The department of trade, industry and competition DTIC released a green paper for the advancement of new energy vehicles in South Africa. Essentially electric vehicles or electric cars.
This is an integral part of the series of policy papers accompanying the 2021 budget for the department and serves as the first step into informing and understanding proposed legislation to solve future solutions.
The purpose of the Green Paper policy on electric vehicles
The purpose of this green paper on electric vehicles is to establish a clear policy foundation that will enable the country to coordinate a long-term strategy. This strategy will position South Africa at the forefront of advanced electric vehicle and EV component manufacturing.
The green paper strategy is complemented by a consumption leg and a focus on increasing competitiveness in a global race. This has assisted the automotive industry with the transition from ICE (Internal combustion engines) to electric mobility solutions and technologies.
With looming deadlines ahead of us, I was intrigued to know what progress has been made over the past year.
I was joined by the chairman and CEO of NAAMSA, Mike Mabasa to discuss the development of the electric vehicle green paper.
What is NAAMSA’s involvement with the electric vehicle Green Paper?
NAAMSA was invited to assist with drafting the Green Paper on behalf of the SA automotive industry. Mike Mabasa told us that the policy document is way too massive for the government to put together on its own and needs the assistance of the automotive industry.
Mike explained to me that NAAMSA is The National Automotive Business Council that represents automakers in both the automotive industry and South Africa as a country.
This includes representing manufacturers globally and within SA, including the importing of all vehicle types into the country.
By including Naamsa, the government has identified NAAMSA’s contribution plays an indispensable role in terms of shaping this policy document, as well as the evolution of what is about to happen with electromobility through electric vehicles.
NAAMSA invested resources and provided invaluable insights to support the government to ensure that all the key selling features and challenges need to be considered from a policy point of view.
The misconception about the South African government
I think there’s this misconception about the South African government, that they do their own thing without consulting the relevant industries before putting a policy in place. Mike explained that in this case, it was the exact opposite. The government engaged and wanted help from the industry.
Our automotive industry contributes 7% of our GDP and is a big part of the country as a whole.
What is the Green Paper policy on electric vehicles
“Green paper is actually a foundation phase”.
It is the beginning stages of putting the policy document together that allows the industry and government to:
- Tease out all the key electric vehicle policy issues that may need to be considered.
- What to think about across government, industry, and other interested parties.
Once the green paper has been audited and finalized, it evolves into White Paper.
What is the White Paper policy on electric vehicles
“The White Paper now becomes more of a regulated document”
Because the green paper has teased out all the key issues. All parties involved will add their input to add all possibilities that have not been considered, which is then elevated into a White Paper.
The white paper then goes into a formal process, briefly and paraphrased as:
- Goes into parliament.
- Parliament considers and discusses the white paper on electric vehicles.
- Goes into public participation.
- Sent to both parliament houses.
- Given to cabinet ministers.
- President signs it into law.
The public comes in and makes a representation in parliament on that particular white paper.
Once the White paper has been endorsed, it becomes a formal policy document of the government that has been adopted. It is then shared with the National Assembly and the National Council of Provinces (parliament houses).
When the president signs it into law the White Paper becomes a formal government policy.
