South Africa's ruling African National Congress will debate policies to address a rand currency that is at 2-1/2-year highs and how to tackle widespread unemployment on Thursday at a top-level meeting, according to Reuters. The group that enjoys virtual one-party rule in Africa's biggest economy has shied away from calls from left-leaning factions to drastically devalue the rand and also from taking the advice of economists who say it must add flexibility to a rigid and expensive labour market. The party's economic transformation commission will report on its findings to the plenary session of the ANC's National General Council, one of the party's biggest political events in years and where it adjusts its policy priorities. President Jacob Zuma told the opening session on Monday he wanted to see a "stable and competitive" currency while a senior official said the party did not want to see any major swings in the rand. The rand has been strengthened by foreign inflows into South Africa's relatively high yielding bonds and other assets as investors seek higher returns than they can get elsewhere. The rand has gained almost 27 percent since the start of 2009 and it pierced the key 7.00 level to touch 6.98 on Wednesday, gains that will unsettle policymakers at the central bank and in government. The International Monetary Fund on Tuesday said the rand could be overvalued by between 5 to 15 percent and said reserves accumulation should continue. But the ANC, unlikely to want to antagonise governing partners such as union federation COSATU, is unlikely to adopt measures suggested by economists that would make it easier for employers to hire temporary workers or sack unproductive ones. The ANC has called for "education, training, and skills development" to provide more job opportunities in South Africa where unemployment is running at around 25 percent. Average wages in South Africa are about quadruple of what city workers make in China and are much higher than in other developing countries, deterring investment. Frequent strikes have exacerbated the problem. Relations between COSATU and the ANC have been strained by a strike through most of August by about 1.3 million state workers and complaints from the labour group about what it sees as growing cronyism in the government. Zuma has tried to mend fences with COSATU at the meeting. He needs the help of its vote-gathering machine as South Africa heads into nationwide elections for all local posts in the first half of next year. Delegates at the ANC meeting said the debate on nationalising mines in the resource-rich country has been a steady topic of discussions despite calls from ANC leaders who said any policy on increased state ownership would not be made until at least 2012, when the ANC holds its next major meeting. Eight ANC Commissions, including one proposing rules that would place new limits on the media, will report to the plenary on Thursday and their findings will be released on Friday.
