Thabo Nkosi 
Zambia has made bold updates to its electric vehicle (EV) import rules in 2025, aiming to make EVs more affordable and practical. These changes include cutting taxes, simplifying import procedures, and improving infrastructure standards. Here’s a quick overview of the eight key changes:
- Zero Customs Duty: Importers no longer pay customs duty on EVs and accessories, significantly lowering costs.
- Reduced Excise Duty for Hybrids: Excise duty for hybrid vehicles dropped from 30% to 25%.
- VAT Exemption for Local EVs: Locally manufactured or assembled EVs are now VAT-free.
- Charging Station Standards: Licensing and safety standards are now mandatory for EV charging stations.
- Simplified Solar Equipment Imports: Importing solar panels and related equipment is now faster and easier.
- Mandatory Pre-Export Inspections: EVs must pass safety and quality checks before being shipped to Zambia.
- Updated Taxpayer ID Rules: Importers must have an up-to-date taxpayer identification number (TIN).
- Green Financing Options: Specialized loans and asset financing options make EV ownership more accessible.
These updates are driving a shift in Zambia’s automotive market, with EV registrations increasing by over 330% between 2023 and 2025. The removal of customs duties and the introduction of green financing are particularly impactful, making EVs a viable choice for more people. Combined with the rise in solar energy projects, these changes set the stage for further growth in the EV sector.
1. Zero Customs Duty on Electric Vehicles and Accessories
Zambia’s 2025 EV regulations introduced a game-changer: zero customs duty on imported electric vehicles and their accessories. Whether it’s electric motorcycles, cars, buses, or trucks, importers now enjoy full customs duty exemption. This also applies to charging systems and related accessories, making EVs more affordable and competitive compared to traditional gasoline and diesel vehicles.
By eliminating customs duty, the government has significantly reduced the upfront cost of EVs, a key barrier that previously discouraged many Zambians from considering them. The impact? EV adoption in Zambia skyrocketed by 334% after this policy change. Buyers and importers alike benefit from lower initial costs, making EV ownership more accessible.
While importers still have to pay VAT on the CIF value, a smaller excise duty, and clearing fees, these additional costs remain relatively low. Importantly, the policy covers a wide range of vehicle types, encouraging EV adoption across various segments. Even used EVs are included in the exemption, allowing them to compete more effectively with used gasoline-powered vehicles.
This regulatory shift sets the stage for further efforts to accelerate EV adoption in the country.
2. Lower Excise Duty on Hybrid Vehicles
In a move aimed at promoting cleaner transportation, Zambia reduced the excise duty on hybrid passenger vehicles from 30% to 25%. This 5% reduction was introduced roughly 18 months before August 2025. The change aligns with the government’s larger initiative to encourage the use of eco-friendly vehicles, supporting the growth of Zambia’s emerging electric vehicle market.
3. VAT Exemption for Locally Made Electric Vehicles
Zambia has rolled out a VAT exemption specifically for electric vehicles that are manufactured or assembled within the country. This move is aimed at encouraging domestic production and supporting the growth of the local EV industry.
However, this exemption is limited to vehicles that meet specific local production requirements. Importers and dealers need to provide proper verification documents to qualify. Electric vehicles that are fully assembled and imported from other countries are still subject to the standard VAT rate.
4. New Licensing and Safety Standards for EV Charging Stations
After revising VAT and excise duties for electric vehicles, Zambia has introduced updated regulations focusing on charging infrastructure. Under these new rules, anyone operating an EV charging station must obtain a license from the appropriate regulatory authority. This ensures that all charging facilities adhere to critical safety and operational standards before they can begin serving users.
5. Simplified Solar Equipment Import Procedures
Zambia is taking another step forward in supporting EV infrastructure by streamlining the process for importing solar equipment. Recognizing that many EV owners rely on solar power for charging, these changes aim to make it easier and faster to bring in solar panels, inverters, and related accessories. This move is a win for anyone looking to set up renewable energy-powered home charging stations.
The updated process reduces paperwork and speeds up customs clearance, ensuring solar equipment gets through more efficiently. This is a game-changer for EV owners dealing with unreliable or expensive grid electricity. Pairing an electric vehicle with a solar charging system not only lowers operating costs but also ensures a steady, reliable power source for charging. With these new rules, importing the necessary components becomes far less of a hassle.
The simplified procedures cover a broad range of solar equipment, including photovoltaic panels, battery storage systems, charge controllers, and mounting hardware. Importers no longer need separate permits for each component, which saves both time and money.
For businesses importing solar equipment in bulk, the faster process means quicker turnover and reduced storage fees at ports. Individual EV owners also benefit, as equipment ordered from international suppliers can now arrive much sooner, making residential solar charging systems more accessible.
This initiative aligns with Zambia’s broader focus on renewable energy adoption. By making solar equipment more accessible, the government is boosting the practicality of EVs, particularly in rural and semi-urban areas where traditional charging infrastructure would be costly and time-intensive to install. These changes lay the groundwork for further progress in Zambia’s EV market, opening the door to new possibilities.
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6. Pre-Export Inspection Certificate Requirements
Zambia has tightened its pre-export inspection rules for electric vehicles starting in 2025, aiming to improve quality control before these vehicles are shipped. All EVs headed for Zambia must now pass an inspection and receive certification in the exporting country prior to shipment. This ensures that only vehicles meeting safety and quality standards make it to the Zambian market, shielding consumers from unsafe or faulty EVs. These measures are part of Zambia’s broader push to maintain high standards in its growing EV sector.
The inspection process focuses on several critical areas. Inspectors check the vehicle’s overall condition, including the battery’s health, electrical systems, structural soundness, and safety features. They also verify that the vehicle complies with Zambian safety and emissions standards and matches the details in its import documentation. This thorough vetting helps prevent unpleasant surprises for importers, such as discovering serious issues only after the vehicle has arrived in Zambia, which can lead to costly delays.
Importers are required to use inspection agencies authorized in the country of export. These agencies issue a pre-export inspection certificate, which must accompany the vehicle’s import paperwork when it reaches Zambian customs. Without this certificate, the vehicle will be denied clearance, no matter how complete the other documentation might be. The certificate typically includes key details such as the make, model, year of manufacture, VIN number, battery capacity, and an overall condition assessment. Having this certification in order can significantly speed up customs processing.
The stricter rules particularly impact used EVs, which often vary widely in condition. While new vehicles from reputable manufacturers usually pass inspection with ease, used EVs require more detailed checks. These inspections are crucial for ensuring battery reliability and protecting buyers in Zambia from purchasing vehicles with limited remaining lifespan.
Clearing agents play a pivotal role in navigating these updated requirements. They are well-versed in which inspection agencies are approved by Zambian authorities and can assist importers in managing the certification process. They also help coordinate the timing of inspections to avoid unnecessary storage fees at the port of origin. For businesses importing multiple EVs, experienced clearing agents can streamline the process and minimize risks of documentation errors, which could otherwise result in shipment delays.
Vehicles arriving without valid inspection certificates face immediate rejection at customs, leading to expensive returns or storage fees while documentation issues are resolved.
If you’re planning to import an EV into Zambia, start by identifying an authorized inspection agency in the exporting country. Schedule the inspection well ahead of your planned shipping date to allow time to address any potential issues. Make sure the inspector has access to all necessary vehicle documents and can perform diagnostic tests on the battery. Once the certificate is issued, keep it with your other import documents and share copies with your clearing agent. Following these steps will help you meet Zambia’s stricter requirements and avoid costly delays.
7. Updated Taxpayer Identification Requirements for Importers
Zambia has made adjustments to its taxpayer identification requirements as part of its ongoing reforms. In 2025, these updates were introduced to improve tax compliance and closely monitor the importation of electric vehicles (EVs). The goal is to ensure accurate tax documentation and better oversight throughout the import process.
If you’re an importer – whether you’re an individual or a business – it’s essential to have an up-to-date taxpayer identification number (TIN) before bringing EVs into the country. For the most accurate and current information, reach out to the Zambia Revenue Authority (ZRA) or consult with local customs officials.
8. Green Finance and Asset Financing Programs
Zambia’s 2025 reforms are opening up new pathways for financing electric vehicles (EVs), offering specialized programs and more flexible terms. These changes, paired with earlier duty and tax adjustments, create a well-rounded system aimed at making EVs more affordable and accessible.
When it comes to traditional bank loans, borrowers typically need to provide a pro-forma invoice and proof of their ability to repay. Interest rates for these loans can range from 25% to 45%. While this option works for some, it’s not always the most convenient or affordable.
Asset financing companies, on the other hand, are stepping in with tailored terms specifically designed for EV imports. Meanwhile, green loans are becoming a game-changer. These loans are designed to support EV purchases and often come with better interest rates, which can encourage more people to embrace cleaner technologies. Together, these options make securing funds for an EV less complicated.
One way to reduce the financial burden is by making a larger down payment. This approach lowers the loan principal, which in turn reduces monthly payments and the total interest paid over time.
To ensure a smooth application process, gather all necessary documents ahead of time. This includes proof of income, a valid ID, the pro-forma invoice, and recent bank statements. Once you’re ready, compare offers from multiple banks and asset financing companies. Pay close attention to loan terms, processing fees, and any hidden charges. Don’t forget to ask specifically about green loan packages tailored for EV purchases – they could offer significant savings.
These expanded financing options mark a major step forward in Zambia’s efforts to promote EV adoption. By easing the financial strain, they make it more feasible for individuals and businesses to make the switch to electric vehicles without shouldering the entire upfront cost.
Comparison Table
The reforms set for 2025 aim to lower costs and make importing simpler. Below is a table highlighting the key differences in tax rates, duties, and compliance requirements, providing a clear picture of the savings and procedural updates.
| Category | Before 2025 | After 2025 Changes | Impact |
|---|---|---|---|
| Customs Duty on EVs | 15% on vehicle value | 0% (zero duty) | Saves 15% on the purchase price of electric vehicles |
| Customs Duty on EV Accessories | 5-15% depending on item | 0% (zero duty) | Accessories like charging cables and batteries now duty-free |
| Excise Duty on Hybrid Vehicles | 20% on vehicle value | 10% on vehicle value | Cuts excise duty in half for hybrid imports |
| VAT on Locally Made EVs | 16% standard rate | 0% (exempt) | Locally assembled EVs become much more affordable |
| Pre-Export Inspection | Not mandatory for all imports | Required certificate for all EV imports | Adds a compliance step before shipping |
| Taxpayer ID for Importers | General registration acceptable | Updated taxpayer identification mandatory | Stricter documentation for customs clearance |
| EV Charging Station Standards | No specific regulations | New licensing and safety standards required | Charging setups must meet government-approved criteria |
| Solar Equipment Import Process | Complex multi-step approval | Simplified procedures with faster processing | Easier and quicker to import solar panels for EV charging |
| Financing Options | Traditional bank loans (25-45% interest) | Green loans with preferential rates plus asset financing | More affordable financing for EV purchases |
These updates bring immediate financial relief, especially with the removal of customs duties on electric vehicles. For instance, an EV priced at $30,000 now saves $4,500 right away. Add the savings from duty-free accessories, and the benefits grow even further.
Hybrid vehicles also see noticeable cost reductions. With the excise duty cut from 20% to 10%, a $25,000 hybrid now saves $2,500 in taxes.
On the compliance side, the new requirements ensure clear documentation and safety standards. Businesses setting up charging stations will need to meet specific technical criteria, which introduces additional oversight but guarantees a safer, more reliable charging network nationwide.
Conclusion
Zambia’s 2025 updates are reshaping the automotive market by cutting costs and streamlining compliance, making electric vehicles (EVs) a more practical option for many. The removal of customs duties on EVs and accessories, coupled with reduced excise taxes on hybrids and VAT exemptions for locally manufactured vehicles, has significantly lowered the financial barriers to EV ownership. For the first time, used EVs are now competing on price with used internal combustion engine (ICE) vehicles, marking a major shift in market dynamics.
Registration data reflects this momentum, with notable increases in EV adoption. These changes are collectively redefining Zambia’s automotive landscape, signaling a move toward a more sustainable future.
Green financing options have further improved access to EV ownership. By skipping the traditional automotive development path, Zambia has an opportunity to leapfrog directly into the EV era. With most imported vehicles currently being used ICE models, many families may choose an EV as their first car, bypassing the gradual transition from gasoline to electric. This direct approach could drive faster adoption compared to markets where consumers must first replace existing combustion engine vehicles.
The development of charging infrastructure, supported by the expansion of the solar energy sector, provides a strong foundation for long-term growth. Altogether, these updates – lower import costs, better financing options, standardized charging systems, and simplified compliance – are making EVs a realistic choice for more Zambians. These coordinated efforts are charting a clear course for the future of Zambia’s EV market.
FAQs
How does removing customs duty on electric vehicles affect the cost of owning an EV in Zambia?
The elimination of customs duties on electric vehicles (EVs) in Zambia has slashed the upfront costs associated with importing them. This shift makes EVs a much more appealing option, particularly when compared to traditional internal combustion engine (ICE) vehicles in the used car market.
With reduced import expenses, more consumers can consider EVs as a viable choice, paving the way for cleaner and more sustainable transportation. This policy brings EV ownership within reach for more people, helping to drive the adoption of greener alternatives.
What are the updated requirements for establishing an EV charging station in Zambia under the 2025 regulations?
The 2025 regulations for establishing an EV charging station in Zambia bring a fresh focus on meeting updated safety, environmental, and operational standards. To comply, operators must secure the required permits from relevant authorities, ensure their charging equipment meets the latest technical specifications, and follow stricter guidelines designed to reduce environmental impact on surrounding communities.
Operators are also expected to demonstrate the availability of reliable infrastructure, such as consistent power supply connections, and adhere to any new tax or licensing requirements outlined in the regulations. These updates are geared toward creating safer and more efficient EV charging networks throughout Zambia.
What are Zambia’s green financing options for buying an electric vehicle, and how do they compare to traditional loans?
Green financing options in Zambia are tailored to help make electric vehicles (EVs) more affordable and within reach for buyers. These programs typically offer lower interest rates and longer repayment terms compared to standard loans, making the cost of owning an EV easier to manage. Many of these initiatives are driven by partnerships between banks and government programs, aiming to encourage environmentally conscious purchases.
By choosing green financing, EV buyers can benefit from reduced monthly payments and, in some cases, additional perks like tax breaks or other incentives. These programs also support Zambia’s broader efforts to promote cleaner transportation and cut down on carbon emissions, aligning with the country’s sustainability goals.
