Ghana's Mills confident on vote

Accra - Ghanian President John Atta Mills on Monday said he was confident of winning a second four-year term this year though he conceded it had been a painful decision to cut fuel subsidies, a move that has sparked violent protests in nearby Nigeria.

Ghana, the world's second biggest cocoa producer, posted double-digit growth in 2011, thanks in part to the start up of offshore oil production, and the country is one of the more stable in West Africa.

“We have made visible progress,” Mills told a news conference, highlighting improved access to electricity and education during his three years in power.

“We have been able to maintain single digit (inflation) for the longest time in the history of this country, and interest rates (are) down. I believe the people of Ghana will recognise what we did.”

But he added that his decision in December to abandon subsidies for fuel - a move that raised pump prices by 13 percent - had been a tough one.

“It was very difficult but we had no option because the amount of subsidy we were providing could no longer continue. I wish we had other options.”

A similar move in Nigeria has sparked a wave of public and union protests that turned violent on Monday, killing two.

Mill's chances of winning a second term hinge on the state of the economy but also improving his frosty relationship with former president Jerry John Rawlings, who still wields political influence.

Mills is expected to face his 2008 rival and main opposition candidate Nana Akufo Addo in the December 2012 poll.

Ghana enjoyed a heady 2011 thanks to the start of hydrocarbon production in the Jubilee field, which UK-listed Tullow Oil estimates contains 2 billion barrels or more.

Mills said he had met with Texas-based Kosmos Energy, one of the firms working in the field, during a trip to the United States last month and had met with executives to “iron out” disagreements.

Ghana had blocked a planned multi-billion dollar sale of Kosmos' holdings to Exxon Mobil in 2010, arguing Kosmos had breached Ghana's oil code.

Mills also said that Ghana was seeking “alternatives” to an agreement struck with South Korean conglomerate STX to build 200 000 houses, which is estimated to be worth $10 billion. - Reuters