Cocoa roads development in key cocoa growing communities of Ghana has halted on the back of conditionalities associated with a 3 billion dollar IMF loan.
The resource rich West African country last Auguest returned to the Bretton Woods lender for the 17th time since independence in 1957
Conditionality
5. Structural Reforms to Ensure Cocobod Financial Viability. Cocoa roads necessary for the evacuation of cocoa beans from hard-to-reach farming communities
State of roads takes a toll on the fleet of cocoa haulage transport companies
Commitments/Actions
Publish a turnaround strategy, approved by Cabinet, for Cocobod by end June 2023
Explanation/Targets
This strategy will include an immediate announcement of joint ministerial supervision of COCOBOD by the MoF and the Ministry of Agriculture, a legally binding framework for setting a producer purchase price (PPP) that guarantees a revenue stream sufficient to recover the Board’s operational and financial costs, announcing cost rationalization measures, including a functional review of all departments and subsidiaries of the Board to identify the scope for cost cutting, and phasing out of quasi fiscal spending of the Board.
Risks
Resistance to change, lack of capacity, and potential unintended consequences of the reforms.
Not achieving the desired level of financial viability for Cocobod.
GHS12 billion investment in cocoa roads sits on the books
Cocoa growing communities yearning for cocoa roads must brace up to wait a while longer, at least until 2026 when the country will complete the IMF programme
