Fate of Zimbabwe central bank governor key to aid

By Michael Georgy

JOHANNESBURG (Reuters) - Western donors who see the removal of Zimbabwe's central bank governor as a key condition for resuming aid can expect a messy power struggle that could further delay moves to rescue the ruined country.

The new unity administration will depend heavily on foreign cash to rebuild an economy that critics says President Robert Mugabe and his central bank governor, Gideon Gono, have brought to its knees through reckless policies.

Western countries are looking for signs that Prime Minister Morgan Tsvangirai, Mugabe's old foe, has managed to put control of the economy under new Finance Minister Tendai Biti, also from the opposition, before letting funds flow.

"A prior condition is of course Tendai Biti getting rid of Gideon Gono and creating economic space for this to happen," said one senior Western diplomat. "As and when it does happen we will help."

Gono's term has spanned the collapse of once-prosperous Zimbabwe, now short of basic goods and with an inflation rate of 231 million percent -- according to the last published figures but believed to be far higher.

Tsvangirai has said it would cost as much as $5 billion to repair the economy.

Mugabe's very close ally is unlikely to go without a fight, however, especially as the president manoeuvres to gain an upper hand for his ZANU-PF party in the new government. Mugabe re-appointed Gono last November for another five-year term.

"I think pushing Gono out will be difficult, as the move would significantly undermine a pillar of ZANU-PF's staying power," said Mark Schroeder, southern Africa analyst at global intelligence company Stratfor.