InBound SA - Business Volume 4 I Issue 3 | Page 23

INFRASTRUCTURE
REGULATION REMAINS FRAGMENTED
“ South Africa does not have a single regulatory framework dedicated to EVs,” says Hattingh.“ The only formal guiding document published by Government is the Electric Vehicles White Paper, 2023. The Government has also confirmed that additional EV policies and guidelines are under consideration with, among other things, significant tax incentives to commence in March this year.”
Hattingh explains that regulatory complexity varies depending on the type of charging infrastructure being developed. Home and depot charging installations are generally simpler to roll out.“ From a regulatory perspective, home and depot charging is generally more straightforward,” she says.“ These installations typically sit behind the meter and are more readily paired with on-site renewable generation and battery storage, with limited requirements for approvals and consent.”
Public charging infrastructure, however, presents a more challenging approval landscape.“ Depending on scale, these projects may require land-use, and municipal and grid access approvals, particularly where renewable generation capacity is co-located or acquired through wheeling arrangements.”
While recent amendments to the Electricity Regulation Act of 2006 have reduced licensing and registration requirements for private generation, and certain solar and battery projects may benefit from environmental authorisation exemptions, Hattingh cautions that hurdles remain.“ Municipal approvals, electrical compliance requirements and grid connection constraints can still affect timelines, particularly for higher-capacity depot charging, or where wheeling arrangements are required,” she says.
Grid capacity, meanwhile, remains the most significant constraint on large-scale EV charging expansion, says Maraschin,“ with its impact felt most acutely at fleet depots and public fast-charging sites rather than individual home installations”.
According to Maraschin, constraints within Eskom’ s transmission and distribution networks, as well as certain municipal networks, continue to delay or limit new connections even where demand exists. As a result, operators are increasingly adopting alternative approaches.“ Charging operators are increasingly planning around the grid rather than relying on it exclusively,” he explains.“ Co-locating chargers with solar and battery storage projects can reduce reliance on constrained networks, but it typically requires upfront investment and suitable land.”
Where on-site generation is not feasible, wheeling arrangements provide another option, though often at a higher cost.“ Wheeling arrangements allow operators to access generation capacity elsewhere on the network, although this generally comes at a higher cost due to wheeling charges and associated network fees,” says Maraschin.
He adds, though, that Eskom’ s ongoing unbundling could improve access over time.“ More standardised wheeling arrangements may improve access to generation capacity for EV-charging infrastructure at a reduced cost, particularly where co-location is not practical.”
Furthermore, Hattingh highlights fiscal policy as a key driver of EV adoption.“ Beyond access to charging infrastructure and a reliable electricity supply, fiscal policy remains one of the most effective levers to accelerate EV adoption,” she says. At the production stage, the Taxation Laws Amendment Act of 2024 introduced a 150 % tax incentive for the manufacture of battery and hydrogen-powered vehicles.“ While the incentive applies at manufacturer level, it is expected over time to support local production and improve price competitiveness for locally manufactured EVs,” Hattingh explains.
She also points to the need for reform on the consumer side.“ Government should consider revising the existing import duties on foreignmanufactured EVs, which are currently higher than those applied to comparable internal combustion engine vehicles, so that fiscal policy better aligns with energy transition and decarbonisation objectives.”
Both Hattingh and Maraschin stress that policy implementation is now critical.“ The White Paper’ s proposed policy actions and interventions need to be implemented as a matter of urgency,” says Hattingh,“ to create a predictable, investable environment for EV production and adoption.” IB
MARCH 2026 / INBOUND SA 21