Large crowds greeted the former leader of the struggle against apartheid. During a walkabout prior to the ceremony, he took time out to sing with a group of local schoolchildren.

The South African leader brought his magic to Cardiff

President Mandela paid tribute to the response of the Welsh people to the discrimination against non-whites that had existed in South Africa.

"When the call for the international isolation of apartheid went out to the world, the people of Wales responded magnificently," he said.

"The knowledge that local authorities all over Wales were banning apartheid products from canteens and schools - and that the universities, the Welsh Rugby Union, and the choirs had cut their links - was a great inspiration to us in our struggle.

Watch Nelson Mandela pay tribute to the Welsh fight against apartheid

"So too was the contribution of organised by Welsh workers. Action on such a scale could only flow from strong support by ordinary Welsh people on the ground.

"So we knew that the Wales Anti-Apartheid Movement spoke for a people who cared for our freedom as their own."

'Heartfelt thanks'

Although a planned trade agreement with South Africa is not yet ready for signing, the European leaders are also holding a celebration lunch for President Nelson Mandela, who is in Europe for what is expected to be the last time before he retires.

UK Prime Minister Tony Blair hosts his final summit in the current six-month presidency

Mr Mandela, 80-years-old next month and scheduled to retire from office in 1999, was presented with the Freedom of the City at a ceremony in the grounds of Cardiff Castle, close to the main summit venue at City Hall.

Accepting the honour, Mr Mandela said: "I would like you to accept our heartfelt thanks on behalf of the people of South Africa for your solidarity.

"Democracy has brought new and even greater challenges. In the four years of our freedom we have laid the foundation for a better life for all.

"But eradicating the legacy of apartheid and rebuilding our region will take many years.

"We need your continuing support and so we warmly welcome the transformation of the Anti-Apartheid Movement to Action for Southern Africa."

Large public interest

After flying into Cardiff airport, Mr Mandela attended a banquet at the castle for EU heads of government hosted by the Queen.

His visit to Wales created huge public interest, with hundreds of requests for tickets to the freedom ceremony.

More than 1,000 people rang a special hotline last week within a few hours of an announcement that a limited number of extra seats were being made available inside the castle.

Hanif Bhamjee, secretary of Action for Southern Africa, formerly the Wales Anti-Apartheid Movement, said Wales had played a major role in international campaigning to secure Mr Mandela's release after 27 years' in prison.