By Cris Chinaka and MacDonald Dzirutwe
HARARE (Reuters) - President Robert Mugabe and oppositionleader Morgan Tsvangirai agreed to share power on Thursday in adeal to end Zimbabwe's political crisis, both sides said.
South African President Thabo Mbeki, who has mediated thetalks, said Mugabe's ZANU-PF and Tsvangirai's MDC wouldannounce a national unity government on Monday, raising hopesfor easing a devastating economic crisis that has strained theregion.
"I am absolutely certain that the leadership of Zimbabwe iscommitted to implementing these agreements, Mbeki said. "Thisis an outcome that comes out of decisions arrived at by theleadership of Zimbabwe," Mbeki said.
The agreement follows two months of negotiations betweenMugabe, 84, who has ruled with an iron hand since independencefrom Britain in 1980, and former union leader Tsvangirai, 56,his fiercest opponent for the past decade.
They had been deadlocked over how to share power afterMugabe's unopposed re-election in a June ballot that wasboycotted by Tsvangirai's Movement for Democratic Change (MDC)because of violence and condemned around the world.
"In the end, out of all of that process, has come anagreement that is a unanimous agreement, arrived at without anyreservation by all the negotiating parties," said Mbeki, whomay now be credited with a diplomatic coup.
The crisis has had a regional impact and South Africa'srand currency recouped earlier losses, which had taken it tofive-year lows against the dollar, after news of the deal.
Donor countries and foreign investors, whose financing isvital to Zimbabwe's recovery, are still likely to take acautious view of the deal.
Western powers hope executive power will rest inTsvangirai's hands and want to see how the unity governmentwill actually operate before making a commitment, analysts say.
DOUBTS
Control of security forces is one of the main concerns,along with how the new government will go about tackling theeconomic catastrophe that has led to 11 million percentinflation and shortages of food, fuel and basic goods.
"I don't think we are out of the woods yet," said MartinRupiyah, Director of Africa Research at Cranfield University.
"There are a number of pieces that still have to fall intoplace. One is the role of the military. That still has to beaddressed directly.
"Also in the recent weeks or days there has been an upsurgein violence. The infrastructure for state-sponsored violence isstill in place. I still have my doubts as to how this deal willimpact the structures on the ground."
Tsvangirai won an initial election in March but failed tosecure an outright victory. He boycotted the run-off because ofattacks on his supporters.
Zimbabweans hope a deal can allow the revival of an economyin meltdown that has driven millions of people to flee toneighbouring countries in search of work. That has strainedeven South Africa, the continent's biggest economy.
"In terms of investment, the very short term will not havemuch of an impact on Zimbabwe right now," said Alvise Marino,Emerging Markets Economist at Ideaglobal.
"In terms of immediate market reaction we'll see it I thinkin South Africa on the rand most probably."
Mugabe's critics blame him for Zimbabwe's economiccollapse, saying policies such as seizing white-owned farms togive to landless blacks have been ruinous. He blames Westernsanctions designed to push him from office.
Mbeki said a formal signing ceremony of the power-sharingdeal, to be attended by regional leaders, was expected inHarare on Monday. A breakaway opposition faction has also beenpart of negotiations.
"It's (the deal) made in Zimbabwe, it's made byZimbabweans, the rest of the world needs to respect that thepeople of Zimbabwe have taken a decision about their owncountry," Mbeki said.
Mbeki, his power waning at home as he prepares to leaveoffice next year, had faced criticism for being too soft onMugabe.
(Additional reporting by Stella Mapenzauswa in Johannesburgand Matthew Tostevin in London; Writing by Michael Georgy;Editing by Marius Bosch)
