Zimbabwe rivals sign deal

Zimbabwe's President Robert Mugabe signed a power-sharing agreement with opposition rival Morgan Tsvangirai yesterday, giving up some of his powers for the first time in nearly three decades of iron rule. The deal followed weeks of tense negotiations to end a deep political and economic crisis compounded by the veteran leader's unopposed re-election in a widely condemned vote in June.

Under the agreement, Mr Tsvangirai will become Prime Minister.

"This agreement sees the return of hope to all our lives," Mr Tsvangirai said after the signing ceremony. Zimbabweans hope the agreement will be a first step in helping to rescue the once prosperous nation from economic collapse.

Inflation has rocketed to over 11 million per cent and millions have fled to neighbouring southern African countries.

Cheers greeted the signing of the deal at a Harare hotel by Mr Mugabe, Movement for Democratic Change (MDC) leader Mr Tsvangirai and Arthur Mutambara, who leads a breakaway faction of the MDC, the main opposition party.

The three smiling Zimbabwean leaders exchanged copies of the agreement and shook hands in front of South African President Thabo Mbeki, who brokered the deal, and other African leaders.

Raising hopes that Western support will come quickly, the International Monetary Fund encouraged the new government to show clear policy commitments to tackle the economic crisis.

"We stand ready to discuss with the new authorities their policies to stabilise the economy, improve social conditions, and reduce poverty," IMF managing director Dominique Strauss-Kahn said in a statement.

Mr Mugabe, 84, made clear he would not tone down his attacks on Western countries such as former colonial power Britain. He accuses them of backing the opposition to drive him from power.

"African problems must be solved by Africans... The problem we have had is a problem that has been created by former colonial powers," Mr Mugabe said after the signing ceremony, as Mr Tsvangirai looked uncomfortable.

But Mr Mugabe added: "We are committed to the deal. We will do our best".

Western countries want to see how the deal works in practice, but the EU said yesterday it stood ready to bring aid to Zimbabwe if the new government took measures to restore democracy and the rule of law.

British Foreign Secretary David Miliband welcomed the agreement but said its details would be studied carefully.

"The new government needs to start to rebuild the country. If it does so, Britain and the rest of the international community will be quick to support them," he said.

• Foreign Minister Tonio Borg welcomed the power-sharing agreement signed yesterday in Zimbabwe between President Robert Mugabe and Opposition Leader Morgan Tsvangirai and mediated by South African President Thabo Mbeki.

"What matters now is to resolutely tackle the country's problems. Zimbabwe urgently needs a fresh start in both political and economic terms. I hope that a framework is created soon which safeguards democratic freedoms and enables economic development," Dr Borg said.

Chronology of Zimbabwe's crisis since March elections

March 30: Opposition Movement for Democratic Change (MDC) claims victory in presidential and parliamentary elections based on early results.

April 2: Results show President Robert Mugabe's Zanu-PF lost parliamentary majority for the first time since independence in 1980.

May 2: Electoral body says MDC leader Morgan Tsvangirai won most votes in the presidential election, but not enough to avoid a run-off against Mr Mugabe. MDC challenges the result.

June 22: Mr Tsvangirai says he is pulling out of June 27 run-off vote because of attacks by Mr Mugabe's supporters on his followers.

June 27: Run-off goes head despite calls for a post-ponement from Africa and the rest of the world.

June 29: Mr Mugabe is declared winner with 85.51 per cent of the vote and sworn in for a new five-year term.

July 11: Russia and China veto a Western-backed UN Security Council resolution to impose sanctions on Zimbabwe.

July 22: The European Union agrees additional sanctions against Zimbabwean leaders. Three days later, the US expands its sanctions.

July 24: Senior negotiators from the MDC and Zanu-PF begin talks to end the deadlock over Mugabe's re-election on June 27.

September 15: Mr Mugabe, Tsvangirai and Arthur Mutambara, the head of a breakaway MDC opposition faction, sign power-sharing agreement.