Fitch Solutions, a subsidiary of the Fitch Group, estimates that South Africa’s electric vehicle (EV) sales expanded by about 22% in 2021, to reach an annual sales volume of just 144 units.
The research firm said this is due to the limited EV models available in the country, the limited affordability of EVs and poor electricity supply, which will deter most potential EV, customers.
“While we do not see significant EV adoption in South Africa over 2022-2031, we believe natural gas-powered vehicles could be the fastest, most cost-
the effective and overall easiest route to reducing the emissions of Africa’s transport sector.
“This is because existing diesel vehicles can be relatively easily converted to use natural gas, which will make reducing transport emissions a lot more obtainable,” Fitch said in a research note.
At COP26 in Glasgow last year, US president Joe Biden announced the US would tackle the climate crisis by manufacturing more electric vehicles and transitioning America’s power grid to be cleaner and more environmentally sustainable, creating more jobs in the process.
South Africa has also committed itself to reduce its carbon emissions, and through a political declaration with the governments of France, Germany, the UK, the US and the European Union, an initial R131-billion will be mobilised in the next three to five years in its efforts to tackle climate change.
Trade & Industrial Policy Strategies, a non-profit economic research institution established in 1996 to support economic policy development, said last month that a dual strategy is necessary to foster the overall uptake of EVs as well as incentivising and inclusive rollout that benefits all.
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