PRETORIA: South Africa's President Jacob Zuma moved Thursday to restore investors' confidence by urging stability in the key mining sector after the country's economic growth hit a fresh low.
Gross Domestic Product figures released this week showed that Africa's wealthiest economy grew by just 0.9 percent in the first quarter as the country faces the prospect of renewed labour unrest in the mining sector.
"The figure means that we must strengthen economic performance and increase the rate of investment," Zuma told a news conference.
"Growth in the remaining three quarters of the year will have to be much higher, for us to achieve the projected annual growth of 2.7 percent."
The vital mining sector, which rakes in around 60 percent of export earnings, has seen a rash of wildcat strikes sparked by wage demands and union rivalry.
"Everything we do must be designed to strengthen and stabilise the sector," said Zuma.
The industry was hit by a crippling wave of unrest last year, sparked by police shooting dead 34 protesters at platinum giant Lonmin during an illegal wage strike.
This year, as the wage bargaining season begins, one union has demanded pay hikes of up to 60 percent for some workers.
"We call for fair and expeditious settlements of wage negotiations that can contribute to the attainment of the country's job creation and job retention goals," said Zuma.
He announced that his deputy Kgalema Motlanthe, was leading a panel of ministers in talks with business and labour in a bid to address the mining sector troubles.
With the country entering the so-called strike season, Zuma called for "fair and expeditious settlements of wage negotiations."
Zuma flies out to Japan on Thursday for an African development conference and said upon his return next week he will hold talks with leaders in the sector.
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