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Updated Monday, February 1, 2010 10:57 am TWN, By Tim Witcher, AFP

Mugabe factor hits hopes of ending sanctions

The president of Zimbabwe Robert Mugabe at the U.N. Conference Hall in Addis Ababa, Ethiopia, yesterday, for the 14th Ordinary Session of the Assembly of the African Union. (AP)

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Mugabe factor hits hopes of ending sanctions

Tsvangirai insisted there has been “significant progress” with the government's dual aims of stabilizing the country and “national healing” changes to improve democracy and make constitutional reform.

The Zimbabwe dollar was eradicated in favor of a multi-currency regime. Inflation, once estimated in the billions of percent, is now minus three percent, said the Prime Minister. “We are in a deflationary state.”

Tsvangirai said there can be no new Zimbabwe currency for at least two or three years until the country's production base is functioning again.

On the political front, he said a constitutional referendum would be held in October and then he and Mugabe would set a date for elections in 2011.

“We have done so much in so little time,” he said. “However I would be the last to say that everything is rosy” and acknowledged international “skepticism” at the slow pace of implementing political change.

But he said: “This is a delicate moment, to support the process that is taking part in Zimbabwe.”

“We are not sliding back. Suddenly the country is moving forward and now is the time to look at the country in a more positive environment.”

The European Union meets on February 20 to discuss Zimbabwe. Tsvangirai would like them to take “a two stage approach” to ease some sanctions and acknowledge progress has been made.

He also wants foreign companies to return to Zimbabwe and is keen to renew links with China. The mining, tourism and agriculture sectors are all important to the government.

There is platinum, gold, diamonds and huge coal deposits in Zimbabwe, Tsvangirai said, adding that there is no limitation of profits being taken out of the country.

China broke off a business relationship with Mugabe's party about five years ago, Tsvangirai said, but now China wants to renew links.

“They have said they will work with the inclusive government. What it means is that we will have to revisit some of the projects that were suspended five years ago.”

Tsvangirai called it a key relationship. “Who wants to avoid one of the biggest developing economies in the world?” he declared.

“Zimbabwe has to open up to all possibilities and I think that China is one of those possibilities.”

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