HARARE, (Reuters) – Britain said yesterday it was  providing $100 million in aid to Zimbabwe this year, its largest  ever donation to the country, to help the new unity government  and ease a grim humanitarian crisis.

“We thought the formation of the inclusive government was a  significant step. The UK wants it to succeed. We are not holding  back and will be supporting it to the tune of $100 million this  year,” said British ambassador to Zimbabwe Mark Canning.

“We don’t want it to fail as a result of lack of financial  support,” he told reporters.

Relations between Britain and Zimbabwe have been strained  for a decade, with London accusing President Robert Mugabe of  disastrous policies such as the often violent seizure of white  farms to resettle blacks, electoral fraud and rights abuses.

But the formation of a power-sharing government by Mugabe  and rival Prime Minister Morgan Tsvangirai has raised hopes for  improved ties.

Canning said the funds would be used to restore vital  services such as water, sanitation, healthcare and education —  which has virtually collapsed after years of neglect — as well  as to provide food aid, seed and fertilizers to poor households.