At the opening of parliament on Friday Mr Mbeki said the government would soon introduce rules to give the black majority a bigger role in the economy.

But he also added that "a rigid and inflexible approach" would not be wise.

The government will lay greatest stress on black economic empowerment that is associated with growth, development and enterprise development and not merely redistribution of existing wealth Thabo Mbeki South African president

The South African government failed to push through legislation on black economic empowerment last year.

Mr Mbeki also said he expected gross domestic product to grow by 3.1%, up from original estimates of 2.6%.

Nine years after the end of the apartheid regime, the South African economy is still plagued by mass unemployment, which some experts say is as high as 30%, and widespread poverty.

Mining charter

Investors were alarmed and mining stocks plummeted after an initial draft of a black ownership plan for the mining sector was leaked in the middle of last year.

But the government responded rapidly, ruling out nationalisation and later struck a deal with the industry, labour and government.

The government approved a mining charter last October which set out a target of 15% black ownership in local mines within five years and 26% within 10 years.

"As we approach the end of the first decade of our new democracy, the need for an economic transformation that brings about effective and significant black economic empowerment, becomes more pressing," Mr Mbeki said in his State of the Nation address in Cape Town.

He added: "The government will lay greatest stress on black economic empowerment that is associated with growth, development and enterprise development and not merely redistribution of existing wealth."

The South African president said he wanted to call a special summit of business, labour, government and community leaders in May to discuss ways to boost growth.

The Chamber of Mines, which represents the country's biggest mining companies, said the speech was "positive and encouraging".

Economists and industry also welcomed the address, although financial markets moved very little.