The New Nation - Internet Edition

Reuters, Harare

Zimbabwe's rival political parties signed a landmark power-sharing deal on Monday which means President Robert Mugabe will cede some of his powers for the first time in nearly three decades of iron rule.

Mugabe, main opposition Movement for Democratic Change (MDC) leader Morgan Tsvangirai and Arthur Mutambara-who heads a breakaway MDC faction-signed the agreement at a hotel in the capital, Harare, after weeks of tense negotiations.

Under the deal, Tsvangirai will become prime minister and chair a council of ministers supervising the cabinet. 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 percent and millions have fled to neighboring southern African countries.

The audience cheered as the agreement was signed in front of African leaders including Tanzania's Jakaya Kikwete, chairman of the African Union, Swaziland's King Mswati III and South African President Thabo Mbeki, who brokered the deal.

The three smiling Zimbabwean leaders exchanged copies of the agreement and shook hands.

Mugabe and Tsvangirai last week agreed the deal to end a deep political crisis compounded by the veteran leader's disputed and unopposed re-election in June.

The deal is expected to split control of the powerful security forces that have been key backers of Mugabe.

The president, a former guerrilla commander, is likely to retain command of Zimbabwe's strong army, but the MDC wants to run the police force.

Mugabe's ZANU-PF will have 15 cabinet seats, Tsvangirai's MDC 13 and a splinter MDC faction three seats.

Mugabe, 84, who has ruled Zimbabwe since independence from Britain in 1980, will remain president and head the cabinet.