CHARGE Calls On South African Finance Minister To Handle 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 referred to 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 reasonably priced electrical automobiles attributable to plenty of causes, resembling excessive import duties and taxes — petrol and diesel automobiles imported from the EU into South Africa have a customs responsibility 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 no less than cut back the import duties to match the 18% for ICE automobiles. The truth is, they might study from a number of governments on the African continent which have decreased and even eliminated import duties for BEVs utterly to encourage adoption. Nations which have decreased 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 have been largely the extra premium variations, priced nicely over R1 million rand, presenting a excessive barrier for many shoppers. There are actually a couple of fashions that value lower than R500,000, such because the BYD Dolphin Surf, and if import duties have been decreased, 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 have 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 have been offered in South Africa in 2025 within the general market, the best quantity in over a decade and up 15.7% 12 months on 12 months, just one,018 passenger battery-electric automobiles have been offered in South Africa final 12 months, 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’t tax clear mobility as a luxurious whereas claiming to prioritize decarbonization and industrial progress, nor can it anticipate EV adoption to speed up with out funding the infrastructure that makes possession sensible.

South Africa has not too long ago introduced some incentives for native meeting and manufacture of recent 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 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 is not going to unlock scale if EVs proceed to face excessive import duties and extra advert valorem (luxurious) tax.

 “You can’t incentivise EV manufacturing on one hand and penalise EV adoption on the opposite,” mentioned 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 making an attempt 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 personal funding. It additionally acknowledges that off-grid charging options can help 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 personal sector, however provided that the monetary framework makes it viable. The 2026 Price range should subsequently present:

• Clear tax remedy for EV charging infrastructure: together with VAT certainty on electrical energy offered via charging stations and affirmation that charging and battery storage belongings qualify for present renewable vitality tax incentives.
•  Accelerated write-offs for charging tools and battery storage: decreasing upfront capital prices and bettering undertaking bankability.
• Entry to concessional, long-term finance via improvement finance establishments: recognizing the lengthy payback durations of infrastructure investments.
• Focused co-funding or performance-based incentives: resembling capital grants or help linked to electrical energy allotted, 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 technology capability with out growing strain on the nationwide grid. 

“Charging infrastructure requires vital upfront capital and lengthy payback durations,” Roux mentioned. “Authorities doesn’t have to construct the community, but it surely should create the situations for the personal sector to scale it.”

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

Photographs courtesy of Ryan Jarret.