The organisation is emphasising the need for long-promised financial incentives to boost the adoption of EVs and the development of off-grid charging infrastructure, both key components in achieving South Africa’s climate goals.
Although the government and industry share a common vision for the potential of EVs in reducing carbon emissions, progress has been slow since the publication of the EV White Paper by the Department of Trade and Industry (DTIC) in December 2023. Charge argues that while the recently legislated 150% tax incentive for EV manufacturers is a positive step, more needs to be done to foster a thriving EV ecosystem.
Joubert Roux, executive chairman and director of Charge, stresses the need for bold action. “A six-year import tax holiday is crucial to allow EVs to gain traction while giving Original Equipment Manufacturers (OEMs) the time to transition without jeopardising the auto industry,” he says.
Roux pointed out that if such a tax holiday is not feasible, the import tax on EVs should at least be equal to or lower than that of internal combustion engine (ICE) vehicles. Currently, EVs are taxed at 25%, while ICE vehicles face an 18% tax.
Roux argues, “It makes no sense to advocate for decarbonisation while carbon-heavy vehicles remain cheaper than zero-emission EVs.”
The call for incentives extends beyond just vehicle imports. Equally important is the need for support in the development of renewably powered, 100% off-grid EV charging infrastructure. Charge highlights the environmental challenge posed by charging EVs on South Africa’s predominantly coal-fired grid, which indirectly emits more CO2 than petrol-powered vehicles.
In a statement, Roux explains: "Currently, an EV is charged from Eskom’s grid, emitting 5.8 tonnes of CO2 per year. In comparison, an average petrol-powered car emits only 4.4 tonnes of CO2 per year."
The EV White Paper acknowledges the importance of transitioning to renewable energy sources for EV charging to ensure a truly low-carbon shift. "The transition to EVs will only truly be low-carbon once charging infrastructure has shifted materially to renewable energy sources," the paper states.
To help address this issue, Charge has already taken action. In November 2024, it launched South Africa’s first 100% off-grid, renewable-powered EV charging station in Wolmaransstad, North West Province. The organization is now expanding its efforts with plans to roll out additional stations, supported by Memoranda of Understanding (MOUs) with provincial governments in Limpopo, KwaZulu-Natal, Free State, Northern Cape, and Eastern Cape.
"Now, we need government to supercharge this momentum by delivering real financial support that enables South Africa to lead, not lag, in the global EV transition," Roux says.
The goal is to complete a network of 120 solar-powered charging facilities by mid-2026, which will make EV charging accessible across the country. In 18 months, drivers of electric vehicles will be able to charge anywhere in South Africa, directly contributing to the country’s just energy transition.
Charge also advocates for a regulated carbon credit trading framework that would enable companies to take decarbonization seriously. Roux emphasised that recognizing renewable energy-powered EV charging infrastructure under the Carbon Tax Act would allow these stations to contribute meaningfully to national net-zero targets while also unlocking economic value through carbon credits.
"The establishment of a legitimate and transparent carbon credit system is vital for driving investment in clean energy," he added.
With the government’s pledge to announce fiscal details in the 2024 Budget Speech still unmet, Roux says Charge remains hopeful that the upcoming 2025 Budget will provide the necessary financial incentives and support to meet South Africa’s EV transition goals.
According to Roux, the country must take decisive steps to achieve net-zero transport by 2050 and lead in the global push for sustainable, low-carbon economies.
