The Ghana Cocoa Board 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 the board had signed road contracts totaling GHS 26 billion over several years, many without approved budget allocations. During 2018 to 2019, contracts worth GHS 220 million and $99 million were awarded despite no funding allocations from the Public Procurement Regulatory Commission.
Between 2019 and 2020, additional contracts valued at GHS 231 million and $1.157 billion were approved without proper financial provision. According to Abbey, “Within a space of three years, COCOBOD awarded road contracts valued at about GHS 21.5 billion.”
The CEO questioned how these contracts were going to be paid for based on COCOBOD’s revenue, identifying this as the core problem facing the board. 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 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 percent of the country’s cocoa exports. The halt could potentially slow cocoa delivery, increase transport costs and affect bean quality if delays occur.
Farmers may face higher costs for alternative transport and longer travel times, which could reduce overall profitability of their harvests. Ghana exports approximately 850,000 to 1 million metric tonnes of cocoa annually, with more than 70 percent destined for European markets.
Any delays in moving cocoa to ports could affect export schedules, potentially impacting Ghana’s competitive position in global markets. The disclosure highlights how financial mismanagement at the board, particularly awarding contracts without approved funding, may have ripple effects on farmers who drive Ghana’s cocoa economy.
The massive contract values raise questions about procurement processes and oversight at COCOBOD during the period. The GHS 21.5 billion in contracts awarded over three years far exceeds typical annual budget allocations for the board, suggesting systemic failures in financial planning and control.
The suspension affects multiple cocoa producing districts across regions including Western North, Western, Central, Eastern, Ashanti and Brong Ahafo where cocoa farming concentrates. These areas have historically struggled with road infrastructure, making cocoa transportation challenging even under normal circumstances.
Poor road conditions force farmers to spend more on transportation, reducing their net incomes from cocoa sales. During rainy seasons, impassable roads can trap cocoa at farms for extended periods, leading to quality deterioration and financial losses for farmers who depend on timely sales.
COCOBOD has suspended the projects to stabilize its finances, but the coming months will show whether the halt significantly affects cocoa transport and farmer earnings. The board must balance fiscal responsibility with the infrastructure needs of farmers who generate revenue for Ghana’s second largest export commodity.
The situation underscores broader governance challenges at state enterprises where contract awards may proceed without adequate financial backing or proper procurement oversight. The lack of PPRC approved budget allocations for such substantial contracts suggests weaknesses in institutional checks and balances.
