT. 

The South African authorities ought to not less than cut back the import duties to match the 18% for ICE automobiles. In actual fact, they might be taught from a number of governments on the African continent which have diminished and even eliminated import duties for BEVs utterly to encourage adoption. International locations which have diminished or eliminated import duties on BEVs embrace Ethiopia, Rwanda, Mauritius, Zambia, and Zimbabwe, amongst a number of others. Many of the automobiles on the South African market on the time had been principally the extra premium variations, priced effectively over R1 million rand, presenting a excessive barrier for many customers. There are actually just a few fashions that value lower than R500,000, such because the BYD Dolphin Surf, and if import duties had been diminished, the costs of those automobiles can be much more favorable. 

BEV gross sales want a lift in South Africa, particularly after a gross sales decline of 17% YoY in 2025. BEV gross sales had been already very low, and one had hoped gross sales would kick in following years of respectable progress, albeit from a really small base. Whereas 596,818 automobiles had been offered in South Africa in 2025 within the total market, the best quantity in over a decade and up 15.7% yr on yr, just one,018 passenger battery-electric automobiles had been offered in South Africa final yr, down 17% from 1,231 in 2024. Meaning BEVs made up solely 0.17% of all of the automobiles offered in South Africa in 2025. Pressing motion is de facto wanted to catalyze the adoption of electrical automobiles. CHARGE says South Africa can not tax clear mobility as a luxurious whereas claiming to prioritize decarbonization and industrial progress, nor can it count on EV adoption to speed up with out funding the infrastructure that makes possession sensible.

South Africa has just lately introduced some incentives for native meeting and manufacture of latest vitality automobiles. Ranging from the primary of March, 2026, automakers in South Africa can be allowed to reclaim tax amounting to 150% of investments they make into services and equipment for brand spanking new vitality automobile manufacturing. This consists of HEVs, PHEVs, and BEVs. Whereas CHARGE welcomes the 150% manufacturing tax incentive for electrical and hydrogen-powered automobiles from 1 March 2026, this won’t unlock scale if EVs proceed to face excessive import duties and extra advert valorem (luxurious) tax.

 “You can not incentivise EV manufacturing on one hand and penalise EV adoption on the opposite,” stated Joubert Roux, Co-Founder and Chair of CHARGE. “With out pressing tax reform and infrastructure funding, South Africa dangers constraining home EV demand at exactly the second it’s attempting to draw EV funding.”

CHARGE provides that the Nationwide Treasury should now transfer past coverage intent and fund charging infrastructure, as envisaged within the 2023 EV White Paper. The coverage acknowledges charging infrastructure as a foundational pillar of South Africa’s EV transition, committing the federal government to allow large-scale rollout, take away regulatory bottlenecks, and crowd in non-public funding. It additionally acknowledges that off-grid charging options can assist EV adoption with out including strain to an already constrained electrical energy system. CHARGE is asking on the Treasury to fast-track implementation by recognizing off-grid charging stations as each vitality and transport infrastructure and supporting their rollout accordingly.

CHARGE says that the EV charging community will largely be constructed by the non-public sector, however provided that the monetary framework makes it viable. The 2026 Price range should subsequently present:

• Clear tax therapy for EV charging infrastructure: together with VAT certainty on electrical energy offered by way of charging stations and affirmation that charging and battery storage belongings qualify for current renewable vitality tax incentives.
•  Accelerated write-offs for charging tools and battery storage: lowering upfront capital prices and bettering undertaking bankability.
• Entry to concessional, long-term finance by way of growth finance establishments: recognizing the lengthy payback durations of infrastructure investments.
• Focused co-funding or performance-based incentives: akin to capital grants or assist linked to electrical energy distributed, to de-risk early-stage rollout.
• Devoted funding for renewable vitality micro-grids linked to charging stations: enabling off-grid, solar-powered methods that add clear era capability with out rising strain on the nationwide grid. 

“Charging infrastructure requires important upfront capital and lengthy payback durations,” Roux stated. “Authorities doesn’t must construct the community, however it should create the situations for the non-public sector to scale it.”

CHARGE operates and is scaling a completely off-grid, solar-powered fast-charging mannequin which demonstrates {that a} grid-independent, renewable-powered community is viable at scale. You possibly can watch a video about certainly one of these stations right here.

Photographs courtesy of Ryan Jarret.