Insight - Economic horizons darken for ANC-ruled South Africa

By Jon Herskovitz

January 6, 2012 5:49 AM EST

Trevor Ghavala has grown up in post-apartheid South Africa, and like nearly half his young adult contemporaries he is unemployed and has little chance of escaping a social underclass in which millions are trapped.

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"I don't have a job ... I've never had a job. I've been asking people, doing crime," said Ghavala, 24, chewing on a piece of bread as he squatted with his back to a wall in a central street in Johannesburg's Soweto township.

South Africa's African National Congress (ANC), the anti-apartheid liberation movement turned ruling party, came to power in 1994 promising to help people like Ghavala.

But after 17 years running Africa's biggest economy, critics say it has done more to enrich its leading members and allies than to help the poor masses.

At the weekend, it will hold a lavish birthday bash to celebrate its 100th anniversary with a golf tournament, banquets and concerts by the biggest stars in South African music while people like Ghavala struggle to eke out a living.

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"I wish that Madiba was fresh back," Ghavala said, referring to the popular clan name of former president and anti-apartheid icon Nelson Mandela who, in a blaze of international goodwill, led South Africa into a new era of multi-racial democracy.

Mandela, elected president of the ANC after it was unbanned and he was freed from jail, led the country from 1994-1999. His departure from power was seen as an example to African leaders although the movement sees itself ruling for years to come.

It beat its nearest rival by more than 40 percentage points in elections last year, but analysts warn the party faces a defining moment in the next three years or so.

They say that if the ANC government keeps up its current policies, South Africa risks slipping to new depths of unemployment, debt and corruption that could swell the ranks of the destitute like Ghavala and undermine long-term prospects.

Critics say President Jacob Zuma, an ANC veteran and political backstreet brawler both before and since taking office in 2009, has been a virtual bystander when it comes to tackling the country's deep social and economic problems.

"We are deeply concerned about the current trajectory. A rapid turnaround would be required in Zuma's next term," said Neren Rau, the chief executive of the South African Chamber of Commerce and Industry.

ANC PUT TO THE TEST

The ANC says it has made big strides in erasing the economic and social injustices caused by decades of oppression of the black majority by a white minority under apartheid.

The government says that when the ANC took over in 1994, 62 percent of households had access to clean water and about 50 percent had access to electricity. This has increased to nearly 95 percent and about 80 percent, it says.

Copyright 2012 Thomson Reuters UK. All rights reserved.
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