- South Africa’s International Trade Administration Commission (ITAC or the Commission) is reviewing the tariff structure for input material, components and final goods used in the renewable energy value chain.
Historically, foreign manufacturers in the renewable energy sector have been reluctant to invest in manufacturing facilities in South Africa because of political instability, policy inconsistency and the country’s Broad Based Black Economic Empowerment Act which aims to rectify historical economic inequalities by requiring businesses, including foreign companies, to have a certain percentage of ownership or economic involvement held by Black South Africans.
ITAC state the following reasons for the review and invite comments:
- Global decarbonisation commitments present new opportunities for the growth of a strong South African supply base of renewable energy components and finished products, battery storage units, as well as green consumer goods;
- The domestic demand trajectory, raw materials resource base, technological capacity and manufacturing experience places South Africa in a potentially strong position to become a key player in regional and international supply chains; and
- When carefully balanced, an improved tariff structure will increase the demand for, as well as the supply-competitiveness of, locally manufactured products and components; this will further enable export market opportunities; and will enhance the competitiveness of the local renewable value chain.
A 10% tariff for silicon and 15% for copper is propose while the tariff for aluminium increase from 5% to 15%.
There is significant tariff increases propose for gensets and wind turbines:
Link to the full notice listing all of the proposed tariff hikes HERE
Author: Bryan Groenendaal
