Zimbabwean President Robert Mugabe and opposition leaders Morgan Tsvangirai and Arthur Mutambara signed a power-sharing deal in Harare today.
The agreement, brokered by South African President Thabo Mbeki, ends months of political wrangling after a widely condemned presidential election.
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 per cent and millions have fled to neighbouring southern African countries.
Under the deal Mr Tsvangirai becomes prime minister and chair a council of ministers that supervised the cabinet. Mr Mugabe's ZANU-PF will have 15 cabinet seats, Mr Tsvangirai's MDC 13 and a splinter MDC faction three seats.
"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," Mr Tsvangirai said after the signing ceremony.
Cheers greeted the signing of the deal at a Harare hotel but the ceremony was somewhat 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 Mr Mbeki, who brokered the deal, and other African leaders
Mr Mugabe (84), has ruled Zimbabwe with an iron hand since its independence from Britain in 1980 and will remain president.
Analysts say the power-sharing deal is fragile and will require former enemies to put aside their differences and work closely to overcome scepticism, especially from Western powers whose financial support will be vital for recovery.
The two political rivals met on Saturday and agreed to share out 31 cabinet posts. The powerful state security ministry was abolished while the justice portfolio was split into two and a new prisons department was formed.
The European Union has put a decision to extend sanctions against Zimbabwe on hold following the power-sharing agreement, EU foreign policy chief Javier Solana said today."The sanctions for the moment will not be taken today. The decision will probably be taken in October," he told reporters before a meeting of EU foreign ministers.
Mr Solana said the EU needed to study the details of the deal but he expected it to open "a new page" for the country.
The EU had originally planned to decide on Monday to add more names to a list of Zimbabwean officials whose assets are frozen and who are banned from travelling to Europe.
Reuters