Edition 03/09 2009-01-26 Friedrich-Ebert-Stiftung, Focus South Africa SOUTH AFRICA OFFICE Publication for political and socio-economic issues in South Africa FOCUS South Africa Effects of the global financial crisis South Africa in a balancing act between the economic crisis and the election campaign After the lengthy growth phase of the South African economy, the country at the Cape now also finds itself afflicted by the turbulences of the global finan­cial and economic crisis. The economic growth has weakened exports, while business and domestic demand have decreased. The interim government of President Kgalema Motlanthe does not plan any hasty interventions during the period running up to the elections in April 2009. The collapsing econo­mies and the election campaigns have forced the parties, however, to position themselves clearly. Notably the African National Congress(ANC) has found itself facing serious competition for the first time. The newly-created party, the Congress of the People(COPE) has already submitted its first concepts. Business federations, trade unions and the media have used the pre-election campaign in order to place demands. “The biggest challenge we face is how to ensure greater equality, imroved human development and social justice in South Africa.” Kgalema Motlanthe, South African President