South Africa’s President Thabo Mbeki suffered a major political setback as he lost his bid for a third term as the leader of the ruling African National Congress. In a bitterly fought contest, the man he sacked as his deputy two years ago Jacob Zuma emerged victorious.

Jacob Zuma scored a resounding victory winning the support of 2,329 of the 4,000 delegates at the congress against Mbeki’s 1,505 and now looks like the most likely successor to Thabo Mbeki as President of South Africa.

On announcement of the results the halls of the University of Limpopo, Polokwane erupted in celebrations as hundreds of Zuma supporters chanted his name.

Mbeki’s rule has been characterised by solid economic management aided by buoyant commodity prices, but many ordinary South African citizens feel they haven’t enjoyed the benefits they expected following the end of Apartheid 13 years ago. Zuma on the other hand is viewed with caution by the business community who fear his populist agenda may sacrifice economic discipline in favour of greater public spending.

Zuma who was sacked as Deputy President by Mbeki in 2005, has fought through corruption allegations and a charge of rape to get within touching distance of the ultimate political prize in South African politics, but in doing so he has created a major divide in ANC and it may well come back to haunt him.