South Africa

JOHANNESBURG - The free and fair environment in which South Africa's general elections were conducted has boosted investor confidence, says Business Unity South Africa (Busa). The markets had for some time expected the advent of a Jacob Zuma Presidency, so the African National Congress's victory was not unexpected and, if anything, should have a positive impact on the markets. Busa urges the ruling party to remain committed to growth, job creation and poverty alleviation in order to deal with the barriers that limit South Africa's economic performance. To achieve a balance between continuity and change in economic policy, the organisation says that careful consideration should be taken in selecting Cabinet Ministers. Busa adds that an effective partnership with the new government is vital in a bid to successfully tackle South Africa's socioeconomic challenges in the areas of job creation and service delivery.

JOHANNESBURG - The recently revealed transcripts of telephone conversations between Leonard McCarthy and Bulelani Ngcuka uncovered an abuse of power and manipulation of State institutions that threatened a democratic South Africa, says African National Congress stalwart Mac Maharaj. In a paper entitled ‘Life under a Zuma Presidency: What Zuma saved us from and what we need to do to protect our institutions', Maharaj cites examples of warning signs hinting at the abuse of power in postapartheid South Africa. The struggle veteran states that these abuses had been dismissed and ignored until now. The State would go directly to the media with any allegations of abuses of power, rather than conducting further investigation. A trial by media was viewed, says Maharaj, with "a sense of righteousness and justification". Thus, untried allegations were kept alive. The allegations of corruption on the part of Zuma were treated in this way, said Maharaj. McCarthy's and Ngcuka's transcripts are evidence of this.

JOHANNESBURG - South Africa will not fail, and the economy will remain rational under the leadership of Jacob Zuma, says Finance Minister Trevor Manuel. Investors fear that Zuma could steer the economy towards the left to please powerful labour unions and the South African Communist Party that helped him secure victory against former President Thabo Mbeki in 2007. The African National Congress's (ANC's) leftist allies have criticised fiscal and monetary policy under Manuel and Central Bank governor Tito Mboweni, saying that they have done little to improve the lives of millions of South Africans still grappling with poverty and unemployment 15 years after the end of apartheid. Manuel is fourth on the ANC's list of candidates for Parliament, a strong indication that he is likely to be included in government. He has reiterated his willingness to serve in the new administration.

JOHANNESBURG - South Africa's gross domestic product is expected to contract in the first quarter of 2009, says the South African Reserve Bank's chief economist, Monde Mnyande. He says that short-term, miscellaneous business cycle indicators have weakened significantly in recent months, almost guaranteeing a further contraction in the first quarter of this year. The country's economy contracted by 1,8% in the fourth quarter of 2008, and a second quarter of decline will place the country in a technical recession.

NEW YORK - Africa must manufacture its own generic drugs if it is to fight HIV/Aids effectively and ensure that the financial crisis does not stop patients from getting treatment, says the new head of the United Nations Aids (UNAids) agency, Michel Sidibé. It is necessary to produce generic drugs in Africa in order to increase coverage, but it must also be a profitable business concern. South Africa is currently the only African country that produces its own HIV/Aids drugs. Sidibé says that the move is important politically, economically, and for the integration of Africa into the global market. He says that local production needs to take place quickly, as the majority of infected Africans have no access to treatment. An estimated 33-million people globally are infected with HIV, which causes Aids, and most of them live in Africa and other developing countries.