LILONGWE, Feb. 27 (Xinhua) -- Investors have hailed the Malawi government for implementing policies that will enable e-mobility and the clean energy industry to blossom in the sub-Saharan country.
This follows earlier announcements made by Malawian President Lazarus Chakwera and his Finance Minister Simplex Chithyola Banda that the government is conducting feasibility studies, developing regulations, and piloting charging points for electric vehicles and electric buses.
During the opening of the 2024/2025 budget session of parliament in early February, President Chakwera said the World Bank had supported Malawi with 300,000 U.S. dollars to implement the stated interventions. The 2024/2025 fiscal year will begin on April 1, 2024, and end on March 31, 2025.
He hinted at tax waivers to aid motorists' transition, while disclosing that an investor had been identified to bring into the country 50,000 electric motorbikes to create jobs for the country's youth and generate wealth through the accruement of carbon credits.
When the finance minister presented the 2024/2025 budget report in parliament Friday, he announced that "This Fiscal Year, the Government removed import duties and taxes on electric motor vehicles, and materials used for the construction of electric motor vehicle charging stations to reduce demand for fossil fuels and its negative impact on climate."
"I am pleased to report that we already have some investors importing electric motor vehicles and constructing charging stations. Encouraged by this good response, the Government is removing import duty and import excise tax on electric motorcycles."
Commenting on the development, Schizzo Thomson, founder and managing director of Sky Energy Africa, the first electric vehicle supplier company in Malawi, has praised the Malawian government for the move.
"This is timely support for the E-mobility and clean energy industry which plays a big role to combat impacts of climate change through decarbonization," Thomson told Xinhua. "We are grateful to the World Bank for swiftly stepping in to support the Malawi Government in piloting e-mobility solutions, demonstrating their commitment to our shared vision of sustainable transportation."
He said the government's move has the potential to attract investment and stimulate job creation, particularly in the manufacturing, assembly, and maintenance sectors.
Thomson also noted that the transition to electric transportation will reduce dependence on imported fossil fuels, leading to cost savings and improved energy security, while the generation of carbon credits through the deployment of electric motorbikes will promote environmental conservation and present an opportunity for revenue generation and diversification of income streams.
"Overall, these initiatives have the potential to enhance economic resilience, promote sustainable development, and position Malawi as a leader in green innovation within the region," said Thomson. ■
