The Department of Trade, Industry and Competition (DTIC), together with National Treasury and the Department of Mineral and Petroleum Resources, is in conversation about the implementation of the imminent Electric Vehicle White Paper.
This was the word from president Cyril Ramaphosa, speaking this week during the South African Auto Week event, at the Cape Town International Convention Centre, in the Western Cape.
Ramaphosa highlighted the global move from internal combustion engines to electric vehicles (EVs), noting it presents a major opportunity for South African industrialisation.
Government remains firmly committed to the work already under way to improve the operational performance of SA’s energy, freight and logistics sectors – all of which directly impact the automotive industry, he said.
The new energy vehicle (NEV) policy, he added, will advance the country’s aspirations to be a global automotive hub.
“We are working to finalise comprehensive NEV policy guidelines that do not exclude alternative technologies, such as hybrids and plug-in hybrids. Consideration must be given to incentives for manufacturers, as well as tax rebates or subsidies for consumers, to accelerate the uptake of electric vehicles.
“This is not just about creating a greener future, but also about ensuring South Africa remains competitive in the global market. As many of our major trading partners rapidly shift towards EVs, it is imperative that we remain part of this global supply chain.”
In early 2021, the DTIC announced the Auto Green Paper, which focuses on the advancement of NEVs and battery-electric vehicles in SA.
In May 2021, the draft green paper was gazetted for public comment and the policy proposals were submitted to Cabinet for consideration by October 2021.
The green paper was followed by the more refined discussion document – the EV white paper.
Cabinet approved the white paper in December.
The EV white paper details a framework upon which a comprehensive and long-term automotive industry transformation strategy should be premised, with focus on the creation of a high-yielding business environment. This includes a fiscal and regulatory framework that makes SA a leading and highly-competitive location for the automotive sector globally.
It also seeks to promote NEV production and support, and investment in the expansion and development of new and existing manufacturing plants, among other objectives.
As part of the next process, the DTIC, or a task team designated by the DTIC minister, may invite comments on the white paper from interested parties.
Further amendments may be proposed by the relevant parliamentary committee, before the white paper is sent back to the DTIC for additional considerations and final decisions.
The president also emphasised the importance of local production of EVs to enable economic growth and create jobs for South Africans, while driving investment in green energy and skills development.
“We are committed to working hand-in-hand with the private sector to promote the production of NEVs and the development of the necessary infrastructure to support them.
“This work includes the beneficiation of our critical minerals for the production of new energy vehicles and their associated value chains. It also includes the production of batteries for battery electric vehicles and the development of value chains in the green hydrogen fuel cell market.”
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