Tsvangirai becomes Zimbabwe's PM

Zimbabwe's opposition leader Morgan Tsvangirai has been sworn in as prime minister in a unity government with President Robert Mugabe, BBC reported.

Mr Tsvangirai won the first round of last year's presidential election - but he withdrew from the run-off citing violence against his supporters.

However he later agreed to share power with Mr Mugabe.

Problems facing the new government include a cholera epidemic, a collapsed economy and a 90% unemployment rate.

Mr Mugabe administered the oath of office to Mr Tsvangirai in a ceremony in Harare.

Two deputy prime ministers were also sworn in: Thokozani Khupe, the deputy leader of Mr Tsvangirai's Movement for Democratic Change (MDC), and Arthur Mutambara, the leader of a break-away faction of the MDC.

The new prime minister must deal with an economy in ruins and a cholera epidemic which has killed more than 3,400 people.

Hyperinflation is causing prices to double every day and the country stopped publishing inflation figures after it was last estimated at 231m%. People are using foreign currency wherever possible.

More than half the population rely on emergency food aid.

The cabinet in the new coalition government will be sworn in on Friday.

There is deep scepticism about whether it will work, says the BBC's southern Africa correspondent, Peter Biles, in Johannesburg.

At best it will be a transitional arrangement leading eventually to a new constitution and fresh elections, he says.

On Tuesday, Mr Tsvangirai named Tendai Biti, the secretary general of his Movement for Democratic Change (MDC), as his choice for finance minister. A Zimbabwean judge last week dropped treason charges against Mr Biti over an alleged coup plot, citing lack of progress in the case against him.

Mr Biti's new position will be a key one, given the country's economic collapse.

In January, Mr Tsvangirai returned to Zimbabwe after an absence of more than two months for fresh talks with Mr Mugabe on sharing power.

Earlier negotiations had faltered after the MDC accused Mr Mugabe's Zanu-PF of keeping the most powerful ministries - including the one that controls the police - to itself.