Zimbabwe rivals sign power-sharing deal

By MacDonald Dzirutwe

HARARE (Reuters) - Zimbabwe's President Robert Mugabe signed a power-sharing agreement with opposition rival Morgan Tsvangirai on Monday, relinquishing 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 crisis compounded by the veteran leader's disputed and unopposed re-election in a widely condemned vote in June. Under the agreement, Tsvangirai will become prime minister.

"This agreement sees the return of hope to all our lives. It is this hope that provides the foundation of this agreement that we sign today, that will provide us with the belief that we can achieve a new Zimbabwe," 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 percent and millions have fled to neighboring southern African countries.

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

But the ceremony was marred by supporters of the MDC and ruling ZANU-PF taunting each other and throwing rocks at opponents outside the venue where the signing took place.

Part of the fence around the hotel was trampled flat and police brought in two water cannons and a truckload of riot police. Police did not take any action.

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.

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," Mugabe said after the signing ceremony, as Tsvangirai looked uncomfortable.

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

WESTERN COUNTRIES WATCHFUL

Western countries are still keen to see how the deal works in practice, but the European Union said on Monday 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 in a statement.