South Africa

JOHANNESBURG - African National Congress (ANC) secretary-general Gwede Mantashe criticises the Congress of South African Trade Unions (Cosatu) for weighing in on the ruling party's leadership succession. Whether ANC president Jacob Zuma serves two terms is "none of Cosatu's business", he says. Cosatu president S'dumo Dlamini says, however, that labour federation general secretary Zwelinzima Vavi's comments were not about the ANC's succession but that of the State President. Alliance partners cannot be barred from talking about the issue of the State Presidency, he says.

PRETORIA - In remarks that could make foreign investors fear a leftward shift in economic policy, President Jacob Zuma says that South Africa may face instability unless it closes the gap between rich and poor. However, Zuma may be headed for confrontation with union allies that have threatened to stage mass strikes to push for deeper interest rate cuts. Zuma says that ignoring poverty in Africa's biggest economy will be risky. One of his toughest tasks will be balancing the interests of the unions that helped his rise to power, and those of foreign investors. If the economy grows, it must benefit all South Africans. "We cannot allow the gap to widen all the time," says Zuma.

CAPE TOWN - The Minister in the Presidency responsible for the National Planning Commission, Trevor Manuel, has outlined the focus of the new Ministry's work over the next few years. Speaking during a Parliamentary debate on the State of the Nation address, Manuel says that government is committed to significantly improving outcomes by focusing on improved planning and performance management in five areas. Firstly, in recognising that South Africa has a "great, modern Constitution", it has to be acknowledged that the powers and functions in respect of service provision are highly dispersed across the three spheres of government, thus an improved coordination of effort is required. Secondly, the linkages between the three spheres of government have to be institutionalised to ensure that programmes are appropriately initiated. Thirdly, everyone must agree that there is no market for public services. Fourthly, a more competent public administration must be built, which is both more focused and more accountable. And fifthly, the Planning Commission will have to deal with resources today to meet tomorrow's needs. Manuel says that he hopes to table a Green Paper before Parliament over the next few weeks to engage Members of Parliament on where and how planning will fit into the government system, the role it hopes to play, the linkages required, and the thematic areas to be covered by the planning function. The commission will forge a distinct approach tailored to the needs of South Africa's situation, says Manuel.

Africa & the world

VICTORIA FALLS - Zimbabwe President Robert Mugabe launches a new customs union at a major African economic summit, hoping that it will boost investment and strengthen economic ties on the world's poorest continent. But Zimbabwe, hard-hit by years of hyperinflation, economic contraction and isolation, is unlikely to immediately benefit from the customs union. "Our message to investors worldwide and to those of our region is clear: we have a regional market for you," says Mugabe. Under the union, the 19 members of the Common Market for Eastern and Southern Africa (Comesa), stretching from Swaziland, in the south, to Egypt, in the north, will impose the same tariffs on goods from outside the region. Members will have up to three years to implement the new tariffs. Mugabe has urged African countries to end conflicts and boost development on the continent. He says that member States must put money into the group's Comesa Fund to help cut dependence on foreign assistance.

LILONGWE - Malawi may be a poor country but its economy is growing fast, and President Bingu wa Mutharika wants to lure investors to help diversify away from tobacco and ensure stability. The President says that he will not change the Constitution to stay in power, possibly reducing chances of new standoffs with opponents that could unnerve investors and Western donors. Wa Mutharika based his recent election campaign on a record of making Malawi a net food exporter and delivering three years of growth above 7% in the country.