To encourage the production of new energy vehicles (NEVs) in South Africa, Finance Minister Enoch Godongwana has proposed that an investment allowance be made available for new investments from March 1, 2026. In his 2024 Budget, released on February 21, the Finance Minister said that, under this proposal, NEV producers would be able to claim 150% of qualifying investment spending on production capacity for electric- and hydrogen-powered vehicles in the first year of investment.
