Renewable energy equipment tariffs reduction to boost Zim sustainability

ZIMBABWE, like many developing nations, faces the dual challenge of energy insecurity and climate change vulnerability.

The Government of Zimbabwe’s (GoZ) recent announcement to reduce tariffs on renewable energy equipment such as electric vehicles (EVs), EV charging systems and infrastructure marks a significant step towards transitioning to green energy. Sustainable development, protection and preservation of the environment are fundamental goals of the World Trade Organisation (WTO) as enshrined in the Marrakesh Agreement. WTO allows members to adopt trade related measures for environmental protection, which however must be justified and not used for protectionist purposes.

This article examines the rationale behind lowering tariffs on renewable energy equipment as a Climate-Responsive Measure, the expected economic and environmental benefits, challenges, and recommendations for implementation. the GoZ has promulgated the Customs and Excise (General) (Amendment) Regulations, 2025 (No. 124) Statutory Instrument (SI) 35 of 2025 which provides a rebate of duty on equipment and machinery used for setting up solar-powered charging stations imported by approved operators. Concurrently, the 2025 National Budget Statement also reduced duty on electric vehicles.

Current Tariff Structure

The green technologies tariff structure plays a crucial role in influencing the pace and affordability of the green transition. Relatively high duties were previously imposed by the GoZ on several key green technology products, which acted as a disincentive to their adoption

However, the GoZ has since taken steps to align the tariff regime with national climate and energy goals. Tariff reduction on these products is designed to boost EV uptake, targeting 33% EV market penetration by 2030 in line with its climate goals. GoZ has aligned its tariff structure with its environmental objectives of 0% or low tariffs on clean energy.

In addition to reduced duties, the GoZ is providing import duty rebates on equipment and machinery for setting up of 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 rebate on duty for EVs charging infrastructure is expected to accelerate adoption across businesses, the GoZ and households thereby lowering the overall cost of sustainable technologies. This rebate covers solar panels, inverters, EV chargers, battery storage systems, charging control units, mounting structures, electrical wiring components, monitoring system and grounding equipment.

In this regard, low import duties encourage local and foreign investment in renewable energy infrastructure and EV, consistent with Zimbabwe’s climate commitments and sustainable development objectives under the Paris Agreement framework and Vision 2030.

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Climate-responsive measures

Zimbabwe is a signatory to the Paris Agreement and has pledged to reduce carbon emissions under its Nationally Determined Contributions (NDCs). Lowering tariffs and offering rebates on EV charging infrastructure acts as a catalyst for multilateral climate action. As a signatory to the Paris Agreement, it has pledged to reduce its carbon emissions through updated NDCs, increasing ambition from a 33% to 40% reduction (GoZ, 2021). Lowering tariffs on clean energy technology supports Sustainable Development Goal (SDG) 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Zimbabwe is thus creating a conducive investment environment for low-carbon development.

As projected by the UNDP, the global energy transition initiative also presents an economic opportunity, with sustainable energy to generate 18 million new jobs by 2030. Job creation can be 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. As EV uptake expands, so will the need for solar powered charging infrastructure, boosting sectors such as construction, technical services, and clean energy. In Zimbabwe, scaling up importation or local manufacturing of solar panels can generate employment in infrastructure development and solar installation. Further, the solar and EV sectors are highly complementary, as EV growth stimulates solar demand, while maintenance and battery recycling create additional jobs.

The global shift towards sustainability is reshaping capital flows. Green finance, including environmental, social and governance (ESG) investment, green bonds and climate-focused funds, is unlocking capital for sustainable infrastructure and innovation. Tariff cuts spur local industry growth in EV assembly and facilitate leveraging of Zimbabwe’s lithium reserves into local battery manufacturing.

Expected Benefits

1. i) Cheaper Renewable Energy Adoption: Lower tariffs reduce the cost of importing green technologies, making them more accessible to households, businesses and government institutions. Such policies lead to increased investment in charging infrastructure in key routes which is critical in EVs adoption. In Zimbabwe, this makes solar-powered EV charging infrastructure more affordable, driving both EV uptake and investment in solar energy. As costs fall, wider access to clean energy becomes possible, supporting emissions reduction, energy security and job creation across the green economy.
2. ii) Accelerating Electric Mobility: 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.

Lower costs make EVs more accessible for public and government fleets, enabling cleaner and more affordable transport. Regional examples such as Rwanda shows 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 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 support broader EV adoption.

iii) Local Lithium Value Chain Development: EV adoption and assembly incentivises battery manufacturing rather than export of raw lithium. 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.

1. iv) Reducing Fossil Fuel Dependence

EVs and solar reduce foreign currency demand for diesel and petrol. Tariff cuts on EVs and charging systems helps transitioning from fossil fuel vehicles which reduce the fuel import bill as EVs become relatively cheaper and accessible.

This article was extracted from the Competition and Tariff Commission’s 2025 second quarter newsletter.

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