Online Reporter
Nqobile Bhebhe-Zimpapers Business Hub
ZIMBABWE is implementing a bold strategy to accelerate its transition to a sustainable, low-carbon economy, with a recalibrated tariff structure on green technologies serving as a central pillar of this transformative policy.
The move, which aligns the country’s trade and fiscal policies with its climate goals, is designed to make renewable energy adoption and electric vehicle (EV) uptake more accessible while stimulating economic growth and job creation.
In its second quarter (Q2) report, the Competition and Tariff Commission (CTC) highlighted the critical role of the new tariff structure in influencing the pace and affordability of the green transition.
“Relatively high duties were previously imposed by the Government of Zimbabwe (GoZ) on several key green technology products, which acted as a disincentive to their adoption,” the CTC noted.
“However, the GoZ has since taken steps to align the tariff regime with national climate and energy goals.”
Tariff reductions are now a cornerstone of Zimbabwe’s clean energy strategy.
By slashing duties on EVs and charging infrastructure, the Government aims to achieve a significant 33 percent EV market penetration by 2030.
“GoZ has aligned its tariff structure with its environmental objectives of zero percent or low tariffs on clean energy,” the commission stated.
To further boost uptake, which remains low for imported electric buses and motor vehicles, the Government is offering import duty rebates on equipment and machinery for establishing EV solar-powered charging stations.
“This policy approach supports broader outcomes such as increased access to clean energy, lower energy costs, greater investment in green technology and reduced carbon emissions,” the report said. The rebates cover essential infrastructure, including solar panels, inverters, EV chargers, battery storage systems, control units, mounting structures and monitoring systems.
By lowering costs, these measures are expected to accelerate adoption among businesses, Government institutions and households, while creating a more attractive environment for both local and foreign investment.
As a signatory to the Paris Agreement, Zimbabwe has committed to ambitious carbon emission reductions through its Nationally Determined Contributions (NDCs).
“Lowering tariffs and offering rebates on EV charging infrastructure acts as a catalyst for multilateral climate action,” the CTC asserted. “It supports SDG 7 (affordable and clean energy) and SDG 13 (climate action), while creating a conducive investment environment for low-carbon development.”
The potential for job creation is substantial. With the United Nations Development Programme (UNDP) projecting that the global energy transition could generate up to 18 million new jobs by 2030, Zimbabwe stands to gain employment opportunities in solar installation, EV maintenance and battery recycling.
“The green transition to a low-carbon economy offers not only environmental gains but also major economic opportunities,” the report emphasised. The document notes that EVs are more affordable for government fleets, tourism and urban transport.
Reducing tariffs on EVs and related products presents a strategic opportunity to fast-track Zimbabwe’s transition to electric mobility, it added. “Lower costs make EVs more accessible for public and government fleets, enabling cleaner and more affordable transport.
“Regional examples such as Rwanda show how fiscal and non-fiscal incentives, such as tax breaks and free land for charging infrastructure, boost investor confidence and foster a competitive, business-friendly environment.
“The impact goes beyond government fleets. In Kenya, ride-hailing services such as Bolt and Uber have introduced cheaper electric rides, leveraging EV incentives to offer lower prices.
“Similarly, prioritising EVs for rental and fleet services in Zimbabwe could enhance availability, reduce emissions, and attract local and foreign investment, thus accelerating charging infrastructure development and supporting broader EV adoption.”
The strategy also positions Zimbabwe to leverage its vast lithium resources for local battery manufacturing, moving beyond the export of raw minerals.
“As the global race for battery minerals accelerates, Zimbabwe’s lithium wealth offers a once-in-a-generation opportunity to lead in value-added manufacturing.
“As the demand for lithium continues to soar, Zimbabwe holds a comparative advantage emanating from large lithium reserves, as it ranks among the world’s top five in estimated deposits.
“Incentivising local battery manufacturing offers several strategic and economic advantages, particularly as part of a green industrial policy. There is a need for value addition as exporting raw lithium captures only a fraction of its economic value. Local processing and battery manufacturing will multiply locally captured value by producing higher-value goods such as lithium-ion batteries.”
Furthermore, expanding EV use is a key strategy for enhancing national energy security.
According to the Zimbabwe National Statistics Agency, Zimbabwe spent US$125,4 million on diesel and petrol imports in March 2023 alone. “Accelerating EV adoption and investing in local renewable energy infrastructure can reduce fuel import dependency and enhance energy security,” the CTC said.
The commission acknowledged a potential short-term decline in customs revenue from reduced tariffs, noting that they are a key fiscal income source.
“The downside of reducing import tariffs on green technologies is the potential government revenue loss. Tariffs and import duties are a key fiscal income source, especially in Zimbabwe, with a narrow tax base and where external trade plays a significant role in public financing.
‘‘Thus, eliminating or reducing these tariffs could result in a short-term decline in customs revenue.”
However, tariff reductions on green technologies yield long-term socio-economic and environmental dividends as they diminish fuel import bills over time through the transition from fossil fuel (petrol and diesel) consumption to EVs and renewable energy, the CTC said.
“While revenue may decline upfront, the country stands to gain broad-based economic benefits, turning Nationally Determined Contribution (NDC) ambitions into climate action,” the report concluded.
Experts recommend complementary measures to maximise the impact, including promoting local EV assembly by waiving duties on completely knocked down (CKD) kits, investing in technical training programmes and fostering public-private partnerships.
“Expand charging infrastructure, especially off-grid. Zimbabwe’s rebate on solar-powered charging station equipment is a strong stimulus. GoZ should actively streamline the approval and land-use process for new charges and consider co-investing in strategically located fast-charging hubs (such as on highways).
“Integrating renewable energy (solar and storage) is key to alleviate strain on an often-weak energy grid. Ensuring a reliable electricity supply, through renewables and grid upgrades, will make EV ownership practical nationwide.
“Public-private partnerships or concessional loans could facilitate private companies to timeously build onto this infrastructure,” the commission noted.
Energy expert Mr Khayelihle Dube endorsed the policy, saying: “Zimbabwe’s decision to lower tariffs on green technologies is a strategic move to accelerate renewable energy adoption, foster economic growth and reduce fossil fuel dependence.
“By making EVs and clean energy infrastructure more affordable, the country is poised to position itself as a green energy hub in Southern Africa.”
According to the CTC, the country’s move is a definitive win for energy security, economic growth and environmental resilience.
“By lowering barriers to renewable energy adoption, the country can reduce its fossil fuel dependency, leverage its lithium resources and position itself as a green energy hub in Southern Africa.”
