April 2 (Reuters) - Below is reaction to the Zimbabwean ruling party of President Robert Mugabe losing its control of parliament after Saturday's election:

LEON MYBURGH, SUB-SAHARA AFRICA SPECIALIST, CITIGROUP

"The fact that ZANU-PF is now a minority party is very meaningful, but of course it is subject to the presidential election, and we need to see who ultimately wins the presidential election because there is of course lots of powers rested on the president as well. This is quite a huge step forward for Zimbabwe, and it does potentially bode very well for the region.

Whoever comes into power is inheriting an economic disaster, and there's going to be some very very tough decisions that need to be made by the new government in terms of how to address hyperinflation. Unfortunately, much of the measures required may not be pleasant for the electorate. There's a number of what could be viewed as unpopular measures that the government will need to take to restore normality to the economy.

Clearly the very first challenge will be to address hyperinflation. The second challenge will be to address what they do with the currency. Thirdly, the broad investor environment... This includes issues of land ownership, mineral ownership."

SEAN MCCORMACK, U.S. STATE DEPARTMENT SPOKESMAN

McCormack said the parliamentary results showed Zimbabweans had "clearly voted for change" and he questioned why there was still a delay in announcing the presidential election outcome.

"It is our strong counsel to make known the election results immediately... There very clearly was a competitive presidential election."

MIKE DAVIES, SOUTHERN AFRICA ANALYST, EURASIA GROUP

"Because Zanu PF have conceded this, in some ways it makes them conceding the presidency less likely -- although it is clear President Mugabe's position is becoming increasingly precarious. Despite the MDC's apparent initial lead, the official presidential result will likely be engineered with votes from rural areas to either force a run-off or guarantee outright victory for Mugabe. I think the security forces are going to resist any straightforward overall handover to the MDC. Mugabe will use the advantages of incumbency in any second-round against the opposition, although he may announce a successor to get political advantage that way."

CHRIS HART, ECONOMIST, INVESTMENT SOLUTIONS

"I think Zimbabwe now shifts from moving down a path of decline to a path of recovery and I think this particular result changes everything.

"However, a full recovery is probably only five to seven years away. But, I think the prospect of getting inflation under control is now a lot stronger especially as one of Tsvangirai's plans is to float the dollar -- leave it to market.

"You might still see a weakness of the currency but with inward investment coming in ... there will be an improvement. The indigenisation bill will be thrown out of the window as a key immediate improvement measure.

"The ruling party has lost their ability to apply patronage, there is no rationale to vote for them anymore (in the second round)."

"The conduct of the security forces, which have been a hindrance, will not longer be a hindrance now. Mugabe has no hope in the second round. In fact, it will be in his best interest not to stand because the scale of the actual loss would be magnified."

BRIGHT MATONGA, DEPUTY INFORMATION MINISTER, TO SKY

"We knew that this was going to be a very tight race. Whoever wins, will win by a very small margin. We don't have a problem, there is no panic here. That (the vote results) is the wish of the people and we, ZANU-PF, respect that."

"The president, right now, is in charge of Zimbabwe -- in charge of the army and the police. And if there is no outright winner (in the presidential), there will be a runoff in the next 21 days."

On whether Mugabe would accept the results: "He is a gentleman, he is professional and he understands these things, he doesn't take it personally."

RICHARD SEGAL, RENAISSANCE CAPITAL ANALYST

"It was always likely that parliamentary election results would be more transparent than the presidential vote. Given how poor the economy is, it is surprising that the ruling party has won as many seats as it has. This suggests that the ruling party may be more popular than Mugabe is and lends credence to the belief that a unity government could be formed between the different parties. Mugabe and his immediate circle would been seen as the problem rather than his party."

RICHARD DOWDEN, DIRECTOR, ROYAL AFRICAN SOCIETY, TO SKY TV

"If the president steps down while in office his successor is then elected by parliament and this was interpreted as being Mugabe's opportunity to virtually pick his own successor. This has put the kibosh on that. Even if he does survive as president, he won't be able to go at the time of his choosing and choose his own successor."

"He doesn't believe in going backwards or retreating or giving up. He's a fighter and even at 84 I think he'll have one last throw of the dice in one form or another."

(Reporting by Reuters bureaux in Harare, Johannesburg, London and Washington)

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