Zimbabwean President Robert Mugabe on Monday brandished NATO a 'terrorist' organisation over attacks in Libya, saying the military alliance wanted to kill veteran leader Moamer Kadhafi.

"So you get mad people in Europe. Mad people who refuse and reject the truth, mad people who defy international law," Mugabe told a gathering to remember fighters of the country's liberation struggle.

"Look at what they are doing in Libya, it is NATO against international law.

"That's why I say NATO is now a terrorist organisation as well. If it defies international law."

Mugabe, who has governed Zimbabwe since independence in 1980, accused Western nations of wishing to kill Kadhafi.

"It (NATO) has lost it's legitimacy, it has become terrorist and beware this they can do on any other African country than Libya. We must always be in a state of preparedness," Mugabe said.

"They seek to kill Kadhafi. They have in fact deliberately killed some of his children.

"Now when they do that deliberately, it is exactly what the Taliban and Al Qaeda do -- what is the difference in terms of what they (NATO) are doing?"

The Western coalition behind the bombings of Kadhafi's military assets, coordinated by NATO and mostly waged by France and Britain, launched its campaign under a UN mandate to protect civilians from a violent government crackdown.

The 87-year-old Mugabe also slammed former colonial ruler Britain for imposing sanctions on him and his close allies in government, and said Zimbabwe will "hit back" at over 400 British companies operating in the country.

"We cannot continue to receive the battering of sanctions without hitting back," Mugabe said.

"Why should a company that belongs to Britain be allowed to continue to mine our gold in this country?"

Mugabe, who formed a power sharing government with his former rival Prime Minister Morgan Tsvangirai in 2009, reiterated the country must hold elections after the finalisation of a constitution-making process.

Under Zimbabwe's unity accord, signed after violent and inconclusive presidential elections in 2008, a new constitution must be approved by referendum before new general elections.
The constitution-writing process is running a year behind schedule.