Mugabe agrees historic power-sharing deal

Thabo Mbeki, South Africa's president who has mediated the talks, said Mr Mugabe's Zanu-PF and Mr Tsvangirai's Movement for Democratic Change (MDC) would sign the agreement and announce a national unity government on Monday.

"I am certain that the leadership of Zimbabwe is committed to implementing these agreements," Mr Mbeki said. "This is an outcome that comes out of decisions arrived at by the leadership of Zimbabwe.

"It's (the deal] made in Zimbabwe, by Zimbabweans; the rest of the world needs to respect that the people of Zimbabwe have taken a decision."

The agreement follows two months of negotiations between Mr Mugabe, 84 – who has ruled with an iron hand since independence from Britain in 1980 – and former union leader Mr Tsvangirai, 56, his fiercest opponent for the past decade.

They had been deadlocked over how to share power after Mr Mugabe's unopposed re-election in a June ballot boycotted by Mr Tsvangirai's MDC because of violence and condemned as a sham vote around the world.

"Out of all of that process has come an agreement that is unanimous, arrived at without any reservation by all the negotiating parties," said Mr Mbeki.

South Africa's rand currency recouped earlier losses, which had taken it to five-year lows against the dollar, after news of the deal.

However, donor countries and foreign investors, whose financing is vital to Zimbabwe's recovery, are still likely to take a cautious view of the deal.

Western governments hope executive power will rest in Mr Tsvangirai's hands and want to see how the unity government will operate before making a commitment, analysts say.

Control of security forces is one of the main concerns, along with how the new government will tackle the economic catastrophe that has led to 11 million per cent inflation and shortages of food, fuel and basic goods.

"I don't think we are out of the woods yet," said Martin Rupiyah, director of Africa Research at Cranfield University.

"There are a number of pieces that still have to fall into place. One is the role of the military.

"Also, in the recent weeks or days, there has been an upsurge in violence. The infrastructure for state-sponsored violence is still in place. I have my doubts as to how this deal will impact the structures on the ground."

Mr Tsvangirai won an initial election in March, but failed to secure an outright victory. He boycotted the run-off because of attacks on his supporters.

Zimbabweans hope a deal can allow the revival of an economy in meltdown which has driven millions of people to flee to neighbouring countries in search of work. That has strained even South Africa, the continent's biggest economy.

Mr Mugabe's critics blame him for Zimbabwe's economic collapse, with the country crippled by hyperinflation, saying policies such as seizing white-owned farms to give to landless blacks have been ruinous. In response, Mr Mugabe blames western sanctions designed to push him from office.

TIMELINE

March 29: Zimbabweans vote in presidential, parliamentary and local council elections.

April 2: MDC claims Morgan Tsvangirai won outright.

April 4: Ruling ZANU-PF party says there will be a runoff. Opposition tries to force release of all election results; court rejects demand.

May 2: Electoral Commission says Tsvangirai won most votes, but not enough to avoid runoff with Mugabe.

May 16: Electoral Commission sets runoff date as June 27.

May 17: Mr Tsvangirai postpones return to Zimbabwe from South Africa after fears of an assassination attempt.

May 24: Mr Tsvangirai returns to Zimbabwe.

June 3: Government accuses international aid groups of campaigning for the opposition.

June 22: Mr Tsvangirai pulls out of the runoff.

June 27: Second round of voting is held. Tsvangirai's name remains on the ballot.

June 29: Electoral officials say Mr Mugabe won the runoff.

September 11: Mr Mugabe and Mr Tsvangirai agree to power-sharing deal.