Ghana reintroduces road tolls with 70 percent government revenue share

    Parliament approves 20-year concession for electronic tolling system across 66 locations.

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    Ghana's Parliament has approved the reintroduction of road and bridge tolls, which were abolished in 2022. This decision follows a 20-year concession agreement between the Government of Ghana and a Special Purpose Vehicle (SPV) to be incorporated by Rock Africa Limited (RAL).

    The concession includes a three-year period for design and construction, followed by a 17-year phase for operation and maintenance. The new system will deploy a nationwide Multi-Lane Free Flow Electronic Tolling System across 66 tolling locations. These locations comprise 38 existing toll sites and 28 newly identified strategic areas.

    This reintroduction marks a significant shift in Ghana's infrastructure financing strategy. The previous administration abolished road tolls in 2022, citing concerns about traffic congestion and the burden on citizens alongside the E-Levy. The current move aims to generate crucial revenue for road maintenance and development, a persistent challenge for the nation's infrastructure.

    The Roads and Transport Committee of Parliament described the agreement as a pragmatic step. It aims to ensure the long-term sustainability of the road sector. The Committee urged the Ministry of Roads and Highways and the implementing agency to manage the project transparently and efficiently.

    Under the revenue-sharing arrangement, the government will receive 70 percent of all toll revenue. The concessionaire, Rock Africa Limited's SPV, will receive the remaining 30 percent. This structure is designed to provide a steady income stream for the state while incentivizing the private partner.

    The project encompasses the design, financing, construction, and operation of toll gantries. It also includes the installation of electronic tolling equipment, establishment of a central back office, and a traffic management centre. Customer service centres and enforcement systems will also be part of the comprehensive setup.

    Toll rates will be approved under the Fees and Charges (Miscellaneous Provisions) (Amendment) Regulations, 2025 (L.I. 2512). These rates will undergo review every four years, based on the Consumer Price Index, to account for inflation and economic changes. This mechanism aims to maintain the real value of the toll revenue over time.

    Mr. Kennedy Osei Nyarko, Ranking Member of the Committee and MP for Akim Swedru, stated that the electronic tolling system would enable the Ghana Road Maintenance Trust Fund to mobilize necessary resources. This fund is crucial for maintaining the country's extensive road network. The MP for Bimbilla, Mr. Dominic Nitiwul, confirmed the Minority Caucus's support for the reintroduction. He noted that a similar proposal had been accepted by Cabinet previously.

    The electronic system is expected to significantly reduce congestion at toll points. It will also eliminate inefficiencies associated with the manual collection system. The Committee recommended a nationwide public sensitisation campaign before the system becomes operational. This campaign will promote public awareness and ensure compliance. Additionally, the installation of automatic weight detection systems at toll points was proposed to monitor overloaded trucks, which contribute to road damage.

    The reintroduction of tolls, particularly with an electronic system, signals Ghana's commitment to modernizing its infrastructure funding. It also reflects a strategic pivot towards public-private partnerships to address development needs. The success of this initiative will depend on effective implementation, transparent management, and public acceptance.

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