- Import duty on EVs slashed with 15% to 25%
- Mthuli Ncube imposed rebates on equipment used to set up solar-powered electric vehicles stations
- The country to face infrastructure challenges, including poorly maintained roads and potential congestion from increased EV adoption
Harare-Zimbabwe's Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, has cut import duty on electric vehicles (EVs) from 40% to 25%, effective January 2025.
This was announced during the presentation of the national budget for 2025 in Parliament on the 28th of November 2024.
The goal of this initiative is to promote eco-friendly transportation as part of a larger strategy to combat climate change.
The price range for electric vehicles typically starts from around $20,000 for budget models and can exceed $100,000 for luxury options meaning EVs might be affordable to many.
Given people potentially switch to importing more electric vehicles, the current state of Zimbabwe’s roads poses a concern.
The infrastructure has not kept pace with the growing population and vehicle numbers, leading to increased congestion.
Without improvements to road conditions, the influx of electric vehicles could exacerbate traffic issues rather than alleviate them.
To lower duties on EVs, he extended rebates on equipment used to set up solar-powered EV charging stations. This will help build the necessary infrastructure for electric mobility.
“I propose to extend the rebate of duty on equipment used for setting up Electric Vehicle Solar Powered Charging Stations,” he said.
This measure will assist Zimbabwe in moving toward greener transportation options.
In 2021, Zimbabwe updated its greenhouse gas (GHG) reduction target, aiming for a 40% reduction in emissions across all sectors by 2030.
This target aligns with Zimbabwe's Nationally Determined Contribution (NDC), which outlines how these measures can lead to significant emissions reductions and provide development benefits.
However, this is a big mountain to climb as Zimbabwe’s energy is tilted towards fossil fuels. The country as whole relies on energy mix that comes from Hwange and there are plans to expand it.
Independent power producers contribute about 40 to 50 MW and it is not enough to meet the countries energy demand.
Manufacturing companies and mines are still using generators and Inscor used more than 8 million of diesel to power electricity outages.
However ,to support these goals, both the government and private companies are making significant investments.
Energy developer Tatanga Energy has signed a 30MW power purchase agreement with Greenco and is licensed to develop an initial 50MW solar plant at Sable Chemicals in Kwekwe.
Old Mutual Life has launched a US$100 million private equity fund aimed at renewable energy investments. The National Renewable Energy Policy aims to add 2,100 MW of renewable energy by 2030, focusing mainly on solar and hydro projects.
Zimplats has commissioned a US$36 million solar plant (35 MW) as the first phase of a planned 185MW project.
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