ANC to nominate deputy leader as president

By Wendell Roelf

CAPE TOWN (Reuters) - The ruling African National Congress will name party deputy head Kgalema Motlanthe as South Africa's caretaker leader after the ousting of President Thabo Mbeki, ANC members of parliament told Reuters on Monday.

ANC leader Jacob Zuma made clear his backing for Motlanthe as he pledged that the party would ensure a smooth transition and economic policy continuity despite the biggest political crisis since the end of apartheid in 1994.

"We have in cabinet many experienced ministers, including the deputy president of the ANC, Kgalema Motlanthe. I'm convinced that if given that responsibility, he would be equal to the task," said Zuma, in his first public remarks since Mbeki announced he would resign in the face of ANC demands to quit.

African Union chairman and Tanzanian President Jakaya Kikwete told Reuters Mbeki's resignation was a "big loss for Africa" and said it was important that the political transition is smooth and does not destabilize Africa's largest economy.

Motlanthe is a left-leaning intellectual, widely respected by both the radical leftists and business tycoons within the ANC. He is seen as a figure who could help heal the deepest divisions in the party's history.

"He's a very solid person and if you've read his statements he always avoids wild rhetoric. He seems to also avoid making enemies and in the present political climate that's a good thing," said Keith Gottschalk, a political analyst at the University of the Western Cape said.

"Certainly, most would regard him as presidential material."

ANC militants led the charge to force out Mbeki after a judge threw out graft charges against his rival Zuma and suggested there was high-level political meddling in the case.

African National Congress parliament members told Reuters the party would name Motlanthe to replace Mbeki until the poll, expected around April, which the ANC is widely expected to win.

The opposition Democratic Alliance said parliament would elect Mbeki's successor on Thursday.

Motlanthe is a former student activist, a trade unionist and a former soldier in the ANC's disbanded military wing UmKhonto we Sizwe. In 1977 he was sentenced to 10 years imprisonment and was jailed on Robben Island with Nelson Mandela and Zuma under the racist apartheid regime.

ECONOMIC STABILITY

Policy changes under Motlanthe in the short interim period would be unlikely but foreign investors eager for stability and a continuity of policy in Africa's biggest economy will be watching closely for clues on the ANC's future policy.

"In the short-term, uncertainty will remain as the new political regime settles in, with some cabinet changes likely in coming weeks," said Mike Davies, Middle East and Africa analyst at Eurasia Group.

Ratings agency Fitch said radical economic policy change was unlikely. But Mbeki's resignation added to political uncertainty.