BBC News - June 3, 2009
He said fighting poverty was his priority, a week after South Africa officially announced it was facing its worst recession in 17 years.
"We must act now to minimise the impact of this downturn on those most vulnerable," he said in Cape Town.
But he also told parliament the government had to spend wisely.
Mandela cheers
The BBC's Karen Allen in Cape Town says Mr Zuma, in power for less than a month, has had to perform a delicate balancing act to appease his unions allies, currently staging strike action, and avoid scaring off investors.
Quote: " The economic downturn will affect the pace at which our country is able to address social and economic challenges " -- President Jacob Zuma
"Between now and December 2009, we plan to create about 500,000 job opportunities," he told MPs.
He promised his government would create a further four million jobs by 2014, but did not explain how.
Mr Zuma also:
* announced a national holiday, Mandela Day, on 18 July each year, prompting cheers from the audience and a wave from the watching anti-apartheid icon himself
* promised to deliver "the best World Cup ever" when South Africa hosts the football tournament in June next year
* promised to provide anti-retroviral HIV drugs for 80% of those in need by 2011, as part of efforts to cut in half the rate of new infections of the virus within that period
* stuck by pledges to cut violent crime by between 7%-10% a year (in a country where 50 people are killed every day)
Mr Zuma, whose African National Congress Party (ANC) swept into power in April elections on the back of strong support from unions and the poor, cautioned against expectations of a quick fix to the financial slump.
"The economic downturn will affect the pace at which our country is able to address the social and economic challenges it faces. But it will not alter the direction of our development," he said.
Fifteen years after the end of apartheid, about 40% of South Africans live in poverty - more than half of that number surviving on less than one dollar a day, according to government data.
Its economy shrunk by 6.4% during the first quarter of this year and almost one in four South Africans is unemployed.
Mr Zuma said a three-year 787bn rand ($98bn; ú60bn) spending programme announced in this year's budget - and including funds for schools, transport, housing and sanitation - must be properly planned.
"In the face of the economic downturn, we will have to act prudently - no wastage, no rollovers of funds - every cent must be spent wisely and fruitfully," he said.
Our correspondent says Mr Zuma's style is a marked departure from that of the man his party nudged out of power last year - ex-President Thabo Mbeki.
By making a brave foray into Afrikaans during his speech, Mr Zuma came across as inclusive - very different to Mr Mbeki, who spoke only in English and was dubbed "aloof".
But our correspondent adds Mr Zuma has been more vague than his predecessor - who outlined clear goals, objectives and targets as leader.
Mr Zuma may have sought to build bridges with poorer South Africans, but he has yet to demonstrate if he is ready to face up to the hard choices ahead, she adds.
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