UPDATE 3-Africa hails Ghana election as democratic success

(Adds comment from UN Secretary-General Ban Ki-moon)

By Christian Akorlie

ACCRA, Jan 4 (Reuters) - Ghana's largely peaceful and credible presidential election was a rare example of a functioning democracy in Africa and should be a model for the continent, African leaders, voters and diplomats said on Sunday.

Much attention in Africa and elsewhere was focused on the Ghanaian vote after a year of political crises, many of them violent, tarnished Africa's democratic credentials.

Opposition candidate John Atta Mills was declared the winner on Saturday after the closely fought election in the gold and cocoa exporter was settled by a run-off.

"John Atta Mills' victory and the conduct of the people of Ghana provides a rare example of democracy at work in Africa," Kenya's prime minister Raila Odinga said in a statement.

While some violence was reported, international observers say the vote was mostly peaceful, in contrast with many other African countries, where democracy was battered in 2008.

More than 1,000 people were killed in post-election violence in Kenya last year and in Zimbabwe President Robert Mugabe and opposition leader Morgan Tsvangirai have been deadlocked for months over a power-sharing agreement after disputed elections.

"Ghanaians can and should take pride in this democratic achievement. With their continuing show of commitment to the democratic process, Ghana and its leaders are setting an admirable example," U.N. Secretary-General Ban Ki-moon said in a statement.