Justice Minister -- and new party secretary-general -- Pendukeni Ithana told a news conference Pohamba was taking over the party presidency from Sam Nujoma, who has led SWAPO for 47 years and became Namibia's president at independence in 1990.

"We had a very successful and peaceful handing over of power to Hifikepunye Pohamba, signalling the retirement of founding president Sam Nujoma," Ithana said.

The decision was taken at a party conference last week overshadowed by the departure of Hidipo Hamutenya, whose resignation threatens to shatter the dominance of the South West African People's Organisation (SWAPO).

Hamutenya, a member of SWAPO's politburo for 30 years and foreign minister until 2004, resigned his seats on the party's central committee and in parliament in November, citing the party's lack of fresh ideas and stifling of debate.

The move, following his formation of the Rally for Democracy and Progress (RDP), prompted speculation that Hamutenya intended to run as the new party's presidential candidate in elections due in 2009.

Analysts said his defection could be the harbinger of a political sea change in Namibia, where SWAPO has faced little opposition since leading the diamond-rich former German colony and South African protectorate to independence.

Namibia, rich in resources and wedged between economic powerhouse South Africa and oil-producing Angola, has enjoyed an extended period of political and economic prosperity that has made its 1.9 million people the envy of many in Africa.

But it is now struggling to maintain living standards in the face of rising poverty and unemployment and widening cracks in its once highly regarded health care and school systems.

The government of Pohamba, who took over in 2005 from Nujoma, is also under increasing pressure to embark on a bold programme of land reform to redress historical grievances.