Britain to give Zimbabwe $100 mln in aid

By Nelson Banya

HARARE (Reuters) - Britain said on Thursday it was providing $100 million in aid to Zimbabwe this year, its largest ever donation to the country, to help the new unity government and ease a grim humanitarian crisis.

"We thought the formation of the inclusive government was a significant step. The UK wants it to succeed. We are not holding back and will be supporting it to the tune of $100 million this year," said British ambassador to Zimbabwe Mike Canning.

"We don't want it to fail as a result of lack of financial support," he told reporters.

Relations between Britain and Zimbabwe have been strained for a decade, with London accusing President Robert Mugabe of disastrous policies such as the often violent seizure of white farms to resettle blacks, electoral fraud and rights abuses.

But the formation of a power-sharing government by Mugabe and rival Prime Minister Morgan Tsvangirai has raised hopes for improved ties.

Canning said the funds would be used to restore vital services such as water, sanitation, healthcare and education -- which has virtually collapsed after years of neglect -- as well as to provide food aid, seed and fertilisers to poor households.

Western donors have been reluctant to give large-scale development aid to Zimbabwe until they see more evidence of reforms being implemented.

Dave Fish, head of the UK's Department for International Development, said Britain was not yet giving direct funding to the new unity government.