Cameroon Offers Tax Exemptions to Boost Electric Vehicle Sales

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Business in Cameroon | The Cameroonian government is offering tax exemptions on electric vehicles to boost sales. Effective January 1, these vehicles are exempt from excise duties, which previously had an import rate of 12.5%. A 50% reduction in the taxable value of newly imported electric vehicles, motorcycles, their batteries, and charging stations will also be applied for the next 24 months, according to a document from the General Tax Directorate (DGI) of the Ministry of Finance.

Through these measures, the Cameroonian government aims to encourage the purchase of electric vehicles by lowering taxes on these “clean” vehicles, in contrast to more polluting thermal vehicles. The government intends to promote the use of electric vehicles in the transport sector “in support of environmental protection through the fight against pollution.” The push for electric or hybrid vehicles in Cameroon’s transport sector is supported by car dealership 3S Motors and the French energy giant TotalEnergies.

In 2023, the two partners established the Cameroon Electric Mobility Promotion Association (Apeme-Cam). Its goal is to equip the country’s road network with electric vehicles (both 4-wheel and 2-wheel) starting in 2025. “This will help maintain the state’s purchasing power, make it easier for Cameroonian consumers with low incomes to access new vehicles, and improve road safety,” said Patrocle Petridis, Managing Director of TotalEnergies Marketing Cameroon.

To achieve this, Apeme-Cam encourages mass imports of electric vehicles and supports local entrepreneurs’ initiatives in this sector. In 2015, French logistics company Bolloré Africa Logistics launched the “Blue Bus” campus buses at the University of Yaoundé I for five years. Since then, other electric mobility initiatives have emerged in Cameroon. In 2019, Cameroonian Gaspard Mpondo, in partnership with the Chinese company S-King, launched Jengu Sarl, a company specializing in the construction of electric vehicles, motorcycles, and tricycles that also run on solar energy.

However, according to industry professionals, the presence of electric vehicles in Cameroon faces many challenges. These include the availability of electrical power, the lack of testing and approval for these vehicles, the absence of technological options for charging infrastructure, and the need for training professionals on the technical aspects of electric vehicles, charging stations, and batteries. Currently, Cameroon has only three electric vehicle charging stations: two in Douala and one in Yaoundé.