A new opportunity is opening for the delivery of vehicle components, solar installations and electric vehicles (EVs) to Zimbabwe.

Finance, economic development and investment promotion minister, Mthuli Ncube, included incentives for vehicle assembly and electric vehicles in his budget speech for 2025, which was presented at the end of last year.

“The motor vehicle assembly subsector has been identified as a quick-win value chain mindful of the potential to transform completely knocked-down and semi knocked-down (SKD) kits to completely built units on the local market,” he said.

In support of local assembly, he has wholly suspended customs duty on SKD kits for two years starting in January 2025.

He reduced the customs duty on imported EVs from 40% to 25%, effective January 1. Electric tractors are duty free.

To further incentivise the use of EVs, Ncube has extended the rebate of duty on equipment used for setting up EV solar-powered charging stations, which are imported by approved operators, from January 1. This is in support of the goal to achieve 33% market penetration of EVs by 2030.

A subsidy of R6,4 billion (US$335 million) has been set aside to encourage the adoption of EVs. Of this, 40% is planned to be allocated to buses and three-wheelers and 20% for two-wheelers, personal four-wheelers and taxi four-wheelers.

Another objective is to create the volumes needed to establish a local EV manufacturing sector.

“To realise the full benefits of this pilot project, it is crucial to domesticate assembly and battery manufacturing within Zimbabwe. This approach will not only foster job creation but also enhance the sustainability and economic viability of the entire initiative,” said Permanent Secretary in the Ministry of Transport and Infrastructural Development, Joy Pedzisai Makumbe, who delivered the keynote address at a validation workshop for the Zimbabwean E-mobility project.