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Thab o Mbeki entered his second presidential term on Tuesday promising to continue the work of transforming South Africa into a democratic, peaceful, non-racist, non-sexist and prosperous country.

“The struggle continues and victory is certain,” he said after taking the oath in a lavish ceremony attended by thousands of well-wishers at the Union Buildings in Pretoria.

Mbeki's induction at 10:30am by chief justice Arthur Chaskalson was crowned by a fly-past of military aircraft and three SA Airways passenger liners.

A military parade and 21-gun salute heralded his new term, while Mbeki's address focused on unemployment and poverty. It would remain impossible to say that the dignity of all South Africans had been fully restored as long as the current situation prevailed, he said.

Mbeki said the first ten years of South Africa's democracy had paved the way for solving many of the country's remaining problems in the next decade. “We are convinced that what has been achieved during the first (decade) demonstrates that as Africans we can and will solve our problems,” he told thousands who had gathered for his induction and the simultaneous celebration of South Africa's 10th anniversary of democracy.

For too long, South Africa represented much that was ugly and repulsive in human society, Mbeki added.

It was a place in which to be born black was to inherit a lifelong curse, he said. To be born white was to carry a permanent burden of fear and hidden rage.

He lamented at length the evils associated with apartheid, including poverty, racism, sexism and the many lives lost in the struggle for equality. The president hailed the recently held national and democratic elections as a sign of the determination of all South Africans to work together to build a country defined by a common dream.

“Despite the fact that we are a mere ten years removed from the period of racist dictatorship, it is today impossible to imagine a South Africa that is not a democratic South Africa.” The inauguration ceremony, held at an estimated cost of R90-million to the government, was attended by about 6 000 invited guests, many dressed in colourful African garb.

More than 40 heads of state and government and 53 cabinet ministers from countries world-wide attended the festivities. There were also representatives of international organizations like the African Union, the Pan-African Parliament and the Commonwealth, as well as the world soccer governing body Fifa. Of the foreigners, Zimbabwean president Robert Mugabe was perhaps the most enthusiastically welcomed, with the crowd starting to clap and whistle even before his arrival was officially announced. Other leaders who received a warm reception were Olusegun Obasanjo of Nigeria and Paul Kagame of Rwanda. But no ovation could match that reserved for former President Nelson Mandela, with the crowd getting to its feet and chanting his name.

After the formal proceedings, revellers were treated to a music concert featuring some 200 artists on the lawns. Dignitaries, meanwhile, were to enjoy lunch.

The day started early for many, with the first guests and journalists being bused in at 4am.

The events would culminate in a cocktail function and special concert at the State Theatre.

Members of the public gathered on the lawns expressed elation at being part of the occasion.

"It is something I never thought I will witness in my lifetime.

All South Africans should give credit to the heroes and the heroines of the liberation struggle,” said Wilfred Dlamini of Mamelodi.

The Democratic Alliance, in congratulating Mbeki, pointed out that unemployment, crime, poverty, HIV/Aids and corruption would be his government's biggest challenges for the next five years.

"We can look back on ten years of democracy with strong feelings of pride," DA leader Tony Leon said in a statement. "Equally, we can look ahead to the next ten years with a powerful sense of hope.” - Sapa

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