Culled from the Financial Times.

Africa 'must not pay for some countries' errors'
By James Lamont in Cape Town
Published: February 8 2002 16:06 | Last Updated: February 8 2002 16:47



Thabo Mbeki, the South African president, has warned against allowing the failures of some African leaders to tarnish the development prospects of the entire continent.

In what is understood as a reference to President Robert Mugabe of Zimbabwe's bid to hold onto power in presidential elections next month, Mr Mbeki appealed against the contagion that poisoned regional economic recovery with one country's failure.

"We shall continue to challenge a pessimism that expects Africa to fail in any of its endeavours," he said in a state of the nation address at the opening of parliament on Friday.

"And the undeclared doctrine of collective punishment against all Africans that seems to come into effect when one or some among our leaders stumble."

Mr Mbeki's remarks allude to the effect Zimbabwe's political crisis and economic collapse has had on the South African economy. Lawlessness and human rights abuses in the run up to the elections have weakened investment sentiment in southern Africa.

Threats to democracy and economic stability in Zimbabwe, South Africa's main trading partner in the region, were identified by economists as a reason behind the rand's fall in the second half of last year. The rand fell 40 per cent against the US dollar last year. Much of its fall was recorded in December when free and fair elections in Zimbabwe looked increasingly unlikely.

"We as a country are within our rights to be concerned about the volatility in the exchange rate, and the kind of inexplicable movements that we experienced towards the end of last year. We are in no doubt that the sudden depreciation of the currency a few month ago is not a reflection of systemic or structural weakness in the economy," Mr Mbeki said.

He stressed South Africa's commitment to a liberal macroeconomic policy, which promotes the privatisation of state assets and fiscal prudence, and an orderly land reform programme that would be completed within three years. About 1m hectares of land have been redistributed, mainly from white to black people, over the past eight years. After a slow start after South Africa's democratic elections in 1994, about 29,000 land claims have been settled.

"The path of an open economy that we have charted for ourselves is not up for review. As we find our way in the future, we shall not seek solace in the past," he said.

Mr Mbeki identified poverty alleviation as his government's top priority. He said the national budget in 10 days time would introduce tax cuts for low income earners and increased social grants.

The state-of-the-nation address was well-received by rival political parties.

Marthinus van Schalkwyk, leader of the New National Party, said it was "workmanlike" in its broad of address of the many challenges facing South Africa, but had fallen short of detail.


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GROWING OLD IS MANDATORY; BECOMING WISE IS OPTIONAL.

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