Harare - The International Monetary Fund (IMF) on Monday said that more than 70 per cent of Zimbabweans were in need of food aid as the country's economic outlook remains "uncertain."

"Poverty and unemployment have risen to catastrophic levels, with 70 per cent of the population in need of food assistance and a cholera epidemic ravaging the country. These disastrous outcomes have resulted from poor policies and weak governance," the IMF report stated.

The report, presented at the organization's board meeting, follows the IMF's mission to Zimbabwe that took place from March 9 - 24.

The IMF said Zimbabwe required at least 200 million US dollars in budgetary support, and between 200 and 300 million US dollars for humanitarian assistance in the areas of food relief, health and education.

A cholera outbreak, Zimbabwe's worst ever, has claimed more than 4,000 lives and is still out of control as the country fails to import adequate stocks of water-treating chemicals, the report stated.

The Fund also expressed concern on the state of the inclusive government formed in February by President Robert Mugabe and his longtime rival Morgan Tsvangirai.

"Political disagreements among coalition partners may emerge, potentially resulting in policy reversals. Budget revenue and foreign financing shortfalls could lead to a large compression in expenditure, which, in turn, may trigger social unrest," the IMF said.

"Strong policies, better governance, and donor support are critical for a successful reconstruction of the country's repayment capacity," said the report continued.

The IMF said Zimbabwe's external debt had ballooned to 5.1 billion US dollars as of December 2008. (dpa)