Mwanawasa won praise abroad for tackling corruption and turning the copper-rich southern African country into one of the continent's biggest success stories, but opponents said he had failed to help most Zambians to escape poverty.

"Fellow countrymen, with deep sorrow and grief, I would like to inform the people of Zambia that our president Dr. Levy Patrick Mwanawasa died this morning at 1030 hours (0830 GMT)," Vice President Rupiah Banda said on state television.

"I also wish to inform the nation that national mourning starts today and will be for seven days."

Banda is expected to take over as Acting President, according to Zambia's Constitution, before early elections in the country of about 11.5 million.

Zambia's kwacha currency fell as much as 3 per cent on news of Mwanawasa's death. He had suffered a second stroke during an African summit in Egypt in June and was taken from there to a French hospital.

Mwanawasa built his reputation as a lawyer for the former opposition, cultivating an earthy image. He became vice-president in 1991 and stunned observers after winning the presidency in 2001 by turning on former boss Frederick Chiluba.

The International Monetary Fund and other Western donors extended billions of dollars in debt relief after he curbed government spending and launched the biggest anti-corruption drive since Zambia won independence from Britain in 1964.

But his foes said he used his anti-corruption campaign as a political weapon against opponents.

REGIONAL VOICE

Mwanawasa, from a newer generation of African leaders, had been more critical of Mugabe than presidents of many of Zimbabwe's other neighbours who had stronger connections to the era of liberation struggles.

"He showed that he had the courage to speak his own mind about issues that needed to be confronted, like Zimbabwe," said Francis Kornegay of the Centre for Policy Studies.

"Given the situation in the region losing someone like that is a loss because you need to have people like them and the more the better."

Mwanawasa once described Zimbabwe a ‘sinking Titanic’ because of its economic collapse. He called Zimbabwean elections in which Mugabe was eventually re-elected earlier this year an embarrassment to Africa.

In a statement read on his behalf to a southern African summit at the weekend, Mwanawasa said events in Zimbabwe were ‘a serious blot on the culture of democracy in our sub-region’.

At home, Mwanawasa's economic policies helped usher in strong growth, which averaged 5 per cent over the last six years, while inflation declined to single digits in April 2006, for the first time in over three decades.

Zambian Finance Minister Ng'andu Magande said there would be no policy change under new leadership.

"I am sure another captain will be found to steer the ship. The good thing is that he taught all of us how to govern this country with integrity," Magande said.

"We will surely find someone wearing the same team shirt and macroeconomic policy will continue the same way. Economic transformation will continue so we can sustain our political and economic gains."

Despite the debt relief package and major investments from China and India, Mwanawasa has battled a growing public perception that his strong fiscal record had done little to benefit most Zambians.