LUSAKA, Oct 24: Africa must move away from conflicts and begin to pool its resources to develop the impoverished continent and reduce poverty, South African President Thabo Mbeki said on Sunday.

Speaking after a military display marking Zambia's 40th anniversary of independence, Mbeki told guests at President Levy Mwanawasa's official residence that democratic rule was key to the development of the world's poorest continent.

"Time has come when none of our countries can be prosperous unless all of us prosper," he said.

"The new challenges that all of us face on the continent are challenges of peace, democracy and development, poverty alleviation ... beyond the conflicts we have to respond to these other challenges," he said.

Mbeki paid tribute to Zambia's role in ensuring that apartheid in neighbouring South Africa was dismantled, adding he understood the sacrifice the country made because he lived in Zambia in exile for 20 years.

"We owe Zambia a lot ... we want to work with the Zambian people side by side so that we can help to resolve the challenges of poverty and development just like you worked with us to achieve democratic rule," he said.

Mbeki was the chief guest at Zambia's celebrations, which were also attended by Rwanda's President Paul Kagame.

Earlier, thousands of spectators in Lusaka's freedom square watched fighter jets, helicopters and rescue planes flying overhead while military vehicles drove by the three African leaders, standing in salute.

Mbeki urged African nations to pursue the New Partnership for African Development (NEPAD), a home-grown economic recovery plan aimed at attracting more foreign investment.

"We have a common duty to bring together our resources to respond to the challenge of our time under NEPAD," he said.

Mbeki said the peace prevailing in the Great Lakes region should be consolidated to focus energies on development and democratic governance on the continent.

An initial peace deal reached by Congolese rebels and government forces, along with Rwanda, Uganda and Zimbabwe in Lusaka had brought stability to the entire region, he said.-Reuters