Zuma to announce South African cabinet on Sunday

By Michael Georgy

JOHANNESBURG (Reuters) - South African President Jacob Zuma names his cabinet Sunday, with investors eager to know the fate of Finance Minister Trevor Manuel, widely considered a deft handler of the economy.

Zuma faces pressure to appoint effective ministers who can deliver on the ruling ANC's promises to tackle widespread poverty, crime and AIDS and create jobs.

He said in his inauguration speech Saturday the country should acknowledge it faces tough economic times and will not be spared the impact of the global credit crunch.

Manuel could stay in his post or be transferred to a powerful new planning commission. A transfer would be welcomed by markets provided it kept him at the heart of policy-making.

Stacking his cabinet with loyalists could undermine the credibility of Zuma, who has told ANC officials they should not expect jobs just because they supported him.

Zuma won a wide mandate in the ruling African National Congress' (ANC) April 22 landslide election victory. His toughest task may be balancing the interests of unions and communists who helped him rise to the top against those of investors who fear he will steer the economy to the left.

One of the most divisive figures in South African politics, Winnie Madikizela-Mandela has returned from the political wilderness after a fraud conviction to appear alongside Zuma at party rallies, and may well join the cabinet.

Feared by investors for her old-style revolutionary rhetoric, Nelson Mandela's ex-wife is unlikely to secure a high-profile ministry. But her return to prominence may provide clues about Zuma's focus and priorities.