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"I am happy to report that Madiba is responding better to treatment from this morning," Zuma told parliament, using the Mandela's clan name.
His announcement was greeted with loud cheers from lawmakers.
Mandela turns 95 next month and has lung problems since being diagnosed with early-stage tuberculosis in 1988.
Mandela spent 27 years in prison during white racist rule, walking free in 1990 before becoming South Africa's first black president.
His family were "deeply touched" by the outpouring of support with songs, flowers and gifts.