1:09pm UK, Saturday May 09, 2009

Emma Hurd, Africa correspondent

Jacob Zuma has been sworn in as South Africa’s new president after a remarkable political comeback.

Jacob Zuma takes his presidential oath

Mr Zuma, 67, is faced with an in-tray bursting with social and political challenges.

He has promised to speed up the pace of change in the nation and transform the lives of the poor.

In his inauguration speech, Mr Zuma pledged “the dreams and hopes of all the people of our country must be fulfilled”, adding “there is no place for complacency, cynicism or excuses”.

South Africa’s economy is starting to feel the effects of the global slow down and unemployment is running close to 24%.

Millions of people are still waiting for proper housing and the number living below the poverty line has actually increased in the 15 years since the end of apartheid.

As a politician, Mr Zuma has played on his own humble roots as a goatherd, building his powerbase among South Africa’s poorest and creating huge expectations for dramatic changes under his rule.

He also has close ties to the country’s trade unions, leading to speculation he might favour a shift away from the broadly capitalist economic policies that the ANC government has pursued since the end of white rule.

The markets are wary of that and will be watching closely as Mr Zuma selects his Finance Minister.

Trevor Manuel has held the post since Nelson Mandela’s term in office and is credited with creating stability and growth.

If he is replaced by someone seen as less capable or more left-wing then foreign investors might feel nervous.

Mr Zuma has promised no major shifts in economic policy but he may feel pressure from his closest allies to do more to speed up the re-distribution of the nation’s wealth.

His most pressing foreign policy issue is right on his doorstep – Zimbabwe.

Former President Thabo Mbeki was accused of being too soft on Robert Mugabe and Jacob Zuma has taken a tougher stance.

Whether he will translate that into real action in office is less clear.

The faltering power sharing deal in Zimbabwe may give him an excuse to avoid addressing the Mugabe question until the next crisis in the country inevitably erupts.

President Zuma has a lot to prove. His rise to power was marred by allegations of corruption and a trial and acquittal for rape.

But his popularity among the masses rivals that of Nelson Mandela. Zuma might be the leader who builds on Mandela’s legacy, or the man who destroys it.