CURRENTLY ON AIR ⇒
  • NEWS
    Friday, 7:00 pm - 7:30 pm
    [ - ]

feedback@radioislam.org.za

logo


((( Listen Live )))))
Radio Islam Logo


Government’s Electric Vehicle Incentives: Economic Boost or Fiscal Risk?

Neelam Rahim | neelam@radioislam.co.za

3-minute read
09 April 2024 | 16:07 CAT

The government intends to introduce tax and expenditure measures to boost electric vehicle production in South Africa. Lameez Omarjee/News24

Recent shifts in government policy towards electric vehicles mirror global trends. With countries phasing out petrol-driven cars, South Africa’s automotive industry faces a transformative period.

Radio Islam International unpacks the implications of these incentives with Professor Jannie Roussouw, an expert economist from Wits Business School.

The government’s decision to subsidise companies transitioning to electric vehicles has sparked debate. Professor Roussouw outlined the potential economic benefits and risks associated with the policy.

“On the one hand we have to note that South Africa has electric vehicles, small in number, however there are two drillbacks in respect of electric vehicles,” he says.

Professor Roussouw explained, “the first drillback is long distance driving and secondly we do not have uninterrupted supply from Eskom, we have loadshedding. Both these things impact electrical vehicles.”

South Africa is a major vehicle exporter, and on that basis, Professor Roussouw noted that international tendencies have to be considered.

Meanwhile the 150% rebate on qualifying investment spending is estimated to cost the government R500 million. When asked how the Treasury arrived at that percentage, the department said the country needed to compete with peer Developing World markets such as Morocco and Thailand.

Finance Minister Enoch Godongwana said that the South African economy desperately needs growth. Growth is projected to average 1.6% between 2024 and 2026, supported by an expected easing of power cuts and lower inflation.

The persistent crisis in electricity supply, freight rail, and ports and a high sovereign credit risk threaten growth.

South Africa’s key export markets, the UK and Europe, are phasing out sales of ICE vehicles by 2035.

To encourage the production of electric vehicles in South Africa, the government will introduce an allowance for new investments from 1 March 2026.

Listen to the full interview on Radio Islam International with Muallimah Annisa Essack and Professor Jannie Roussow.

ADVERTISE HERE

Prime Spot!!!

Contact:
advertisingadmin@radioislam.co.za 

Related Articles

The ASRI Report

The ASRI Report

Sameera Casmod | sameerac@radioislam.co.za 4 April 2025 | 13:06 CAT 2-minute read Challenges posed by unpredictable Trump administration In this week’s ASRI Report on Radio Islam International, ASRI’s senior research associate Dr Imraan Buccus discussed the challenges...

read more
Five-point Plan to Transform Yourself and the Ummah

Five-point Plan to Transform Yourself and the Ummah

Annisa Essack | kzn@radioislam.org.za 3 April 2025 | 20:00 CAT 4 min read  As the dawn sun rose in Lenasia on 1st April 2025, the surroundings of Lenasia South vibrated with the hum of the "takbirat al-Eid." Homes were filled with excited children, and mothers laid...

read more
The Asia Pacific Report

The Asia Pacific Report

Sameera Casmod | sameerac@radioislam.co.za 3 April 2025 | 10:47 CAT 3-minute read Impact of Trump’s new global import tariff announcement on markets President Donald Trump announced on Wednesday that a 10% tariff will be imposed on most goods imported into the United...

read more
The South African RAND Takes a Hit Amid Budget Uncertainty

The South African RAND Takes a Hit Amid Budget Uncertainty

Neelam Rahim | neelam@radioislam.co.za 3-minute read 03 April 2025 | 09:32 CAT The South African RAND has weakened as contentious budget negotiations threaten the stability of the Government of National Unity (GNU), raising concerns over investor confidence and fiscal...

read more
Lessons From The Past

Lessons From The Past

Rabia Mayet | rabiamayet@radioislam.co.za 01 April 2025 3 minute read In his opinion piece on where South Africa would be in 2025, Dr Pali Lehohla, professor of practice at the University of Johannesburg and former Statistician General of SA, says that the country saw...

read more

Subscribe to our Newsletter

0 Comments