DOUG KANTER/AFP
MBEKI'S PRAYER: African countries would commit themselves to political reform in return for foreign investment in job-creating projects


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"NEPAD is a long-shot, but no one so far has come up with a better alternative," says John Stremlau, co-director of the Centre for Africa's International Relations at Johannesburg's University of the Witwatersrand. Skeptics say the international community should be cautious about rushing in to back yet another new initiative to help Africa and that NEPAD, for all its high-sounding ideals, may become just another exercise in neocolonialist aid. After almost a score of African development schemes that have been mooted and forgotten over the past 20 years, they ask, why should NEPAD be any different?

Mbeki and his fellow architects say NEPAD is more than an idea and already represents a solidarity of pan-African interests from Cape Town to Cairo. It has also earned enthusiastic endorsement from Britain's Tony Blair, the European Union, the U.S. and Canada. "This isn't charity," says Canadian Prime Minister Jean Chrétien. "Improving people's lives is an investment." Chrétien, as current president of the G-8, will be unveiling the African action plan at the group's summit in the western Canadian mountain resort of Kananaskis. "What makes NEPAD different is its recognition of past failures, its ownership by Africans themselves and, critically, its timing in a post-Sept. 11 spotlight on global responsibilities and core values," says Greg Mills, national director of the South African Institute of International Affairs.

Whatever course the initiative takes, it constitutes a personal challenge for the man who has played such a pivotal role in its creation — Thabo Mbeki. So, will the South African President soar to fame on the successful launch of the New Partnership for Africa's Development, or will he watch his career crumble with its failure? But even as Nelson Mandela's successor gambles his international reputation on a world dispensation for Africa, he remains something of an enigma among his own countrymen.

Mbeki, currently Africa's most eloquent voice , is still dogged by the controversy that surrounds his eccentric views on Africa's greatest pestilence, aids. His questioning of the conventional medical conclusions on hiv, including the link between hiv and aids and the efficacy of antiretroviral drugs, as well as his government's unseemly battle with aids activists, became issues that went beyond medical and scientific debate and threatened to undermine investor confidence in South Africa. "What the world wanted was to hear three words [BRACKET "hiv causes aids"], and he is not a man of three words," said Health Minister Manto Tshabalala-Msimang. "He likes to explain things.'' But according to a source close to the A.N.C. leadership, Mbeki, who revels in Socratic, philosophical debate, became so immersed in the nonconformist, dissident arguments about aids that "he forgot he was President. He should have stepped back and left others to argue the case.'' Mbeki's intellectual approach also neglected the need for action, said the A.N.C. source. "When a house is on fire you don't stop to argue the scientific causes of combustion, you get in there, get the people out and extinguish the blaze."

If Mbeki is not a man of three words, his government information service is: "Our starting point is the premise that hiv causes aids," says an official handout, noting that the country's total health budget for HIV/AIDS has trebled since last year and by 2004 will be almost $2 billion. The government claims that its comprehensive HIV/AIDS policy is one of the best in the world. But skeptics in South Africa still wonder if the apparent turnabout on aids is genuine. "Has Mr. Mbeki had a sudden change of heart?" asks John Kane-Berman, director of South Africa's Institute of Race Relations. "Or are we witnessing an exercise in damage control in the face of overwhelming local and foreign pressure?"

Almost half-way through his first term as President, Mbeki is having some measure of success on the economic front. Although there is still a long way to go to alleviate poverty, the percentage of people who are regarded as the poorest of the poor has dropped from about 20% in 1994 to roughly 5% last year. The number of workers earning more than $600 a month has increased from 10% to 18%. Water delivery has improved by 85%, half of rural homes now have access to electricity and the literacy rate has gone up at least 10%. Most South Africans now have access to a telephone link, and some 7 million actively use mobile phones. The Internet, e-mail and e-business are widespread.

Unemployment, officially around 30%, unofficially 41.5%, continues to cloud the horizon. A plan to address that problem by limiting immigration will probably just worsen another one: a shortage of skilled labor. Still, development projects in many major cities are beginning to absorb some of the urban jobless. A huge convention center being built in Cape Town is already booked until 2010. And a planned deepwater port and duty-free industrial development zone at Coega, near Port Elizabeth in the Eastern Cape — probably the single largest long-term investment in the country's history — is expected to provide thousands of jobs.

South Africa, meanwhile, is enjoying a tourist boom, with an increase in airline passengers and travelers on cruise ships taking the safe route around the Cape rather than risk the unrest surrounding the Suez Canal. Next year, for the first time, South Africa will host the international cricket World Cup. Two years ago, the South Africans lost by one vote to Germany in the bid for the 2006 soccer World Cup.

Although Europe remains South Africa's biggest trading partner, commerce with Africa has been expanding. South Africa is Mozambique's largest investor with more than 250 companies operating there. Since 1994, trade with Nigeria has rocketed. South Africa's satellite communications company MTN has invested more than $425 million in the Nigerian cell-phone network. National power company Eskom has secured contracts in several African countries, and South African mining companies are operating all over the continent, as is South African Breweries (SAB). Last week, SAB bought Miller Brewing Co. for $5.6 billion, making it the world's second-largest brewer.

Last week the partially privatized national landline operator, Telkom, announced a partnership in a fiber-optic cable that will link Africa not just with Asia, Europe, Australia and the U.S. but also with itself. The link — Telkom has an $85 million stake in the $650 million deal — involves an undersea cable from Portugal to West Africa and Cape Town, and another from Cape Town to India and Malaysia. "This is tangible proof of the continent's determination to take its rightful place in the global economy," says Telkom's chief executive, Sizwe Nxasana. After a brief and sudden plunge of the South African rand at the end of last year — a phenomenon that resulted in a government inquiry into foreign exchange and bank transactions — the currency has recovered the almost 40% it lost to the U.S. dollar. South Africa is still one of the world's biggest exporters of gold and other precious and base metals. Both platinum and gold prices have soared in recent months, boosting profits for local companies and tax revenues for the state. "We have a much stronger economic climate in South Africa than in many other developing countries,'' says Revenue Services Commissioner Pravin Gordhan. A special fraud unit improved tax collection by $430 million last year, enabling the government to cut corporate income-tax rates from 48% to 30%.

As South Africa last week geared up for the wef meeting, which will be heavily devoted to NEPAD, Mbeki, speaking in Parliament in Cape Town, proudly outlined South Africa's leadership role in the initiative. What remains now, he said, is for the principles of NEPAD to be converted into action. Mbeki's job as a salesman is nearly over. His dream of an African renaissance now rests in the delivery.

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