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

The document assesses the viability of transitioning South Africa's minibus taxi (MBT) fleet to electric vehicles (E-MBTs), highlighting significant operational cost savings and the alignment of vehicle range with current driver patterns. It identifies key barriers, including high upfront costs, inadequate charging infrastructure, and restrictive tax structures. To unlock local manufacturing, the brief proposes a three-step transition: moving from imports to local assembly and finally to scaled-up local production. It emphasizes the Atlantis Special Economic Zone (ASEZ) as a strategic hub for this industry, supported by existing automotive skills and government incentives like the Automotive Investment Scheme.

• The South African minibus taxi (MBT) industry is a critical transport pillar, with approximately 61.8% of households using it as their primary mode of transport, and a current fleet exceeding 250,000 vehicles.
• Electrification offers substantial operational cost reductions; diesel MBTs cost an estimated R6.07/km, whereas electric alternatives are estimated at approximately R1.20/km.
• E-MBTs are operationally suitable for the South African market because their range (upwards of 200km) meets the typical daily travel of 200km to 300km, aided by midday charging opportunities during demand lulls.
• Several systemic barriers hinder E-MBT adoption, including high initial costs (two to three times that of internal combustion vehicles), a 25% import duty, and an ad valorem tax of up to 30% because EVs are classified as luxury goods.
• The document proposes a three-step strategy to build local manufacturing: first focusing on imports to build infrastructure and skills, then moving to local assembly of components, and finally scaling up full local manufacturing to offset imports.
• South Africa's capacity for local E-MBT production is supported by a demand of over 10,000 new taxis annually and government incentives, such as 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 to meet both domestic demand and potential export markets across Africa via the African Continental Free Trade Area (AfCFTA).

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} }