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Zambian VP takes charge, will call fresh polls

LUSAKA
Wed Aug 20, 2008 3:57pm EDT

LUSAKA (Reuters) - Zambian Vice President Rupiah Banda, a prominent businessman, has taken over as head of government after the death of President Levy Mwanawasa and will call early elections, officials said on Wednesday.

World

Mwanawasa, 59, died in a French military hospital on Tuesday after suffering a stroke in June. He was a favorite of donors for tackling corruption and turning the southern African nation into one of the continent's economic success stories.

Cabinet Secretary Joshua Kanganja told Reuters that Banda, 72, was now running the country.

Banda, a former foreign minister who has a degree in economics, was appointed Mwanawasa's deputy in 2006 and is seen as a possible successor.

Attorney-General Mumba Malila said the government would set out Banda's role and powers as acting president.

Under Zambia's constitution, an election must be called within 90 days of the presidential office becoming vacant. The presidential term is five years.

Kanganja said Mwanawasa's body would be flown to Zambia on Sunday for burial. No date has been announced for his funeral.

Global Insight analyst Gus Selassie suggested the ruling MMD party and opposition parties might agree to delay the vote because none of them was prepared for a ballot.

"Irrespective of the timing of the election, Mwanawasa's untimely death has undoubtedly created a power vacuum both within his government and the ruling MMD, with the late president failing to groom an obvious successor," he said.

The Zambian kwacha fell for a second day on Wednesday, falling up to 5 percent against the dollar.

Mwanawasa had led Africa's biggest copper producer since 2001, winning re-election in 2006. His economic policies helped produce strong growth averaging 5 percent over the last 6 years.

ECONOMIC POLICIES

Finance Minister Ng'andu Magande said there would be no policy change under new leadership.

Foreign mining companies will be watching closely to see if Zambia will press ahead with a campaign launched by Mwanawasa to woo foreign investors.

Frederick Bantubonse, head of the Chamber of Mines of Zambia, which champions the interests of foreign mining businesses, said Mwanawasa's death threw uncertainty into the sector, the country's economic lifeblood.

"Whoever takes over will not be a carbon copy of President Mwanawasa but will come with his own policies," he said.

Many Zambians will wonder if the new leadership will do more to fight widespread poverty. Treasury data at the start of the year indicated that 65 percent of Zambians live on less than a dollar a day.

Angolan President Jose Eduardo dos Santos said Mwanawasa's death was an irreplaceable loss to his country.

"It is with great sadness ... that we pay homage to this illustrious statesman who fought for the stability and progress of the Zambian people with patriotism," the state-owned Angop news agency quoted him as saying.

Zambian newspapers and politicians also paid tribute to Mwanawasa -- a vocal critic of President Robert Mugabe of neighboring Zimbabwe -- as a champion of sound economic management and the fight against corruption.

"This is a dark day for Zambia," the state-owned Zambia Daily Mail said in an editorial. "The president's passing leaves the nation shell-shocked and grief-stricken."

Main opposition leader Michael Sata, who was reconciled with Mwanawasa in May after an acrimonious relationship, described his death as a "national disaster".

"This is the most devastating crisis ... my appeal to Zambians is to remain calm ... " Sata said.

(Writing by Gordon Bell, editing by Tim Pearce)



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