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Robert Mugabe stays President and chairs Cabinet meetings. He will also head the defence and security services including the Central Intelligence Organisation, Zimbabwe's secret police. Two ceremonial vice-presidents will be Zanu (PF) appointees.
Morgan Tsvangirai, the leader of the opposition Movement for Democratic Change (MDC), will be Prime Minister and vice-chair of the Cabinet. He will also chair the Council of Ministers, which oversees the Cabinet of 31 - 15 Zanu (PF), 13 MDC and three from a breakaway wing of the MDC. If the two MDCs work together in Cabinet they will therefore have a majority. Mr Tsvangirai must also be consulted on the appointment of judges and senior officials. (Link)
While the compromise sounds fraught with potential conflict, the people of Zimbabwe are happy to have the stalemate behind them. Unknown at this point is the status of future elections. MDC has called for elections in two years while Mugabe's Zanu PF party has demanded a five year term.
News of the compromise resulted in shares of Zimbabwe focused investment groups to realize great gains in European markets today:
Shares in Zimbabwe-focused investment group LonZim (LZM.L: Quote, Profile, Research, Stock Buzz) were up more than 5 percent early on Friday from an all-time low on Thursday at a time when a deal had looked difficult.
London-listed shares in Mwana Africa (MWA.L: Quote, Profile, Research, Stock Buzz) which operates nickel mines in the country, also rose 9.8 pct in the morning. (Link)
This type of compromise has a reasonably well functioning precedent; the government of Kenya. After a close and suspect election last December, a coalition government was formed with Mwai Kibaki functioning as the President and opposition leader, Raila Odinga, became the Prime Minister.


