Southern Africa group to seek end to Zimbabwe crisis

JOHANNESBURG (Reuters) - Zimbabwe's political rivals are expected to resume power-sharing talks on Saturday on the sidelines of a regional summit in South Africa with pressure mounting to find a way to end the country's political crisis.

"There is one focus and it is that this matter must be resolved," South African Foreign Minister Nkosazana Dlamini Zuma said of Zimbabwe ahead of the Southern African Development Community (SADC) meeting.

South Africa's Thabo Mbeki, mandated to mediate an end to post-election turmoil in Zimbabwe, met participants in the talks on Friday. President Robert Mugabe's ZANU-PF said negotiations would continue at the two-day summit of regional leaders.

Botswana's president, Seretse Khama Ian Khama, meanwhile announced he would boycott the SADC summit to protest Mugabe's participation.

Botswana has taken the toughest stand among Zimbabwe's neighbors but all fear the consequences if its political stalemate coupled with economic decline leads to total meltdown.

Millions of Zimbabweans have already fled across the country's borders to escape the world's highest inflation rate of 2.2 million percent, widespread unemployment, and chronic shortages of food and fuel.

Months of political crisis in Zimbabwe reached a head with the June 27 run-off vote which saw Mugabe win re-election. He was unopposed because opposition leader Morgan Tsvangirai withdrew from the contest over attacks on his followers.

The poll was condemned around the world and criticized by regional election observers. The 14-member SADC urged Zimbabwe's leaders to forge an inclusive government.

Tsvangirai has said Zimbabwe's post-election government should be based on a March 29 first-round presidential election -- which he won, but not by a clear majority.

Three days of marathon discussions earlier this week between Mugabe, main Movement for Democratic Change leader Tsvangirai and breakaway MDC faction leader Arthur Mutambara ended after Tsvangirai refused to agree to a proposed power-sharing deal.

Mbeki has said he remains confident a quick resolution is still possible, raising hopes that an end to the impasse can be found at the summit.

South African labor federation COSATU -- a key ally of the country's ruling African National Congress -- will lead a march to protest Mugabe's participation at the summit.

(writing by Gordon Bell, editing by Mary Gabriel)