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South Africa (MRB Dec 2001): Rising domestic problems may impinge on regional involvement.

Asia Africa Intelligence Wire

| December 01, 2001 | COPYRIGHT 2001 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The SA government is seeking ways to ride the twin pressures of domestic friction stemming from its weak economy and instability in the wider region, where it is becoming increasingly involved, diplomatically and militarily. Inside the country the collapsing Rand has already impacted on inflation forecasts and north of its borders Zimbabwe is threatening to implode, spreading contagion to regional economic hopes. Meanwhile the grand plan for development in the region, masterminded by President Thabo Mbeki, is being stalemated by infighting among the contending parties in the DR Congo.

Some SA analysts are formulating a gloomy scenario for the next few years. ...

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