South Africa introduces tax incentives for makers of electric vehicles

John Maytham interviews Thabang Mahlangu, Sector Lead for Automotive, Transport, Freight and Logistics at Nedbank Corporate and Investment Banking.

Listen below.

Companies that make electric- and hydrogen-powered vehicles (EVs) in South Africa will soon be able to claim 150% of eligible investment expenditures on expanding production capacity during the initial year of investment.

The tax relief is projected to reach R500 million for the fiscal year 2026/27.

Finance Minister Enoch Godongwana announced the investment incentive for new energy vehicles in South Africa, as of 1 March 2026, in his annual Budget Speech on Wednesday.

South Africa's vehicle manufacturing industry, by some estimates, makes up 7.5% of the country's GDP and 10% of its manufacturing exports.

"We were quite enthused to celebrate the long-awaited and long overdue announcement that will support the industry."

- Thabang Mahlangu, Sector Lead for Automotive, Transport, Freight and Logistics – Nedbank Corporate and Investment Banking

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