Gov’t transfers over GH¢4bn Cocoa road debt to Finance, Roads Ministries

Cabinet has directed the immediate transfer of cocoa road liabilities amounting to GH¢4.35 billion to the Ministry of Roads and Highways and the Ministry of Finance, in a move aimed at restructuring COCOBOD’s financial commitments.

Addressing the press on Thursday, February 12, Finance Minister Dr Cassiel Ato Forson explained that the decision follows a comprehensive rationalisation of cocoa road contracts awarded over the past decade.

Between 2014 and 2024, COCOBOD awarded contracts worth GH¢26.5 billion, with GH¢21.5 billion of that figure committed between 2018 and 2021.

Dr Forson noted that under Ghana’s 2023 IMF programme, COCOBOD’s road contract exposure of GH¢21.7 billion was to be reduced to GH¢6.9 billion. However, he stated that the previous board and management failed to carry out the required rationalisation exercise.

He disclosed that the exercise has now been completed under the supervision of the Ministry of Finance and the Ministry of Roads and Highways. According to him, the joint review significantly reduced COCOBOD’s exposure on cocoa roads from GH¢21.7 billion to GH¢4.35 billion.

“Cabinet has also directed that with immediate effect, there should be a transfer of road liabilities worth 4.35 billion Ghana Cedis to the Ministry of Roads and Highways and the Ministry of Finance.”