The biggest challenge facing South Africa during the economic crisis is how to protect jobs, ANC president Jacob Zuma said on Wednesday.

"The reaction of business in this time is to retrench," he told Business Unity SA (Busa) in Sandton.

Zuma said the ANC election manifesto provided a workable plan that was realistic and affordable.

The new administration was aware of the need to grow the economy.

Government would borrow R94 billion and state-owned companies would borrow R92 billion.

It was expected that the private sector would borrow R18 billion or 7.5 percent of the GDP to invest in public infrastructure, Zuma said.

Earlier president of the National African Federated Chamber of Commerce and Industry (Nafcoc) Buhle Mthethwa said small businesses were the most hit by the economic crisis.

"The increase in unemployment as result of the economic meltdown means reduction in the buying power... late payment by government departments is also a threat to small business."

She said government intervention was not reaching small business in rural areas, and she called for the establishment of a ministry responsible for small business.

Deputy chief executive officer of Busa, Raymond Parsons, said world wide trade was expected to fall by 2.8 percent compared with growth of 4.1 percent in 2008.

"A serious global recession is impacting on jobs, incomes and expectations," he said.