While Zimbabwe is making "tangible" progress, the "madness" still persists, its Prime Minister Morgan Tsvangirai said on Thursday.

"The progress is tangible. There are medicines in the hospitals, food in the supermarkets and water in the taps," he said at the "The Future of Zimbabwe Summit" in Johannesburg, hosted by UK publication The Economist.

Inflation had fallen into single digits and seven percent growth was expected for the country this year.

"But the madness has no been completely eradicated. We are in a coalition and that is difficult. I share the frustration that the pace of reforms is slow, but the pace is realistic when you consider where we've come from."

Tsvangirai was referring to the power-sharing agreement between his party, the Movement for Democratic Change and President Robert Mugabe's Zanu-PF, which came into being in February 2009, following a run-off election in June 2008.

"It's easy now to forget the madness and what was done to our country and its enormous prospects. Only in 2009 did the inclusive government begin to rebuild and restore.

"Prior to this, growth was substituted by looting and inflation destroyed pensions and even lives," Tsvangirai said.

There had been a range of "misguided" policies in place to keep the previous regime in power.

"We, the victors have now been forced to make a deal, and this was not an easy decision."

Tsvangirai said that no one would have expected him to sit down with Mugabe "and converse as human beings".

"But that is the reality of the political situation in Zimbabwe today. There is this process of conciliation."