Amid rumours of ill-health, President Mugabe, 80, said 20 February he will have retired in 5 years. EU renewed sanctions against government 23 February. Government suspended acquisition of farms and claimed it wanted to clean up process of land reform. Authorities extended by up to 1 month period for which people can be detained without trial for range of political and economic crimes. Official inflation reached 622.8% p.a. in January – Reserve Bank predicting official inflation of over 700% by March. BBC claimed youth militias being trained to torture and kill at government camps.

South Africa’s President Mbeki announced 22 January that President Mugabe had agreed to formal negotiations with opposition MDC – but MDC says Mugabe not serious. Trial of MDC leader Morgan Tsvangirai for alleged plot to assassinate Mugabe resumed 19 January. Police banned MDC from launching its new economic program 29 January. Parliament amended land acquisition law to speed up land seizures. Government finally allowed Daily News to publish, after further court order. Official inflation dropped 20% to 599%; drop queried by analysts.

Further deterioration. Withdrew from Commonwealth after leaders extended suspension of Zimbabwe for additional 18 months 7 December. IMF moved to expel Zimbabwe 3 December, official inflation now 619.5%. Police shut down independent Daily News day after court allowed it to resume publication. Government backed militias committing widespread rapes and other human rights abuses. South Africa’s President Mbeki met with President Mugabe 18 December to urge negotiations with opposition MDC, but no evidence of progress.

Zimbabwe’s economy deteriorated further, government continued to deal harshly with dissent. Police now seizing foreign currency from tourists and businesses. Official inflation reached 526%, unemployment 70%. Dozens arrested and detained for several days for protesting against President Mugabe, subsequently charged and released. Commonwealth banned Mugabe from attending December heads of government meeting in Nigeria. Mugabe threatening to pull out of Commonwealth.

Suppression of dissent continues – scores arrested on 8 and 22 October for protesting deteriorating economic conditions. Inflation now 455% and rising. MDC spokesman charged with trying to overthrow President Mugabe by encouraging general strike. Daily News newspaper closed in September, reopened 25 October after court ruled closure illegal, only to be shut down again by government 27 October: directors jailed for two days before bailed. Human Rights Watch issued report accusing government of using food aid as political weapon. Mugabe announced restructure of central bank, utilities and cabinet in effort to improve economic performance. Continued speculation that Mugabe in ill health – denied by government.

Government shut down only private daily newspaper. Charged five of paper’s directors and plans to charge its journalists for operating without licence. President Mugabe to be excluded from Commonwealth Heads of Government Meeting in Nigeria in December as Zimbabwe still subject to Commonwealth sanctions. Zimbabwe's vice president, Simon Muzenda, died on 20 September. Government issued new temporary banknotes, valid only to 31 January 2004. Government plans to set up special courts to deal with economic and financial crimes.

Economy continues to deteriorate. Inflation hit 399% in July. Severe currency shortage. On 16 August law passed prohibiting hoarding of cash. Government has also moved to take control of food aid distribution, directing UN and international charities to hand food over to local officials for distribution. 3.5m currently receiving food aid, expected to increase to 5.5m by December. Opposition accused Government of rigging 30 August council elections.