South Africa is taking steps to promote electric vehicle (EV) adoption. President Cyril Ramaphosa announced that the government is considering incentives to encourage local EV manufacturing. The plan may include tax rebates or subsidies to make EVs more affordable for consumers.
“This initiative is about more than just a greener future,” Ramaphosa stated during his speech at the South African Auto Week conference in Cape Town. “It ensures that South Africa remains competitive as global markets shift toward electric vehicles.”
The country risks falling behind in the global supply chain if it doesn’t act quickly. Finance Minister Enoch Godongwana introduced long-awaited incentives in February to attract investment in local EV production. Under this plan, electric vehicle and hydrogen vehicle producers can claim up to 150% of qualifying investment spending in the first year. However, the scheme won’t take effect until 2026.
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The government aims to transition the automotive industry from internal combustion engine vehicles to electric ones by 2035. Delays in finalizing the national EV policy have frustrated industry players, slowing long-term investment decisions. This lag has also impacted the economy, as 110,000 South Africans work directly for car manufacturers, who must adapt to the growing demand for EVs.
South Africa’s slow progress has allowed other African countries, such as Egypt and Ethiopia, to move ahead in EV production. To avoid being left behind, the country must accelerate its efforts in embracing new-energy vehicles.
