ANALYSIS-South Africa's troubled Zuma faces new battles

ANC divided over second term for Zuma

Succession battle could force concessions to left

Faces growing pressure from poor to deliver

JOHANNESBURG, May 26 (Reuters) - The not-so-private life of President Jacob Zuma, a war in South Africa's ruling party and policy vagueness are raising questions over his leadership a year into office and stirring a barely hidden succession battle.

While the World Cup may prove a welcome distraction next month, politicking could undermine economic policy stability and make it even harder to address the growing grievances of restive black townships 16 years after the end of apartheid.

There is no suggestion yet that Zuma will not serve out his full term until 2013, but his chances of a second have certainly diminished just over two years away from the leadership contest in the ruling African National Congress (ANC).

The battle within the ruling alliance involves the Communist Party and labour federation COSATU, which supported Zuma for the presidency but are disappointed at his failure to change economic policies to give greater benefit to the poor.

Although Zuma has appointed left-wingers to cabinet, overall policy is little different from under his pro-business predecessor, Thabo Mbeki — a fact not lost on markets.

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