South Africa's government said today it remained firmly under the control of President Thabo Mbeki, dismissing concerns that his humiliating defeat in the battle to lead the ruling party had made him a lame duck.
Mr Mbeki, who has governed the country since taking over from Nelson Mandela in 1999, lost control of the ruling African National Congress last month when delegates overwhelmingly chose Jacob Zuma as the party's new leader.
The loss prompted widespread speculation that the Zuma camp would pressure cabinet members to switch allegiance, effectively establishing a parallel government and preventing Mr Mbeki from governing for his final two years in office.
The constitution prohibits Mr Mbeki from running for a third term in 2009. Mr Zuma, who does not have a formal position in the government, is seen as the frontrunner to succeed him.
Political uncertainty has been fuelling investor fears that Mr Zuma, who has strong ties to labour unions and Communists, might heed his leftist backers and alter the centrist policies credited with supporting the country's economic boom.
Mr Zuma has assured investors there is no need to worry, saying that core government policies would not change if he led Africa's economic powerhouse.
Government spokesman Themba Maseko set out to reassure investors that Mr Mbeki was firmly in control of the government.