The Zambian government has announced significant policy changes to encourage the adoption of electric vehicles (EVs) as part of its commitment to promoting a green economy and sustainable industrialisation. Speaking during the High-Level Policy Dialogue on the Development of Automotive Regional Value Chains and E-Mobility in Lusaka, Minister of Commerce, Trade and Industry Chipoka Mulenga revealed that all taxes, except for Value Added Tax (VAT), on EVs have been removed.
Additionally, VAT on locally produced EVs has been waived, providing a further incentive for local manufacturing. These measures aim to attract investments, reduce greenhouse gas emissions, and position Zambia as a leader in Africa’s green industrialisation efforts.
Government Commitment to Sustainability
Minister Mulenga, in a speech delivered by Permanent Secretary Crusivia Hichikumba, shared the government’s goal of ensuring that 50% of its vehicle fleet consists of EVs. This move is seen as both a financial and symbolic commitment to fostering a sustainable and green economy.
The Minister highlighted the importance of shifting from raw mineral exports to local refining and manufacturing to maximise Zambia’s economic potential, create jobs, and attract green investments. Zambia’s abundant natural resources, including critical minerals for EV batteries, position it strategically to play a leading role in the transition to a green economy.
Regional and Global Collaboration
Zambia’s active participation in regional partnerships, such as its collaboration with the Democratic Republic of Congo (DRC), showcases its determination to leverage resources for regional development. The African Continental Free Trade Area (AfCFTA) agreement further provides an opportunity to integrate regional value chains, fostering industrial growth and economic resilience across the continent.
Olayinka Bandele, Chief of the Inclusive Industrialisation Section at the United Nations Economic Commission for Africa (ECA), explained that ECA is spearheading an initiative to develop automotive and e-mobility value chains in Africa. This initiative aligns with global energy transition goals and positions the continent as a key player in the electric mobility and battery industries.
A Path to Sustainable Growth
ECA’s Sub-Regional Office for Northern Africa Director, Adam Elhiraika, noted that these initiatives are designed to enhance policy and regulatory frameworks, creating an enabling environment for the automotive and EV industries. The transition aligns with the United Nations’ 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063, supporting green job creation and economic resilience.
The Future of E-Mobility in Africa
As the global shift toward electric mobility accelerates, Zambia is positioning itself as a regional leader in green industrialisation. The country’s proactive policies, combined with strategic partnerships and its abundant natural resources, set the stage for transformative growth in the EV and battery manufacturing sectors.
By removing taxes on EVs and fostering a supportive ecosystem for industrialisation, Zambia is taking bold steps toward achieving a sustainable, environmentally conscious, and economically vibrant future.
