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S/Africa must act now on global crisis - Zuma

S/Africa must act now on global crisis - Zuma
Written by Wendell Roelf
Wednesday, June 03, 2009 4:18:19 PM

CAPE TOWN (Reuters) - South Africa must act now to minimise the impact of the global financial crisis on the poor, but still has to spend wisely, President Jacob Zuma said on Wednesday in his first major speech as the country's leader.

Union allies who helped Zuma's rise are demanding more spending and deeper interest rate cuts, but the president is also wary of scaring off investors as Africa's biggest economy suffers its first recession in 17 years.

"We take as our starting point the framework for South Africa's response to the international economic crisis, concluded by government, labour and business," Zuma said.

"We must act now to minimise the impact of this downturn on those most vulnerable."

Global financial woes have hit demand for minerals and manufactured goods from South Africa, making it harder for Zuma to satisfy the demands of unions who would like to push policies to the left.

"Since the implementation of our programme will take place in the face of the economic downturn, we will have to act prudently -- no wastage, no rollovers of funds -- every cent must be spent wisely and fruitfully," said Zuma.

Labels: GREAT DEPRESSION II, JACOB ZUMA, SOUTH AFRICA

posted by MrK @ 3:21 PM