South Africa

PRETORIA - Jacob Zuma is sworn in as South African President at the Union Buildings and quickly highlights the challenges facing Africa's largest economy. In his inaugural address, Zuma takes a sober view of the country's economy, which may already be in its first recession in 17 years. The country will not be spared the negative impact and South Africans are beginning to feel the pinch, he says. One of Zuma's toughest tasks may be juggling the interests of trade union federation Cosatu and the South African Communist Party, which ostensibly helped him rise to the top, with those of investors who fear that he will steer economic policy to the left. Zuma will also be under pressure to make a clean break with what critics regard as the autocratic leadership of his rival, Thabo Mbeki, who was ousted from the Presidency by the African National Congress. Zuma says that the independence and integrity of those State institutions tasked with the defence of democracy must be safeguarded in order to act as a check on the abuse of power.

JOHANNESBURG - Human Rights Watch (HRW) has urged South Africa's new government to restore the country's image by putting human rights at the centre of its foreign policy. South Africa, a continental diplomatic heavyweight, has come under fire for taking a soft line on Zimbabwe President Robert Mugabe and countries such as Sudan and Myanmar, which are accused of widespread rights abuses. New President Jacob Zuma has taken a hard line on Zimbabwe as leader of the ruling African National Congress in contrast to former President Thabo Mbeki. Georgette Gagnon, executive director of HRW's Africa division, urges Zuma to seize the opportunity to help introduce democratic reforms in Zimbabwe as the new unity government tries to rebuild the ruined country. "With new leadership in South Africa, there is great expectation for a rebalancing of policy towards Africa using its moral, political and economic authority and leadership in Southern Africa to promote respect for human rights, good governance and democracy in Zimbabwe," says HRW.

JOHANNESBURG - An increase in business and investor confidence shows that the sector is "warming up" to the leadership of President Jacob Zuma, says Business Unity South Africa (Busa). This is also evidenced in the positive response of the markets. Comments by Zuma have "struck a positive note" with business and the sector is optimistic that his Cabinet team will strengthen business confidence even further. Busa welcomes Zuma's public statements on strengthening social dialogue through the National Economic Development and Labour Council and commitment to helping government weather the effects of the global financial storm.

Africa & the world

SALZBURG - International trade is part of the solution to the global food crisis and not one of its causes, says World Trade Organisation director-general Pascal Lamy. Global integration represented by trade has enabled food to be transported from where it could be produced efficiently to where there is demand, he explains. International trade has reduced the price of food over the years through greater competition, and enhanced consumer purchasing power. Lamy says that Olivier De Schutter, the United Nations special rapporteur on the right to food, has condemned an excessive reliance on trade in the pursuit of food security, while some farmers' groups have also called for greater self-sufficiency. But Lamy says that trade cannot be behind the volatility in food prices, as agriculture accounts for less than 10% of world trade, while only 25% of world farm output is traded globally.

HARARE - Zimbabwe Prime Minister Morgan Tsvangirai says that his unity government with President Robert Mugabe is on the right track, despite their differences. Mugabe and Tsvangirai have held what the MDC says will be the last round of talks on the out-standing issues of a power-sharing deal, such as the new appointments of the central bank governor and the attorney-general. Any crisis in the new government could make it even harder for Tsvangirai and Mugabe to get help from skeptical Western donors, who want to see political and economic reforms before pouring money in to help rescue Zimbabwe's shattered economy.