President Robert Mugabe and opposition leader Morgan Tsvangirai have signed an agreement which will see them share power in Zimbabwe. The political rivals signed the historic document at a hotel in the capital, Harare, after agreeing to a pact to end a deep crisis compounded by the veteran leader's disputed and unopposed re-election in June. The audience cheered as the agreement was signed in front of African leaders including Tanzania's Jakaya Kikwete, chairman of the African Union, Swaziland's King Mswati III and South African President Thabo Mbeki. The landmark deal means Mr Mugabe will cede some of his powers for the first time in nearly three decades of iron rule, after the country's independence from Britain in 1980. Under the deal, brokered by Mr Mbeki, Mr Tsvangirai will become prime minister and chair a council of ministers supervising the cabinet. Zimbabweans hope the agreement will be a first step in helping to rescue the once prosperous nation from economic collapse. Inflation has rocketed to over 11 million per cent and millions have fled to neighbouring southern African countries. Analysts say the power-sharing deal is shaky and will require former enemies to put aside their differences and work closely to overcome scepticism, especially from Western powers whose financial support will be vital for recovery. The European Union said it stood ready to bring aid to Zimbabwe if the new government took measures to restore democracy and rule of law. EU foreign ministers said in a joint statement: "The EU is ready notably to adopt a series of measures of economic support and help to a transition government that took measures to restore democracy and rule of law in Zimbabwe, notably by organising transparent and pluralistic elections."