Zimbabwe's Tsvangirai takes office as PM

Zimbabwe's opposition leader Morgan Tsvangirai was sworn in as prime minister on Wednesday after months of wrangling with President Robert Mugabe over a power-sharing deal aimed at rescuing the ruined country.

The pact agreed in September raised hopes a new leadership could ease widespread hardships, but mistrust and continued quarrels between the old foes have put doubts over whether they can work together to ensure aid and investment flow in.

Tsvangirai, 56, was sworn in by Mugabe, 84, who has ruled with his ZANU-PF party since independence from Britain in 1980. Tsvangirai gave a little smile as he finished taking the oath in front of his old enemy, who appeared confident.

"I want to assure you that this is the only workable arrangement and I can assure you that I and my party will give it our utmost," said Tsvangirai, who cut his political teeth in the labour movement as a mine foreman.

Tsvangirai won a first round presidential poll against Mugabe last year but boycotted a subsequent run-off over violence, leading to deadlock that has worsened a crisis marked by hyper-inflation, food shortages and a cholera epidemic.

Mugabe said the parties should build on the deal "by turning our swords into ploughshares".

That may not be easy.

Implementation of the power-sharing deal only came after increased pressure from southern African countries, fearing a total meltdown in once-prosperous Zimbabwe.

The pact left Tsvangirai with the ministries most responsible for addressing 10 years of economic decline, including the finance ministry, and he will be under pressure to show Zimbabweans and foreign investors for decisive action.

"IMPERFECT SETTLEMENT"

"This is an imperfect settlement, and the balance of power favours Mugabe and ZANU-PF. Tsvangirai will probably have very little room to manoeuvre, but over time he will become as liable for the failures of the ZANU-PF government," said Aubrey Matshiqi of South Africa's Centre for Policy Studies.

"Another way of looking at it is that from an imperfect settlement may arise a lasting solution. That cannot be precluded."

Mugabe is one of Africa's craftiest political operators and analysts say he will try to outfox Tsvangirai to control policy.

Tsvangirai, a former union leader, gained respect at home and abroad for his crusade against graft and rights abuses despite spending time in Mugabe's jails.

But his leadership skills in government remain untested.

Zimbabweans hope the new government will bring policies to revive a country suffering unemployment above 90 percent, where prices double every day, half the 12 million population need food aid and a cholera epidemic has killed nearly 3,500 people.

But many remain sceptical.

"You can't talk about a unity government today and see it work tomorrow," said Peter Dzingayi, among millions of Zimbabweans who have fled abroad in search of jobs.

"Right now we do not have any hope," he said at the Johannesburg Central Methodist church, where thousands of Zimbabweans cram into halls to sleep, spilling on to the street outside.

Zimbabwe's fate depends heavily on foreign investors and Western donors, who have made clear money will come only when a new democratic government is formed and bold economic reforms are taken -- such as reversing nationalisation policies.

"Zimbabwe's journey towards recovery will be long and difficult," said EU development commissioner Louis Michel.

Mike Davies, Middle East and Africa analyst at Eurasia Group, doubted the new government would be able to fully overturn a decade of economic decay and said that unlocking aid and investment would take much longer than swearing in Tsvangirai.

While critics blame Mugabe for Zimbabwe's economic collapse, Tsvangirai, the son of a bricklayer, has not spelled out clear plans to salvage the economy.

South Africa's ruling ANC, which had called for tough action to ease Zimbabwe's political deadlock, called the inauguration a historic occasion and urged all parties to work together.