20110912
Reuters
JOHANNESBURG (Reuters) - The firebrand leader of the youth wing of South Africa's ruling ANC declared "economic war" on whites on Saturday, making clear he had no intention of backing down from inflammatory rhetoric on the eve of a party disciplinary hearing.

Julius Malema, whose calls for the nationalisation of mines have unnerved investors in Africa's biggest economy, said he would not tone down his demands.

"We are declaring economic war," South Africa's SAPA news agency quoted Malema as telling hundreds of supporters in Johannesburg's Alexandra township. "We are going to reclaim what is ours from the white minority."

He was speaking a day before the resumption of an African National Congress disciplinary hearing into accusations he sowed dissent in the ANC and brought it into disrepute.

The proceedings are seen as a showdown between Malema and President Jacob Zuma -- who came to power with the backing of the ANC Youth League.

Malema's calls for the state to take over giant gold and platinum mines and white-owned farms have galvanised poor blacks, many of whom are impatient with a system that has left wealth concentrated in the hands of a white minority that imposed race-based rule until two decades ago.

Supporters of Malema and police clashed when his disciplinary hearing started on September 2.

The Youth League will organise a protest march to the Johannesburg Stock Exchange next month as part of programme of action against youth unemployment and to push for nationalisation, Malema said.

Malema urged his supporters to fight for "economic freedom".

"If we don't do it now, those who are unemployed will stay that way forever."

Unemployment is officially around 25 percent. Millions still live in squalid shack settlements clustered around big cities. Youth unemployment is about 50 percent, and a study by the South African Institute of Race Relations said about half of current 25- to 34-year-olds will never find work.

Malema, 30, seen as a potential future ANC leader, faces suspension from the party if found guilty in the disciplinary hearing. If he is exonerated, Zuma could be fighting for his political survival.

Zuma faces a major ANC meeting in late 2012 when the party that dominates the country's politics elects its leaders. He will be in a strong position for re-election if Malema is sidelined but could struggle if Malema stays in the ANC and supports Zuma's rivals for the top job.