Despite intense lobbying by South Africa’s motoring industry, government has so far refused to budge on the high import duties it imposes on electric vehicles, which punish consumers who want to go the EV route.
But one other African country – Ethiopia – has decided there are big advantages to be gained in slashing taxes on so-called new-energy vehicles. In doing so, it could end up pioneering EV adoption on the continent.
Yes EVs are taxed higher in South Africa than importing a luxury sports car. Ethiopia as I recall will still charge 5% duty if an EV is imported fully assembled, as they are trying to boost their local assembly business.
The real danger for South Africa’s motoring industry is that demand for ICE vehicles is starting to fall globally, and it is way cheaper foe Mercedes and others to rather import and assemble their EVs in Ethiopia right now. From Ethiopia they can export globally or tax advantage of the inter-African country tax incentives to export back to South Africa.
#environment #EV #Africa #Ethiopia #SouthAfrica