South Africa

South Africa

Introduces an investment allowance for new investments in production of electric vehicles

21 Feb 2024

On 21 February 2024, the Minister of Finance of South Africa presented the 2024 Budget, which includes inter alia an incentive for producers of electric vehicles. According to the Budget, to encourage the production of electric vehicles in South Africa, the Government will introduce an investment allowance for new investments, beginning 1 March 2026. This will allow producers to claim 150 per cent of qualifying investment spending on electric and hydrogen-powered vehicles in the first year. The incentive will be implemented in addition to the existing support under the Automotive Production Development Programme.