Thabo Mbeki was sworn as South Africa’s second democratically elected president in June 1999 after a successful transition led by the Father of the new nation,Nelson Mandela.Mbeki and his cabinet start from a strong position by the ANC’s nearly 2/3 majority in parliament but face tremendous challenges ahead as well.To make a success in the five year term of office and to keep the level of support the ANC now enjoys,the Mbeki government needs to give consideration to the following issues.The ANC’s declining support in the Eastern Cape and Northwest Province,where former black homeland residents still live in severe poverty,could be a warning of disappointment against the government’s lack of dilivery to the rural poor.In realising the commitment of building the economy and speeding up job creation,the government faces two major constrains in winning business confidence,namely,tense labour relations and a high crime rate.To address the huge backlogs left by apartheid,it seems crucial to build an efficient and accountable state,particularly in the case of local governments,for “this level of government has often played itself out as an Achillies Heel of democratic governance”,acknowledged by Mandela.Success will repuire a strong hand against corruption.It is notan easy job for Mbeki to tackle all these problems,but many believe he will be more than equal to the task ahead.