Government Transfers GH¢4.35bn Cocoa Road Debt from COCOBOD to Roads and Finance Ministries

The Government has approved the transfer of GH¢4.35 billion in cocoa road liabilities from the Ghana Cocoa Board to the Ministry of Roads and Highways and the Ministry of Finance, following a comprehensive rationalisation exercise aimed at easing the Board’s financial burden.

Finance Minister, Dr Cassiel Ato Forson, announced that Cabinet has directed that the outstanding amount be moved to the two ministries for settlement. According to him, the decision forms part of efforts to restructure COCOBOD’s finances and restore stability to the cocoa sector.

Dr Forson disclosed that a joint review conducted by the Ministry of Finance and the Ministry of Roads and Highways significantly reduced the original liability from GH¢21.7 billion to GH¢4.35 billion. He explained that road construction projects undertaken over the years had contributed heavily to COCOBOD’s financial difficulties.

Between 2014 and 2024, COCOBOD accumulated substantial debts to contractors engaged in cocoa road projects. The Minister revealed that contracts worth GH¢21.5 billion were awarded between 2018 and 2021 alone, increasing the Board’s financial exposure.

He stated that the rationalisation process has now been completed, cutting down the liabilities and positioning COCOBOD to regain financial strength. The transfer of the remaining debt, he said, will allow the Board to concentrate on its core responsibility of purchasing and marketing cocoa.

As part of broader reforms in the sector, Dr Forson also announced that Government has secured a US$500 million facility from the World Bank to support agricultural road construction, including cocoa roads. The facility is expected to finance future road projects and prevent a recurrence of the financial strain previously placed on COCOBOD.