Connect with us

Hi, what are you looking for?

CleanTechnica
Image courtesy Ampersand

Bicycles

Rwanda Has Awesome New Incentives For EVs

Rwanda is introducing a new set of incentives to catalyze the adoption of electric vehicles. Rwanda’s updated Nationally Determined Contribution (NDC), outlines the importance of electric vehicles and the enforcement of vehicle emission standards as key mitigation measures on the path to reduce greenhouse gases. Earlier this month, Rwanda’s government approved a new set of incentives that will help meet these goals.

Speaking at the E-Mobility Technology Showcase in Kigali, Janvier Twagirimana, Transport External link & Donor Coordinator in the Ministry of Infrastructure (MININFRA), gave a summary of these incentives in his presentation “Status of E- Mobility in Rwanda.”

Fiscal Incentives:

  • Electricity tariffs for charging stations to be capped at the industrial tariff. This means that charge point operators will be billed at close to USD 10 cents/kWh instead of close to 20 cents/kWh
  • Electric vehicles will also benefit form reduced tariffs during off peak periods
  • Electric vehicles, spare parts, batteries, and charging station equipment will all be exempted from import and excise duties. All of these would also be treated as zero rated VAT products and will also be exempt from withholding tax.

Non-Fiscal Incentives:

  • Rent free land for charging stations on land owned by the government
  • Provisions for EV charging stations in the building code and city planning rules
  • Green license plate to allow preferential parking for EVs and free entry into any future congestion zones
  • Access to dedicated bus lanes
  • Provide preference to electric vehicle for government hired vehicles
  • Regulate the importation of used vehicles by imposing an age limit
  • Establish restricted zones where only green vehicles can have access
  • Enforcement of existing emission standards to discourage the purchase of polluting vehicles.

Image courtesy Guraride

Rwanda is actively encouraging investment in the e-mobility sector, and the Rwanda Development Board (RDB) also gave a presentation outlining some of the initiatives to encourage investment. Some of these incentives include a preferential corporate income tax rate of 15% for investors operating in e-mobility. Firms operating in the energy, ITC, and mass transport industries also qualify.

There are already several firms in the EV space in Rwanda and the new incentives should give them a major boost. Some of the firms that were exhibiting at the E-Mobility Technology Showcase in Kigali this morning include Guraride, Volkswagen, Victoria Motors, Rwanda Electric Motorcycles, and Ampersand. Ampersand has just secured a $3.5 million investment from the Ecosystem Integrity Fund (EIF). The deal is the largest ever e-mobility investment by a venture capital fund in Sub-Saharan Africa and marks a turning point in global electric transport.

Rwanda’s new incentives are quite comprehensive and will certainly help catalyze the transition to electromobility. Let’s hope more countries in the region also follow soon with similar incentives.

Images courtesy of Guraride and Ampersand


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Remeredzai Joseph Kuhudzai has been fascinated with batteries since he was in primary school. As part of his High School Physics class he had to choose an elective course. He picked the renewable energy course and he has been hooked ever since. At university he continued to explore materials with applications in the energy space and ending up doing a PhD involving the study of radiation damage in High Temperature Gas Cooled Nuclear Reactors. He has since transitioned to work in the Solar and Storage industry and his love for batteries has driven him to obsess about electric vehicles.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Cars

Africa could be on the verge of another incredible leapfrog event. We have seen it before with the telecommunications and fintech industries. Once the...

Cars

BYD Zimbabwe recently launched the T3 electric van in the Zimbabwean market. This made it the first company to introduce brand new electric vehicles...

Cars

EkoRent Africa’s NopeaRide, Africa’s first all-electric ride-hailing taxi firm and delivery service (Nopea Xpress), has received funding from EEP Africa for piloting solar electric...

Clean Transport

The transition to electromobility is now well underway across the globe. While record market shares in developed nations such as Norway, Germany, and the...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.