The government through the Ministry of Roads and Highways has assumed GH¢4.35 billion in cocoa roads liabilities previously carried by COCOBOD.
The announcement came as Finance Minister Dr. Cassiel Ato Forson outlined a sweeping package of reforms aimed at ensuring financial viability and long-term sustainability for the industry.
Speaking on the reforms on February 12, Dr. Forson said, “Cabinet has also directed the transfer of cocoa roads liabilities of GH¢4.35 billion to the Ministry of Roads and Highways.” This transfer follows a comprehensive rationalization exercise jointly conducted by COCOBOD and the Ministry of Roads, which reduced total road-related exposure from GH¢21.7 billion to GH¢4.35 billion.
The move addresses a long-standing source of financial strain on COCOBOD. Between 2014 and 2024, the board awarded cocoa roads contracts totaling GH¢26.5 billion, with nearly GH¢21.5 billion contracted over just three crop seasons — 2018/19, 2019/20, and 2020/21. Previous efforts under the IMF programme to rationalize these commitments had stalled, leaving the new administration to finalize the process.
Dr. Forson emphasized the broader vision of the reforms for farmers and the sector, stating, “Government wishes to convey its sincere appreciation to Ghanaian cocoa farmers and all stakeholders for their forbearance and sacrifice over the years, and wish to assure them that these reforms will protect the interest of the cocoa farmer and transform the sector.”
Beyond the cocoa roads restructuring, the reforms include the immediate payment of all affected farmers, a revised producer price to reflect world market fluctuations, and the introduction of a new financing model using domestic Cocoa Bonds.
Cabinet has also mandated that at least 50% of cocoa beans be processed locally from the 2026/27 crop season, with the state-owned Cocoa Processing Company to be revived as the leading processor.
The government has further secured a US$500 million World Bank facility to construct agricultural roads in cocoa-growing areas, ensuring that infrastructure development continues without burdening COCOBOD.
The sweeping package marks a clear shift in policy, separating COCOBOD’s core cocoa operations from quasi-fiscal and non-core expenditures while strengthening the sector’s financial base.
