The Ghana Cocoa Board (COCOBOD) has suspended road projects in cocoa-producing districts due to financial constraints, a move that could have serious implications for farmers who form the backbone of the country’s cocoa industry.
COCOBOD CEO Randy Abbey revealed that the board had signed road contracts totaling GHS26 billion over several years, many without approved budget allocations. During 2018–2019, contracts worth GHS220 million and $99 million were awarded despite no funding allocations from the Public Procurement Regulatory Commission (PPRC).
Between 2019 and 2020, additional contracts valued at GHS231 million and $1.157 billion were approved without proper financial provision. “So within a space of three years, COCOBOD awarded road contracts valued at about GHS21.5 billion. The question is: how were these contracts going to be paid for based on COCOBOD’s revenue? This is the problem,” Abbey said.
The suspension comes amid broader challenges in Ghana’s road network, particularly in rural cocoa-growing areas, where roads are often poorly maintained or impassable, especially during the rainy season. Cocoa farmers rely heavily on these roads to transport beans from farms to collection points and onward to major ports like Tema and Takoradi, which handle over 95% of the country’s cocoa exports.
While the halt is meant to address COCOBOD’s financial strain, it could potentially slow the delivery of cocoa, increase transport costs, and affect the quality of beans if delays occur. Farmers may face higher costs for alternative transport and longer travel times, which could reduce the overall profitability of their harvests.
Ghana exports approximately 850,000 to 1 million metric tonnes of cocoa annually, with more than 70% destined for European markets. Any delays in moving cocoa to ports could affect export schedules, potentially impacting Ghana’s competitive position in global markets.
COCOBOD’s disclosure highlights how financial mismanagement at the board, particularly the awarding of contracts without approved funding, may have ripple effects on the farmers who drive Ghana’s cocoa economy.
The board has suspended the projects to stabilize its finances, but the coming months will show whether the halt significantly affects cocoa transport and farmer earnings, particularly in regions already challenged by poor road conditions.
