Mugabe swears in new cabinet to tackle economy

HARARE, Zimbabwe (Reuters) -- Zimbabwean President Robert Mugabe on Thursday swore in a new cabinet made up mostly of young technocrats whose task will be to pull the economy out of its worst crisis in decades.

Mugabe swore in the cabinet ministers, junior ministers and provincial governors at a ceremony in State House before he was due to open a new parliament in which his ruling ZANU-PF party's overwhelming dominance has been tempered by the opposition.

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Former cabinet minister and executive director of the regional Southern African Development Community Simba Makoni was not there to take his oath as new finance and economic development minister.

Makoni faces a challenge in pulling Zimbabwe's economy out of a crisis that has seen inflation and interest rates soar to around 60 percent, while an acute foreign currency shortage threatens the viability of many businesses in a country with an unemployment rate of over 50 percent.

Joseph Made, head of the state Agricultural Rural Development Authority, was sworn in to head the ministry of agriculture, responsible for managing the controversial land seizure programme.

Businessman Nkosana Moyo was named to the ministry of industry and international trade.

Mugabe dropped several long-serving members of his government, including former Justice Minister Emmerson Mnangangwa, minister without portfolio Eddison Zvobgo and former agriculture minister Kumbirai Kangai, who had been in his cabinet since 1980.

But Mnangagwa, widely seen as Mugabe's heir, was elected to the key post of speaker of parliament, quelling speculation that he had lost favor with the president.

Analysts say the newcomers in government will find it hard to push through policy changes necessary to win back crucial Western donor support since power still rests firmly with Mugabe and the ruling party's supreme policy-making politburo.

ZANU-PF won 62 of 120 contested seats in the June polls while the main opposition Movement for Democratic Change (MDC) took 57, with the other going to a smaller opposition party.

The ruling party has boosted its majority with 30 seats allocated to presidential appointees, traditional chiefs and provincial governors.

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