South Africa Backs Green Manufacturing With Major Tax Break For New Energy Vehicles

“The biggest opportunity of all lies in green growth. We are pivoting our economy to be a leading supplier of the products that the world will rely on in decades to come.

“We are expanding support for the manufacturing of green products for global markets, from fertiliser to jet fuel, chemicals to steel.

“From March this year, we will introduce a 150% tax deduction for investment in new energy vehicles, while supporting the local production of batteries,” the President said.

Furthermore, the Just Energy Transition Investment Plan now stands at some R250bn – financing “large-scale investment in manufacturing, infrastructure and skills”.

Sunrise industry

South Africa is a continental leader not only in renewable energy potential, but the country also holds some of the world’s largest reserves of platinum group metals, also known as critical minerals.

“Our ore reserves are valued at more than R40tn, making mining a sunrise industry.

“After many years of declining investment in exploration, we are dedicating funds towards geological mapping and exploration to harness our critical mineral reserves,” President Ramaphosa said.

He noted that the Industrial Development Corporation has announced at least R300m in funding for the Frontier Rare Earths Project.

“This has the potential to become one of the world’s largest and lowest cost new producers of minerals that are needed for smartphones, lithium batteries and other products.

“Confidence in the future of South African mining was very evident during the Mining Indaba this week here in Cape Town.

"New gold, copper, rare earths, platinum and coal mines are being opened,” the President said.