Protesters outside parliament ahead of state-of-the-nation speech

Hundreds of protesters marched outside parliament on Thursday hours before an annual state-of-the-nation speech by President Jacob Zuma, whom they accuse of corruption and mismanaging the country's flagging economy.

The protesters, consisting of several different groups including Ses'khona and Pan African Congress of Azania (PAC) members, were stopped about two blocks from parliament by public order police with four armoured vehicles.

Around the same time, dozens of men dressed in crisp white shirts rather than the normal green shirts of the parliamentary protection services, entered Parliamenat through the Poorthuis entrance.

Last year, white-shirted police violently removed EFF MPs from the debating chamber after they disrupted Zuma's State of the Nation speech.

Criticism

Zuma's speech, scheduled to be televised nationally, comes amid growing criticism over a taxpayer-funded R250 million upgrade to his private home and years of weak economic growth in Africa's most industrialised country.

Investors also want to know why Zuma fired two finance ministers in one week this December. Minister Nhlanhla Nene was replaced by relatively unknown lawmaker David van Rooyen, sparking a selling frenzy in the markets. Zuma swiftly replaced van Rooyen with the respected Pravin Gordhan.

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BNP Paribas Securities SA economist Jeffrey Schultz said the reshuffle "brought into question political stability of this economy and in particular the independence of national treasury in helping set policy in South Africa."

"The markets will be looking for some level of commitment from government that it remains committed to sustainable fiscal policy and a generally pro-business, pro-investment environment," he said.

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The rand hit a record low of 17.9950 in January after weakening by more than a quarter to the dollar last year. The central bank has forecast growth to reach only 0.9 percent this year. Unemployment is at 25 percent.

The agricultural sector is reeling under the worst drought in three decades, forcing Africa's top grain producer to import maize. The mining sector, hit hard by slowing demand from China, is shedding jobs and shutting unviable mines.

The opposition are hoping anger over the nation's economic woes will translate into votes in upcoming local elections.

Julius Malema, the fiery leader of the far-left opposition Economic Freedom Fighters (EFF) party, said last week he would disrupt Zuma's speech, as he did last year, if Zuma fails to explain why he fired the finance ministers.

The speaker of parliament has vowed to quash any attempts to disrupt the proceedings. Last year security officials removed Malema and other EFF MPs.

In the lead-up to the speech, police set up barbed wire barricades to keep protesters away from parliament. But about 300 marchers walked through Cape Town's main street, shouting: "Zuma Must Fall!" and waving placards. Elsewhere in the city, pro-Zuma marchers also began to gather.

- Reuters