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HARARE - Nigerian President Olusegun Obasanjo warned on Monday that a deal he brokered last year to stop often violent land grabs in Zimbabwe risked collapse as the worsening crisis heightened concerns among Harare's neighbours.

Obasanjo's warning came as European Union diplomats signalled that Zimbabwe's general willingness to invite foreign observers to the country's presidential election on March 9-10 was insufficient to ward off sanctions.

Obasanjo, on a brief visit to Zimbabwe, made the comments as Zimbabwean police patrolled the streets of the southern city of Bulawayo a day after at least 20 people were injured in clashes involving opponents of President Robert Mugabe.

The violence in Zimbabwe's second city on Sunday was the first major clash this year between Mugabe's supporters and the opposition ahead of the poll in which Mugabe faces the toughest challenge of his 22-year rule.

The growing crisis in Zimbabwe has raised concerns among its neighbours, including South Africa where President Thabo Mbeki said on Monday "the instability has gone on for far too long".

Obasanjo met with Mugabe and opposition politicians to discuss a deal reached in Abuja, Nigeria, in September aimed at ending a crisis spawned by the invasions of white-owned farms over the past two years by pro-government militants.

"Parties to the Abuja Agreement should work towards ensuring that the agreement does not become a dead letter and make it work," state-run radio said in commentary on Obasanjo's remarks.

Nigerian officials said talks with Mugabe also included Zimbabwe's controversial media bill -- expected to be debated in parliament on Tuesday -- which bans foreigners from working as journalists in Zimbabwe.

Mugabe accuses foreign news organisations and the private media in Zimbabwe of backing a campaign by his opponents locally and abroad to topple him in retaliation for the land seizures.

Mugabe promised regional leaders a week ago to hold free and fair presidential elections and allow foreign media and independent poll observers to cover the vote.

Western and some African governments are placing Mugabe and his lieutenants under increasing pressure over the way they are governing Zimbabwe, its human rights record and its introduction of laws seen impeding opposition to its rule.

Diplomatic sources said EU diplomats in Brussels would continue to press until next Monday for detailed, practical commitments from the Zimbabwean government to allow full EU monitoring and free media coverage of the poll.

EU officials were also preparing the ground for a possible assets freeze and visa ban against Mugabe and senior officials, diplomats said.

Mbeki told reporters in Pretoria on Monday: "The levels of poverty and conflict are increasing, and if you add to that a fraudulent election, it has to be avoided."

"The critical challenge is to do whatever needs to be done to make sure you have free and fair elections. We, this region, must do everything to assist the people of Zimbabwe," he said.

Ghana openly criticised its long-standing ally with Foreign Minister Hackman Owusu-Agyyeman accusing the Harare government of passing "oppressive laws".

Zimbabwe's economy is in its fourth straight year of recession, with inflation and unemployment at all-time highs.

The Central Statistics Office said on Monday the consumer price index rose by a record 112.1 percent in the year to December, due to higher prices for food, rent and rates.

State media reported that the government's grain board had impounded more than 36,000 tonnes of maize from commercial farmers, accusing them of hoarding and that the country was set to receive its first maize imports from South Africa.

Farmers and critics say Mugabe has largely ignored the Abuja Agreement to end the land chaos which has left nine white farmers dead, scores of black farm workers assaulted and thousands of others displaced since February 2000.

Under the pact, Harare agreed to end the invasions in return for financial help from former colonial power Britain for a fair and orderly land reform programme.

Mugabe, who insists his government is respecting the accord, says some 4,500 white farmers occupy 70 percent of Zimbabwe's best farmland. He wants to seize at least 8.3 million hectares of the 12 million in white hands.

Obasanjo said a report by a United Nations team which visited Zimbabwe in December may help move land reform forward and speed the release of British funds, state radio said.

Obasanjo also met opposition Movement for Democratic Change (MDC) leader Morgan Tsvangirai, who poses a serious challenge to Mugabe in the March polls. An MDC official said Obasanjo told Tsvangirai that Mugabe had promised him he would end the political violence which has heightened ahead of the polls.

Obasanjo's arrival on Sunday was preceded by violence in which thousands of people were teargassed when police and ruling ZANU-PF party militants broke up an MDC rally in Bulawayo. Nampa-Reuters

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