MAPUTO, Oct 24 (Reuters) - Mozambique's ruling party

Frelimo has retained power in this month's national election,

extending its five-decade rule in the Southern African state as

the opposition cried fraud.

Frelimo's Daniel Chapo, 47, will succeed President Filipe

Nyusi to become Mozambique's fifth president since its

independence from Portugal in 1975. Nyusi is stepping down after

serving the maximum two terms.

Chapo won over 70% of votes, the electoral commission said

on Thursday. Venancio Mondlane, backed by the Podemos party,

came second with 20% of votes, displacing former rebel movement

Renamo, which had been the official opposition party but whose

candidate came third this time around.

Observers have said the Oct. 9 election was not free and

fair. A European Union mission reported irregularities during

counting and alteration of results at the local and district

level, problems which have marred most polls since Frelimo first

allowed multi-party elections in 1994.

The electoral commission has declined to comment on

allegations of vote-rigging.

Mondlane, who claims he is the true winner, has already

called for nationwide protests on Thursday and Friday. Political

protests in Mozambique are usually forcefully suppressed by

police.

Chapo, a lawyer, is seen as a business-friendly choice who

analysts say is likely to maintain the status quo regarding a

fight against Islamist insurgents in the north and partnerships

with companies including Exxon Mobil ( XOM ) and TotalEnergies

which are trying to get major gas projects off the

ground.

The country of nearly 35 million is struggling with a large

debt burden and worsening climate shocks including drought and

cyclones.

(Additional reporting by Siyabonga Sishi in Maputo, and Bhargav

Acharya and Tannur Anders in Johannesburg;

Writing by Nellie Peyton;

Editing by Alexander Winning)