Budget 2026: CHARGE calls on Minister Godongwana to reform EV duties and fund renewable charging infrastructure
Ahead of the 2026 Budget Speech on Wednesday, Zero Carbon Charge (CHARGE) calls on Finance Minister Enoch Godongwana to align import duties on electric vehicles (EVs) with those applied to internal combustion engine (ICE) vehicles, scrap the ad valorem tax on EVs, and allocate dedicated funding to roll out off-grid, solar-powered EV charging infrastructure nationwide.
South Africa cannot tax clean mobility as a luxury while claiming to prioritise decarbonisation and industrial growth, nor can it expect EV adoption to accelerate without funding the infrastructure that makes ownership practical.
While CHARGE welcomes the 150% manufacturing tax incentive for electric and hydrogen-powered vehicles from 1 March 2026, this will not unlock scale if EVs continue to face high import duties and additional ad valorem (luxury) tax.
“You cannot incentivise EV production on one hand and penalise EV adoption on the other,” said Joubert Roux, Co-Founder and Chair of CHARGE. “Without urgent tax reform and infrastructure funding, South Africa risks constraining domestic EV demand at precisely the moment it is trying to attract EV investment.”
According to Naamsa, hybrid and electric passenger vehicle sales rose 8.1% year-on-year in the first ten months of 2025, reaching 13,358 units, after a 105% surge in 2024. Market share now stands at 3.8%, excluding one major EV manufacturer that does not report to Naamsa.
“Demand is growing,” Roux said. “But it will stall if drivers don’t see charging stations where they need them. Without a visible, reliable network, especially along major highways and freight corridors, consumers will lack the confidence to buy EVs.”
National Treasury must now move beyond policy intent and fund charging infrastructure, as envisaged in the 2023 EV White Paper. The policy recognises charging infrastructure as a foundational pillar of South Africa’s EV transition, committing government to enable large-scale rollout, remove regulatory bottlenecks and crowd in private investment. It also acknowledges that off-grid charging solutions can support EV adoption without adding pressure to an already constrained electricity system.
CHARGE is calling on Treasury to fast-track implementation by recognising off-grid charging stations as both energy and transport infrastructure and supporting their rollout accordingly.
The EV charging network will largely be built by the private sector but only if the financial framework makes it viable. The 2026 Budget must therefore provide:
- Clear tax treatment for EV charging infrastructure: including VAT certainty on electricity sold through charging stations and confirmation that charging and battery storage assets qualify for existing renewable energy tax incentives.
- Accelerated write-offs for charging equipment and battery storage: reducing upfront capital costs and improving project bankability.
- Access to concessional, long-term finance through development finance institutions: recognising the long payback periods of infrastructure investments.
- Targeted co-funding or performance-based incentives: such as capital grants or support linked to electricity dispensed, to de-risk early-stage rollout.
- Dedicated funding for renewable energy micro-grids linked to charging stations: enabling off-grid, solar-powered systems that add clean generation capacity without increasing pressure on the national grid.
“Charging infrastructure requires significant upfront capital and long payback periods,” Roux said. “Government doesn’t need to build the network, but it must create the conditions for the private sector to scale it.
CHARGE’s fully off-grid, solar-powered fast-charging model demonstrates that a grid-independent, renewable-powered network is viable at scale. Our operational site in Wolmaransstad has proven the concept for passenger and electric truck charging, while our N3 corridor expansion, supported by a R100 million investment from the Development Bank of Southern Africa, aims to unlock South Africa’s busiest freight route for electric mobility.
“If South Africa is serious about competing in a rapidly electrifying global economy, fiscal reform and infrastructure rollout must move together,” Roux concluded. “With the right signals in this Budget, we can build a world-leading, grid-independent EV charging network powered by renewable energy. CHARGE stands ready to partner with government and industry to make electric mobility viable, scalable and climate-aligned.”
For more info, visit www.charge.co.za
