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Zimbabwean talks on hold

Zimbabwe's cabinet - Government-forming talks currently postponed
Zimbabwe's cabinet - Government-forming talks currently postponed

Talks to form Zimbabwe's new government have been postponed amid fears that past hostilities could continue to damage the country's shattered economy and fragile political unity.

The meeting was postponed to Wednesday due to ‘unforeseen circumstances’ but the process to appoint ministers should not be drawn out, said a spokesman for the opposition faction led by Arthur Mutambara.

Zimbabwe's former political rivals on Monday signed a historic power-sharing deal and committed themselves to free political activity, a national healing process and the restoration of economic stability.

A multi-party cabinet is to be led by veteran leader President Robert Mugabe who will retain his title and Morgan Tsvangirai in a newly created post as prime minister.

It is hoped a unity government will pave the way for Zimbabwe's shattered economy to be nursed back to health but any upturn will take time, economic analysts said.

Over the past decade, Zimbabwe's economy has collapsed with the world's highest inflation rate, chronic shortages of foreign currency and food, skyrocketing unemployment and widespread hunger.

In response to Monday's deal, the European Union left sanctions in place saying it wants to see democratic improvements, while the US said it was waiting to see the details of the deal.