New South African President Jacob Zuma in his national address recently vows to create 500,000 jobs by December, saying the government would follow through on its plans to spend billions of dollars to overhaul South Africa's infrastructure.

"Between now and December 2009, we plan to create about 500,000 job opportunities," he told parliament in his first state of the nation address.

"Government will ensure that the planned 787 billion rand (98 billion dollar) infrastructure expenditure as provided for in the budget earlier this year is properly planned for and executed," he said.

"This funding includes allocations for the school building programme, public transport including the bus rapid transit system, housing, water and sanitation."

He insisted that fighting poverty remained the "cornerstone" of his government's focus, but sought to temper expectations of his government, which swept into power in April elections on the back of strong support from unions and the poor.

"The economic downturn will affect the pace at which our country is able to address the social and economic challenges it faces. But it will not alter the direction of our development," he said.

The global economic crisis has taken a toll on the economy, which is officially in recession after a 6.4 percent contraction in the first quarter, he said.

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

He  tried to please all parties in his first State of the Nation speech, promising to help the poor but limiting expectations and indicating prudent economic policies would stay.
The speech should go some way to placate increasingly vocal unions, but without upsetting investors.
Zuma devoted the bulk of his speech to jobs and conditions affecting the poor, including education and health - issues at the top of demands from trade unions and the other leftist allies of the ruling African National Congress who helped bring him to power.
He promised to protect workers facing job losses due to the economic downturn, suggesting a period in which they would be retained and retrained to find other positions.
A public works programme - using more labour-intensive methods on big public projects - will be fast-tracked to create four million job opportunities over the next 5 years.
He also promised to revitalise poor rural areas through grants and to fight crime, vowing to strengthen public institutions in a "development state".
These measures should go some way to placate the increasingly vocal left for now, but without making any dramatic changes.
There was not much in the speech directed at investors, but what he did say suggested the focus on alleviating poverty would not be done in a way that resulted in a massive increase in spending.
He said that the global crisis, which has pushed South Africa into recession, demanded caution - as he put it "cutting the cloth according to our size".
Investors are likely to welcome this reassurance, although brief, in what could be seen as a sign his administration will not abandon its previous conservative fiscal and monetary policies.
South Africa has built up a strong reputation for financial management, earning it plaudits from rating agencies. The speech suggested the government understands its limitations.
At the same time, Zuma vowed to press ahead with a previously announced 787 billion rand (currently $98 billion) infrastructure spending programme that is viewed as crucial to set South Africa up for rapid growth once the crisis eases.
He spoke of a scaled up industrial plan to help certain sectors, including the auto, tourism and clothing and textile industries, in line with a government plan announced earlier this year to respond to the global crisis.
There was no mention of specific rescue packages, though.
Investors may be concerned about a lack of detail in the speech on the response to lift the economy out of recession and brevity in reassuring nervous investors.
In a departure from former President Thabo Mbeki, Zuma vowed to fight crime and deal strongly with HIV-AIDS, two of the biggest problems facing the country and key deterrents for direct investment.
South Africa suffers one of the worst rates of violent crime in the world and one of the highest incidences of HIV/AIDS.
The commitment to tackle criminals will please businesses and many South Africans, particularly signs the government takes the matter more seriously than it did in the past.