South Africa's president stresses policy continuity

South Africa's president stresses policy continuity
By Paul Simao Thu Sep 25, 11:58 AM ET
CAPE TOWN (Reuters) - Kgalema Motlanthe took office on Thursday as South Africa's president and stressed he would keep to the policies of his predecessor Thabo Mbeki, who resigned in the worst political crisis since apartheid.
In a move to reassure investors rattled by the crisis, former trade union leader Motlanthe reappointed respected Finance Minister Trevor Manuel, whose resignation on Tuesday hit the rand currency and stocks.
Mines Minister Buyelwa Sonjica was also reappointed.
Motlanthe, deputy leader of the ruling African National Congress, made only one change in key economic portfolios, appointing Brigitte Mabandla to replace Mbeki loyalist Alec Erwin at the head of the public enterprise ministry responsible for troubled power utility Eskom.
Motlanthe was overwhelmingly elected earlier by parliament in a secret ballot and will serve as interim president until a general election next year when ANC leader Jacob Zuma is expected to become head of state.
The ANC withdrew its backing for Mbeki on Saturday after a judge suggested he had interfered in a graft case against Zuma, his arch rival, who toppled him as head of the party last December.
In his acceptance speech after being sworn in, Motlanthe also stressed continuity with the policies of Mbeki, who presided over the longest period of growth in South African history.
"We will remain true to the policies that have kept South Africa steady and that have ensured sustained growth," the new president said.
But he vowed to intensify efforts to increase growth and job creation and "ensure that the benefits of growth are equally shared by all our people."
ARMY OF POOR
Mbeki's failure to bring the fruits of black majority rule to the army of poor was a leading cause of his unpopularity with the leftist ANC backers of Zuma, his long term rival.
Almost one-third of South Africa's cabinet stepped down on Tuesday out of loyalty to Mbeki, highlighting the worst infighting in the party's history.
Motlanthe, a quiet spoken leftist intellectual and ally of Zuma, faces huge challenges including slowing economic growth and high inflation. Officials said on Thursday consumer inflation hit its highest level in August since before the end of apartheid, at 13.7 percent.
Reflecting the ANC's dominance of parliament, Motlanthe won 269 votes, compared to 50 for the candidate of the opposition Democratic Alliance.
The upheaval in the ANC, climax of a power struggle between Mbeki and Zuma, has raised concerns of instability in Africa's biggest economy and a possible split in the formerly monolithic ruling party.
Motlanthe, a former Anti-apartheid soldier, is widely respected by both radical leftists and business tycoons within the African National Congress.
He will try to heal the worst rifts in the history of the party because of the battle between Mbeki and Zuma, which has overshadowed pressing issues such as widespread poverty and crime and an AIDS epidemic ravaging millions.
Radical policy changes under Motlanthe in the short transitional period are unlikely but foreign investors eager for stability and a continuity of economic policy will be watching closely for clues on whether the ANC will change course.
The populist Zuma is trying to reassure foreign investors he would not stray from business-friendly economic policies but is under pressure from left-leaning union allies to alleviate poverty through more government spending.
From Yahoo.com 9-26-08