From Creamer Media in Johannesburg, this is the Real Economy Report. The Department of Environmental Affairs has launched an electric vehicle pilot programme, which will see it trial a fleet of electric vehicles in the capital. Natalie Greve attended the launch of the initiative to find out more.

Natalie Greve:
This pilot programme will see local vehicle manufacturer Nissan – the primary private-sector partner – providing the DEA with four Nissan Leaf electric vehicles for the initial phase of the project, which would run for three years.

Speaking at the launch, Water and Environmental Affairs Minister Edna Molewa said that while this programme was the first of its kind in the country, it would not be the last.

Water and Environmental Affairs Minister Edna Molewa

Natalie Greve:
Molewa added that the project does not exclusively center on the electric cars themselves, but focuses also on the supporting infrastructure, such as battery charge stations, that will need to be in place to enable the significant uptake and use of electric cars in the country.

Water and Environmental Affairs Minister Edna Molewa

Natalie Greve:
Energy Minister Dipuo Peters added that the pilot programme will also serve to determine the end-user, infrastructure and running costs associated with local electric vehicle use.

Energy Minister Dipuo Peters

Natalie Greve:
The South African launch of the Nissan Leaf would follow similar pilot programmes implemented in the US, Europe and Japan in 2010.

The vehicle featured an 80kW motor, powered by a 24 kW/h lithium-ion battery that could be charged at residential buildings.

A seven-hour charge would power the vehicle for some 160 km in ‘city mode’, while a 30-minute charge at a public station would enable a 50 km travel distance.

Nissan South Africa Mike Whitfield emphasised that, while the Leaf was an electric vehicle, it was more responsive than a conventional compact family car and could reach speeds in excess of 140 km/h.

Nissan South Africa Mike Whitfield

Shannon de Ryhove:
Other news making headlines this week: The State’s bailout of SAA is ‘illegal’; Africa needs $40-billion a year to meet its future power demand; and Afrox moves ahead with its R300-million Coega air separation unit.

In a scathing criticism of management practises employed by the State in the running of national carrier South African Airways, Free Market Foundation executive director Leon Louw has accused it of acting illegally through the provision of regular bailouts in an effort to keep the beleaguered national airline afloat.

Free Market Foundation executive director Leon Louw

It is estimated that at least $40-billion a year is required to meet future demand in the African power sector, compared with current yearly investment of less than one-quarter this amount.

Renewable Energy Ventures CEO Joseph Nganga

Welding, cutting and gas services company Afrox, a member of The Linde Group, is planning to install a 150 t/d air separation unit (ASU), valued at R300-million, in the Coega Industrial Development Zone, near Port Elizabeth, in the Eastern Cape. The ASU will produce liquid oxygen, liquid nitrogen and liquid argon.

Afrox MD Brett Kimber

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.