South Africa's rich, poor gap must be closed: Zuma

By Peroshni Govender

MIDRAND, South Africa (Reuters) - South Africa must do more to close the gap between rich and poor, President Jacob Zuma said on Monday at a congress of union allies who want him to take tougher action against unemployment and poverty.

Union federation COSATU was instrumental in helping Zuma to power in April, but unionists have been unable to get him to shift from policies they condemn as too pro-business and have gone head to head with him over a series of pay strikes.

Zuma assured COSATU, which has 1.9 million members, that creating jobs and improving the lives of the poor were the policy priorities of the ruling African National Congress.

"The ANC must now use its victory and control of state power to improve the quality of life of the poor and marginalised," Zuma said, without promising specific action.

Thousands of union members attended COSATU's four-day annual conference. The group wants economic policies it says will bring jobs and improve the lives of millions of black South Africans still living in poverty 15 years after apartheid ended.

As well as more spending, they seek an end to inflation targeting by the central bank, which they blame for sharp interest rate increases last year. They also demand a seat on the bank board and want it to come under full state control.

COSATU President Sidumo Dlamini said Zuma and the government should not take the labour federation's support for granted when it came to choosing his successor, suggesting the union body may toughen its position if its demands are not heeded.

"When that debate comes we shall not be neutral. We will be on the side with those who would have supported the principles that guided our movement," Dlamini said.