Mugabe arrived at the parliament building in a chauffeur-driven Rolls Royce under heavy police and army escort, and accompanied by his smartly dressed wife Grace.
In his address to parliament, the president said his land reform programme had led to a good harvest and announced new laws tightening control over non-governmental organisations, some of which claim the contrary.
"This session takes place at a time of an ongoing socio-economic turn-around. A time of brighter prospects for our country," Mugabe said.
"Regardless of what our detractors may be saying or doing, the relatively good agricultural season has given full play to our agricultural potential already enhanced by our land reforms."
The leader of the ruling Zimbabwe African National Union - Patriotic Front (Zanu-PF), was welcomed by a military flypass of fighter jets and a parade of soldiers carrying the Zimbabwean flag and a framed picture of Mugabe.
"What enhances the overall national food security is the evident revival of our economy," Mugabe said.
"Even our most implacable critics have acknowledged this auspicious development predicated on national ingenuity, resources and effort."
His statement stands in stark contrast to assessments by non-governmental organisations and UN food agencies who say millions of citizens, especially in rural areas, need urgent food aid.
Mugabe also issued a warning to NGOs, saying "non-governmental organisations must work for the betterment of our country and not against it.
"We cannot allow them to be conduits or instruments of foreign interference in our national affairs."
He said his government would introduce a bill to "ensure the rationalisation of the macro-management of all NGOs."
Although the bill has not yet been released to the public, officials have been quoted in press reports as saying that it would impose restrictions on the activities of aid organisations in a manner similar to the strict media laws imposed on journalists by the Media and Information Commission (MIC).
Mugabe said his land reform programme would continue.
The southern African country has been hit by consecutive drought seasons but aid agencies say the situation has been exacerbated by the land reform programme that saw most whites forcibly evicted from their farms.
"A number of issues related to land reform remain outstanding. The demand for land remains and ongoing land acquisition should be able meet it," Mugabe said.
"Let me emphasise that government policy remains... Whatever irregularities have occurred in the process of land reform are now being attended to."
Turning to general elections expected in March, Mugabe said his government had proposed changes to the electoral law that would allow voting to take place on one day instead of two and counting to take place at the voting stations.
Main opposition leader Morgan Tsvangirai in a statement yesterday said few people were confident that the elections would be free and fair, a factor that could cause voter apathy.
"Electoral reform is a central part of political and democratic transformation. Electoral reform, in the case of Zimbabwe, is a serious constitutional matter.
"If Mugabe is serious about electoral reform, his regime must understand that time is running out for the setting up of independent institutions to implement the reform process," Tsvangirai said. – Sapa-AFP.
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