March 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
running alternative energy solutions
such as fuel-powered generators.
The 25 percent rebate, up to
R15 000 for residential solar installa-
tions and the rebate guarantee scheme
for business bodes well for helping
South Africans cope with ongoing
power outages and rising energy costs.
In addition, zero increases in cor-
porate tax, personal income tax, VAT,
fuel levy and road accident fund levy
should significantly help ease cash flow
pressure on businesses.
The projected R903 billion to be
spent on infrastructure, including
roads, power plants and water supply
initiatives, is also welcomed.
“The 2023 National Budget made it
clear that in the short term, all available
additional resources were being utilised
to mitigate the impact of the ongoing
energy crisis, and that means that a va-
riety of other important initiatives were
unfortunately put on the back burner,”
says Derick de Vries, Executive Head of
Standard Bank Fleet Management.
The automotive industry was
collectively disappointed that no solid
commitment was made on the support
programme for the manufacturing of
New Energy Vehicles and New Energy
Vehicle components in the country.
The Minister did also not provide
any policy guarantees for the South
African automotive industry’s inevitable
transition. Delays with the promulga-
tion of the New Energy Vehicle White
Paper continue to represent one of the
biggest risks regarding the retention of
jobs and manufacturing contracts at
local vehicle production facilities.
“The future of the South African
automotive industry with regards to
local manufacturing will be based on
the ability to deliver the vehicles with
the drivetrains that the global market
demands going forward, and this can
only be done with the support of gov-
ernment, who needs to rubber stamp
the legislation needed to make the
manufacturing of new energy vehicles
viable,” adds de Vries.
The potential loss of local vehicle
manufacturing in any form will have a
massive impact on the South African
automotive industry in various ways,
including job losses. Another area that
will suffer greatly is vehicle pricing,
currently offset by the APDP import-ex-
port credit programme.
Increased vehicle prices, which are
already under pressure due to the
weakening exchange rate, will result
in increased transport costs across
the board. Along with increased new
vehicle prices comes increased service,
maintenance and insurance costs.
Increased new vehicle prices will
make it that much more difficult for
transporters to upgrade their fleets
when necessary and will lead to in-
creased maintenance costs as well as an
increased chance of vehicles falling into
an unroadworthy state and contributing
to our already grim accident and road
fatality numbers.
“While the strategies that are being
put in place to mitigate the fallout
of ongoing load shedding due to the
failure of Eskom are welcomed, it is
a pity that this must be at the cost of
other initiatives that are critically im-
portant to keeping the country’s wheels
turning,” concludes de Vries.
Standard Bank continues to offer
customers various innovative solutions
that help them utilise the vehicles
they need to run their business as
their needs and affordability change,
from traditional loan agreements to
a variety of fleet management and
leasing options that suit every need and
affordability case. BFA