JOHANNESBURG, South Africa - South Africa needs faster growth and more economic reforms to tackle poverty, unemployment and AIDS, a top IMF official said Tuesday.

John Lipsky, first deputy managing director of the International Monetary Fund, spoke at the conclusion of his visit to South Africa on Tuesday.

Lipsky met with Finance Minister Trevor Manuel and Reserve Bank Governor Tito Mboweni as well as representatives of the private sector during a three-day visit to South Africa as part of his first trip to sub-Saharan Africa.

He praised South African economic policies, noting the economy would grow by about 4.2 per cent this year and at a similar rate in 2007.

"South Africa has been enjoying its longest economic expansion on record. Recent economic performance has continued to be strong and the near-term outlook remains broadly favorable," he said.

Lipsky said since apartheid ended over a decade ago, inflation has been reduced and living standards raised. However, poverty and unemployment remain "far too high."

"The acute income and wealth disparities inherited from the apartheid era are still painfully evident, poverty is still widespread, and, as in many other African countries, the HIV/AIDS epidemic is extracting a heavy social and economic toll," he said.

Lipsky called for a revision of labor market regulations and further liberalizing of trade policies to encourage growth and job creation.

He also stressed the role of South Africa in Africa.

"South Africa has a vital leadership role to play in advancing prosperity across the continent. The continued success of the South African economy will help to further strengthen this role," he said.

Lipsky also attended a seminar co-sponsored by the fund and the United Kingdom's Department of International Development, which brought together finance ministers, central bank governors and businessmen for southern African countries.

"I was encouraged by the importance African policy makers place on financial stability and financial sector development," he said.