THE TRANSPORT INDUSTRY IS SOUTH AFRICA ’ S THIRD LARGEST SOURCE OF EMISSIONS , REPRESENTING ALMOST 11 % OF THE COUNTRY ’ S AGGREGATE .
INTELLIGENT BRANDS // Green Technology
Using fleet data to prioritise transition to EV transportation in Africa
The uptake of electric vehicles , EVs has taken centre stage as the most viable means to reduce greenhouse gas emissions around the world . In South Africa , the race to shrink the transport industry ’ s carbon footprint is no different . However , the local automotive ecosystem ’ s sluggish transition to low-emission alternatives means its sizable contribution to GDP hangs in the balance .
“ There are great opportunities for businesses ,” says Justin Coetzee , CEO GoMetro . “ Companies can use data collected from their current fleet to provide specific recommendations around best use-cases for EVs . This can also prevent any risk of overcapitalising on unnecessary private charging stations .”
There are many financial and operational reasons to continue using older technology in certain cases . Diesel for long-haul trucks , for example , might make sense for the next 10 to 15 years . Companies can , however , identify lower hanging fruit , such as delivery vans or service vehicles – for EV implementation based on where it will work best and how it is being used .
EVs are the future of transport . But that does not mean that every situation can be supported by these vehicles . By implementing EVs correctly , companies can save significantly on operating costs , reduce emissions and take advantage of the technology we have available today .
Justin Coetzee , CEO GoMetro
The Government ’ s Green Transport Strategy set out its commitment to a 5 % reduction in transport emissions by 2050 . The caveat is that large financial investments in new production lines and equipment are needed to transition the local automotive manufacturing industry to produce EVs .
A regulatory framework that encourages local EV production is slowly unfolding . The recent announcement of tax breaks , from 2026 for the new production of EVs and HVs , is one such example , but the market is simply not ready , Coetzee notes .
“ The transport industry is South Africa ’ s third largest source of emissions , representing almost 11 % of the country ’ s aggregate . The only way to reduce emissions in this sector is to move away from internal combustion engine vehicles to EVs , and some also say hydrogen vehicles , HV . The HV dream is not something we believe is feasible , but EVs are another matter ,” says Coetzee .
THE TRANSPORT INDUSTRY IS SOUTH AFRICA ’ S THIRD LARGEST SOURCE OF EMISSIONS , REPRESENTING ALMOST 11 % OF THE COUNTRY ’ S AGGREGATE .
Vehicle manufactures are heavily invested in the production of ICE vehicles , with loans that could take 10 or 20 years to pay off . These manufacturers are not in an ideal position to invest in EV production facilities . Because of this stalemate , EV development in South Africa could come to a halt .
Government ’ s goals for the implementation of EV manufacturing are not supported by the policies that are currently in place , in particular the high costs of importing EVs , due to unreasonable tariffs and duties .
Government should aim to strike a balance between the preservation of export revenue and jobs and spurring the uptake of EVs in South Africa . Additional incentives could , for example , allow EV startups to pilot and test technologies and scenarios without the penalty of high import duties .
Additional policies that stimulate local manufacturing initiatives would , in turn , accelerate greater corporate and consumer interest by narrowing the price differential between EVs and ICE vehicles . p
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