S/African President Zuma's cabinet sworn in

S/African President Zuma's cabinet sworn in
Written by Gordon Bell, PRETORIA (Reuters)
Tuesday, May 12, 2009 3:55:04 PM

South African President Jacob Zuma's cabinet was sworn in on Monday after he had promised to help millions of poor people and comfort foreign investors who want him to keep market-friendly policies in place. Zuma's ruling African National Congress (ANC) won a landslide victory in the April 22 election, giving the former guerrilla a wide mandate to rule after he had defeated corruption charges in a years-long legal battle.

But South Africans want the party to deliver on 15 years of promises to tackle widespread poverty, crime and AIDS.

Trevor Manuel was appointed to head a powerful new planning body, keeping the former finance minister at the heart of policy-making in Zuma's first cabinet.

Zuma named tax authority chief Pravin Gordhan to replace Manuel as finance minister in another sign of continuity as Africa's biggest economy heads towards its first recession in 17 years.

"For markets, the key question will be how far-reaching Manuel's influence will be," said Razia Khan, regional head of research for Africa at Standard Chartered in London.

"The fact that his portfolio is a minister in the presidency suggests that he has the highest backing."

In a departure from what critics say was former President Thabo Mbeki's autocratic leadership, Zuma formed a cabinet designed to promote harmony needed to guide Africa's biggest economy through the global financial crisis.

South Africa's rand currency weakened 1.8 percent on Monday, but it was pushed lower by weaker global equity markets and traders said the currency was unaffected by the cabinet changes.

Zuma faces pressure from many sides. Unions and communists who helped him rise to the top want more government spending on the poor, while foreign investors want tight fiscal management.

It is clear Zuma's priorities are domestic.

The little known Maite Nkoana-Mashabane was appointed as foreign minister -- re-named as international relations and cooperation in another indication of the change of emphasis.

Mbeki was heavily involved in foreign policy and he saw himself as a champion of African causes, though opponents said he was too soft on Zimbabwean President Robert Mugabe in power-sharing talks, prolonging that country's economic crisis.

Helping strengthen Zimbabwe's new administration will be one of Zuma's biggest foreign policy challenges.

Zuma's ANC forced Mbeki out as president in September last year in a fierce battle for control of the party. Only 12 ministers from Mbeki's cabinet were included in the new 34-member cabinet.