Robert Mugabe returned from the UN yesterday promising a coalition government would be named soon.
A power-sharing deal he signed with his rivals in the Movement for Democratic Change has stalled over the allocation of key cabinet posts.
Mothers with babies strapped to their backs arrived at dawn to get at their savings while campaigners called for the withdrawal cap to be scrapped.
Cash-flow problem: Zimbabwe’s Prime Minister-designate Morgan Tsvangirai talking to people outside the Stanbic Bank in Harare during a tour to assess the cash shortages facing the country.
On Saturday, central bank governor Gideon Gono vowed to keep printing money despite warnings that the practice is fuelling inflation.
Getting the long-promised government up and running is seen as a first step to addressing the southern African nation’s growing economic and humanitarian crisis.
But with his absence, a power-sharing deal he signed with his rivals in the Movement for Democratic Change has stalled. The two sides have been unable to agree which party would control key Cabinet posts, among them the Finance Ministry.
Mugabe, 84, said: ‘We never said there was a deadlock. But we will be setting up a government toward the end of the week.’
He also warned US ambassador James McGee, an outspoken critic, to stop ‘interfering’ in domestic matters.
Mugabe’s rival, Morgan Tsvangirai, who is to be prime minister in the unity government, has said a new government must be formed within days to avert a humanitarian crisis.