Cape Town - South Africa must ease the gap between the rich and the poor, says President Jacob Zuma.
Responding to questions during an interview on SABC1, President Zuma said South Africa could not allow the gap to widen any more but had to ensure that the gap closes.
He further added that if poverty was ignored it would be a risky situation. "If that happens you are certainly sitting on a situation that will explode one day," the President said.
He said that before the financial crisis began affecting South Africa, the economy had been growing but the poverty levels were deepening.
If the economy was growing, the President said, it should benefit the people of the country, which it was not, adding that something had to be done to address the problem.
One of President Zuma's most difficult tasks will be balancing the interest rates and trying to navigate the country through its first recession in 17 years.
The President said he was satisfied with the way the South African Reserve Bank was handling interest rates.
"The Reserve Bank has in fact cut down on the interest rates, which have been the problem ...it was tightening it before the impact. Once the impact was there it began to loosen, and people feel that it must actually loosen it even more," he said.
He added that the Reserve Bank was an important institution that had helped South Africa absorb the shock of the global financial meltdown.
On whether government would have to borrow more to fund its development plans, which would fuel inflation, Mr Zuma acknowledged this was a problem.
"That's part of the problem. Because people think we must do this and we must do that, particularly when there is a crisis, it gets worse.
"I think instead of pressurising ourselves we need to have a possibility to exchange views and really look at what is the best that we need to do for our country," he said.
The President also indicated that government will look at helping South African companies that find themselves in trouble as a result of the recession.
He did not elaborate further, saying only the matter would be discussed with companies "once that situation comes".
On stimulating the economy, President Zuma said billions of Rand had been set aside to invest in South Africa's infrastructure, which is also under pressure as a result of the growing economy.
"That in itself creates economic activities that help to sustain the jobs that also would create a possibility of some people who could be losing jobs in other areas, but finding jobs in other areas," he said.
During the State of the Nation Address the President had indicated that government plans to create about 500 000 job opportunities between June and December.
The Expanded Public Works Programme which deals with infrastructure development was the main instrument, he cited for creating jobs.
