Mozambique's President Joaquim Chissano has pledged to fight corruption and poverty as he begins a second and final five-year-term.

During his inauguration ceremony on Saturday, President Chissano promised to create more jobs and extend health and education benefits to more Mozambicans.

"Our priority is to eradicate absolute destitution, to combat poverty, hunger and illiteracy in Mozambique; to combat regional imbalances gradually and unrelentingly; to fight disease, with particular emphasis on the causes of child mortality," President Chissano told the 5,000-strong crowd.

Despite the nation's recent economic boom, 70% of the population still live in poverty.

"I am aware that I take this responsibility at a time when we are going to face new and complex challenges in recovering our economic and social foundations."

Election dispute

A priority will be to mend relations with the opposition Renamo party, which has disputed the results of last month's elections. At the opening of the newly elected parliament on Friday, opposition MPs demanded a recount.

According to official results, Mr Chissano won 52.3% of the presidential vote and Renamo leader Afonso Dhlakama, the only challenger, 47.7%.

Mr Chissano's Frelimo party took 133 parliamentary seats to Renamo's 117.

Renamo - which stands for the Mozambique Resistance Movement - fought a 15-year civil war against the Frelimo government, in which more than 500,000 people died before a peace treaty was signed in 1992.

The accord paved the way for the first elections, held in 1994.

Congo

Among the regional leaders attending the inauguration were the current and former South African presidents Thabo Mbeki and Nelson Mandela, and President Yoweri Museveni of Uganda.

Leaders belonging to the South African Development Community will stay on for a meeting on efforts to end the war in nearby Congo.

The group helped secure last year's peace accord, but sporadic fighting continues despite the cease-fire.

Congolese President Laurent Kabila did not attend the inauguration and was not expected to attend Sunday's meeting.