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LONDON – South Africa’s President Cyril Ramaphosa speaks during a press conference in central London on November 24, 2022

JUSTIN TALLIS/AFP via Getty Images

South Africa’s long-awaited economic reforms have begun to improve the country’s outlook, but the age-old problems of political uncertainty and a failing power system still pose significant risks.

The Economic Reconstruction and Recovery Plan has been a key tenet of President Cyril Ramaphosa’s agenda since he succeeded Jacob Zuma as the country’s leader in 2018. But deep divisions within the ruling African National Congress (ANC) and his own cabinet have made for sluggish progress.

The suite of reforms — focused on energy security, infrastructure development, food security, job creation and the green transition — is designed to create a “sustainable, resilient and inclusive economy,” the government says.

And — some at least — appear to be working. S&P Global Ratings earlier this month affirmed its positive outlook on the country, saying that government measures to stimulate private sector activity could boost growth, and the measures had the potential to ease economic pressures.

“There is some hope in the public finances in South Africa, mainly due to the increase in government revenues as a result of higher commodity exports, and also due to the progress made in reducing debt and debt distress, and to ushering a public deficit,” Aleix Montana, Africa analyst at risk consultancy Verisk Maplecroft, told CNBC last week.

However, political frailties and persistent issues at a state-owned utility continue to pose present economic risks.

Ramaphosa faces a “perfect storm of inflation, electricity cuts and corruption accusations that will continue to deteriorate South Africa’s profile and to pose risk for investments in the country,” Montana said.

A report into an alleged corruption scandal surrounding Ramaphosa is set to be examined by the National Assembly on Dec. 6, just 10 days before the party conference of his ruling ANC (African National Congress).

Energy woes

Though Ramaphosa is expected to secure a second five-year term, Montana said he will have to improve his credibility on economic and anti-corruption reforms in order to continue pushing through his agenda. The economy also remains at risk from persistent disruptions at state-owned companies, such as power utility Eskom.

South Africans have faced rolling blackouts as Eskom — which has long been a thorn in the side of the country’s economy — contends with shortfalls in generation capacity due to equipment failures and diesel shortages.

The company has warned that power outages, known as “load-shedding,” will continue for the next six to 12 months, and recently said it had run out of funds to acquire the diesel needed to run auxiliary power plants that are deployed during periods of peak consumption or emergencies.

Montana said that in order to secure sustained economic growth, the South African government will need to prioritize energy sustainability.

“Energy will require financial assistance from international players, but they will also need to ensure that it doesn’t have a negative impact on South African society,” he said.

Sorting electricity issue in South Africa like 'fixing a plane as it's flying': Cyril Ramaphosa

“Apart from financial challenges, a lot of citizens of South Africa are employed in Eskom or in the fossil fuels sector, so the government will need to ensure that in their plan, they mitigate this potential impact of transitioning from a fossil fuels-based economy to the implementation of renewables in order to sustain electricity stability.”

Asked about this issue on a recent state visit to the U.K., Ramaphosa told CNBC’s Arabile Gumede that the problems at Eskom started long before 2014, when former President Jacob Zuma appointed him to address the country’s energy problems.

“As we are generating electricity, power stations keep breaking — many of them are old — but we are trying with a new boat, the management that’s in place to address this problem,” Ramaphosa said.

“So the problems of Eskom were seeds that were planted many years ago, rather than in 2014, and because we’re dealing with huge, complicated and complex machinery, it’s not a one-day fix, it can never be as these are very complex processes.”

Economic recovery in South Africa exposed to civil unrest, Verisk Maplecroft analyst says

He added that the government was working to reduce load-shedding requirements and to “ensure that the money’s there,” noting that Eskom “used to be the best utility in the world.”

“Do I have confidence that we will solve these problems? Yes, I do. I do have enormous confidence that we will solve them,” he said.

“But I think it’s important to have an appreciation of where we’ve come from, and obviously, it is very easy to put all the blame on the president, to put all the blame on the government, and yet these problems have come way back from the past.”

‘Taming the monster’ of inflation

Along with the domestic issues unique to South Africa, the country also faces the same inflationary pressures that have plagued economies around the world over the past year.

Annual headline inflation rose to 7.6% in October, defying the South African Reserve Bank’s expectations for price pressures to ease. This prompted the bank’s Monetary Policy Committee to hike interest rates by an aggressive 75 basis points last week, taking the benchmark repo rate to 7%.

This marked the seventh consecutive meeting at which monetary policy had been tightened, and central bank Governor Lesetja Kganyago said in a press conference that it must “tame the monster of inflation.”

With prices rising much faster than the central bank’s 3-6% target, Kganyago noted that the SARB needs to see clear evidence that inflation has not just peaked, but begun to sustainably decline toward the midpoint of the range.

But further monetary tightening will place additional pressure on the economy.

“We think that inflation is unlikely to return within the target range (let alone the midpoint) in the coming months, keeping policymakers in tightening mode well into 2023,” said Virág Fórizs, emerging markets economist at Capital Economics.

Difficult to tell if close to the end of the rate hiking cycle, South African Reserve Bank governor says

She flagged that food inflation continues to increase, offsetting some of the effects of softening fuel price pressures, while core inflation is likely to remain high. Capital Economics expects inflation to hover around 7.5% annually until early 2023, before dropping markedly around the middle of the year.

Fórizs said the weakness of the economy is unlikely to prevent further rate hikes, with growth concerns playing second fiddle to inflation worries. South African GDP contracted by 0.7% in the second quarter.

“While the end of the tightening cycle is not yet in sight, we expect the pace of tightening to slow over the next MPC meetings,” she noted.

Three MPC members voted to hike rates by 75 basis points last week, while two voted for 50 basis points. It marked an apparent softening of approach by some who voted for a 100-basis-point rise at the previous meeting.

“All in all, we’ve penciled in 100bp of further increases in the repo rate, to 8.00%, by Q2 2023,” Fórizs said.

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Florida rangers are now patrolling on electric bikes

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Florida rangers are now patrolling on electric bikes

Florida’s State Parks are stepping up their environmental and operational game, introducing a large fleet of powerful electric bikes to support park ranger patrols.

The Florida State Parks Foundation, under its sustainability-focused Greener Initiative, recently announced the expansion of e‑bike units across the state’s parks system. The fleet of Velotric Nomad e-bikes, each equipped with 750‑watt motors and with a claimed 65‑mile range, can offer a substantial 500‑lb payload capacity. They also feature 4″ wide fat tires optimized for riding on rough paths or off-road trails, making them ideal for park ranger patrols.

These e‑bikes are now being distributed to multiple locations throughout Florida, including Fort Clinch, Olustee Battlefield Historic, Rainbow Springs, Stephen Foster Folk Culture Center, and Suwannee River State Park.

According to Julia Gill Woodward, CEO of the Foundation, the overwhelming success of the first wave of e‑bikes prompted swift expansion. “The Greener Initiative has done incredible things to reduce our environmental footprint,” she noted, adding that it’s “even more amazing when Greener projects align with resources that support our rangers.”

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These additions bring the statewide fleet to 50 e‑bikes, funded via sales from the “Explore Our State Parks” specialty license plate. Starting in 2023, the Greener Initiative has rolled out a variety of efforts to make Florida’s parks cleaner and more efficient, including slashing emissions, cutting down on waste, lowering energy consumption, and enhancing the overall experience for visitors.

Electrek’s Take

I love this, and it’s a great example of how e-bikes are perfect for so many different patrol uses among park rangers, police officers, security companies, and other types of official fleet usage.

We’re seeing this more and more, and the reason is obvious: It works. E-bikes are a lot cheaper than alternatives like UTVs, golf carts, or “real” vehicles like cars and trucks. They require significantly less maintenance, and they’re a lot more fun too.

I just hope they mount some extra water bottle holders. I often ride in Florida, and in the summer, I can drink a gallon a day… on an electric bike!

Via: WCJB

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Meet the Lucid Gravity X: The electric SUV turned all-terrain beast

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Meet the Lucid Gravity X: The electric SUV turned all-terrain beast

Lucid’s most adventurous vehicle has just arrived. The Lucid Gravity can drive 450 miles on a single charge, comfortably fits seven, and is faster than the average sports car. Lucid promises the new X concept takes the electric family hauler to a new level.

Meet the Lucid Gravity X adventure-ready EV SUV

Lucid has been hyping the new model as “a bold new concept of electric exploration,” describing it as its most adventurous vehicle to date.

At Monterey Car Week on Friday, we finally got our first look at Lucid’s stunning new Gravity X concept. Based on the Lucid Gravity Grand Touring, which features an impressive up to 450 miles of EPA-estimated range, AWD, and a 0 to 60 mph sprint in just 3.4 secs, the X is designed to take you even further.

As Lucid put it, the X “advances this exceptional foundation, exploring what it would be like to push the limits further.

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The concept features a new look, lifted ride height, and added off-road elements for all on and off-road adventures. Lucid fine-tuned the front and rear ends to improve approach and departure angles. It also slapped all-terrain tires, protective skid plates, and tow hooks on it, just in case.

Lucid-Gravity-X
The Lucid Gravity X concept (Source: Lucid Group)

Like we first saw in the teaser, the X concept is equipped with an integrated crossbar with LED lights and a roof box.

Lucid says every detail on the new concept was intentional, from the Astral Drift satin paint to the topographical references to Big Spur and Death Valley on the hood.

The interior features upgrades, including premium leather seats, high-performance floor mats, and a microsuede steering wheel.

Lucid-Gravity-X
The interior of the Lucid Gravity X (Source: Lucid Group)

According to Lucid, the Gravity X, pronounced Gravity Cross, is “ready to go anywhere. Take on everything. And compromise nothing.”

Although it’s just a concept for now, the X gives us a glimpse into a future off-road Gravity trim. As we mentioned earlier this week, Lucid could be preparing to introduce a rugged new variant to compete with Rivian’s California Dune Edition R1S and R1T models.

What do you think of the rugged Gravity X Concept? Should Lucid bring it to life? It wouldn’t be surprising to see a new variant hit the market soon.

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Wheel-E Podcast: Bafang automatic shifting motor, 50 MPH scooter, more

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Wheel-E Podcast: Bafang automatic shifting motor, 50 MPH scooter, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from Heybike, the Priority Skyline launch, Segway’s new 50 MPH electric scooter, a Bafang hub motor with automatic shifting, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):

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