- President Robert Mugabe is pleading for a loan worth
hundreds of millions of dollars from Zimbabwe's neighbour South Africa
to buy food, fuel and electricity in what is being seen as a sign of the
deepening crisis afflicting the country.
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- Far-ranging negotiations are taking place between South
Africa and Zimbabwean officials that could lead to Mr Mugabe agreeing to
significant economic and political reforms, South African officials said
yesterday.
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- In what could be a turning point in resolving Zimbabwe's
crisis, South Africa's president, Thabo Mbeki, is demanding that Mr Mugabe
make substantial reforms, including an immediate halt to housing demolitions.
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- Yesterday the UN secretary-general, Kofi Annan, said
he was "increasingly concerned" by the demolitions and that he
was preparing a plan for UN action, a spokeswoman said.
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- "There has been intense interaction between the
two governments over the past few days," said Joel Netshitenzhe, a
South African government spokesman. "The discussions have focused
on the kinds of assistance that could be offered in terms of a programme
of economic recovery and a normalisation of the political situation in
Zimbabwe." Mr Netshitenzhe said a loan facility "could be under
discussion".
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- South African newspapers have reported that Zimbabwe
wants about $1bn (£570m), the amount Zimbabwean economists estimate
the government needs to provide adequate supplies of food, fuel and power
until the middle of 2006.
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- But economic sources said South Africa was more likely
to be considering a loan of between $300m and $500m. Sources say the Mbeki
government is considering a form of subsidies to South African companies
that would provide Zimbabwe with maize, petrol and electric power. The
news is a substantial shift from the South African government, which until
now had supported Mr Mugabe.
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- Needing even more financial help, Mr Mugabe will look
to his few remaining supporters in Asia. On Saturday he is to fly to China
as part of his "look east" policy.
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- Confronted by worsening shortages, Mr Mugabe came cap
in hand to the regional super-power, South Africa. High-level meetings
between Zimbabwean officials and South Africa's finance minister and central
bank were held on Friday and yesterday, according to Pretoria officials.
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- Imports of maize alone will cost the Zimbabwean government
$360m over the next year and leading finance officials in Harare say they
do not know where they will find the money. Mr Mugabe is also trying to
avoid expulsion from the International Monetary Fund and the World Bank,
to which it has not made payments on its debt of more than $300m. The Washington-based
institutions are expected to consider Zimbabwe's membership later this
month.
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- Economic reforms that South Africa will require include
a significant devaluation of the Zimbabwe currency. Another requirement
will be for Mr Mugabe's Zanu-PF party to hold talks with the opposition
Movement for Democratic Change over the constitution, conditions for elections
and human rights abuses.
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- "This is an intensification of South Africa's 'constructive
engagement' with Zimbabwe, but now we may start to see something constructive,"
said Chris Maroleng, of the Institute for Security Studies in Pretoria.
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- Mr Mbeki has avoided putting such pressure on Mr Mugabe
in the past, but he was urged to be more forceful towards Zimbabwe at the
G8 meeting in Gleneagles, said Mr Maroleng. He said: "Economically
Mugabe is vulnerable. And the fallout from the housing demolitions has
made it impossible for Mbeki to defend Mugabe."
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- Harare commentators see South Africa's tougher talk as
an important breakthrough. "This is the result of a broad international
initiative," said Iden Wetherell, an editor at the Zimbabwe Independent
and Standard newspapers. "Tony Blair met Mbeki and Kofi Annan at Gleneagles
and stressed that positive results are needed on Zimbabwe. The visit of
the UN envoy who fully investigated the housing demolitions is also part
of this initiative.
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- "Something is afoot and this time Mr Mbeki will
want to see progress. They are finally accepting that Zimbabwe's economic
and political problems are inextricably linked."
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- Guardian Unlimited © Guardian Newspapers Limited
2005
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- http://www.guardian.co.uk/zimbabwe/article/0,2763,1531544,00.html
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