Government says it has removed all taxes apart from the Value Added Tax on Electric Vehicles (EVs) to encourage increased uptake of EVs in the country.
Minister of Commerce, Trade and Industry, Chipoka Mulenga noted that the government has also waived VAT on locally produced EVs, adding that the policy changes are targeted at promoting a green economy for enhanced Industrialisation.
Mr Mulenga said this in a speech read for him by Ministry of Commerce, Trade and Industry Permanent Secretary for Investment and Industrialisation, Crusivia Hichikumba, during the High Level Policy Dialogue on Development of Automotive Regional Value Chains and E- mobility in Lusaka today.
He explained that the government has also committed to ensuring that 50 percent of its fleet of vehicles consists of electric vehicles, stating that this is not just a financial incentive, but a declaration to foster a green economy and promote sustainable Industrialisation.
Mr Mulenga added that the country’s commitment to industrialisation and value addition underscores the importance of moving from raw mineral exports to local refining and manufacturing to enhance its potential for creating jobs, fostering sustainable economic growth, and attracting green investments.
“Zambia’s proactive engagement in regional initiatives, such as partnerships with DRC and other countries in the region, demonstrates its ability to leverage its resources to drive regional development, align with global sustainability goals, and position itself as one of the leaders in Africa’s green industrialisation efforts,” he stated.
Mr Mulenga further noted that there is need for targeted policies, investments, and collaboration among governments, the private sector, and civil society in creating a conducive ecosystem that can reduce greenhouse gas emissions and improve air quality in Africa.
African Continental Free Trade Area agreement provides a unique opportunity to integrate regional value chains, fostering industrial deepening and economic growth within the continent.
The United Nations Economic Commission for Africa, Sub Regional Office for Southern Africa Chief, Inclusive Industrialisation Section, Olayinka Bandele, explained that ECA is spearheading an automotive and e-mobility regional value chain initiative.
Ms Bandele said the initiative seeks to take advantage of the opportunities arising from the global energy transition and the expansion of the electric vehicle market on the African continent.
“These initiatives aim to position the continent as a key player in the global automotive and electric mobility and electric battery industry,” she said.
Meanwhile, United Nations Economic Commission for Africa, Sub Regional Office for Northern Africa Director, Adam Elhiraika, said ECA initiatives aim to strengthen policy, regulatory, and incentive frameworks for emerging automotive and electric mobility industries in Africa.
Mr Elhiraika noted that the transition aligns with the United Nations’ 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063, promoting green job creation and enhancing economic resilience.
