Andisiwe Nikelo, CEO: Fleet management and leasing at WesBank, says the transition involves more than choosing a different type of vehicle. Operators need to assess whether NEVs are suited to their routes and duty cycles, what charging infrastructure they require, how their energy needs will change, and how financing and operational data can support the transition.
While range and charging infrastructure have historically presented challenges for commercial electrification, developments such as battery-swapping technology, renewable-energy-powered charging and private charging infrastructure are beginning to address some of these constraints.
Fuel is one of the largest cost drivers in freight and commercial transport, making operating efficiency an important consideration for fleet operators.
“One of the largest cost drivers in freight and commercial transport is fuel. As fuel price volatility continues to place pressure on operators, New Energy Vehicles (NEVs) present a significant opportunity to improve operating efficiencies, particularly when paired with renewable energy solutions,” says Nikelo.
Historically, range has been one of the biggest barriers to electrification in the freight sector. Nikelo says short-haul routes can be serviced relatively easily by electric vehicles, while medium- and long-haul operations often require distances of 500km to 2,000km per trip.
Most electric trucks currently offer a range of less than 500km, meaning vehicles need to recharge during journeys. For commercial operators, charging time directly impacts productivity and asset utilisation, while limited charging infrastructure along key transport corridors has further slowed adoption.
Nikelo says this is beginning to change. Battery-swapping technology is reducing downtime, while renewable-energy-powered charging infrastructure is improving route viability. She points to battery-swapping technology introduced by manufacturers such as SANY and developments being rolled out by Zero Carbon Charge along major routes including the N3.
Many fleet operators are also investing in private charging infrastructure at depots and distribution centres.
“As these enabling technologies mature, NEVs are set to play an increasingly important role in freight and commercial transport—not only helping operators reduce emissions, but also improving energy security, lowering operating costs, and creating more resilient logistics networks,” says Nikelo.
Nikelo says the biggest barrier to fleet electrification is not necessarily the vehicle technology itself, but the number of decisions businesses need to make around the transition.
“I believe the biggest barrier is not necessarily the vehicle technology itself, but the complexity of the transition,” she says.
Businesses need to determine which NEVs are appropriate for their operating requirements, whether their routes and duty cycles are compatible with available ranges, and what charging infrastructure will be needed.
They also need to assess their energy requirements and whether renewable energy solutions could form part of the equation.
Beyond vehicles and infrastructure, Nikelo says businesses need reliable telematics and operational data to monitor vehicle performance, optimise charging schedules and maximise fleet efficiency.
This represents a broader decision than the traditional purchase of an internal combustion engine vehicle, where factors such as purchase price, payload requirements, fuel consumption and maintenance costs have typically been central to the decision.
“This is why education, trusted advisory support, and ecosystem collaboration are so important. Businesses need partners who can help simplify the transition and provide integrated solutions that bring together vehicles, charging infrastructure, energy management, financing, and data insights. As the ecosystem matures and these solutions become more accessible, we expect adoption to accelerate significantly,” she says.
Financial institutions have a role to play in helping businesses navigate the additional considerations involved in adopting NEVs.
Nikelo says this begins with understanding a client's operational requirements and identifying which parts of the fleet are best suited to electrification. Financial institutions can then work with ecosystem partners to assess charging infrastructure, energy requirements and the role renewable energy could play.
“Financial institutions have a critical role to play in giving businesses the confidence to invest in New Energy Vehicles. Our role is to shield customers from unnecessary complexity and operational volatility by providing cost certainty, access to specialist expertise, and integrated solutions that allow them to focus on running their businesses while we help manage the mobility ecosystem,” she says.
Businesses are increasingly looking for end-to-end solutions rather than standalone vehicle finance, according to Nikelo. These can bring together vehicle funding, charging infrastructure, renewable energy solutions and telematics into a single, structured offering.
Financial institutions can also help manage emerging risks associated with new technologies. Nikelo cites residual value risk as one area where specialist expertise can provide businesses with greater certainty.
“Ultimately, the ability to combine financing, advisory support, technology, and ecosystem partnerships will be critical to accelerating the adoption of NEVs in the logistics sector,” she says.
Charging infrastructure remains an important consideration for wider commercial EV adoption, but Nikelo says investment also depends on confidence in future demand.
“There is still a degree of a "chicken-and-egg" dynamic in the market: infrastructure providers need sufficient vehicle volumes to justify investment, while fleet operators are often waiting for infrastructure to be in place before committing to electrification.”
Policy and regulatory certainty is another consideration. Nikelo says South Africa has made positive progress, but continued regulatory alignment and investment-friendly frameworks will be important to unlock private capital at scale.
Energy reliability also affects the economics of charging infrastructure, with the availability, cost and stability of electricity influencing the viability of charging networks.
Nikelo says renewable energy and battery storage solutions are increasingly being integrated into charging networks to improve resilience and operational certainty.
The transition will require collaboration between fleet operators, infrastructure providers, OEMs, energy companies, financial institutions, development finance organisations and government.
“Innovative funding structures, including public-private partnerships and blended finance models, will play an important role in de-risking early-stage investments and accelerating deployment,” says Nikelo.
She says financial institutions can help enable the transition by mobilising capital, bringing ecosystem partners together and supporting commercially sustainable solutions that can scale over time.
As businesses balance sustainability goals with commercial realities, Nikelo sees NEVs increasingly becoming part of wider business strategy rather than being considered only as a long-term sustainability investment.
“I think NEVs are quickly shifting to becoming not only a necessity but a strategic lever to drive growth and create cost efficiencies further than the NEVs themselves but also gain energy efficiencies as well,” she says.
For logistics operators, that shift places the focus on more than emissions. Fuel costs, energy requirements, vehicle utilisation, charging infrastructure and financing all form part of the decision about where and how NEVs can be introduced into commercial fleets.
