Enabling the electrification of the minibus taxi industry in South Africa to unlock the potential for local manufacturing

This industry brief by GreenCape explores the potential for electrifying South Africa's minibus taxi (MBT) industry to stimulate local manufacturing, specifically within the Atlantis Special Economic Zone (ASEZ). It outlines the operational advantages of electric minibus taxis (E-MBTs), identifies systemic barriers to adoption, and proposes a stepped transition from imports to local production.

• The minibus taxi (MBT) industry is a critical pillar of South African public transport, with approximately 61.8% of households using these services as their primary mode of transport. The sector is growing due to rapid urbanisation and deficiencies in public rail and bus networks, with an estimated fleet of over 250,000 vehicles and more than 10,000 new units sold in 2023.
• Electrification offers significant operational cost reductions for taxi operators. Diesel MBTs have estimated operational costs of R6.07/km, whereas electric alternatives are estimated at approximately R1.20/km. Additionally, E-MBTs are compatible with current operational patterns, as they typically offer a range exceeding 200km, which aligns with the average daily travel of 200km to 300km.
• The transition to E-MBTs is hindered by several systemic barriers, including high upfront costs (EVs are often two to three times more expensive than internal combustion vehicles) and a tax structure that classifies imported EVs as luxury goods, incurring a 25% import duty and up to 30% ad valorem tax. Other challenges include a strained electricity grid, range anxiety, and a reliance on coal for over 80% of the country's electricity.
• South Africa possesses several competitive advantages for E-MBT manufacturing, including a 100-year-old automotive skills base, cost-effective labour, and a strong base load demand of over 10,000 vehicles annually. The Department of Trade, Industry and Competition (dtic) provides incentives through the Automotive Investment Scheme (AIS), which can reimburse up to 35% of investments in EV manufacturing capabilities.
• The Atlantis Special Economic Zone (ASEZ) is identified as a strategic location to serve as a manufacturing hub for E-MBTs, catering to both domestic demand and potential export markets across the African continent via the African Continental Free Trade Area (AfCFTA).
• Flx EV, a South African company, is piloting the 'eKamva' vehicle in partnership with Chinese OEM Higer. The vehicle features a range of over 200km and a 15-passenger capacity. Flx EV plans to roll out 40 vehicles by mid-2025, supported by 5 DC fast chargers with 10 nozzles at designated depots.

APA

GreenCape (2024). Enabling the electrification of the minibus taxi industry in South Africa to unlock the potential for local manufacturing. https://greencape.co.za/wp-content/uploads/2025/02/Electrification-of-minibus-taxi-industry-industry-brief.pdf

Chicago

GreenCape. Enabling the electrification of the minibus taxi industry in South Africa to unlock the potential for local manufacturing. 2024. https://greencape.co.za/wp-content/uploads/2025/02/Electrification-of-minibus-taxi-industry-industry-brief.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Enabling the electrification of the minibus taxi industry in South Africa to unlock the potential for local manufacturing |date=2024 |url=https://greencape.co.za/wp-content/uploads/2025/02/Electrification-of-minibus-taxi-industry-industry-brief.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2024enabling, author = {{GreenCape}}, title = {{Enabling the electrification of the minibus taxi industry in South Africa to unlock the potential for local manufacturing}}, institution = {GreenCape}, year = {2024}, url = {https://greencape.co.za/wp-content/uploads/2025/02/Electrification-of-minibus-taxi-industry-industry-brief.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }